Canadian Natural Resources Limited CNQ is set to release second-quarter 2026 results on Aug. 6. The Zacks Consensus Estimate for earnings is pegged at $1.43 per share on revenues of $9.25 billion.
Let us delve into the factors that might have influenced CNQ’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.
Highlights of CNQ’s Q1 Earnings & Surprise History
In the last reported quarter, the Calgary-based oil and gas equipment and services company’s earnings beat the consensus mark due to strong operational performance and higher realized natural gas prices. CNQ reported adjusted earnings per share of 85 cents, beating the Zacks Consensus Estimate of 74 cents. Total revenues of $7.9 billion increased from $7.6 billion in the prior-year period, fueled by increased production volumes.
The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 14.23%.
This is depicted in the chart below:
Canadian Natural Resources Limited Price and EPS Surprise
Canadian Natural Resources Limited price-eps-surprise | Canadian Natural Resources Limited Quote
Trend in CNQ’s Estimate Revision
The Zacks Consensus Estimate for second-quarter 2026 earnings has remained unchanged over the past seven days, with no upward revisions and one downward movement. The estimated figure indicates an 180.39% year-over-year increase. The Zacks Consensus Estimate for revenues implies a 47.16% increase from the year-ago period.
Factors to Consider Ahead of CNQ’s Q2 Results
CNQ’s total revenues are likely to have increased in the quarter to be reported. The Zacks Consensus Estimate for second-quarter revenues is expected to have increased from the year-ago quarter’s level. Unlike shale producers that depend on rapid drilling, CNQ generates stable production from long-life assets. Canadian Natural Resources' second-quarter results are likely to benefit from higher realized prices for its premium Synthetic Crude Oil (“SCO”).
The geopolitical tensions in the Middle East lifted global crude benchmarks during the quarter, while CNQ's oil sands mining and upgrading business produces SCO, which typically commands a premium to WTI. Given that synthetic crude accounts for a significant portion of the company's liquids production, stronger SCO realizations are likely to have supported revenues, margins and cash flows in the quarter.
On the bearish side, higher costs are expected to have dented CNQ's bottom line. Canadian Natural Resources' first-quarter total costs and expenses were 15.4% higher than the prior-year quarter’s reported figure, and this upward trend is expected to have persisted in the quarter to be reported. We expect total costs and expenses to have increased year over year in the second quarter, following an increase in the first quarter. Higher production costs, transportation expenses, depletion, depreciation and amortization, administration expenses, share-based compensation, and interest and other financing expenses, coupled with ongoing inflationary pressures, might have continued to pressure margins.
What Does Our Model Predict for CNQ?
Our proven Zacks model does not conclusively predict an earnings beat for CNQ this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, this is not the case here.
Earnings ESP of CNQ: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
CNQ’s Zacks Rank: CNQ currently carries a Zacks Rank #3.
Stocks to Consider
Here are a few firms from other sectors that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.
Alcon ALC has an Earnings ESP of +3.13% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug. 10, 2026. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alcon is a global eye care company that develops and manufactures surgical equipment, contact lenses and vision care products for patients and eye care professionals worldwide. The company's earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed it in the other one, delivering an average surprise of 3.66%.
Ferguson Enterprises Inc. FERG has an Earnings ESP of +1.22% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug. 10, 2026.
Ferguson is a leading value-added distributor of plumbing, HVAC, waterworks and other infrastructure products serving residential and commercial customers. It operates primarily in North America. Fergusonis valued at $45.45 billion.
NIQ Global Intelligence plc NIQ has an Earnings ESP of +1.94% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug. 10.
NIQ Global Intelligence is a consumer intelligence company that provides market measurement, analytics and insights to help businesses understand consumer behavior and make data-driven decisions. The company is valued at $3.30 billion.
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Canadian Natural Resources Limited (CNQ): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).