Exxon Mobil Posts $17.505 Billion in Adjusted Earnings, Bolstered by Refining Boom
Key Facts
Exxon Mobil reported adjusted earnings of $17.505 billion in the third quarter of 2026, up $2.825 billion from the second quarter, according to the company’s results. Net income under U.S. accounting standards was $15.413 billion, compared with $14.525 billion in the previous quarter. Adjusted earnings per share were $4.23, topping the average analyst estimate of $4.08, according to estimates compiled by the London Stock Exchange Group and cited by Reuters. Total adjusted earnings also exceeded analysts’ estimate of $16.6 billion. Revenue rose 33% to $113.16 billion in the three months ended in September, also topping expectations, according to the Associated Press.
The quarterly increase in adjusted earnings was driven by the energy products segment, whose profit rose to $9.053 billion from $4.099 billion in the second quarter. By contrast, adjusted upstream profit fell to $7.308 billion from $9.189 billion. The company said improved energy products results reflected higher margins and strong operating performance, while upstream profit declined because of lower prices and the accelerating impact of production maturity in Guyana. Refinery operating indicators included 100% utilization of crude units on the U.S. Gulf Coast during the quarter. Diesel production in the region also reached its second-highest level ever, the company said.
Reuters said upstream earnings fell 20% from the previous quarter as Brent crude prices declined. The agency linked higher refining margins to the U.S.-Israeli war on Iran and Ukrainian strikes on Russian refineries, which disrupted fuel production capacity and tightened global diesel supplies. In the U.S. market, diesel was priced at about $6.32 a gallon, up 71% from a year earlier, according to the Associated Press. The agency said Brent and U.S. benchmark crude rose above $100 a barrel on Friday, October 30, amid shipping disruptions through the Strait of Hormuz linked to the conflict with Iran. These developments reflect a market environment that benefited refining operations while upstream production faced price pressure.
Upstream production was 4.496 million oil-equivalent barrels per day in the third quarter, compared with 4.514 million in the second quarter. Exxon Mobil said cumulative production reached 1 billion barrels in both Guyana and the Kearl project. On refining, Chief Executive Darren Woods said the company’s investments, including the Beaumont refinery expansion, helped increase distillate production by about 40% since 2019. For the first nine months of 2026, adjusted earnings were $40.957 billion, compared with $22.457 billion in the same period of 2025. That represents a year-on-year increase of $18.500 billion.
Cash flow from operating activities was $25.7 billion in the third quarter, while free cash flow reached $19.1 billion. The company returned $9.4 billion to shareholders during the quarter, including $4.3 billion in cash dividends and $5.1 billion through share repurchases. Exxon Mobil said it has recorded 44 consecutive years of annual per-share dividend increases, a streak longer than that of 95% of S&P 500 companies. It declared a fourth-quarter dividend of $1.07 per share, payable on December 10, 2026, to shareholders of record on November 16. It also announced a $20 billion share repurchase program for 2027, subject to reasonable market conditions.
Exxon shares rose 1.3% in morning trading on October 30, according to the Associated Press. The stock had gained 64% over the 12 months through that date, the agency said. The move followed quarterly results that topped analyst estimates, alongside mixed performance across the company’s businesses, with strength in energy products and a decline in upstream. Higher refining earnings were a key factor in the increase in adjusted earnings from the previous quarter. The announced 2027 buyback program, along with the next dividend payment date in December, sets out the upcoming cash returns to shareholders as part of the results announcement.