ExxonMobil Posts Adjusted Third-Quarter Profit of $17.5 Billion, Beating Expectations
Key Facts
ExxonMobil reported adjusted earnings of $17.5 billion, or $4.23 per share, in the third quarter of 2026, beating the average analyst estimate. The average forecast was $16.6 billion in adjusted earnings and $4.08 per share, according to data compiled by LSEG and cited by Reuters. The company also reported U.S. GAAP net income of $15.4 billion, or $3.72 per share. Cash flow from operations reached $25.7 billion, while free cash flow was $19.1 billion. The results show that the strong quarter did not rely solely on higher oil prices: the biggest improvement came from refining and distribution, while production earnings declined.
ExxonMobil’s adjusted earnings from refining and distribution rose to $9 billion, up 120% from the second quarter, as refining margins improved. By contrast, adjusted upstream earnings fell 20% quarter over quarter to $7.3 billion, alongside a decline in benchmark Brent crude prices from their level in the previous three months. The company’s Gulf Coast refineries operated at 100% utilization of crude distillation units during the quarter. Gulf Coast diesel production also reached its second-highest level, according to the Associated Press. The contrast between downstream and upstream operations highlights how refining margins offset the impact of lower crude prices on production earnings.
ExxonMobil’s production was 4.5 million barrels of oil equivalent per day, a level close to second-quarter output, according to Reuters. The Associated Press said the company’s output from Guyana and the Permian Basin was strong during the period. ExxonMobil paid $4.3 billion in cash dividends and repurchased $5.1 billion of shares in the third quarter. These payments reflect the return of part of its cash flow to shareholders alongside continued operating activity. The company also announced a $20 billion share repurchase program for 2027 and said it had raised its annual per-share dividend for the 44th consecutive year.
Chevron reported earnings of $9.9 billion, or $5.06 per share, in the third quarter, while adjusted earnings were $10.4 billion, or $5.28 per share. Adjusted earnings per share exceeded Wall Street’s average forecast of $4.89, according to LSEG data cited by Reuters. Adjusted earnings per share also rose 185% compared with the third quarter of the previous year. Revenue increased 36% year over year to $67.8 billion, according to the Associated Press. The figures put revenue growth and adjusted earnings at the forefront of Chevron’s results, with a different mix of operating drivers from ExxonMobil’s.
Chevron’s production was 3.98 million barrels of oil equivalent per day, down 2% from the second quarter, according to Reuters. Upstream earnings fell to $5.7 billion, 30% below the level in the previous three months, partly because of lower oil prices. Downstream earnings were $4.9 billion, slightly above the second quarter. Chevron’s U.S. refineries set a record for crude processing, exceeding 1 million barrels per day. Diesel and jet fuel output also increased by more than 10% during the quarter, according to Reuters. The Associated Press said the company’s results included one month of production in Venezuela following an accounting change.
Chevron’s adjusted free cash flow was $14.2 billion, double its level in the same period a year earlier, according to Reuters. The company’s shares closed at $231.46 on October 29, while ExxonMobil shares closed at $183.29 that day, according to EL7 data. In premarket trading on October 30, ExxonMobil shares rose 1.9% and Chevron shares rose 1.1%, according to the Associated Press. The agency added that ExxonMobil shares had gained 64% over the previous twelve months. Investing.com reported that Chevron shares had risen 17.59% over the previous three months and 46.75% over the previous twelve months, closing at $231.46. These moves offer an indication of the market’s response after the earnings announcements, without by themselves establishing that either stock set new record highs.