ExxonMobil Reports Adjusted Earnings of $17.505 Billion, Supported by Refining
Key Facts
ExxonMobil reported adjusted earnings of $17.505 billion in the third quarter of 2026, up $2.825 billion from the previous quarter, while net income under U.S. accounting standards was $15.413 billion. The results were driven by higher earnings from Energy Products, which offset a decline in upstream earnings. Revenue rose 33% to $113.16 billion in the three months ended September, beating estimates, according to the Associated Press. In premarket trading on October 30, the company's shares rose 1.9%, the agency reported. The results show divergent performance across the company's businesses, with refining strength contrasting with pressure on production.
Adjusted earnings for the Energy Products segment rose to $9.053 billion in the third quarter, from $4.099 billion in the second quarter. ExxonMobil attributed the improvement to higher margins and strong operating performance, including Gulf Coast U.S. crude units running at full capacity. The company said utilization at those refineries reached 100% during the quarter. Gulf Coast U.S. diesel production also reached its second-highest level, according to the Associated Press. Chief Executive Darren Woods said the Beaumont refinery expansion helped increase distillate production by about 40% since 2019. These figures highlight the role of available refining capacity and past investments in supporting the segment's results.
Reuters attributed the jump in refining margins to the U.S.-Israeli war on Iran and Ukrainian attacks on Russian refineries. The agency said energy disruptions contributed to a global shortage of diesel supplies. These factors came as Energy Products earnings more than doubled from the previous quarter. Woods said the company's investments, including the Beaumont expansion, increased distillate production by about 40% since 2019. This context helps explain refining's increased contribution to quarterly results, while the upstream business faced different pressures.
By contrast, adjusted upstream earnings fell from the second quarter, with ExxonMobil attributing the decline to lower prices and the accelerated impact of production entitlement in Guyana. Upstream production declined to 4.496 million barrels of oil equivalent per day in the third quarter, from 4.514 million in the previous quarter. This left production close to its level in the prior quarter, alongside lower earnings from the business. Across the company, adjusted earnings rose to $40.957 billion in the first nine months of 2026, compared with $22.457 billion in the same period of 2025. The cumulative year-over-year increase was $18.500 billion, according to the official results table.
Cash flow from operating activities was $25.7 billion in the third quarter, while free cash flow reached $19.1 billion. Total shareholder returns were $9.4 billion, including $4.3 billion in cash dividends and $5.1 billion in share repurchases completed during the quarter. The company declared a fourth-quarter dividend of $1.07 per share, payable on December 10 to shareholders of record on November 16, 2026. It also announced plans to repurchase $20 billion of shares in 2027, subject to reasonable market conditions. The company thus combined dividends and repurchases completed in the quarter with a plan announced for the following year.