| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 89 | 21.6x | 17.8x | Top tier | |
Growth | 50 | 16.3% | 7.1% | Around median | |
Quality | 64 | 10.9% | 4.5% | Around median | |
Safety | 64 | 1.0x | 2.6x | Around median | |
Capital Return | 35 | 0.71% | 2.12% | Bottom tier | |
Momentum | 84 | 22.7% | 2.9% | Top tier | |
Sentiment | 87 | 11 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
BP p.l.c. operates as an integrated global oil and gas company, combining upstream oil and gas production with downstream refining, logistics, marketing, retail, aviation, and business-to-business channels, supported by supply, trading, and shipping activities. The company believes this integration enables it to direct supplies to the highest-value markets and absorb cyclical volatility; during the six years ended Q2 FY2026, trading added an average of approximately 4 percentage points to return on capital employed, including at least 2 percentage points from the core global portfolio.
In Q2 FY2026, BP generated an underlying profit of $5.7 billion, up 78% from the previous quarter, and an IFRS profit of $3.9 billion after net adverse adjusting items of approximately $1.1 billion and inventory holding losses of approximately $700 million. Underlying replacement cost profit before interest and tax reached $10.3 billion versus $6.3 billion in the previous quarter, while news sources reported quarterly revenue of $69.11 billion and earnings per share of $2.22 versus expectations of $1.87. The context did not include a gross margin for the period, while it indicated an annual net margin of 1.8%.
The improvement in the operating mix came from an increase in underlying operating profit of approximately $1.6 billion in oil production and operations, $1.8 billion in customers and products, and $800 million in gas and low-carbon energy compared with the previous quarter. Conversely, upstream production declined 6% quarter-on-quarter to 2.2 million barrels of oil equivalent per day, and refinery throughput fell 4% to approximately 1.5 million barrels per day due to seasonal and planned maintenance, Middle East disruptions, and operational issues in the North Sea and Indonesia. For annual comparison, FY2025 revenue was approximately $192.5 billion and net income was $1.3 billion, versus revenue of $194.6 billion and net income of $1.2 billion in FY2024.
The analyst consensus on BP stock is Neutral, with an average price target of $50 and a wide range of $42 to $57. The average target is only approximately 3.6% above the 52-week high of $48.27, while the low target is below it, reflecting caution among some analysts despite the improvement in Q2 FY2026 earnings; no price-to-earnings ratio is available in the data to assess the stock on that basis.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Underlying profit reached $5.7 billion, up 78% from the previous quarter, while IFRS profit reached $3.9 billion. The results benefited from a strong pricing environment and stronger trading performance, with underlying operating profit increasing by approximately $1.6 billion in oil production and operations and $1.8 billion in customers and products. Profit from gas and low-carbon energy also increased by approximately $800 million, while news sources reported earnings per share of $2.22 versus expectations of $1.87.
Operating cash flow reached $10.9 billion after $1 billion in interest payments and a $1 billion working capital build. Net debt declined by approximately $3.1 billion to $22.3 billion, and financial liabilities fell by approximately $7 billion compared with the previous quarter. Under its price assumptions, management expects financial liabilities to reach approximately $39–41 billion by the end of FY2026, supported by organic cash flows and divestment proceeds.
BP aims to simplify its portfolio and direct capital toward assets that generate higher cash flows and returns. The plan includes approximately $6 billion from the announced Castrol transaction and the marketing of Archaea Energy, which the company acquired for $4.1 billion in 2022 and which subsequently delivered lower-than-expected returns. In 2026, the company also began marketing its North Sea business as part of its goal to generate total divestment proceeds of between $8 billion and $9 billion during FY2026.
Automated analysis for informational purposes only — not investment advice.
Earnings improved, but operating volumes declined in Q2 FY2026. Upstream production reached 2.2 million barrels of oil equivalent per day, down 6% from the previous quarter due to seasonal maintenance, Middle East disruptions, and issues in the North Sea and Indonesia. Refinery throughput also declined 4% to approximately 1.5 million barrels per day due to planned maintenance and lower refinery availability, showing that the earnings increase depended significantly on prices, mix, and trading.
Management said that safety performance in the first half of FY2026 was not at the required level following the death of a Castrol employee after an incident at the Gemlik plant in Turkey in April 2026. Process safety incidents, including tier one incidents, increased compared with the first half of FY2025, while the investigation into the Gemlik incident remains ongoing. On costs, BP achieved $3.5 billion in structural reductions, but their impact was not sufficiently reflected in earnings and cash flows due to inflation, acquired costs, and the complexity of the cost base.
The company set its FY2026 capital expenditure range at between $13.5 billion and $14 billion after delaying some stake sales in pursuit of better value. It expects divestment proceeds of between $8 billion and $9 billion and an underlying effective tax rate of between 35% and 40%. It also expects a release of between $2 billion and $3 billion from working capital during the second half of FY2026, but this remains conditional on the economic environment, prices, and developments in the Middle East.
