AI Takeaway
ConocoPhillips reported Q1 2026 revenue of $15.76B, down 4.6% YoY, with net income falling 23.4% to $2.18B amid lower commodity prices and reduced operating cash flow of $4.30B.
Revenue
$15.76B
-4.58% YoY
EPS (Basic)
$1.78
-20.18% YoY
Filed · Source: SEC EDGAR 10-Q filing
Total revenue fell 4.6% YoY to $15.76B in Q1 2026 from $16.52B in Q1 2025, reflecting the impact of weaker oil and gas price realizations on top-line performance.
Source: Source: 10-Q Financial Data, Income Statement
Cost of revenue rose 1.5% YoY to $6.28B even as revenue declined, compressing margins and indicating that production and operating costs did not fall proportionally with commodity prices.
Source: Source: 10-Q Financial Data, Income Statement
Operating cash flow declined sharply by 29.8% YoY to $4.30B from $6.12B, suggesting that working capital changes and lower earnings materially reduced cash generation in the quarter.
Source: Source: 10-Q Financial Data, Cash Flow Statement
2 more insights available
Upgrade to unlockConocoPhillips' revenue and profitability are highly sensitive to oil and natural gas price fluctuations. The 4.6% revenue decline and 23.4% net income drop in Q1 2026 illustrate how quickly earnings can deteriorate in a softer price environment. Sustained low commodity prices would further pressure margins and cash flow.
Source: Source: 10-Q Financial Data, Income Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.89 versus the $1.67 analyst consensus — a +13.2% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $15.76B | $16.52B | -4.58% |
Cost of Revenue | $6.28B | $6.19B | +1.54% |
Net Income | $2.18B | $2.85B | -23.38% |
EPS (Basic) | $1.78 | $2.23 | -20.18% |
EPS (Diluted) | $1.78 | $2.23 | -20.18% |
SG&A Expense | $193M | $191M | +1.05% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $122.72B | $124.25B | -1.23% |
Current Assets | $16.23B | $16.91B | -4.00% |
Total Liabilities | $58.18B | $59.02B | -1.41% |
Current Liabilities | $12.59B | $13.33B | -5.57% |
Stockholders' Equity | $64.54B | $65.24B | -1.07% |
Cash & Equivalents | $5.88B | $6.31B | -6.85% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $4.29B | $6.12B | -29.76% |
Investing Cash Flow | $-2.81B | $-2.35B | -19.69% |
Financing Cash Flow | $-2.19B | $-3.14B | +30.32% |
Share Buybacks | $1.01B | $1.5B | -32.93% |
D&A | $2.91B | $2.75B | +5.83% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 13.9% | — | — |
ROE | 3.4% | — | — |
ROA | 1.8% | — | — |
Current Ratio | $1.289 | — | — |
Debt to Equity | $0.902 | — | — |
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ConocoPhillips reported Q1 2026 revenue of $15.76B (down 4.6% YoY) and net income of $2.18B (down 23.4% YoY), with EPS of $1.78 versus $2.23 in Q1 2025. The decline was primarily driven by lower commodity price realizations and rising production costs.
The key takeaways are: revenue and net income declined significantly YoY due to weaker oil and gas prices; operating cash flow dropped nearly 30% to $4.30B; and share buybacks were reduced to $1.01B from $1.50B. Despite these headwinds, the balance sheet remained solid with a current ratio of 1.29 and debt-to-equity of 0.90.
Yes, COP reduced share buybacks by 32.9% YoY to $1.01B in Q1 2026 compared to $1.50B in Q1 2025. This reduction aligns with lower operating cash flow of $4.30B (down from $6.12B), suggesting the company is moderating capital returns in response to a tighter cash generation environment.
Based on the financial data, the primary risks include commodity price exposure (revenue fell 4.6% and net income 23.4% YoY), a sharp 29.8% decline in operating cash flow to $4.30B, and rising cost of revenue despite lower sales. The company's large asset base also faces growing depreciation pressure, with D&A up 5.8% YoY to $2.91B.
COP's financial health remains broadly sound: total assets of $122.73B, stockholders' equity of $64.54B, a current ratio of 1.29, and a debt-to-equity ratio of 0.90 all point to a well-capitalized company. However, the 29.8% drop in operating cash flow to $4.30B and declining cash balances ($5.88B, down 6.8% YoY) warrant monitoring if commodity prices remain under pressure.