Revenue Surge Driven by Merger
Revenue increased 73.1% YoY to $7,417 million, fueled by higher production and commodity prices following the Coterra merger.
Source: 10-Q Income Statement (XBRL)
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Devon Energy’s Q2 FY2026 was defined by its transformative Coterra acquisition, which nearly doubled its asset base and lifted production. The company incurred $246 million in restructuring and transaction costs tied to the integration, and its current ratio fell to 0.72, reflecting tightened short-term liquidity. While operating cash flow grew sharply, heavy capital spending pushed free cash flow to negative $373 million, highlighting the investment phase of the merger.
Revenue
$7.42B
+73.13% YoY
EPS (Diluted)
$2.03
+43.97% YoY
Source: SEC XBRL
Devon Energy (DVN) reported Q2 FY2026 revenue of $7.42B, up 73.1% year over year. Operating cash flow was $3.67B, up 137.8% year over year. DVN's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 1.57 | 1.41 | Beat +11.6% |
| Mar 2026 | 1.04 | 1.07 | Miss -2.9% |
| Dec 2025 | 0.82 | 0.82 | Beat +0.0% |
| Sep 2025 | 1.04 | 0.94 | Beat +11.2% |
Adjusted (non-GAAP) EPS of $1.57 versus the $1.41 analyst consensus — a +11.6% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $2.03.
Compiled by AI from this SEC filing
Revenue increased 73.1% YoY to $7,417 million, fueled by higher production and commodity prices following the Coterra merger.
Source: 10-Q Income Statement (XBRL)
Restructuring and transaction costs of $246 million were incurred, primarily related to the merger integration.
Source: 10-Q Income Statement (XBRL)
Operating cash flow grew 137.8% to $3,674 million, but capital expenditures and acquisitions of $4,047 million led to negative free cash flow of $373 million.
Source: 10-Q Cash Flow Statement (XBRL)
The balance sheet expanded significantly, with total assets rising 125.8% to $70.9 billion and stockholders’ equity up 177.2% to $41.7 billion, primarily due to the merger.
Source: 10-Q Balance Sheet (XBRL)
Devon returned $563 million to shareholders in Q2 FY2026, paying $366 million in dividends and repurchasing $197 million of shares, demonstrating commitment to shareholder returns.
Source: 10-Q Cash Flow Statement (XBRL)
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Devon's revenues are highly dependent on oil, gas, and NGL prices; a sustained decline could materially reduce earnings and cash flow.
Source: 10-Q Income Statement (XBRL)
The Coterra merger significantly increased the company's scale and debt, and failure to realize expected synergies could pressure financial performance.
Source: 10-Q Balance Sheet (XBRL)
The current ratio has declined to 0.72, and cash and equivalents fell 44.5% YoY to $950 million, indicating potential near-term liquidity challenges.
Source: 10-Q Balance Sheet (XBRL)
Capital spending, including acquisitions, of $4,047 million exceeded operating cash flow of $3,674 million, resulting in negative free cash flow and highlighting the need for disciplined capital allocation.
Source: 10-Q Cash Flow Statement (XBRL)
The company paid $366 million in dividends in Q2 FY2026, and any downturn in commodity prices could pressure its ability to maintain such payouts.
Source: 10-Q Cash Flow Statement (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 7.42 $B | 4.28 $B | +73.13% |
Net Income $B | 1.91 $B | 0.90 $B | +112.57% |
EPS (Basic) $ | 2.04 $ | 1.42 $ | +43.66% |
EPS (Diluted) $ | 2.03 $ | 1.41 $ | +43.97% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
Devon Energy reported a sharp Q1 FY2026 earnings decline with net income falling 75.7% YoY to $120M on revenue of $3.81B, reflecting lower commodity prices and the impact of its Grayson Mill acquisition, though the balance sheet remained solid with cash rising 47.2% to $1.76B.
Devon Energy (DVN) grew FY2025 revenue 7.8% to $17.2B but saw net income fall 8.7% to $2.6B, while generating robust operating cash flow of $6.7B and reducing long-term debt by 5.6%.
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