AI Takeaway
EQT delivered a standout Q1 FY2026 with revenue nearly doubling to $3.38B (+94.2% YoY) and net income surging 514% to $1.49B, driven by dramatically higher natural gas realizations and a significant reduction in long-term debt.
Revenue
$3.38B
++94.20% YoY
EPS (Basic)
$2.38
++495.00% YoY
Operating Income
$2.04B
++310.27% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Total revenue jumped 94.2% YoY from $1.74B to $3.38B in Q1 FY2026, reflecting substantially higher realized natural gas prices compared to the prior-year period, which was characterized by depressed commodity prices. This price-driven uplift flowed powerfully through the income statement.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
Operating income surged 310.3% to $2.04B, pushing the operating margin from 28.5% to 60.3% — a 31.7 percentage point improvement. Cost of revenue grew only 5.9% to $400M while SG&A rose a modest 4.7% to $95.8M, demonstrating strong operating leverage as revenue scaled.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
Long-term debt fell 28.6% YoY from $8.39B to $5.99B, and total liabilities declined 15.7% to $12.91B. Stockholders' equity rose 21.2% to $25.12B, reflecting both earnings retention and the deleveraging effort. The debt-to-equity ratio improved to 0.51x.
Source: Source: 10-Q Balance Sheet (XBRL Financial Data)
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Upgrade to unlockEQT's revenue and profitability are highly sensitive to natural gas prices, as demonstrated by the near-doubling of revenue when prices recovered. A reversal in natural gas prices could rapidly compress margins and cash flows, given that cost of revenue is largely fixed in the near term. The prior-year period's weak results illustrate how quickly earnings can deteriorate in a low-price environment.
Source: Source: 10-Q Income Statement & Cash Flow Statement (XBRL Financial Data)
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.33 versus the $2.10 analyst consensus — a +11.0% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $3.38B | $1.74B | +94.20% |
Cost of Revenue | $400.34M | $378.21M | +5.85% |
Operating Income | $2.04B | $496.25M | +310.27% |
Net Income | $1.49B | $242.14M | +514.20% |
EPS (Basic) | $2.38 | $0.40 | +495.00% |
EPS (Diluted) | $2.36 | $0.40 | +490.00% |
SG&A Expense | $95.75M | $91.46M | +4.69% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $41.69B | $39.7B | +5.01% |
Current Assets | $1.56B | $1.74B | -10.49% |
Total Liabilities | $12.91B | $15.3B | -15.65% |
Current Liabilities | $2.37B | $3.06B | -22.74% |
Stockholders' Equity | $25.12B | $20.72B | +21.24% |
Cash & Equivalents | $326.57M | $281.76M | +15.90% |
Long-Term Debt | $5.99B | $8.39B | -28.60% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $3.06B | $1.74B | +75.46% |
Investing Cash Flow | $-842.44M | $-534.04M | -57.75% |
Financing Cash Flow | $-2B | $-1.13B | -77.11% |
D&A | $654.79M | $620.77M | +5.48% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 60.3% | 28.5% | +31.74% |
Net Margin | 44.0% | — | — |
ROE | 5.9% | — | — |
ROA | 3.6% | — | — |
Current Ratio | $0.658 | — | — |
Debt to Equity | $0.514 | — | — |
Other companies in Oil & Gas Exploration & Production
EQT's revenue nearly doubled in Q1 FY2026, rising 94.2% YoY from $1.74B to $3.38B. This dramatic growth was driven primarily by a significant recovery in natural gas realized prices compared to the depressed pricing environment of Q1 FY2025, rather than volume growth, as cost of revenue rose only 5.9%.
The headline takeaways from EQT's Q1 FY2026 results are a 514% surge in net income to $1.49B, diluted EPS of $2.36 (vs. $0.40 a year ago), and an operating margin expansion to 60.3% from 28.5%. Additionally, EQT made significant progress on its balance sheet, cutting long-term debt by 28.6% to $5.99B while generating $3.06B in operating cash flow.
Based on the financial data, EQT's primary risk remains commodity price volatility — the near-doubling of revenue illustrates how sensitive results are to natural gas prices, and a price reversal could rapidly compress earnings. Additional risks include a sub-1.0 current ratio (0.658x) indicating reliance on credit facilities for short-term liquidity, and residual leverage with $5.99B in long-term debt despite significant paydown.
Yes, EQT's balance sheet improved substantially in Q1 FY2026. Long-term debt fell 28.6% YoY to $5.99B, total liabilities declined 15.7% to $12.91B, and stockholders' equity rose 21.2% to $25.12B. The debt-to-equity ratio improved to 0.51x, reflecting the company's commitment to deleveraging using strong free cash flow.
EQT's financial health in Q1 FY2026 is strong from a profitability and cash flow perspective, with a 60.3% operating margin, $3.06B in operating cash flow, and approximately $2.21B in free cash flow. The main area to watch is liquidity, as the current ratio of 0.658x means current liabilities exceed current assets, though this is typical for large E&P companies that manage short-term needs through revolving credit facilities.