AI Takeaway
OXY reported Q1 FY2026 revenue of $5.23B (down 8.3% YoY) while EPS surged 294% to $3.19, driven by a major asset divestiture that generated $7.85B in investing cash flows and enabled a $10B reduction in long-term debt.
Revenue
$5.23B
-8.31% YoY
EPS (Basic)
$3.19
++293.83% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Total revenue fell 8.3% YoY to $5.23B in Q1 FY2026 from $5.70B in the prior-year period, reflecting softer oil and gas price realizations. Despite the top-line pressure, the company maintained relatively stable SG&A at $245M (+1.7% YoY), demonstrating cost discipline.
Source: Source: 10-Q Financial Data, Income Statement
Basic EPS jumped 293.8% YoY to $3.19 from $0.81, and diluted EPS rose 306.5% to $3.13 from $0.77. This outsized earnings improvement relative to revenue trends suggests a significant one-time gain, most likely from the large asset divestiture reflected in the $7.85B investing cash inflow.
Source: Source: 10-Q Financial Data, Income Statement & Cash Flow Statement
Long-term debt declined dramatically by 40.7% YoY to $14.71B from $24.79B, a reduction of approximately $10.08B. This was funded by the $7.85B investing cash inflow (vs. -$731M prior year), consistent with a large-scale asset sale, and accompanied by $7.33B in financing outflows used primarily for debt repayment.
Source: Source: 10-Q Financial Data, Balance Sheet & Cash Flow Statement
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Upgrade to unlockOXY's revenue fell 8.3% YoY to $5.23B, directly reflecting sensitivity to oil and gas price fluctuations. With operating cash flow declining 40.4% to $1.28B, sustained lower commodity prices could materially impair the company's ability to fund operations and capital programs. This remains the most significant risk to OXY's financial performance.
Source: Source: 10-Q Financial Data, Income Statement & Cash Flow Statement
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Upgrade to unlockReported EPS of $1.06 versus the $0.60 analyst consensus — a +77.5% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $5.23B | $5.7B | -8.31% |
EPS (Basic) | $3.19 | $0.81 | +293.83% |
EPS (Diluted) | $3.13 | $0.77 | +306.49% |
SG&A Expense | $245M | $241M | +1.66% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $80.46B | $84.97B | -5.30% |
Current Assets | $11.07B | $9.72B | +13.98% |
Current Liabilities | $9.15B | $9.62B | -4.88% |
Stockholders' Equity | $38.93B | $34.71B | +12.16% |
Cash & Equivalents | $3.81B | $2.6B | +46.35% |
Long-Term Debt | $14.71B | $24.79B | -40.67% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.28B | $2.15B | -40.36% |
Investing Cash Flow | $7.85B | $-731M | +1173.60% |
Financing Cash Flow | $-7.33B | $-932M | -686.27% |
Share Buybacks | $56M | $0 | — |
D&A | $1.79B | $1.8B | -0.55% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Current Ratio | $1.21 | — | — |
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OXY reported basic EPS of $3.19 in Q1 FY2026, a 293.8% increase from $0.81 in the prior-year period. However, this dramatic EPS improvement appears largely driven by a one-time gain from a major asset divestiture (reflected in $7.85B of investing cash inflows) rather than core operational outperformance. Whether this beat consensus estimates would depend on how analysts modeled the divestiture gain.
The headline story in Q1 FY2026 was OXY's massive deleveraging: long-term debt fell 40.7% YoY to $14.71B, funded by what appears to be a large asset sale generating $7.85B in investing cash flows. Revenue declined 8.3% to $5.23B amid softer commodity prices, and operating cash flow dropped 40.4% to $1.28B, signaling that core business cash generation softened even as the balance sheet was significantly strengthened.
OXY's revenue declined 8.3% year-over-year to $5.23B in Q1 FY2026, down from $5.70B in Q1 of the prior year. This decline is consistent with lower oil and gas price realizations, which is the primary driver of revenue variability for an integrated energy company like OXY.
OXY's balance sheet improved materially in Q1 FY2026: cash grew 46.4% to $3.81B, long-term debt fell 40.7% to $14.71B, and stockholders' equity rose 12.2% to $38.93B, with a current ratio of 1.21. The main concern is the 40.4% decline in operating cash flow to $1.28B, which suggests core earnings power has softened and the balance sheet improvement was primarily driven by asset sales rather than organic cash generation.
OXY's basic EPS jumped 293.8% to $3.19 in Q1 FY2026 even as revenue fell 8.3%, because the company appears to have recorded a large one-time gain from a major asset divestiture. The investing cash flow of $7.85B (vs. -$731M in the prior year) and the $10B reduction in long-term debt are consistent with a significant asset sale that generated a substantial book gain, boosting net income well above what operating performance alone would have produced.