AI Takeaway
ExxonMobil reported Q1 FY2026 revenue of $85.1B (+2.4% YoY) but net income fell sharply by 45.8% to $4.2B, reflecting significant margin compression and higher liabilities, while the company continued returning capital to shareholders via $4.9B in buybacks.
Revenue
$85.14B
++2.42% YoY
EPS (Basic)
$1.00
-43.18% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew modestly by 2.4% YoY to $85.1B in Q1 FY2026, but net income collapsed 45.8% to $4.2B, indicating that cost pressures and/or lower commodity realizations significantly outpaced top-line growth, compressing net margin to approximately 4.9% from roughly 9.3% in the prior-year period.
Source: Source: 10-Q Income Statement Data
Depreciation & Amortization surged 18.7% YoY to $6.8B in Q1 FY2026, likely reflecting the integration of assets from the Pioneer Natural Resources acquisition, which adds to non-cash charges and weighs on reported earnings.
Source: Source: 10-Q Cash Flow Statement Data
Operating cash flow fell 32.8% YoY to $8.7B, while investing cash outflows increased 45.2% to $6.0B, resulting in estimated free cash flow of approximately $2.7B — a substantial reduction from prior-year levels, signaling tighter near-term cash generation.
Source: Source: 10-Q Cash Flow Statement Data
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Upgrade to unlockNet income dropped 45.8% YoY despite only a 2.4% revenue increase, highlighting ExxonMobil's acute sensitivity to oil and gas price realizations and refining margins. A sustained period of lower energy prices could further compress profitability and free cash flow generation.
Source: Source: 10-Q Income Statement Data
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Upgrade to unlockReported EPS of $1.16 versus the $1.01 analyst consensus — a +14.3% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $85.14B | $83.13B | +2.42% |
Net Income | $4.18B | $7.71B | -45.77% |
EPS (Basic) | $1.00 | $1.76 | -43.18% |
EPS (Diluted) | $1.00 | $1.76 | -43.18% |
SG&A Expense | $2.68B | $2.54B | +5.67% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $464.41B | $451.91B | +2.77% |
Current Assets | $97.79B | $91.23B | +7.18% |
Total Liabilities | $203.41B | $182.1B | +11.70% |
Current Liabilities | $94.38B | $73.83B | +27.83% |
Stockholders' Equity | $254.38B | $262.72B | -3.17% |
Cash & Equivalents | $8.44B | $17.04B | -50.49% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $8.71B | $12.95B | -32.80% |
Investing Cash Flow | $-6.01B | $-4.13B | -45.25% |
Financing Cash Flow | $-4.9B | $-13.58B | +63.91% |
Share Buybacks | $4.87B | $4.8B | +1.33% |
D&A | $6.77B | $5.7B | +18.75% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 4.9% | — | — |
ROE | 1.6% | — | — |
ROA | 0.9% | — | — |
Current Ratio | $1.036 | — | — |
Debt to Equity | $0.8 | — | — |
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ExxonMobil's Q1 FY2026 results showed revenue growing 2.4% to $85.1B, but net income fell sharply by 45.8% to $4.2B, with EPS dropping to $1.00 from $1.76 a year ago. The decline was driven by margin compression, a 18.7% surge in D&A to $6.8B, and a 32.8% drop in operating cash flow to $8.7B. Despite weaker earnings, the company continued its buyback program, repurchasing $4.9B in shares.
ExxonMobil's net income fell 45.8% YoY to $4.2B in Q1 FY2026 despite a modest 2.4% revenue increase, pointing to significant cost pressures and margin compression. D&A expense alone rose 18.7% to $6.8B, likely reflecting integration of the Pioneer Natural Resources acquisition, while SG&A also increased 5.7% to $2.7B. These cost headwinds, potentially combined with lower commodity price realizations, drove the steep earnings decline.
ExxonMobil's financial health showed some stress in Q1 FY2026: cash & equivalents fell 50.5% YoY to $8.4B, current liabilities surged 27.8% to $94.4B, and the current ratio tightened to just 1.04. Total liabilities rose 11.7% to $203.4B, increasing leverage, though the debt-to-equity ratio of 0.80 remains at a manageable level for a company of ExxonMobil's scale.
Yes, ExxonMobil repurchased $4.9B in shares in Q1 FY2026, essentially flat with the $4.8B repurchased in Q1 FY2025. However, with operating cash flow declining 32.8% to $8.7B, buybacks consumed over 56% of operating cash flow, raising questions about the sustainability of this pace if earnings and cash generation remain under pressure.
ExxonMobil's revenue grew 2.4% YoY to $85.1B in Q1 FY2026, up from $83.1B in Q1 FY2025. While top-line growth was positive, it was modest and failed to translate into earnings growth, as net income fell 45.8% over the same period, highlighting the significant cost and margin pressures the company faced during the quarter.