EARNINGS RESULTS · Q2 2026

ExxonMobil Q2 2026: Revenue Up 42.34%, Operating Margin 16.94%

Results for the quarter ended 2026-06-30 bring the business drivers and cash after investment into focus. Quarterly free cash flow was $17.03 bn. The dated assessment on 2026-10-08 was avoid at a reference price of $164.05.

ExxonMobil · XOMPublished October 8, 2026Quarter ended June 30, 2026

Q2 2026: What the Quarter Delivered

Revenue: $116.02 bn
Revenue growth YoY: 42.3%
Operating income: $19.65 bn
Operating margin: 16.9%
Diluted EPS, GAAP: $3.48

ExxonMobil reported $116.02 bn of revenue in Q2 2026. Revenue rose 42.34% from the comparable prior-year quarter. Operating profit was $19.65 bn, with an operating margin of 16.94%. Reported diluted EPS was $3.48.

How Revenue Reached Operating Profit

The quarter's revenue and operating result imply an operating margin of 16.94%: $16.94 of operating profit for every $100 of revenue, before interest and tax.

Operating margin measures how much revenue remains as operating profit after operating costs. Its sharp recovery follows a period of weakening profitability, a useful reminder that ExxonMobil’s earnings power changes with the cycle.

What the Reported Earnings Include

Other non-operating income: $0 bn
GAAP net income: $14.88 bn
Diluted weighted-average shares: 4.17 bn shares

Q2 2026 GAAP net income was $14.88 bn. Other non-operating income was $0 bn.

Reported diluted earnings per share rebounded alongside operating profit. The declining diluted share count also helps spread earnings across fewer shares, although it cannot substitute for a stronger underlying business. Reported accounting earnings are not normalized recurring profit. Our valuation instead uses subjective operating assumptions, retains depreciation and compensation costs, and applies assumed taxes and recurring interest expense; these are not company guidance.

Cash Left After Investment

Operating cash flow: $59.73 bn
OCF less cash PPE purchases, plus PPE sales: $30.55 bn
Quarterly operating cash flow: $23.56 bn
Quarterly cash CapEx: $6.53 bn
Quarterly OCF less cash PPE purchases: $17.03 bn

In Q2 2026, operating cash flow of $23.56 bn less cash capital expenditure of $6.53 bn left $17.03 bn of free cash flow. Operations funded cash investment and left cash after that spending.

Cash generation is the strongest support for the business assessment. Reported operating cash flow comfortably exceeded cash investment across the trailing period, leaving money available for shareholder distributions or balance-sheet needs.

The latest cash rebound arrived without a comparable jump in quarterly cash investment.

The Verdict Recorded on 2026-10-08

Verdict Invest recorded avoid on 2026-10-08, using a reference price of $164.05 dated 2026-10-07. This assessment relates to the Q2 2026 results, with a 12-month horizon and stated validity through 2026-11-07.

Confirmation to watch: Sustained benefits from productive investments in Upstream and Energy Products.
Confirmation to watch: Structural cost savings that preserve profitability as commodity conditions change.
Confirmation to watch: Continued cash generation after investment that supports a lower diluted share count.
Risk to this assessment: Durably stronger operating margins and cash generation establish that the model understates sustainable earnings.
Risk to this assessment: A price decline creates an adequate discount to normalized value.
Risk to this assessment: Weaker commodity realizations, heavier investment demands or rising financing pressure undermine the favorable business-quality assessment.