XOM · Earnings · Q3 fiscal 2026strong quarterExxonMobil Q3 2026 earnings: refining sets records as profit doubles
ExxonMobil earned $15.4 billion in Q3 2026, more than double a year ago, powered by record refining performance and volume growth in Guyana and the Permian.
Alpha Finance
XOMQ3 fiscal 2026 earnings- Profit more than doubled: GAAP earnings rose to $15.4 billion in Q3 2026 from $7.5 billion in Q3 2025, with adjusted EPS of $4.23.
- Free cash flow (cash left after operating costs and investments) reached $19.1 billion in the quarter, funding $9.4 billion in shareholder distributions.
- Year-to-date adjusted earnings of $41.0 billion are up sharply from $22.5 billion in the same period of 2025, driven largely by record refining margins.
The quarter in numbers
ExxonMobil reported Q3 2026 revenue of $110.5 billion, up from $83.3 billion in Q3 2025. GAAP net income came in at $15.4 billion, or $3.72 per diluted share, compared with $7.5 billion, or $1.76 per diluted share, a year earlier. Adjusted earnings, which strip out one-time items and estimated timing effects from derivatives and inventory accounting, were $17.5 billion, or $4.23 per diluted share. Adjusted EPS beat the analyst estimate of $3.90 by about 8.5%, according to Alpha Finance data.
Cash flow from operating activities was $25.7 billion. Free cash flow was $19.1 billion. The company used $9.4 billion of that to pay $4.3 billion in dividends and repurchase $5.1 billion in shares.
What drove the results
The Energy Products segment (refining and fuels) was the standout. Adjusted segment earnings jumped to $9.1 billion in Q3 from $4.1 billion in Q2, lifted by higher refining margins, 100% crude unit utilization at U.S. Gulf Coast refineries, and the second-highest U.S. Gulf Coast diesel production on record. Year-to-date, the segment has earned $16.0 billion on an adjusted basis versus $4.0 billion in the same period of 2025.
Upstream (exploration and production) contributed $7.3 billion in adjusted earnings in Q3. Production was 4,496 thousand oil-equivalent barrels per day. Volume growth in Guyana and the Permian added barrels, though lower prices and an accelerated Guyana entitlement effect reduced earnings sequentially from Q2. Specialty Products adjusted earnings improved to $1.3 billion on higher basestock margins. Chemical Products adjusted earnings dipped to $725 million as margins declined.
On the cost side, cumulative structural cost savings since 2019 reached $16.9 billion, including $1.8 billion added in the first nine months of 2026. GAAP earnings were reduced by $2.5 billion in estimated timing effects in Q3 alone, mainly from mark-to-market derivatives and LIFO inventory accounting, which are expected to unwind in later periods. Year-to-date identified items also included $1.6 billion in additions to financial reserves and $921 million tied to Middle East impacts.
The company reduced net debt by nearly $11 billion year-to-date, leaving net debt at $22.1 billion as of September 30, 2026 (total debt of $34.3 billion less $12.2 billion in cash).
Guidance and outlook
ExxonMobil declared a Q4 2026 dividend of $1.07 per share, payable December 10, 2026, to shareholders of record on November 16, 2026. The company announced planned share repurchases of $20 billion for 2027, assuming reasonable market conditions. ExxonMobil has now raised its annual dividend for 44 consecutive years.
| Share price | $169.27 |
|---|---|
| Market value | $690.5 billion |
| P/E | 18.3x (sector median 11.6x (Oil & Gas Integrated)) |
| EV/EBITDA | 9.1x |
| Free cash flow yield | 6.2% |
| Alpha Score | 63 / 100 strong |
| Intrinsic value | $133.95 -20.9% vs price |
| Analyst target | $183.67 8.5% vs price, 26 analysts |
| 2027 Share Repurchases | $20 billion Assuming reasonable market conditions |
|---|---|
| Q4 2026 Dividend per Share | $1.07 Payable December 10, 2026, to shareholders of record November 16, 2026 |
How the stock looks now
According to Alpha Finance data, XOM trades at $169.27, down 4.6% on the day of this writing, and well below its 52-week high of $188.50. The market cap stands at $690.5 billion. On valuation, the stock trades at 18.3 times trailing earnings and 9.1 times EV/EBITDA (enterprise value relative to operating profit before depreciation). Both multiples sit above the Oil and Gas Integrated sector medians of 11.6 times and 4.2 times respectively, as reported by Alpha Finance. The price-to-sales ratio of 1.8 times also exceeds the sector median of 1.0 times.
Alpha Finance's average intrinsic value estimate across its models is $133.95, roughly 20.9% below the current price. The DCF model (which estimates value from future cash flows) puts intrinsic value at $173.64, while the EBITDA-based model gives $102.62 and the historical model $121.44. The Alpha Score is 63 out of 100, rated STRONG, with growth (21.2 out of 26) and profitability and quality (15.9 out of 25) as the leading pillars, while valuation scores just 10.1 out of 30. The 26 analysts tracked by Alpha Finance have a consensus target price of $183.67, about 8.5% above the current price.
| Share price | $169.27 |
|---|---|
| Market value | $690.5 billion |
| P/E | 18.3x (sector median 11.6x (Oil & Gas Integrated)) |
| EV/EBITDA | 9.1x |
| Free cash flow yield | 6.2% |
| Alpha Score | 63 / 100 strong |
| Intrinsic value | $133.95 -20.9% vs price |
| Analyst target | $183.67 8.5% vs price, 26 analysts |
What to watch next
Middle East-related disruptions have reduced volumes and produced one-time charges totaling $921 million year-to-date. How conditions in that region develop will affect both Upstream output and refining capacity utilization in coming quarters.
ExxonMobil assumed operatorship at Papua LNG and agreed to increase its working interest there to 34%, and to 50% at the Rovuma LNG project in Mozambique. These are long-lead investments, so progress on permitting, partner alignment, and construction timelines will matter for future production growth.
Refining margins drove a large part of the year-over-year profit gain. Whether those margins hold, narrow, or widen depends on global fuel supply and demand, which can shift quickly. The $20 billion buyback plan for 2027 and the direction of free cash flow relative to shareholder distributions will also be a focus for investors.
ExxonMobil posted its strongest refining performance on record and more than doubled year-over-year profit in Q3 2026, backed by $19.1 billion in free cash flow and nearly $11 billion of year-to-date debt reduction. The key open question is whether refining margins and international upstream growth can sustain earnings at this level if energy prices or geopolitical conditions shift.
Change the growth, margins and discount rate and see what the stock is worth to you.
- ExxonMobil Holdings Corporation earnings release (Form 8-K), filed October 30, 2026
- XOM on Alpha Finance: price, Alpha Score, valuation and analyst data
Written with Alpha AI from the company's SEC filing and Alpha Finance data, with every figure checked against those sources. For information only, not investment advice.
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