ExxonMobil (XOM) and Chevron (CVX), two of the world's largest publicly traded energy companies, have reported their fiscal first-quarter 2026 earnings, revealing a mixed picture shaped by the ongoing Hormuz conflict and volatile oil prices.
ExxonMobil is set to release its Q1 2026 earnings before the US market opens on May 1. Market expectations point to a 4% year-over-year decline in revenue, a slowdown from the flat performance in the same quarter last year. The company had earlier warned that earnings would likely drop from the previous quarter, citing a multi-billion dollar impact from financial hedging that offsets the benefits of higher oil and gas prices driven by the Iran war. Analysts project an earnings per share (EPS) of $0.89, a significant 49.52% decline from the prior year. ExxonMobil's dividend yield stands at 2.62% with an annual payout of $4.04 per share.
Chevron reported Q1 adjusted earnings of $1.41 per share, beating analyst estimates of $0.97, even as net profit fell to a five-year low of $2.21 billion from $3.5 billion a year ago. The decline was attributed to $2.9 billion in unfavorable timing effects related to financial derivatives. Revenue rose 2.1% to $48.6 billion but missed estimates of $51.9 billion. Chevron's total production increased 15% year-over-year to 3.86 million barrels of oil equivalent per day, bolstered by the Hess acquisition and output growth in the U.S. Gulf and Permian Basin. However, international downstream operations swung to a $1.01 billion loss from a $222 million profit a year earlier, impacted by lower margins and disruptions tied to the Israel conflict. Chevron returned $6 billion to shareholders in Q1, including $2.5 billion in buybacks and $3.5 billion in dividends.
Analysts remain largely positive on Chevron, with Tudor, Pickering Holt upgrading the stock from Hold to Buy and setting a $225 price target. RBC Capital noted strong results but flagged that some investors may have hoped for a buyback increase. Chevron's stock rose about 1.9% in pre-market trading following the earnings release.
Both companies are navigating a complex environment where higher oil prices from geopolitical tensions are partially offset by hedging losses and downstream headwinds. Investors are closely watching management's outlook on crude price assumptions and production volumes.
