10-QPeriod: Q1 FY2026

EXXON MOBIL CORP Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 4, 2026For Securities:XOM

Summary

ExxonMobil Corporation (XOM) reported a net income of $4.2 billion for the first quarter of 2026, a decrease from $7.7 billion in the same period of 2025. This decline was primarily attributed to unfavorable mark-to-market effects on derivatives and higher depreciation expenses, partially offset by improved prices, higher volumes from advantaged Upstream investments (Guyana and Permian), and structural cost savings. The company's financial position remains robust, with a commitment to capital discipline and shareholder returns, evidenced by significant share repurchases and dividends paid during the quarter. However, increased capital expenditures and a slight uptick in the debt-to-capital ratio warrant investor attention. The Upstream segment saw a decrease in earnings due to lower gas realizations and Middle East disruptions, but record Guyana production provided a partial offset. The Energy Products segment experienced a significant earnings decrease due to unfavorable derivative impacts, though margin improvements and trading results were positive. Chemical and Specialty Products segments reported lower earnings, impacted by compressed margins and increased feed costs. The company continues to navigate volatile market conditions, including geopolitical impacts on oil supply and natural gas prices, while also managing its extensive portfolio of operations and investments.

Financial Statements
Beta
Revenue$85.14B
SG&A Expenses$2.68B
Operating Expenses$78.17B
Interest Expense$295.00M
Net Income$4.18B
EPS (Basic)$1.00
EPS (Diluted)$1.00
Shares Outstanding (Basic)4.20B

Key Highlights

  • 1Net income decreased to $4.2 billion in Q1 2026 from $7.7 billion in Q1 2025, primarily due to unfavorable derivative mark-to-market effects and higher depreciation.
  • 2Upstream segment earnings were impacted by Middle East disruptions, though Guyana and Permian growth contributed positively.
  • 3Energy Products segment earnings significantly declined due to derivative mark-to-market impacts, despite strong trading and optimization results.
  • 4Cash capital expenditures increased to $6.2 billion in Q1 2026 from $5.9 billion in Q1 2025, with a planned range of $27-$29 billion for the full year 2026.
  • 5The company repurchased approximately $4.9 billion of its stock and distributed $4.3 billion in dividends to shareholders during the quarter.
  • 6Total debt increased to $47.7 billion at the end of Q1 2026, resulting in a debt-to-capital ratio of 15.4%, up from 14.0% at year-end 2025.
  • 7Chemical and Specialty Products segments experienced compressed margins due to higher feedstock costs, leading to reduced earnings.

Frequently Asked Questions

The primary reasons for the decrease in net income to $4.2 billion in Q1 2026 from $7.7 billion in Q1 2025 are unfavorable mark-to-market effects on derivatives and higher depreciation and depletion expenses, which more than offset positive contributions from higher prices, increased volumes from advantaged Upstream investments, and structural cost savings.

The Upstream segment's earnings decreased year-over-year, largely due to lower gas realizations and disruptions in the Middle East impacting volumes. However, record production from Guyana and growth in the Permian basin provided a partial offset. Structural cost savings also contributed positively.

ExxonMobil plans to invest in the range of $27 billion to $29 billion in capital expenditures for 2026. The company continues its commitment to shareholder returns, having repurchased approximately $4.9 billion of stock and distributed $4.3 billion in dividends during the first quarter of 2026.

Total debt stood at $47.7 billion at the end of Q1 2026, up from $43.5 billion at year-end 2025. This resulted in a debt-to-capital ratio of 15.4% and a net debt-to-capital ratio of 13.1%, both showing an increase from the previous year-end. The company's capital allocation priorities remain investing in high-return projects, maintaining a strong balance sheet, and returning capital to shareholders.