XOM ExxonMobil Holdings Corp 10-Q 2026-09-30 section summaries

ExxonMobil (XOM) — Q3 and nine months ended September 30, 2026

Consolidated results

Q3 revenue and other income increased 32.7% year over year, while attributable net income more than doubled. Nine-month revenue grew 25.8% and attributable net income increased 52.7%. Q3 production and manufacturing expense was $11.219B versus $10.094B; depreciation and depletion was $6.803B versus $6.475B. SG&A declined to $2.677B from $3.032B, and other taxes and duties to $5.226B from $6.475B. Nine-month depreciation and depletion was $22.263B versus $18.278B.

Segment performance

Energy Products had the largest increase in both revenue and pre-tax income among these segments. Q3 segment income attributable to ExxonMobil was $16.277B versus $8.774B; Corporate and Financing recorded a loss of $0.864B versus $1.226B, reconciling to consolidated attributable net income.

For 9M, total segment income was $36.992B versus $25.126B, offset by a Corporate and Financing loss of $2.871B versus $2.783B. In 9M 2025, segment revenues were Upstream $82.664B, Energy Products $217.512B, Chemical Products $24.854B, and Specialty Products $15.497B; total segment revenues were $340.527B. After $91.396B of intersegment eliminations and $0.799B of other revenues, consolidated revenue and other income was $249.930B.

Revenue mix and commodity exposure

Revenue outside ASC 606 scope primarily relates to physically settled commodity contracts accounted for as derivatives. Commodity trading contracts, which are not designated for hedge accounting, generated 9M before-tax realized and unrealized losses of $5.6B, compared with gains of $503M in 9M 2025; trading results flow through sales and operating revenue.

Cash flow and capital allocation

Separately, total additions to property, plant and equipment, including non-cash additions, were $20.861B versus $23.657B.

Balance sheet, debt and liquidity

Segment assets were $434.681B, with $36.236B in Corporate and Financing; corresponding 2025 amounts were $413.825B and $35.155B. “Other assets, including intangibles—net” were $22.044B versus $20.908B; goodwill and other intangible assets were not separately quantified in the summarized information. Long-term debt fair value was $23.765B versus $28.587B, compared with net carrying value of $27.386B versus $31.835B. Undrawn committed credit lines were $7.4B short-term and $0.3B long-term.

Gross derivative assets at fair value were $38.862B versus $7.456B, and gross derivative liabilities were $41.760B versus $7.037B, before counterparty and collateral netting. Collateral under master netting arrangements not offset on the balance sheet was $1.0B versus $0.5B. ExxonMobil designated $3.4B of euro-denominated debt and accrued interest as an effective hedge of its European net investment.

Other developments and exposures

Outstanding shares were 4.079B at September 30, 2026, versus 4.179B at December 31, 2025; nine-month weighted-average shares were 4.172B versus 4.328B. The July 1 redomiciliation made the Texas corporation the publicly traded parent through a one-for-one share exchange; it did not change consolidated operations, assets, liabilities, or the financial reporting basis.

Through September 30, 2026, divestments generated approximately $1.5B of proceeds and $0.8B of net after-tax earnings. ExxonMobil’s share of accumulated other comprehensive income was negative $11.430B, a $567M deterioration from year-end, mainly reflecting foreign-currency translation. Guarantees totaled $7.107B, including $1.451B for equity-company obligations and $5.656B for other third-party obligations. Management considers a material adverse outcome from climate-related lawsuits remote and says it will defend the claims vigorously.

Q3 2026 performance

ExxonMobil reported Q3 earnings of $15.4B, compared with $7.5B in Q3 2025. For the first nine months, earnings were $34.1B, versus $22.3B. Stronger commodity prices and refining margins, reliable operations, advantaged investments and structural cost savings supported results. Higher depreciation, external and Middle East-related volume losses partly offset those gains.

Segment earnings

Chemical Products earned $515M in Q3; Specialty Products earned $1.285B. Corporate and Financing expense was $864M, down $362M from Q3 2025, mainly because prior-year restructuring charges did not recur, partly offset by the absence of favorable tax items.

Upstream benefited from higher crude and gas realizations (+$3.680B) and structural savings (+$210M). Offsets included Middle East disruptions (−$860M), unfavorable derivative timing (−$720M), higher expenses, mainly depreciation (−$590M), and other items and volume declines. A $448M gain, mainly from asset sales, was among identified items.

Energy Products’ improvement was led by stronger refining margins and optimization (+$7.660B), with advantaged volume growth adding $250M. Estimated timing effects, mainly derivative mark-to-market impacts and rising crude prices, reduced Q3 earnings by $1.980B; base-volume declines and Middle East disruptions also weighed on results. Chemical Products’ Q3 earnings benefited from a $360M contribution from North American ethane feed advantage. Specialty Products benefited from higher basestock margins (+$660M), partly offset by Middle East supply disruptions (−$60M).

Operating metrics

Lower oil-equivalent production reflected Middle East and Kazakhstan disruptions and lower Guyana entitlement volumes, partly offset by Permian and Guyana growth. Energy-product sales were higher, while chemical and specialty-product sales declined. Production entitlements can also vary with prices, spending and contractual or government royalty terms; government limits or sanctions, project activity, downtime, divestments and natural field decline can affect output.

Cash flow, investment and capital returns

During 9M 2026, net income including noncontrolling interests was $35.4B, up $12.2B year over year, and depreciation and depletion were $22.3B, up $4.0B. Operational working capital reduced cash by $1.6B. Investing activities used $18.9B; property, plant and equipment spending was $20.2B, while asset-sale proceeds were $1.5B. Planned 2026 investment is $27B–$29B.

ExxonMobil distributed $12.9B in dividends and repurchased $15.1B of common stock during 9M, buying back 99.4 million shares. Financing activities used $37.4B. Capital allocation prioritizes advantaged, high-return investment and balance-sheet strength alongside dividends and repurchases, subject to market conditions.

Balance sheet and taxes

Total equity used in the net-debt calculation was $272.5B at Q3-end; net debt was about $22.1B. Undrawn committed credit lines were $7.4B short term and $0.3B long term.

Lower effective tax rates mainly reflected jurisdictional and portfolio mix.

Market conditions, costs and outlook

Crude prices remained within the 2010–2019 range despite supply restrictions through the Strait of Hormuz; international natural gas prices exceeded that range amid limited Middle East supply. Refining margins rose to historically high levels as capacity was unavailable. Chemical margins weakened, particularly in Europe and Asia, as product availability and feed costs kept margins further below the bottom of their historical range.

Cumulative structural cost savings reached $16.9B relative to 2019, including $1.8B added in 9M 2026. 9M cash operating expenses excluding energy and production taxes rose to $33.0B from $31.8B: $1.2B of market effects and $1.8B of activity and other increases were partly offset by $1.8B of structural savings. Savings are intended to be sustainable, though reported costs also reflect inflation, foreign exchange, activity levels, new operations, acquisitions and other factors.

The company describes opportunities in carbon capture, transport and storage; lower-emission fuels; hydrogen and ammonia; direct air capture; lithium; advanced recycling; and specialty products. Their investment and commercial potential depends on returns, supportive and stable policy, permitting, technology development and commercial viability. ExxonMobil says its outlook does not project the policy and technology advances needed for the world—or the company—to achieve net zero by 2050. Key uncertainties include commodity volatility, geopolitical disruption and shipping constraints, inflation, regulation and taxes, permitting, project execution, partner and supplier performance, and derivative mark-to-market timing.

For the nine months ended September 30, 2026, Exxon Mobil reported no material change in market risks from those discussed in Item 7A of its 2025 Form 10-K. The section identifies no new market-risk developments or metrics.

As of September 30, 2026, Exxon Mobil’s CEO, CFO, and Principal Accounting Officer concluded that disclosure controls and procedures were effective in ensuring required disclosures were collected, communicated, processed, and reported on a timely basis. No changes during the fiscal quarter materially affected, or were reasonably likely to materially affect, internal control over financial reporting.

Period caveat: The summaries identify this as part of ExxonMobil’s 2025 Form 10-K, but the reported periods are Q3 and the first nine months of 2026. Verify the filing period before relying on the excerpt.

Results and cash flow

Higher prices and refining margins, reliable operations, advantaged investments, and structural savings supported earnings. Higher depreciation, volume losses—including Middle East-related disruptions—and unfavorable derivative timing effects partly offset those benefits. For 9M, net income including noncontrolling interests was $35.4B, up $12.2B year over year; depreciation and depletion added back was $22.3B, up $4.0B, while operational working capital used $1.6B. Nine-month PP&E additions were $20.2B, down $0.7B, and asset-sale proceeds were $1.5B, down $0.7B. Full-year 2026 investment guidance is $27B–$29B.

Segment earnings

Upstream earnings benefited from higher crude and gas realizations (+$3.680B); Middle East volume impacts (−$860M), unfavorable timing effects (−$720M), and higher expenses, mainly depreciation (−$590M), weighed on Q3 results. Production was affected by Middle East and Kazakhstan disruptions and lower Guyana entitlements, partly offset by Permian and Guyana growth.

Energy Products gained from stronger refining margins and optimization (+$7.660B), partly offset by unfavorable derivative timing effects (−$1.980B), Middle East disruptions, external operating impacts, and maintenance. Specialty Products benefited from higher basestock margins (+$660M), while Middle East supply disruptions reduced earnings by $60M. Tight basestock supply supported margins; growth-related costs and disrupted volumes were offsets. Corporate and Financing’s Q3 loss improved mainly because prior-year restructuring charges did not recur, partly offset by the absence of favorable prior-year tax items.

Operating metrics

The company attributed lower production and throughput to a combination of disruptions, external operating impacts, maintenance, and portfolio or entitlement effects; growth in the Permian and Guyana partly offset upstream volume declines. Chemical margins remained pressured by higher product availability and feed costs, particularly in Europe and Asia.

Capital allocation, leverage, and taxes

Nine-month financing activities used $37.4B versus $30.3B in 9M 2025, including $15.1B to repurchase 99.4 million shares and $12.9B of dividends. ExxonMobil reported $7.4B of undrawn short-term and $0.3B of undrawn long-term committed credit lines. Its stated priorities are advantaged, high-return investment, balance-sheet strength, and shareholder distributions; repurchases remain subject to market conditions.

Lower effective rates reflected changes in jurisdictional and portfolio mix. Lower other taxes partly offset higher income-tax expense.

Costs, strategy, and risks

Structural cost savings reached $16.9B relative to 2019, including $1.8B in 9M 2026; the company notes these estimates may be revised and should be distinguished from other expense movements. Nine-month cash operating expenses excluding energy and production taxes were $33.0B versus $31.8B, while adjusted operating costs were $70.9B versus $65.3B.

Supply disruptions, including Middle East and Strait of Hormuz impacts, coincided with crude prices within their 2010–2019 historical range, international natural-gas prices above it, and historically high global refining margins. Chemical margins weakened further below the historical range.

ExxonMobil says actions supporting its 2030 emissions-reduction plans are incorporated in updated medium-term plans. Its long-term Outlook reflects existing policies and assumed policy tightening and technology improvement, but says current policy and technology trends are not on a path to net zero by 2050. Lower-emissions investment depends on opportunities, supportive policy, permitting, cost-effective technology, partner alignment, and returns; references to projects do not constitute investment commitments. The company also noted that sustainability measures and controls may evolve with future rule-making. Management reported effective disclosure controls as of September 30, 2026, and no material quarterly change in internal control over financial reporting.

For the three months ended September 30, 2026, none of Exxon Mobil Corporation’s directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement. This section reports no financial metrics or other material business developments.