Exxon Mobil (XOM) Q1 2026 earnings and performance

Exxon Mobil (XOM) reported Q1 2026 GAAP earnings of $4.2 billion, down from $7.7 billion in Q1 2025, primarily due to $3.9 billion in unfavorable estimated timing effects. Despite a 6-8% decline in XOM and CVX stocks following a crude price dip to $79, both companies maintained 43 and 39 consecutive years of dividend increases. Meanwhile, ConocoPhillips (COP) trades at a forward P/E of 10x and targets $7 billion in incremental free cash flow by 2029.

The earnings decline and stock price drop have impacted the broader energy sector, with investors seeking low-risk stocks. XOM's dividend streak and cost-saving initiatives have attracted long-term investors despite short-term oil volatility. The energy sector's valuation repricing has opened opportunities for investors, with COP's attractive forward P/E and cash flow targets drawing attention.

Investors should watch for XOM's Q2 2026 earnings release, scheduled for August 2026, to assess the company's quarterly performance and provide further clarity on its long-term growth prospects. Additionally, the progress of COP's Willow and Port Arthur LNG projects, with potential updates in late 2026 or early 2027, will be crucial in evaluating the company's free cash flow targets and overall growth strategy.