Exxon Mobil Corp (NYSE:XOM, XETRA:XONA) shares slipped on Friday following first quarter results that showed a sharp year-over-year decline in net income, even as adjusted earnings and revenue came in ahead of Wall Street expectations.
For the quarter ended March 31, 2026, Exxon reported US GAAP net income of $4.18 billion, down from $7.71 billion a year earlier. The decline marked the company’s lowest first-quarter profit since 2021.
On an adjusted basis, which excludes identified items and certain timing effects, earnings were $4.89 billion, or $1.16 per share, above analyst estimates of about $1.05 per share.
Revenue for the period rose to $85.14 billion, exceeding expectations of approximately $82.2 billion.
Despite the earnings beat on an adjusted basis, the drop in headline profitability weighed on sentiment. The company also highlighted significant volatility from timing effects and one-time items, including $3.9 billion in unfavorable estimated timing effects and a $0.7 billion identified item.
Exxon said geopolitical conflict in the Middle East disrupted shipping routes through the Strait of Hormuz, leading to temporary production interruptions at facilities in Qatar and the United Arab Emirates. The company said those disruptions affected a meaningful portion of its global supply chain, underscoring the sensitivity of global energy flows to regional instability.
Cash flow from operating activities totaled $8.7 billion, or $13.8 billion when excluding margin postings that fluctuate with derivatives.
The company returned $9.2 billion to shareholders during the quarter, including $4.3 billion in dividends and $4.9 billion in share repurchases.
Operationally, Exxon pointed to continued strength in its upstream portfolio, including record production in Guyana and the startup of LNG production at Golden Pass Train 1, which it said will increase US liquefied natural gas export capacity by about 5%.
Exxon CEO Darren Woods said the quarter reflected the company’s improved resilience through market volatility, while acknowledging the impact of geopolitical disruptions on operations.
“The underlying business delivered strong results,” Woods said, adding that the company has strengthened its earnings power through cost reductions, portfolio optimization, and expanded advantaged production.
Shares of Exxon were down 0.5% at about $154.