Exxon Mobil (XOM) shares were up 0.45% in pre-market trading on Friday after the company reported stronger-than-expected Q1 2026 results. Exxon posted adjusted earnings per share (EPS) of $1.16, beating analyst estimates of $1.03, while revenue came in at $85.14 billion, ahead of the $81.24 billion consensus forecast.
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For context, Exxon Mobil is one of the world’s largest energy companies, with operations across oil and gas exploration, production, refining, and chemicals. The company plays a major role in supplying fuel, energy products, and industrial materials across global markets.
War Disruptions Weigh on Exxon’s Operations
Exxon reported first-quarter net income of $4.2 billion, down sharply from $7.7 billion a year earlier and its lowest level since Q1 2021. The drop was mainly caused by disrupted shipments linked to the U.S.-Israeli war on Iran and a large negative impact from financial derivative timing effects. Notably, the company uses derivatives to protect against oil price changes while cargo is in transit. Since sales are recorded only after delivery, price swings can cause temporary gains or losses in earnings.
At the same time, its unadjusted profit fell to the lowest level in five years, but adjusted earnings still came in stronger than expected at $1.16 per share. This adjusted figure excluded a $700 million loss from cargoes that could not be delivered because of the conflict.
Previously, the company stated that war-related disruptions reduced its first-quarter production by 6% compared with the previous quarter. The impact was significant because about 20% of Exxon’s oil and gas production comes from the Middle East.
Oil Price Strength and Production Gains
On the plus side, higher oil prices and stronger production from Exxon’s key assets in the Permian Basin and Guyana helped offset some of the pressure from Middle East disruptions.
The company reported net production of 4.6 million oil-equivalent barrels per day in the first quarter. Its operations in Guyana were a key highlight, setting a new record with more than 900,000 gross barrels of oil per day, helping support overall output despite global disruptions.
CEO Darren Woods said the company remained stronger than in past years, but noted that events in the Middle East tested that strength, with employee safety remaining the top priority.
What Is the Prediction for XOM Stock?
According to TipRanks, XOM stock has received a Moderate Buy consensus rating, with 12 Buys and nine Holds assigned in the last three months. The average price target for Exxon Mobil is $167.55, suggesting an upside of 8.57% from the current level.
These ratings and price targets will likely change as analysts update their coverage following today’s earnings report.
