Analysts expected earnings of $1.43 per share, but Occidental delivered $1.91. Its Q3 results were a clear beat on profit, while revenue only just scraped by.
Occidental Petroleum ($OXY ) reported its Q3 2026 results after the U.S. market closed on November 9. Its earnings call wrapped up at 2 a.m. Beijing time today:
1. Adjusted earnings per share came in at $1.91, about 30% above the $1.43 consensus. The company earned just $0.64 per share in the same period last year.
2. Revenue was $6.77 billion, up about 20% year over year and broadly in line with expectations.
3. Net income was $1.63 billion, about 2.5 times the $661 million reported in the same period last year.
4. Daily production was 1.427 million barrels of oil equivalent, above the midpoint of guidance. Operating cash flow was $4.1 billion, and free cash flow (before adjustments) was $2.8 billion.
5. The company has paid down $10.4 billion in debt so far this year, bringing principal debt to the $10 billion mark.
This whale’s take: The good news is that Occidental’s earning power is back. Oil prices aren’t especially high, but costs have come down, lifting its operating margin from about 20% in the same period last year to 38.6%. Still, don’t focus only on the earnings beat—revenue didn’t beat expectations, suggesting neither volumes nor prices delivered a surprise. Much of the profit surge also reflects a low base in the year-ago quarter. The stock slipped 0.29% after hours on the night of the report, then closed Tuesday at around $56.80, up about 1.9%—a restrained market response. Looking ahead, two things matter: whether production can stay above 1.42 million barrels per day in Q4, and whether the remaining cash flow will go back to shareholders after the debt is paid down.
Occidental Petroleum ($OXY ) reported its Q3 2026 results after the U.S. market closed on November 9. Its earnings call wrapped up at 2 a.m. Beijing time today:
1. Adjusted earnings per share came in at $1.91, about 30% above the $1.43 consensus. The company earned just $0.64 per share in the same period last year.
2. Revenue was $6.77 billion, up about 20% year over year and broadly in line with expectations.
3. Net income was $1.63 billion, about 2.5 times the $661 million reported in the same period last year.
4. Daily production was 1.427 million barrels of oil equivalent, above the midpoint of guidance. Operating cash flow was $4.1 billion, and free cash flow (before adjustments) was $2.8 billion.
5. The company has paid down $10.4 billion in debt so far this year, bringing principal debt to the $10 billion mark.
This whale’s take: The good news is that Occidental’s earning power is back. Oil prices aren’t especially high, but costs have come down, lifting its operating margin from about 20% in the same period last year to 38.6%. Still, don’t focus only on the earnings beat—revenue didn’t beat expectations, suggesting neither volumes nor prices delivered a surprise. Much of the profit surge also reflects a low base in the year-ago quarter. The stock slipped 0.29% after hours on the night of the report, then closed Tuesday at around $56.80, up about 1.9%—a restrained market response. Looking ahead, two things matter: whether production can stay above 1.42 million barrels per day in Q4, and whether the remaining cash flow will go back to shareholders after the debt is paid down.
