Shell (SHEL) Q3 2026 Earnings
Adjusted EPS excludes identified items, which were a net post-tax gain of $801 million in Q3 2026. These included $1,290 million of Integrated Gas impairment reversals, $777 million of Upstream divestment gains, $1,904 million of Marketing impairments (mainly European biogas assets) and $976 million of fair-value accounting gains on commodity derivatives. Adjusted EPS also excludes a current cost of supplies adjustment of $0.4 billion. GAAP diluted EPS was $2.13.
How Did SHEL Stock React to Q3 2026 Earnings?
Did SHEL Beat Earnings? Q3 2026 Results
No. Shell reported Q3 2026 earnings of $1.93 a share on Oct 29, 2026, missing the $3.67 consensus estimate by 47.5%. Revenue was $92.8B against a $100.9B estimate.
Shell plc delivered a sharply disappointing third quarter, with adjusted EPS of $1.93 falling 47.48% short of the $3.67 consensus estimate, while revenue of $92.85 billion missed expectations by 7.95% despite climbing 37.1% year over year. The headline numbers masked a more complex quarter beneath, as the single most consequential driver of the earnings shortfall was a $1.90 billion net impairment charge in Marketing, centered on European biogas assets where Shell reassessed the pace of that market's development. Adjusted EBITDA nonetheless rose to $22.74 billion from $20.71 billion the prior quarter, supported by stronger refining margins and higher LNG realizations, while ROACE improved meaningfully to 14.4% from 9.4% a year earlier. The September close of the $14.01 billion ARC Resources acquisition reshaped Shell's gas portfolio, and the LNG Canada Phase 2 final investment decision, doubling capacity to 28 million tonnes per annum, signals the company's long-term production ambitions. Looking ahead, Shell guided Q4 Integrated Gas production at 1,080 to 1,180 thousand boe per day and flagged a non-cash pension conversion loss of approximately $6.40 billion, while launching a fresh $5.00 billion buyback.
- Higher Refining margins, with Products margins up $1,065 million vs Q2 2026
- Higher realised LNG prices and higher Integrated Gas volumes (+$360 million)
- Lower crude and oil products trading and optimisation
- Higher well write-offs in Upstream (+$309 million)
- Weaker Mobility unit margins and lower Lubricants volumes in Marketing (-$262 million)
- Renewables and Energy Solutions margins up $141 million, mainly from trading and optimisation
- Integrated Gas net impairment reversals of $1,290 million, including a pre-tax $1,787 million reversal on a North American asset tied to changed commercial terms and the LNG Canada Phase 2 FID
- Upstream disposal gains of $777 million, mainly from Na Kika
- Marketing impairment charges of $1,904 million, including a pre-tax $2,116 million impairment of a European biogas asset
- Fair value accounting of commodity derivatives added $976 million post-tax to identified items, $836 million of it in Chemicals and Products
- Total Integrated Gas production up 22% QoQ, mainly due to the ARC acquisition
- $2,189 million of net operating cash outflows from the timing of emission certificate and biofuel programme payments
- Adjusted EBITDA of $22,736 million vs $20,710 million in Q2 2026 and $14,773 million in Q3 2025
- ROACE on an Adjusted Earnings plus NCI basis of 14.4% vs 12.4% in Q2 2026 and 9.4% in Q3 2025
- Organic free cash flow of $17,043 million vs $8,263 million in Q3 2025
- Underlying operating expenses of $8,836 million vs $8,998 million in Q3 2025
- Derivative financial instruments contributed $3,435 million to operating cash flow
What Is Shell's Outlook?
For Q4 2026, Shell guides: - Integrated Gas production of about 1,080–1,180 thousand boe/d, including ARC Resources - LNG liquefaction volumes of about 7.3–7.9 million tonnes - Upstream production of about 1,700–1,900 thousand boe/d, with allowance for weather impacts in the Gulf of America - Marketing sales volumes of about 2,400–2,600 thousand b/d - Refinery utilisation of about 92%–100% - Chemicals plant utilisation of about 78%–86% - Corporate Adjusted Earnings as a net expense of about $600–$800 million Full-year 2026 cash capital expenditure is expected at $23–$25 billion, compared with $21 billion in 2025. Shell expects to record an identified non-cash loss in Q4 2026 when its Dutch defined benefit pension fund transitions to a defined contribution plan, with the transition and settlement expected on December 31, 2026. The loss was calculated at $6.4 billion at September 30, 2026 and is subject to actuarial remeasurement. A new $5.0 billion share buyback is expected to be completed by the Q4 2026 results announcement on February 4, 2027. A Capital Markets Update will be held on the same date.
SHEL YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $92.8B | $67.7B | +37.1% |
| Net Income | $12.1B | $5.3B | +127.9% |
SHEL Revenue by Segment
When Does Shell Report Next?
Figures from SEC filings and company reports. Not investment advice.