Oil and gas producer Occidental Petroleum (NYSE: OXY) missed Wall Street’s revenue expectations in Q3 2026, but revenue rose 20.6% year on year to $6.77 billion. Its non-GAAP profit of $1.91 per share was 29.8% above analysts’ consensus estimates.
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Occidental Petroleum (OXY) Q3 2026 highlights:
- Revenue $6.77 billion vs. S&P consensus estimates of $6.82 billion (20.6% year-on-year growth, 0.7% miss)
- Adjusted EPS $1.91 vs. S&P consensus estimates of $1.47 (29.8% beat)
- Operating margin 38.6%, up from 19.7% in the same quarter last year
- Market capitalization $56.36 billion
Revenue growth
Cyclical sectors like energy often flatter weaker operators during favorable price environments, but a longer-term lens separates those from businesses that can consistently perform across market cycles. Occidental Petroleum’s weak 3.7% annualized revenue growth over the last five years fell short of the rest of the energy upstream and integrated energy sector, but there are still things to like about the company.
Even a long stretch in energy can be shaped by a single commodity cycle, so extending the view to ten years adds another perspective and reveals which companies are built to grow regardless of the pricing regime. Occidental Petroleum’s annualized revenue growth of 9.4% over the last ten years is above its five-year trend.
This quarter, Occidental Petroleum generated strong year-on-year revenue growth of 20.6%, but its $6.77 billion of revenue fell short of Wall Street’s high expectations.
Adjusted EBITDA margin
Adjusted EBITDA margin captures the operating profitability of an energy producer by removing accounting effects related to depletion and capitalized drilling costs. It reveals how much cash the asset base generates before capital structure and reinvestment requirements shape reported earnings.
Occidental Petroleum has performed well over the last five years. It demonstrated strong profitability for an upstream and integrated energy business, with an average EBITDA margin of 58.5%.
Analyzing the trend in its profitability, Occidental Petroleum’s EBITDA margin rose by 3.7 percentage points over the last year, as its revenue growth gave it operating leverage.
In Q3, Occidental Petroleum generated an EBITDA profit margin of 64.9%, up 5.7 percentage points year on year. This increase was a positive development and shows it was more efficient. Adjusted EBITDA beat Wall Street’s consensus estimates by 4.2%.
Key takeaways from Occidental Petroleum’s Q3 results
Occidental Petroleum’s Q3 results were solid overall, with an EPS beat providing a key positive despite revenue coming in slightly below analysts’ consensus estimates. Shares edged higher 1% to $56.36 immediately after the results.
Occidental Petroleum may have had a good quarter, but does that mean you should invest? That decision should take into account its valuation, business quality and latest quarterly results. Read the full research report here (it’s free).
