BP (BP) Q1 2026 Earnings: $3.2 Billion Underlying Profit Tops Expectations
Key Takeaways
- Underlying replacement cost (RC) profit reached $3.2 billion for the first quarter ended 31 March 2026, up from $1.5 billion in the prior quarter.
- Reported profit attributable to shareholders hit $3.8 billion, reversing a $3.4 billion loss from Q4 2025.
- Revenue came in at $52.26 billion, surpassing consensus expectations of $48.43 billion.
- Customers & Products segment delivered underlying RC profit before interest and tax of $3.2 billion, boosted by refining margins and oil trading.
- Quarterly dividend maintained at 8.320 cents per ordinary share, with commitment to at least 4% annual growth.
- Net debt rose to $25.3 billion amid working capital build; full-year capital expenditure guidance reiterated at $13-13.5 billion.
Q1 Earnings in Context
In a volatile energy market shaped by geopolitical tensions and fluctuating oil prices, BP's first quarter 2026 results shed light on the company's operational resilience and trading capabilities. As one of the world's largest integrated oil majors, BP navigates pressures from the energy transition, refining margin volatility, and upstream disruptions. From what I see, investors pay close attention to these earnings for clues on profitability, especially amid efforts to maintain capital discipline and reduce debt. This strong Q1 performance highlights BP's ability to turn market dislocations into opportunities, which bears on its valuation and strategic direction under new leadership.
Breaking Down the Reported Results
BP p.l.c. reported underlying RC profit—a key non-GAAP measure that adjusts for inventory valuation effects—of $3.2 billion for the three months ended 31 March 2026. This figure beat analyst expectations and marked a sharp rebound from $1.5 billion in Q4 2025. The gains stemmed from exceptional oil trading and elevated refining margins in the Customers & Products segment, which delivered $3.2 billion in underlying RC profit before interest and tax, up from $1.3 billion in the prior quarter. Oil Production & Operations remained steady at $2.0 billion underlying, while Gas & Low Carbon Energy improved to $1.3 billion.
Reported profit attributable to shareholders reached $3.8 billion, lifted by $3.2 billion in inventory holding gains but tempered by adverse adjusting items. Underlying RC profit per American Depositary Share (ADS) was $1.24, exceeding consensus estimates of around $0.86-$0.93. Revenue totaled $52.26 billion, topping forecasts of $48.43 billion. Operating cash flow stood at $2.9 billion after a $6.0 billion working capital build driven by rising prices and seasonal factors. The company declared a dividend of 8.320 cents per ordinary share. One thing that stands out to me is how these segment results compare across the industry; I checked this using Tickeron’s AI Screener to gauge BP's relative strength.
Market Reaction and Investor Sentiment
BP shares rose after the Q1 earnings release, placing among the FTSE 100 gainers as the market applauded the profit beat and solid trading performance. The positive response reflects approval of the segment strength amid energy market swings, even with some minor pre-market fluctuations. In my view, sentiment has shifted optimistically toward BP's cash generation and dividend reliability, despite concerns over rising net debt.
Discovering Opportunities with Tickeron’s AI Screener
In my research process, I rely on Tickeron’s AI Screener, an AI-powered tool for discovering stocks and ETFs. It allows me to filter thousands of assets using customizable criteria like technical patterns, fundamentals, trends, volatility, and AI signals—such as industry, market cap, indicators, price patterns, and performance metrics. This helps me pinpoint trade ideas, breakout candidates, and opportunities far more efficiently than manual methods, streamlining my workflow when analyzing companies like BP.
Forward Outlook and Key Factors to Watch
BP reaffirmed its 2026 capital expenditure guidance of $13-13.5 billion, focusing on disciplined spending in high-return projects. The company aims for net debt of $14-18 billion by the end of 2027, bolstered by divestment proceeds and hybrid bond reductions to around $9 billion.
I'm watching structural cost savings, now targeted at $6.5-7.5 billion by 2027 after planned refinery sales, as well as upstream production reliability in the face of geopolitical risks. Refining margins and trading results will remain crucial, given their major role in Q1. The commitment to at least 4% annual dividend growth per ordinary share reinforces focus on shareholders.
Key broader elements include oil price movements, progress in low-carbon energy, and shifts in gas and renewables demand. Upcoming milestones feature Q2 results and potential asset transactions, all in support of balance sheet strengthening under CEO Meg O'Neill's vision for a "simpler, stronger" BP.
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BP's RSI Oscillator is sitting in oversold zone for 3 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 7 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BP advanced for three days, in of 356 cases, the price rose further within the following month. The odds of a continued upward trend are .
BP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on June 15, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on BP as a result. In of 99 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for BP turned negative on June 11, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
BP moved below its 50-day moving average on May 21, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for BP entered a downward trend on June 26, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.830) is normal, around the industry mean (1.939). P/E Ratio (32.184) is within average values for comparable stocks, (20.170). Projected Growth (PEG Ratio) (0.042) is also within normal values, averaging (1.141). Dividend Yield (0.050) settles around the average of (0.043) among similar stocks. P/S Ratio (0.538) is also within normal values, averaging (1.738).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 36, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. BP’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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a producer of petroleum, natural gas and related products
Industry IntegratedOil
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