BP (NYSE:BP) Posts Quarterly Earnings Results, Beats Expectations By $0.35 EPS

BP (NYSE:BP) released its earnings results on Tuesday. The oil and gas exploration company reported $2.22 EPS for the quarter, topping analysts’ consensus estimates of $1.87 by $0.35, FiscalAI reports. The company had revenue of $69.11 billion for the quarter, compared to analysts’ expectations of $57.89 billion. BP had a return on equity of 16.64% and a net margin of 2.49%.The business’s revenue for the quarter was up 106.1% compared to the same quarter last year. During the same period in the previous year, the business posted $0.90 EPS.

Here are the key takeaways from BP’s conference call:

• Balance-sheet progress continued: BP said net debt fell by $3 billion quarter-on-quarter, while total financial obligations declined by about $7 billion since the first quarter. Year-end obligations are now expected at approximately $39 billion-$41 billion.
• Operational reliability weakened: Upstream plant reliability fell to 92.4% and refining availability to 94.7%, following outages and restart issues in the North Sea, Indonesia and Whiting. Management acknowledged that consistent operational performance needs to improve.
• Portfolio simplification is accelerating, including plans to market BP’s North Sea business for a full divestment and the intended sale of Archaea Energy. BP expects $8 billion-$9 billion of divestment proceeds in 2026 but emphasized that value—not meeting the previously cited $20 billion figure—will drive decisions.
• Cost reductions are ahead of target but have not yet reached earnings: BP expects operating costs of around $18 billion in 2027 versus $22 billion in 2025, representing roughly $5.8 billion of structural reductions. Executives said the key challenge is converting those savings into bottom-line earnings and cash flow, with greater impact expected from 2027.
• BPX remains a growth focus: U.S. production reached 545,000 barrels of oil equivalent per day and continues to grow, supported by competitive returns and short-cycle investment opportunities. Potential longer-term growth also includes the Gulf of Mexico, Kirkuk and Brazil’s Bumerangue discovery, although no major final investment decisions are expected in 2026.

BP Trading Up 1.7%

BP traded up $0.70 during trading on Thursday, hitting $41.91. The company’s stock had a trading volume of 2,283,862 shares, compared to its average volume of 11,359,428. BP has a twelve month low of $32.72 and a twelve month high of $48.27. The stock has a market cap of $109.77 billion, a PE ratio of 20.40, a PEG ratio of 0.71 and a beta of 0.16. The firm’s 50 day moving average price is $41.07 and its 200-day moving average price is $41.85. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.22 and a quick ratio of 0.87.

BP Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 18th. Shareholders of record on Friday, August 14th will be issued a $0.5196 dividend. This is a boost from BP’s previous quarterly dividend of $0.50. The ex-dividend date is Friday, August 14th. This represents a $2.08 annualized dividend and a yield of 5.0%. BP’s payout ratio is presently 96.10%.

Analysts Set New Price Targets

BP has been the subject of several research analyst reports. Weiss Ratings reiterated a “hold (c-)” rating on shares of BP in a research report on Thursday, June 18th. Wall Street Zen raised shares of BP from a “buy” rating to a “strong-buy” rating in a research note on Saturday, July 18th. UBS Group upgraded shares of BP from a “neutral” rating to a “buy” rating in a research note on Wednesday, April 15th. BNP Paribas Exane set a $57.00 target price on shares of BP and gave the stock an “outperform” rating in a research report on Friday, April 17th. Finally, Royal Bank Of Canada upgraded BP from a “sector perform” rating to an “outperform” rating in a report on Monday, May 11th. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, eight have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $46.28.

Hedge Funds Weigh In On BP

Institutional investors have recently added to or reduced their stakes in the business. New York State Common Retirement Fund acquired a new position in BP during the 4th quarter valued at about $17,768,000. Sagefield Capital LP lifted its position in BP by 125.2% in the fourth quarter. Sagefield Capital LP now owns 493,556 shares of the oil and gas exploration company’s stock worth $17,141,000 after purchasing an additional 274,381 shares during the period. Vestor Capital LLC boosted its stake in BP by 3,119.8% during the 4th quarter. Vestor Capital LLC now owns 66,553 shares of the oil and gas exploration company’s stock valued at $2,311,000 after purchasing an additional 64,486 shares in the last quarter. Geode Capital Management LLC bought a new position in BP during the fourth quarter valued at about $891,000. Finally, Captrust Financial Advisors boosted its position in shares of BP by 5.8% during the 3rd quarter. Captrust Financial Advisors now owns 146,824 shares of the oil and gas exploration company’s stock valued at $5,060,000 after purchasing an additional 8,016 shares in the last quarter. 11.01% of the stock is currently owned by institutional investors and hedge funds.

BP Company Profile

BP plc is a British multinational integrated energy company headquartered in London. Originating in the early 20th century as the Anglo-Persian Oil Company, BP has grown into one of the world’s largest oil and gas companies, operating across exploration and production, refining and marketing, trading, and a range of low-carbon businesses.

The company’s core activities include upstream exploration and production of crude oil and natural gas, midstream and trading operations, and downstream refining, marketing and supply of fuels, lubricants and petrochemicals.