Shell (NYSE:SHEL) Issues Quarterly Earnings Results

Shell (NYSE:SHEL) posted its earnings results on Thursday. The energy company reported $1.14 EPS for the quarter, missing analysts’ consensus estimates of $1.21 by ($0.07), Zacks reports. The business had revenue of $64.09 billion during the quarter, compared to the consensus estimate of $65.82 billion. Shell had a return on equity of 10.34% and a net margin of 6.52%.

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

• Shell hit the lower end of its CMD25 cost target early, delivering $5.1 billion of structural cost reductions by end?2025 and plans to reach $5–$7 billion by 2028, signaling stronger operating leverage and margin upside.
• The company maintained disciplined capital allocation with a $20–$22 billion cash CapEx range, increased the dividend by 4% and launched a $3.5 billion buyback (to be completed by Q1 results), while delivering shareholder distributions at the top of the 40%–50% of CFFO target range.
• Progress on emissions goals continues: ~70% of the Scope 1&2 net reduction target to 2030 achieved, product carbon intensity down 9% year?on?2016, customer use emissions down 18%, and 100% elimination of routine flaring in upstream—supporting Shell’s ESG credentials and transition positioning.
• The Chemicals segment remained weak in 2025 due to low margins and operational underperformance; management is prioritizing restructuring, cost and CapEx cuts and has not ruled out unit shutdowns to reach free cash flow neutrality, indicating continued near?term headwinds.
• Reserve life and R/P declined (reserve life ~7.8 years, down ~15%), but management says targeted high?margin deepwater bolt?ons, divestments (e.g., SPDC, Adura JV) and selective M&A/exploration should close short?term gaps while keeping a value?accretive, patient approach to longer?term resource replenishment.

Shell Stock Performance

Shell stock opened at $75.34 on Monday. The company’s 50-day moving average price is $73.61 and its 200-day moving average price is $73.29. The company has a quick ratio of 1.03, a current ratio of 1.30 and a debt-to-equity ratio of 0.38. Shell has a twelve month low of $58.54 and a twelve month high of $79.30. The company has a market cap of $216.62 billion, a PE ratio of 12.56, a price-to-earnings-growth ratio of 5.58 and a beta of 0.16.

Institutional Trading of Shell

Institutional investors have recently bought and sold shares of the stock. Brighton Jones LLC raised its stake in shares of Shell by 51.7% in the fourth quarter. Brighton Jones LLC now owns 7,463 shares of the energy company’s stock valued at $468,000 after acquiring an additional 2,545 shares during the period. Horizon Investments LLC boosted its holdings in Shell by 6.4% during the 3rd quarter. Horizon Investments LLC now owns 3,521 shares of the energy company’s stock valued at $252,000 after acquiring an additional 211 shares during the period. Kelleher Financial Advisors purchased a new position in shares of Shell during the third quarter worth approximately $72,000. Sunbelt Securities Inc. boosted its holdings in shares of Shell by 2.7% in the third quarter. Sunbelt Securities Inc. now owns 14,880 shares of the energy company’s stock valued at $1,064,000 after purchasing an additional 388 shares during the period. Finally, Captrust Financial Advisors increased its holdings in Shell by 1.0% during the 3rd quarter. Captrust Financial Advisors now owns 138,501 shares of the energy company’s stock worth $9,907,000 after purchasing an additional 1,415 shares during the period. 28.60% of the stock is currently owned by institutional investors.

Key Stories Impacting Shell

Here are the key news stories impacting Shell this week:

• Positive Sentiment: Company announced a $3.5 billion share buyback programme and increased the interim dividend by 4% — supportive for EPS/return metrics and shareholder returns. Share Buyback Announcement
• Positive Sentiment: An analyst at Seeking Alpha upgraded SHEL from “Sell” to “Hold,” noting that although 2025 results disappointed, external market factors (oil/LNG tailwinds) could improve prospects next year. SA Rating Upgrade
• Positive Sentiment: Unusual options activity: traders bought a sizable block of call options (14,321 contracts), suggesting speculative or hedged bullish interest in the stock intraday.
• Neutral Sentiment: Wells Fargo trimmed its price target slightly to $77 and kept an “equal weight” rating — a modest tweak rather than a dramatic reassessment. Wells Fargo Note
• Neutral Sentiment: Shell selected PwC as its next external auditor (replacing EY) after a tender process — a governance/operational change that is unlikely to move fundamentals immediately. Auditor Appointment
• Neutral Sentiment: Management is exploring multibillion-dollar offshore gas opportunities in Venezuela — a potential long-term growth avenue but currently exploratory. Venezuela Investment Comments
• Negative Sentiment: Q4 results missed expectations: adjusted earnings fell short and revenue missed consensus amid lower oil prices and tax impacts — reported as Shell’s weakest quarterly profit since 2021, which is the primary negative catalyst. Q4 Results / Profit Miss
• Negative Sentiment: RBC downgraded Shell to “Sector Perform” and cut its price target after a soft trading update and what it called a “double miss” on earnings — selling pressure risk from institutional re-rating. RBC Downgrade
• Negative Sentiment: Shell will pause new investments in Kazakhstan amid legal/arbitration disputes — a setback to growth/production visibility in that region. Kazakhstan Pause
• Negative Sentiment: Analysts and commentators flag renewables/green-hydrogen investments as a near-term drag and potential source of write-down risk if projects underperform — a structural risk to margins and capital allocation. SA Note on Renewables Risk

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the company. UBS Group lowered Shell from a “buy” rating to a “neutral” rating in a research report on Tuesday, November 25th. Jefferies Financial Group restated a “buy” rating on shares of Shell in a report on Thursday, January 8th. TD Cowen reissued a “buy” rating on shares of Shell in a report on Friday, October 31st. Bank of America cut shares of Shell from a “buy” rating to a “neutral” rating in a research note on Friday, December 5th. Finally, Citigroup reaffirmed a “neutral” rating on shares of Shell in a research report on Monday, November 3rd. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and eleven have issued a Hold rating to the stock. According to data from MarketBeat, Shell currently has a consensus rating of “Hold” and a consensus target price of $81.33.

Shell Company Profile

Shell plc (NYSE: SHEL) is a global integrated energy company that operates across the full oil and gas value chain as well as in developing lower-carbon energy solutions. The company traces its roots to the early 20th century merger of Royal Dutch Petroleum and Shell Transport and Trading, and today it is organized to explore for and produce hydrocarbons, process and refine them, manufacture petrochemicals, and market fuel, lubricants and related products under the Shell brand around the world.

Shell’s principal activities include upstream exploration and production of oil and natural gas, integrated gas operations including liquefied natural gas (LNG), and downstream refining, supply and marketing.