BP (NYSE:BP) Announces Earnings Results, Beats Estimates By $0.03 EPS

BP (NYSE:BP) posted its quarterly earnings data on Tuesday. The oil and gas exploration company reported $0.60 earnings per share for the quarter, topping analysts’ consensus estimates of $0.57 by $0.03, Briefing.com reports. BP had a net margin of 0.79% and a return on equity of 9.07%. The company had revenue of $47.38 billion during the quarter, compared to analysts’ expectations of $42.19 billion. During the same period in the prior year, the business posted $0.44 earnings per share. The firm’s revenue for the quarter was up 3.6% on a year-over-year basis.

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

• Strong cash generation and cost discipline — adjusted free cash flow was about $13 billion (≈55% price‑adjusted growth) in 2025 and BP has delivered $2.8 billion of structural cost reductions to date, with the target raised to $5.5–$6.5 billion by 2027.
• Upstream delivery and reserves rebuild — seven major projects were started (adding ~150k boe/d toward a 250k boe/d peak), 2026 production is guided at ~2.3 million boe/d excluding divestments, and organic reserve replacement rose to 90%.
• Capital allocation shifted toward balance‑sheet strength — the board suspended buybacks, kept the progressive dividend (4%+ p.a.), and is prioritizing reduction of net debt (currently $22.2 billion) to a $14–$18 billion range by end‑2027, supported by a $20 billion divestment program (~$11 billion completed, Castrol sale expected to underpin ~$6 billion).
• Impairments and slower pace in transition businesses — BP recognized around $4 billion of impairments (mainly in biogas, renewables and related transition assets) as it “high‑grades” the portfolio and curbs growth where returns are weaker.
• Safety incidents amid mixed progress — four fatalities in U.S. retail in 2025 led to permanent changes (ending roadside assistance next to active lanes), even as combined Tier‑1/2 process safety events fell by about a third year‑on‑year.

BP Price Performance

Shares of NYSE:BP traded down $2.77 on Tuesday, hitting $36.45. The company had a trading volume of 10,287,535 shares, compared to its average volume of 9,490,567. BP has a 52-week low of $25.22 and a 52-week high of $39.51. The company has a market cap of $95.01 billion, a PE ratio of 62.97, a PEG ratio of 2.17 and a beta of 0.33. The business has a 50 day moving average of $35.77 and a 200 day moving average of $35.02. The company has a current ratio of 1.19, a quick ratio of 0.89 and a debt-to-equity ratio of 0.70.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on the stock. Raymond James Financial dropped their price objective on shares of BP from $40.00 to $38.00 and set an “outperform” rating for the company in a report on Friday, October 17th. Wolfe Research reiterated an “outperform” rating and issued a $51.00 price objective on shares of BP in a research note on Thursday, December 18th. Jefferies Financial Group reaffirmed a “hold” rating on shares of BP in a report on Thursday, January 8th. Citigroup reiterated a “buy” rating on shares of BP in a report on Monday, November 3rd. Finally, Evercore set a $38.00 price objective on shares of BP and gave the stock an “in-line” rating in a research report on Tuesday, January 6th. Two equities research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, BP has an average rating of “Hold” and an average price target of $40.41.

Institutional Investors Weigh In On BP

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Geode Capital Management LLC bought a new stake in BP in the fourth quarter valued at about $891,000. Captrust Financial Advisors grew its holdings in shares of BP by 5.8% during the third 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 during the last quarter. Greenline Partners LLC increased its holdings in shares of BP by 25.1% in the 3rd quarter. Greenline Partners LLC now owns 9,089 shares of the oil and gas exploration company’s stock worth $313,000 after acquiring an additional 1,826 shares during the period. Triumph Capital Management acquired a new stake in shares of BP in the third quarter valued at approximately $43,000. Finally, Hilltop Holdings Inc. bought a new position in shares of BP in the third quarter worth $266,000. 11.01% of the stock is currently owned by institutional investors and hedge funds.

BP News Roundup

Here are the key news stories impacting BP this week:

• Positive Sentiment: Q4 operating beat — BP reported $0.60 EPS (vs. $0.58 consensus) and revenue of $47.38bn, topping expectations; underlying replacement-cost profit remained positive, supporting near-term cash generation. BP Earnings & Call
• Neutral Sentiment: Underlying profit roughly in line — BP’s adjusted underlying profit (~$1.54bn) was broadly in line with analysts’ expectations, tempering alarm from the headline accounting loss. Reuters: Q4 profits in line
• Neutral Sentiment: Asset-sale activity could free cash — Reports say BP is in talks to sell its Gelsenkirchen refinery, which could help raise cash and improve leverage if executed. Reuters: Gelsenkirchen refinery interest
• Negative Sentiment: Buyback suspended — BP said it will pause share buybacks and redirect “excess cash” to reduce debt and strengthen the balance sheet, removing a significant source of shareholder support and triggering a negative market reaction. MSN: BP suspends buyback
• Negative Sentiment: Large Q4 accounting hit — BP reported a $3.4bn headline loss for Q4 driven by inventory holding losses and ~ $4bn of post‑tax impairments tied to transition-related assets, increasing near-term volatility and raising questions over asset valuations. Proactive: Q4 loss and impairments
• Negative Sentiment: Sector and leadership context — Weaker oil prices and peer weakness are pressuring margins; commentary notes the buyback pause comes ahead of a new CEO arrival, adding near-term strategic uncertainty. Barron’s: Buybacks suspended & CEO context

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.