The Oil/Energy sector is expected to report strong earnings growth in the third quarter of 2026, supported by higher crude oil prices and improved refining margins. However, the benefits have varied across the sector’s sub-industries. Oil producers have gained from stronger crude prices, while Natural gas producers have faced relatively weak market conditions due to abundant supplies. Rising operating expenses, inflation and transportation costs have also remained concerns for energy companies.
Despite these challenges, the sector’s earnings outlook remains strong. Early quarterly results indicate that several companies have benefited from favorable commodity prices and better operating conditions. As more companies report their results, investors will get a clearer picture of whether the improvement in energy markets has translated into stronger financial performance.
Oil Gains, Natural Gas Struggles in Q3
Oil and natural gas prices moved in different directions during the third quarter of 2026. Crude oil became more expensive as geopolitical tensions in the Middle East raised concerns about global supply, while natural gas prices remained relatively low because of sufficient supplies in the United States. According to the U.S. Energy Information Administration’s (EIA) data, West Texas Intermediate crude averaged $87.22 per barrel, up from $65.74 in the prior year. The increase toward the end of the quarter was driven by concerns about potential supply disruptions in the Middle East. Higher crude prices generally benefit oil producers by allowing them to sell their production at higher prices, supporting revenues and cash flows.
On the other hand, natural gas prices remained under pressure. EIA data show that the Henry Hub spot price averaged $2.87 per million British thermal units (“MMBtu”) in the third quarter of 2026, down from $3.03 per MMBtu in the prior year. Strong U.S. natural gas production and adequate storage supplies limited the scope for a stronger price recovery. Increased renewable power generation also reduced demand for natural gas in the power sector, keeping natural gas prices relatively subdued despite higher summer electricity demand.
Oil/Energy Sector Poised for Triple-Digit Q3 Earnings Growth
The Oil/Energy sector is expected to be one of the biggest contributors to S&P 500 earnings growth in the third quarter of 2026. According to the latest Zacks Earnings Trends report, sector earnings are projected to surge 133.9% year over year, while revenues are expected to increase 23.5%.
The sector’s early results have been particularly encouraging. As of Oct. 29, 2026, companies representing approximately 40% of the Oil/Energy sector had reported their quarterly results. Their combined earnings increased 202.1% year over year, while revenues grew 38.9%. All reporting companies exceeded the Zacks Consensus Estimate for earnings, and 80% beat revenue expectations, indicating stronger-than-anticipated financial performance.
For the entire third quarter, Oil/Energy companies are expected to generate $65.6 billion in earnings on revenues of $410.2 billion. This represents a substantial increase from $28.1 billion in earnings and $296.7 billion in revenues reported in the year-ago quarter. The sector’s projected earnings growth also exceeds its revenue growth, pointing to a significant improvement in profitability.
4 Oil/Energy Stocks to Watch Ahead of Q3 Earnings
With energy companies benefiting from higher crude prices and stronger refining margins, investors are looking for companies that can translate favorable market conditions into better financial results. However, individual performance will depend on factors such as oil and natural gas production, commodity price exposure, operating expenses and refining margins.
Against this backdrop, let’s examine four prominent oil and energy companies scheduled to report their third-quarter 2026 results on Nov. 5. We will look at their earnings expectations and the factors that could influence their quarterly performance.
Our proprietary model indicates that a company needs to have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Let’s take a closer look at the four companies and assess their prospects ahead of their quarterly results.
Canadian Natural Resources Limited CNQ is scheduled to report quarterly earnings ahead of the market open. The chances of Canadian Natural Resources delivering an earnings beat this time around are low, as it has an Earnings ESP of 0.00% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Canadian Natural Resources is one of Canada’s largest oil and gas producers, with operations spanning oil sands, conventional crude oil, natural gas and offshore assets. Its diversified production portfolio provides exposure to multiple energy markets. The Zacks Consensus Estimate for the Canada-based oil and gas exploration and production company’s earnings is pegged at $1.05 per share, suggesting a 69.35% increase from the prior-year reported figure.
This is depicted in the chart below:
Canadian Natural Resources Limited Price and EPS Surprise
Canadian Natural Resources Limited Price and EPS Surprise
Canadian Natural Resources Limited price-eps-surprise | Canadian Natural Resources Limited Quote
ConocoPhillips COPis scheduled to unveil its quarterly earnings ahead of the trading session.The chances of ConocoPhillips delivering an earnings beat this time around are low, as it has an Earnings ESP of 0.00% and a Zacks Rank #1 at present.
ConocoPhillips is a major global exploration and production company with operations across several oil and gas-producing regions. Its earnings performance is closely tied to production volumes, commodity prices and operating efficiency. The Zacks Consensus Estimate for the Houston, TX-based oil and gas exploration and production company’s earnings is pegged at $3.06 per share, suggesting a 90.06% increase from the prior-year reported figure.
This is depicted in the chart below:
ConocoPhillips Price and EPS Surprise
ConocoPhillips Price and EPS Surprise
ConocoPhillips price-eps-surprise | ConocoPhillips Quote
TC Energy Corporation TRP will announce its quarterly earnings prior to the market opening.The chances of TC Energy delivering an earnings beat this time around are low, as it has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
TC Energy operates an extensive network of natural gas pipelines and energy infrastructure, connecting major supply basins with consumers and markets. Unlike upstream producers, the company primarily benefits from transporting and storing energy rather than directly producing oil and gas. The Zacks Consensus Estimate for the Calgary, Canada-based oil and gas storage and transportation company’s earnings is pegged at 64 cents per share, suggesting a 14.29% increase from the pri
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
