11:33 AM EDT, 08/04/2025 (MT Newswires) -- Exxon Mobil ( XOM ) delivered stronger-than-expected Q2 results, beating consensus estimates by 6%, driven primarily by upstream performance and record production of 1.6 million barrels of oil equivalent per day in the Permian Basin, RBC Capital said in a note Monday.

Due to the weakness in the chemicals segment and a lowered long-term Brent price forecast, the analysts have revised down 2026 EPS estimates by 16%. The firm lowered its adjusted earnings outlook to $5.27 from $6.25 per diluted share for 2026, and to $8.38 from $8.64 previously for 2027. Analysts surveyed by FactSet expect $7.78 for 2026 and $9.49 for 2027.

RBC analysts believe that despite facing recent legal setbacks in Guyana, the company remains focused on operational execution and future growth, including through potential acquisitions.

The note also said that the company's chemicals segment continues to struggle amid challenging market conditions, as net debt rose by $4 billion quarter-over-quarter, with Exxon funding its $5 billion buyback largely from its balance sheet.

The firm maintained its sector perform rating on the stock and a price target of $105, with a downside scenario of $55 and upside potential to $145.

Price: 108.68, Change: -0.97, Percent Change: -0.88