British energy giant Shell reported stronger-than-expected second-quarter earnings, driven by a surge in oil and gas prices amid escalating tensions in the Middle East.
The company posted adjusted earnings of $9.84 billion for the April–June period, significantly exceeding analyst expectations of $8.79 billion, according to a consensus compiled by LSEG. A separate forecast provided by Shell had projected earnings of $8.92 billion.
The results mark a sharp improvement compared with the same period last year, when Shell reported adjusted earnings of $4.26 billion. They also surpass the $6.92 billion recorded in the first quarter of 2026, highlighting a strong rebound in profitability.
The figures represent Shell’s best quarterly performance since the second quarter of 2022, when earnings reached $11.47 billion following a spike in energy prices after Russia’s full-scale invasion of Ukraine.
The company’s performance underscores the continued influence of geopolitical instability on global energy markets. Rising crude oil and natural gas prices, fueled by the ongoing Iran conflict, have significantly boosted revenues for major energy producers.
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Shell also confirmed it will maintain its share buyback program at a pace of $3 billion over the next quarter, signaling confidence in its balance sheet and commitment to returning value to shareholders.
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The strong results come as energy majors benefit from elevated fossil fuel prices, even as concerns about volatility and long-term demand persist across global markets.
Analysts say the latest earnings highlight how sensitive the energy sector remains to geopolitical shocks, with price swings quickly translating into higher cash flows for producers.
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However, they also warn that such gains may prove temporary if tensions ease or economic growth slows. Investors will be closely watching Shell’s capital allocation strategy, production outlook, and progress on energy transition goals in the coming quarters as market conditions continue to evolve across regions worldwide today.