Revenue contracted 8.4% year-over-year in Q2 2026, and gross margin swung from 77.3% in Q1 2026 to 1.1% in Q2 2026 due to a $2.4B COGS impairment, though net income of $747M was boosted by non-operating gains.
APA Corporation (APA) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 8.83B | 8.92B | 9.74B | 8.28B | 11.07B | 7.99B | 4.43B | 6.49B | 7.35B | 5.89B | 5.37B | 6.38B | 12.79B | 14.77B | 16.43B | 16.81B | 12.18B | 8.61B | 12.39B | 9.96B | 8.07B | 7.58B | 5.33B | 4.19B | 2.56B | 2.78B | 2.28B | 1.3B | 876.4M | 1.18B | 976M |
| Revenue Growth % | -12.18% | -8.39% | 17.61% | -25.25% | 38.7% | 80.05% | -31.67% | -11.66% | 24.82% | 9.69% | -15.92% | -50.11% | -13.38% | -10.09% | -2.27% | 37.98% | 41.42% | -30.47% | 24.37% | 23.38% | 6.46% | 42.22% | 27.26% | 63.7% | -7.83% | 21.6% | 75.63% | 48.38% | -25.77% | 20.97% | 30.06% |
| Cost of Goods Sold | 5.41B | 5.59B | 5.43B | 4.05B | 4.82B | 4.45B | 3.53B | 4.58B | 4.19B | 3.86B | 4.31B | 8.28B | 7.04B | 8.8B | 9.96B | 7.11B | 5.29B | 143M | 2.07B | 1.82B | 1.47B | 1.14B | 946.64M | 760.12M | 500.69M | 407.13M | 255.25M | 190.58M | 182.14M | 425.6M | 364.3M |
| COGS % of Revenue | - | 62.68% | 55.82% | 48.94% | 43.52% | 55.67% | 79.59% | 70.48% | 57.05% | 65.55% | 80.34% | 129.74% | 55% | 59.6% | 60.63% | 42.27% | 43.45% | 1.66% | 16.68% | 18.31% | 18.17% | 15.04% | 17.75% | 18.14% | 19.56% | 14.66% | 11.18% | 14.66% | 20.78% | 36.05% | 37.33% |
| Gross Profit | 3.42B | 3.33B | 4.3B | 4.23B | 6.25B | 3.54B | 905M | 1.92B | 3.16B | 2.03B | 1.05B | -1.9B | 5.76B | 5.97B | 6.47B | 9.71B | 6.89B | 8.47B | 10.32B | 8.14B | 6.61B | 6.44B | 4.39B | 3.43B | 2.06B | 2.37B | 2.03B | 1.11B | 694.26M | 755.1M | 611.7M |
| Gross Margin % | 38.77% | 37.32% | 44.18% | 51.06% | 56.48% | 44.33% | 20.41% | 29.52% | 42.95% | 34.45% | 19.66% | -29.74% | 45% | 40.4% | 39.37% | 57.73% | 56.55% | 98.34% | 83.32% | 81.69% | 81.83% | 84.96% | 82.25% | 81.86% | 80.44% | 85.34% | 88.82% | 85.34% | 79.22% | 63.95% | 62.67% |
| Gross Profit Growth % | - | -22.62% | 1.77% | -32.42% | 76.69% | 291.16% | -52.77% | -39.29% | 55.62% | 92.23% | 155.58% | -132.96% | -3.5% | -7.75% | -33.35% | 40.86% | -18.67% | -17.94% | 26.86% | 23.16% | 2.55% | 46.91% | 27.86% | 66.59% | -13.12% | 16.83% | 82.79% | 59.86% | -8.06% | 23.44% | 36.72% |
| Operating Expenses | 2.38B | 579M | 1.1B | 869M | 1.17B | 848M | 732M | 1.47B | 1.19B | 1.32B | 1.2B | 821M | 3.4B | 1.8B | 1.49B | 1.43B | 1.27B | 7.9B | 9.12B | 3.16B | 2.31B | 2.07B | 1.49B | 1.39B | 1.01B | 981.83M | 725.87M | 501.6M | 671.2M | 426.1M | 356.1M |
| OpEx % of Revenue | - | 6.49% | 11.33% | 10.5% | 10.59% | 10.62% | 16.51% | 22.66% | 16.15% | 22.35% | 22.34% | 12.86% | 26.56% | 12.17% | 9.09% | 8.53% | 10.44% | 91.75% | 73.64% | 31.77% | 28.56% | 27.26% | 27.92% | 33.08% | 39.59% | 35.35% | 31.78% | 38.57% | 76.59% | 36.09% | 36.49% |
| Selling, General & Admin | 369M | 350M | 372M | 351M | 483M | 376M | 290M | 406M | 431M | 395M | 410M | 380M | 453M | 481M | 531M | 459M | 380M | 344M | 288.79M | 275.06M | 211.33M | 198.27M | 173.19M | 138.52M | 104.59M | 88.71M | 75.61M | 53.9M | 40.7M | 38.2M | 35.9M |
| SG&A % of Revenue | - | 3.92% | 3.82% | 4.24% | 4.36% | 4.71% | 6.54% | 6.25% | 5.87% | 6.71% | 7.64% | 5.95% | 3.54% | 3.26% | 3.23% | 2.73% | 3.12% | 3.99% | 2.33% | 2.76% | 2.62% | 2.61% | 3.25% | 3.31% | 4.09% | 3.19% | 3.31% | 4.14% | 4.64% | 3.24% | 3.68% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 229M | 731M | 518M | 690M | 472M | 442M | 1.06B | 756M | 921M | 789M | 444M | 2.94B | 1.32B | 963M | 975M | 892M | 7.56B | 8.84B | 2.89B | 2.09B | 1.87B | 1.32B | 1.25B | 908.83M | 893.12M | 650.26M | 447.7M | 630.5M | 387.9M | 320.2M |
| Operating Income | 1.05B | 2.75B | 3.2B | 3.36B | 5.08B | 2.69B | 173M | 445M | 1.97B | 712M | -144M | -2.33B | 2.36B | 4.17B | 5.12B | 8.31B | 5.62B | 568M | 1.19B | 4.95B | 4.33B | 4.38B | 2.9B | 2.04B | 1.05B | 1.39B | 1.3B | 426.84M | -117.03M | 329M | 255.6M |
| Operating Margin % | 11.84% | 30.83% | 32.85% | 40.56% | 45.89% | 33.71% | 3.9% | 6.86% | 26.8% | 12.09% | -2.68% | -36.58% | 18.44% | 28.23% | 31.18% | 49.46% | 46.11% | 6.59% | 9.6% | 49.7% | 53.57% | 57.7% | 54.32% | 48.78% | 40.85% | 49.99% | 57.04% | 32.82% | -13.35% | 27.86% | 26.19% |
| Operating Income Growth % | - | -14.04% | -4.74% | -33.92% | 88.78% | 1456.07% | -61.12% | -77.4% | 176.54% | 594.44% | 93.83% | -198.94% | -43.41% | -18.59% | -38.4% | 48.01% | 889.08% | -52.22% | -75.99% | 14.48% | -1.17% | 51.07% | 41.74% | 95.46% | -24.67% | 6.55% | 205.22% | 464.74% | -135.57% | 28.72% | 135.36% |
| EBITDA | 5.28B | 5.28B | 5.46B | 4.9B | 6.64B | 4.05B | 1.95B | 3.13B | 4.37B | 3.55B | 2.98B | 3.71B | 6.89B | 10.04B | 12B | 12.56B | 8.7B | 5.78B | 9.04B | 7.3B | 6.14B | 5.79B | 4.12B | 3.12B | 1.87B | 2.14B | 1.89B | 869.68M | 508.96M | 716.9M | 575.8M |
| EBITDA Margin % | 59.76% | 59.2% | 56.13% | 59.16% | 59.95% | 50.75% | 43.86% | 48.14% | 59.53% | 60.32% | 55.58% | 58.04% | 53.82% | 67.94% | 73.06% | 74.74% | 71.42% | 67.11% | 72.96% | 73.27% | 76.06% | 76.37% | 77.29% | 74.44% | 72.96% | 77.11% | 82.59% | 66.88% | 58.07% | 60.72% | 59% |
| EBITDA Growth % | -6.77% | -3.37% | 11.58% | -26.22% | 63.84% | 108.33% | -37.76% | -28.56% | 23.18% | 19.04% | -19.49% | -46.2% | -31.39% | -16.39% | -4.47% | 44.4% | 50.51% | -36.04% | 23.84% | 18.85% | 6.03% | 40.53% | 32.13% | 67.01% | -12.78% | 13.52% | 116.9% | 70.87% | -29.01% | 24.5% | 40.17% |
| D&A (Non-Cash Add-back) | 1.79B | 2.53B | 2.27B | 1.54B | 1.56B | 1.36B | 1.77B | 2.68B | 2.4B | 2.84B | 3.13B | 6.04B | 4.53B | 5.87B | 6.88B | 4.25B | 3.08B | 5.21B | 7.85B | 2.35B | 1.82B | 1.42B | 1.22B | 1.08B | 822.04M | 753.26M | 583.55M | 442.84M | 625.99M | 387.9M | 320.2M |
| EBIT | 3.56B | 2.9B | 1.91B | 3.21B | 6.06B | 2.3B | -4.41B | -2.62B | 1.35B | 1.33B | -1.26B | -11.7B | -6.42B | 4.15B | 5.02B | 8.26B | 5.43B | 574M | 1.21B | 4.95B | 4.01B | 4.38B | 2.9B | 2.09B | 1.05B | 1.39B | 1.31B | 426.84M | -117.03M | 329M | 255.6M |
| Net Interest Income | -242M | -253M | -367M | -321M | -312M | -410M | -427M | -387M | -384M | -396M | -416M | -472M | -413M | -245M | -172M | -158M | -229M | -242M | -256.51M | 0 | -141.89M | -116.32M | 0 | -112.91M | 0 | 0 | -165.91M | 0 | 0 | 0 | 0 |
| Interest Income | 18M | 25M | 12M | 10M | 10M | 8M | 7M | 13M | 22M | 19M | 8M | 10M | 1M | 0 | 10M | 17M | 13M | 12M | 23.95M | 0 | 16.32M | 5.86M | 0 | 3.29M | 0 | 0 | 2.21M | 0 | 0 | 0 | 0 |
| Interest Expense | 260M | 278M | 379M | 331M | 322M | 418M | 434M | 400M | 406M | 415M | 424M | 482M | 414M | 245M | 182M | 175M | 242M | 248M | 280.46M | 0 | 158.2M | 122.18M | 0 | 116.2M | 0 | 0 | 168.12M | 0 | 0 | 0 | 0 |
| Other Income/Expense | 2.06B | 41M | -1.66B | -475M | 652M | -801M | -5.01B | -3.45B | -1.01B | 206M | -1.54B | -9.83B | -9.19B | -262M | -245M | -222M | -412M | -241.61M | -256.51M | -278.61M | -315.43M | -170.04M | -233.76M | -121.58M | -146.67M | -188.91M | -106.64M | -82.27M | -70.54M | -70.4M | -55.4M |
| Pretax Income | 3.11B | 2.79B | 1.53B | 2.88B | 5.73B | 1.89B | -4.84B | -3.01B | 958M | 918M | -1.68B | -12.17B | -6.83B | 3.91B | 4.88B | 8.09B | 5.21B | 326.39M | 932.39M | 4.67B | 4.01B | 4.21B | 2.66B | 1.92B | 898.97M | 1.2B | 1.2B | 344.57M | -187.56M | 258.6M | 200.2M |
| Pretax Margin % | 35.18% | 31.29% | 15.76% | 34.82% | 51.77% | 23.68% | -109.13% | -46.34% | 13.04% | 15.59% | -31.34% | -190.65% | -53.38% | 26.46% | 29.69% | 48.14% | 42.73% | 3.79% | 7.53% | 46.9% | 49.66% | 55.46% | 49.94% | 45.87% | 35.12% | 43.18% | 52.37% | 26.5% | -21.4% | 21.9% | 20.51% |
| Income Tax | 1.13B | 1.1B | 417M | -324M | 1.65B | 578M | 64M | 674M | 672M | -585M | -442M | -1.01B | -518M | 1.93B | 2.88B | 3.51B | 2.17B | 610.79M | 220.44M | 1.86B | 1.46B | 1.58B | 993.01M | 827M | 344.64M | 475.86M | 483.09M | 143.72M | -58.18M | 103.7M | 78.8M |
| Effective Tax Rate % | 36.31% | 39.38% | 27.17% | -11.24% | 28.81% | 30.57% | -1.32% | -22.41% | 70.15% | -63.73% | 26.28% | 8.3% | 7.58% | 49.33% | 58.97% | 43.36% | 41.76% | 187.13% | 23.64% | 39.81% | 36.34% | 37.62% | 37.29% | 43.02% | 38.34% | 39.68% | 40.39% | 41.71% | 31.02% | 40.1% | 39.36% |
| Net Income | 1.68B | 1.43B | 804M | 2.85B | 3.67B | 1.14B | -4.78B | -3.52B | 40M | 1.3B | -1.41B | -10.35B | -8.36B | 2.23B | 2B | 4.58B | 3.03B | -284.4M | 711.95M | 2.81B | 2.55B | 2.62B | 1.67B | 1.12B | 554.33M | 723.4M | 713.06M | 200.85M | -129.39M | 154.9M | 121.4M |
| Net Margin % | 18.99% | 16.08% | 8.26% | 34.48% | 33.17% | 14.21% | -107.87% | -54.15% | 0.54% | 22.15% | -26.18% | -162.18% | -65.34% | 15.11% | 12.18% | 27.27% | 24.89% | -3.3% | 5.75% | 28.23% | 31.61% | 34.59% | 31.29% | 26.77% | 21.66% | 26.05% | 31.22% | 15.45% | -14.76% | 13.12% | 12.44% |
| Net Income Growth % | 55.13% | 78.36% | -71.84% | -22.29% | 223.7% | 123.72% | -36.1% | -8887.5% | -96.93% | 192.81% | 86.43% | -23.83% | -474.55% | 11.54% | -56.35% | 51.19% | 1166.11% | -139.95% | -74.68% | 10.18% | -2.72% | 57.23% | 48.75% | 102.39% | -23.37% | 1.45% | 255.01% | 255.24% | -183.53% | 27.59% | 500.99% |
| Net Income (Continuing) | 1.98B | 1.69B | 1.12B | 3.21B | 4.08B | 1.31B | -4.9B | -3.68B | 286M | 1.5B | -1.24B | -11.16B | -6.31B | 1.98B | 2B | 4.58B | 3.03B | -284.4M | 711.95M | 2.81B | 2.55B | 2.62B | 1.67B | 1.1B | 554.33M | 723.4M | 713.06M | 200.85M | -129.39M | 154.9M | 121.4M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -33M | 492M | -1.71B | 308M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 923M | 910M | 1.08B | 1.04B | 922M | 878M | 994M | 1.21B | 1.68B | 1.38B | 1.44B | 1.6B | 2.2B | 2B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 440.68M | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 4.74 | 3.99 | 2.28 | 9.25 | 11.02 | 2.59 | -12.86 | -9.43 | 0.10 | 3.41 | -3.71 | -61.20 | -14.07 | 5.50 | 4.92 | 11.47 | 8.46 | -0.87 | 2.09 | 8.39 | 7.64 | 7.84 | 5.03 | 3.43 | 1.80 | 2.25 | 2.46 | 0.74 | -0.58 | 0.71 | 0.60 |
| EPS Growth % | 58.72% | 75% | -75.35% | -16.06% | 325.48% | 120.14% | -36.37% | -9530% | -97.07% | 191.91% | 93.94% | -334.97% | -355.82% | 11.79% | -57.11% | 35.58% | 1072.41% | -141.63% | -75.09% | 9.82% | -2.55% | 55.86% | 46.65% | 90.56% | -20% | -8.54% | 232.43% | 227.59% | -181.69% | 18.33% | 400% |
| EPS (Basic) | - | 3.99 | 2.28 | 9.27 | 11.07 | 2.60 | -12.86 | -9.43 | 0.10 | 3.42 | -3.71 | -61.19 | -14.07 | 5.53 | 4.95 | 11.75 | 8.53 | -0.87 | 2.11 | 8.45 | 7.72 | 7.96 | 5.10 | 3.46 | 1.83 | 2.33 | 2.54 | 0.75 | -0.58 | 0.74 | 0.61 |
| Diluted Shares Outstanding | 354M | 359M | 353M | 309M | 333M | 375M | 378M | 377M | 384M | 383M | 379M | 378M | 384M | 406M | 391M | 400M | 359M | 336M | 337.19M | 334.53M | 333.35M | 333.93M | 330.63M | 325.42M | 301.95M | 312.47M | 281.73M | 250.41M | 226.61M | 216.86M | 203.31M |
| Basic Shares Outstanding | 353M | 359M | 353M | 308M | 332M | 374M | 378M | 377M | 382M | 381M | 379M | 378M | 384M | 395M | 389M | 384M | 352M | 336M | 334.35M | 332.15M | 329.89M | 328.9M | 326.09M | 322.6M | 297M | 302.24M | 272.86M | 248.97M | 226.61M | 209.25M | 197.59M |
| Dividend Payout Ratio | - | 25.1% | 43.91% | 10.79% | 5.63% | 4.58% | - | - | 955% | 29.14% | - | - | - | 16.13% | 16.59% | 6.68% | 7.45% | - | 33.62% | 7.28% | 6.04% | 4.47% | 5.42% | 6.49% | 12.43% | 7.53% | 7.43% | 21.06% | - | 16.33% | 19.28% |
Quick answers to the most common questions about buying APA stock.
For fiscal year 2025, APA Corporation (APA) reported total revenue of $8.92B. This represents a 813.9% increase compared to $976.0M in 1996.
APA Corporation (APA) is profitable, generating $1.43B in net income for the fiscal year ending 2025 with a net profit margin of 16.1%.
APA Corporation (APA) reported an operating income of $2.75B, resulting in an operating profit margin of 30.8%. This margin reflects the operational efficiency of the business before interest and taxes.
APA Corporation (APA) generated $3.33B in gross profit for the year, representing a gross profit margin of 37.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Elevated leverage and revenue contraction
Metrics are mathematically derived from official filings.
Revenue Momentum Fades Amid Price Softness
APA's revenue contracted 8.4% year-over-year in Q2 2026, following a 26.6% decline in Q4 2025, indicating a persistent downward trend despite a 10.1% sequential rebound.
The revenue trajectory has been volatile, with a sharp deceleration from the 41.6% growth in Q2 2024 to negative growth in recent quarters. The Q2 2026 sequential increase of 10.1% suggests a potential stabilization, but the year-over-year decline of 8.4% indicates that commodity price weakness or volume reductions are still pressuring top-line results. Investors should monitor whether this sequential uptick is sustainable or merely a temporary bounce in a softer pricing environment.
Gross Margin Volatility Signals Cost Pressures
Gross margin swung from 77.3% in Q1 2026 to a mere 1.1% in Q2 2026, reflecting a massive impairment or write-down, as reported in the latest quarterly filing.
The dramatic collapse in gross margin from 77.3% to 1.1% in Q2 2026 is not explained by typical cost fluctuations; it likely reflects a one-time charge, possibly related to asset impairments or inventory write-downs. Excluding this anomaly, gross margins have hovered around 36-40% over the past year, which is above peers like DVN (25.5%) and COP (24.6%), suggesting APA's international PSC structure may provide a cost advantage. However, the sustainability of these margins is questionable if commodity prices remain weak.
Operating Leverage Turns Negative in Q2 2026
Operating income swung to a loss of $1.1 billion in Q2 2026 from a positive $830 million in Q1 2026, driven by the same impairment that crushed gross margin.
The operating loss in Q2 2026 is a clear outlier, as operating margins have otherwise been consistently above 29% for the past eight quarters. This suggests that the company's high fixed-cost structure can amplify the impact of one-time charges, but the underlying operating leverage appears positive when excluding such items. The SG&A expense of $68 million in Q2 2026 is notably lower than the $115 million in Q1 2026, indicating cost discipline, but the impairment overshadowed any operational efficiency gains.
Net Income Boosted by Non-Operating Gains
Despite an operating loss of $1.1 billion in Q2 2026, APA reported net income of $747 million, implying a substantial non-operating gain that warrants scrutiny.
The divergence between operating and net income in Q2 2026 suggests that APA recognized a significant gain, possibly from asset sales or mark-to-market adjustments on derivatives. This inflates reported EPS to $2.11, which is not reflective of core operations. Investors should adjust for these non-operating items to assess the true earnings power. The effective tax rate also appears anomalous, as the net income is positive despite an operating loss, which may indicate tax benefits or deferred tax adjustments.
Cost Structure Shows Discipline but Impairment Risk
SG&A expenses have been trimmed to $68 million in Q2 2026 from $115 million in Q1 2026, but the $2.4 billion COGS in Q2 2026 includes a massive impairment charge.
Excluding the impairment, APA's cost structure appears well-managed, with SG&A consistently below $115 million per quarter. However, the COGS line is highly volatile due to impairments and write-downs, which can distort gross profit. The company's high fixed costs in the North Sea and Permian operations mean that any revenue decline can quickly erode profitability, as seen in Q2 2026. Management's expense discipline is evident in the SG&A reduction, but the risk of further impairments remains a key concern.
Impairments and Leverage Threaten Stability
The Q2 2026 impairment that wiped out gross margin, combined with a debt-to-equity ratio of 0.69, suggests APA may face financial strain if commodity prices remain depressed.
Short-sellers would likely focus on the recurring nature of impairments, which have occurred in Q3 2024 and Q2 2026, indicating that asset values may be overstated. The elevated leverage, with liabilities exceeding near-term cash and receivables, increases vulnerability to further earnings declines. Additionally, the UK Energy Profits Levy and potential decommissioning costs in the North Sea could pressure cash flows. While APA's Egypt PSC provides some downside protection, the combination of high debt and volatile earnings makes the stock risky in a low-price environment.