Equinor ASA (EQNR) Income Statement

The 37.4% revenue growth in 2026Q2 marks a sharp acceleration from the -5.3% contraction in 2026Q1, suggesting a commodity price tailwind rather than sustained volume growth. This volatility underscores the company's heavy dependence on TTF gas prices, which appear to have spiked in the quarter. Investors should monitor whether this growth is durable or a transient price spike, as the prior year showed similar swings with revenue ranging from $25.1B to $29.4B.

Equinor's gross margin of 46.0% in 2026Q2 is significantly higher than integrated peers like Shell (15.9%) and TotalEnergies (28.4%), highlighting its low-cost NCS production base. The sequential improvement from 44.3% in 2026Q1 suggests operating leverage from higher volumes and stable lifting costs. However, the 78% Norwegian tax rate compresses net margins, so investors should focus on pre-tax profitability when comparing across jurisdictions.

The near-constant SG&A of roughly $300M per quarter across revenue swings from $25B to $34.5B demonstrates a highly fixed cost base, allowing revenue growth to flow directly to operating income. Operating margin expanded to 37.3% in 2026Q2 from 31.6% in 2026Q1, confirming that incremental revenue is highly accretive. This leverage cuts both ways, as a downturn in gas prices would compress margins just as quickly.

The cost structure is dominated by COGS, which includes production and lifting costs, while corporate overhead is negligible, reflecting a streamlined organization. The 2025Q4 quarter saw COGS spike to $18.9B with gross margin falling to 25.1%, likely due to impairments or one-off charges, which warrants monitoring for recurrence. The low SG&A suggests management maintains tight control over administrative expenses, but the high tax rate remains the primary cost burden.

The negative net margin of -0.8% in 2025Q3 was the only loss in the ten-quarter period, likely driven by impairments in US offshore wind projects and weak gas prices. The subsequent recovery to 14.0% net margin in 2026Q2 suggests the company has moved past the trough, but the volatility highlights its sensitivity to commodity prices and project write-downs. This inflection point underscores the importance of monitoring renewable asset impairments as a recurring risk.