Free cash flow generation has weakened, with margins dropping to 2.7% in 2026Q1, even as the company continues to prioritize shareholder returns totaling $9.2B in the same period.
| 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 |
|---|
| Cash from Operations | 47.72B | 51.97B | 55.02B | 55.37B | 76.8B | 48.13B | 14.67B | 29.72B | 36.01B | 30.07B | 22.08B | 30.34B | 45.12B | 44.91B | 56.17B | 55.34B | 48.41B | 28.44B | 59.73B | 52B | 49.29B | 48.14B | 40.55B | 28.5B | 21.27B | 22.89B | 22.94B | 15.01B | 11.06B | 14.68B | 13.16B |
| Operating CF Margin % | - | 16.04% | 16.22% | 16.54% | 19.26% | 17.39% | 8.21% | 11.63% | 12.89% | 12.68% | 11.01% | 12.65% | 11.45% | 10.67% | 12.44% | 11.85% | 13.08% | 9.37% | 12.81% | 13.14% | 13.05% | 12.99% | 13.61% | 11.55% | 10.4% | 10.76% | 9.89% | 8.22% | 6.68% | 8.31% | 11.28% |
| Operating CF Growth % | -35.57% | -5.55% | -0.63% | -27.9% | 59.56% | 228.12% | -50.64% | -17.49% | 19.78% | 36.16% | -27.23% | -32.74% | 0.45% | -20.04% | 1.49% | 14.32% | 70.24% | -52.39% | 14.85% | 5.51% | 2.38% | 18.71% | 42.29% | 33.99% | -7.08% | -0.21% | 52.78% | 35.79% | -24.67% | 11.5% | -4.95% |
| Net Income | 25.31B | 28.84B | 33.68B | 36.01B | 57.58B | 23.6B | -23.25B | 14.77B | 20.84B | 19.71B | 7.84B | 16.15B | 32.52B | 32.58B | 44.88B | 42.21B | 31.4B | 19.66B | 45.22B | 40.61B | 39.5B | 36.13B | 25.33B | 21.51B | 11.46B | 15.32B | 17.72B | 7.91B | 8.07B | 8.46B | 7.51B |
| Depreciation & Amortization | 27.06B | 25.99B | 23.44B | 20.64B | 24.04B | 20.61B | 20.71B | 18.9B | 18.05B | 17.89B | 18.71B | 18.05B | 17.3B | 17.18B | 15.89B | 0 | 0 | 0 | 12.38B | 12.25B | 11.42B | 10.25B | 9.77B | 9.05B | 8.31B | 7.94B | 8.13B | 8.3B | 8.36B | 5.47B | 5.33B |
| Stock-Based Compensation | 0 | 0 | 0 | 611M | 648M | 612M | 672M | 741M | 774M | 856M | 880M | 855M | 831M | 854M | 854M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | -865M | 634M | 3.76B | 303M | -8.86B | -944M | -60M | -8.58B | -4.39B | -1.83B | 1.54B | 754M | 3.14B | 142M | -1.14B | 0 | 1.4B | 124M | 1.72B | -429M | -1.13B | 1.83B | 297M | 650M | 10M | -1.44B | 408M | 346M | 835M |
| Other Non-Cash Items | 3.16B | 920M | -496M | -169M | -9.03B | -1.15B | 27.05B | -4.68B | -2.17B | 1.6B | 646M | 402M | -1.32B | -1.74B | -5.64B | 14.01B | 14.3B | 9.94B | -6M | -309M | -2.45B | -1.48B | 825M | -3.67B | 756M | -207M | -326M | -260M | -232M | 435M | -379M |
| Working Capital Changes | -8.3B | -3.79B | -739M | -2.36B | -194M | 4.16B | -1.65B | 923M | -1.42B | -1.42B | -1.61B | -3.28B | -5.75B | -4.72B | -2.96B | -1.01B | 3.85B | -1.16B | 1.43B | 1.14B | -463M | 3.67B | 5.76B | -214M | 445M | -1.77B | 78M | -205M | -394M | -971M | -1.04B |
| Change in Receivables | 0 | 0 | -6.03B | 4.37B | -11.02B | -12.1B | 5.38B | -2.64B | -545M | -3.95B | -2.09B | 4.69B | 3.12B | -305M | -1.08B | -3.12B | -2.99B | 0 | -36.64B | -45.27B | -39.08B | -36.12B | -472M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | -1.81B | -3.47B | -6.95B | -489M | -315M | 72M | -3.11B | -1.68B | -388M | -379M | -1.34B | -1.81B | -1.87B | -2.21B | -1.15B | 459M | -1.28B | 72M | -1.06B | -434M | -223M | -100M | 353M | 154M | -297M | 50M | 6M | -253M | 246M |
| Change in Payables | 0 | 0 | 5.63B | -4.73B | 18.46B | 16.82B | -7.14B | 3.73B | 2.32B | 5.1B | 915M | -7.47B | -6.64B | -2.5B | 0 | 3.12B | 2.99B | 0 | 36.64B | 45.27B | 39.08B | 36.12B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -28.01B | -26.54B | -19.94B | -20.04B | -14.74B | -10.23B | -18.46B | -23.08B | -16.45B | -15.73B | -12.4B | -23.82B | -26.98B | -34.2B | -25.6B | -22.16B | -24.2B | -22.42B | -15.5B | -9.73B | -14.23B | -10.27B | -14.91B | -10.84B | -9.76B | -8.21B | -3.3B | -10.98B | -7.99B | -6.79B | -6.51B |
| Capital Expenditures | -28.93B | -28.36B | -24.31B | -21.92B | -18.41B | -12.08B | -17.28B | -24.36B | -19.57B | -15.4B | -16.16B | -26.49B | -32.95B | -33.67B | -34.27B | -30.98B | -26.87B | -22.49B | -19.32B | -15.39B | -15.46B | -13.84B | -11.99B | -12.86B | -11.44B | -9.99B | -8.45B | -10.85B | -8.36B | -7.39B | -7.21B |
| CapEx % of Revenue | 8.87% | 8.76% | 7.16% | 6.55% | 4.62% | 4.36% | 9.68% | 9.53% | 7.01% | 6.49% | 8.06% | 11.04% | 8.36% | 8% | 7.59% | 6.63% | 7.26% | 7.41% | 4.14% | 3.89% | 4.09% | 3.73% | 4.02% | 5.21% | 5.59% | 4.69% | 3.64% | 5.94% | 5.05% | 4.19% | 6.18% |
| Acquisitions | 1.02B | 2.54B | 0 | 3.31B | 3.77B | 2.74B | 999M | 3.69B | 4.12B | 3.1B | 4.28B | 2.39B | 4.04B | 2.71B | 7.66B | 11.13B | 3.26B | 1.54B | 5.99B | 4.2B | 3.08B | 0 | 0 | 0 | 0 | 0 | 5.77B | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 4.26B | 3.41B | 2.68B | 1.56B | 6.75B | 4.66B | 2.68B | 1.49B | 986M | -328M | 3.76B | 2.67B | 5.98B | -532M | 8.67B | 1.34B | 505M | 724M | 574M | 5B | 756M | 3.57B | -2.92B | 2.02B | 1.68B | 1.78B | 985M | 854M | 556M | 1.11B | 719M |
| Cash from Financing | -30.19B | -38.47B | -42.79B | -33.53B | -39.11B | -35.42B | 5.29B | -6.62B | -19.45B | -15.13B | -9.29B | -7.04B | -17.89B | -15.48B | -33.87B | -28.26B | -26.92B | -27.28B | -44.03B | -38.34B | -36.21B | -26.94B | -18.27B | -14.76B | -11.35B | -15.04B | -14.16B | -4.78B | -5.7B | -6.71B | -5.24B |
| Debt Issued (Net) | 8.77B | 53M | -5.01B | -239M | -7.22B | -19.65B | 20.14B | 8.66B | -4.92B | -1.05B | 4.29B | 9.26B | 6.97B | 11.6B | -2.91B | 1.96B | -6.21B | -153M | -527M | 598M | 73M | -1.5B | -1.95B | -2.12B | -307M | -466M | -5.71B | 1.83B | 2.22B | -908M | -254M |
| Equity Issued (Net) | -20.34B | -20.27B | -19.63B | -17.75B | -15.15B | -155M | -405M | -594M | -626M | -747M | -971M | -4.03B | -13.15B | -15.95B | -20.88B | -21.13B | -12.05B | -18.95B | -34.98B | -30.74B | -28.39B | -17.28B | -8.99B | -5.45B | -4.5B | -5.42B | -1.86B | -322M | -3.04B | -2.7B | -454M |
| Dividends Paid | -17.23B | -17.23B | -16.7B | -14.94B | -14.94B | -14.92B | -14.87B | -14.65B | -13.8B | -13B | -12.45B | -12.09B | -11.57B | -10.88B | -10.09B | -9.02B | -8.5B | -8.02B | -8.06B | -7.62B | -7.63B | -7.48B | -7.11B | -6.95B | -6.39B | -6.45B | -6.37B | -6.09B | -6.23B | -6.18B | -4.19B |
| Share Repurchases | -20.34B | -20.27B | -19.63B | -17.75B | -15.15B | -155M | -405M | -594M | -626M | -747M | -977M | -4.04B | -13.18B | -16B | -21.07B | -22.05B | -13.09B | -19.7B | -35.73B | -31.82B | -29.56B | -18.22B | -9.95B | -5.88B | -4.8B | -5.72B | -2.35B | -670M | -3.55B | -3.12B | -801M |
| Other Financing | -1.39B | -1.01B | -1.44B | -599M | -1.8B | -690M | 414M | -34M | -97M | -334M | -162M | -168M | -133M | -257M | 7M | -46M | -159M | -156M | -461M | -579M | -270M | -974M | -215M | -247M | -161M | -2.71B | -227M | -200M | 1.35B | 3.07B | -338M |
| Net Change in Cash | -10.08B | -12.51B | -8.38B | 1.9B | 22.86B | 2.44B | 1.27B | 47M | -135M | -480M | -48M | -911M | -28M | -4.94B | -3.08B | 4.84B | -2.87B | -20.74B | -2.54B | 5.74B | -427M | 10.14B | 7.91B | 3.4B | 682M | -533M | 5.39B | -698M | -2.61B | 1.1B | 1.44B |
| Free Cash Flow | 18.79B | 23.61B | 30.72B | 33.45B | 58.39B | 36.05B | -2.61B | 5.36B | 16.44B | 14.66B | 5.92B | 3.85B | 12.16B | 11.24B | 21.9B | 24.37B | 21.54B | 5.95B | 40.41B | 36.62B | 33.82B | 34.3B | 28.57B | 15.64B | 9.83B | 12.9B | 14.49B | 4.16B | 2.7B | 7.28B | 5.95B |
| FCF Margin % | 5.76% | 7.29% | 9.05% | 9.99% | 14.65% | 13.03% | -1.46% | 2.1% | 5.89% | 6.18% | 2.95% | 1.61% | 3.09% | 2.67% | 4.85% | 5.22% | 5.82% | 1.96% | 8.67% | 9.25% | 8.96% | 9.25% | 9.58% | 6.34% | 4.81% | 6.06% | 6.25% | 2.28% | 1.63% | 4.13% | 5.1% |
| FCF Growth % | -33.32% | -23.13% | -8.17% | -42.71% | 61.96% | 1479.23% | -148.81% | -67.43% | 12.11% | 147.74% | 53.58% | -68.32% | 8.17% | -48.65% | -10.14% | 13.13% | 262.23% | -85.28% | 10.36% | 8.25% | -1.38% | 20.07% | 82.65% | 59.08% | -23.79% | -10.98% | 248.01% | 54.39% | -62.97% | 22.34% | -11.4% |
| FCF per Share | 4.49 | 5.48 | 7.15 | 8.26 | 13.89 | 8.43 | -0.61 | 1.25 | 3.88 | 3.45 | 1.42 | 0.92 | 2.84 | 2.54 | 4.73 | 5.00 | 4.40 | 1.23 | 7.77 | 6.56 | 5.67 | 5.42 | 4.39 | 2.35 | 1.44 | 1.86 | 2.06 | 0.59 | 0.55 | 1.45 | 1.18 |
| FCF Conversion (FCF/Net Income) | 0.74x | 1.80x | 1.63x | 1.54x | 1.38x | 2.09x | -0.65x | 2.07x | 1.73x | 1.53x | 2.82x | 1.88x | 1.39x | 1.38x | 1.25x | 1.35x | 1.59x | 1.48x | 1.32x | 1.28x | 1.25x | 1.33x | 1.60x | 1.32x | 1.86x | 1.49x | 1.29x | 1.90x | 1.37x | 1.25x | 1.75x |
| Interest Paid | 122M | 0 | 624M | 584M | 666M | 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 |
| Taxes Paid | 5.25B | 0 | 13.29B | 15.47B | 15.36B | 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 |
Commodity price volatility exposure
As reported in recent financial statements, XOM consistently generates operating cash flow significantly higher than net income, with an OCF/NI ratio peaking at 2.08 in 2026Q1, which suggests that non-cash charges like depreciation and amortization are masking the underlying volatility of the company's core earnings.
The persistent gap between net income and operating cash flow indicates that the company's reported profitability is heavily influenced by accounting conventions rather than pure cash generation. Investors should monitor whether this divergence reflects sustainable asset-based depreciation or if it masks a structural decline in the cash-generating efficiency of the upstream segment.
Based on quarterly data, XOM's free cash flow margins have experienced a notable contraction, falling from a high of 13.0% in 2024Q3 to just 2.7% in 2026Q1, signaling that the company's ability to convert revenue into discretionary cash is increasingly pressured by rising capital requirements.
The downward trend in FCF margins suggests that the capital-intensive nature of the business is beginning to outpace the cash inflows from operations. This trajectory warrants further investigation into whether the current level of capital expenditure is yielding the expected returns on invested capital or if it is merely sustaining legacy production levels.
According to recent SEC filings, XOM's capital expenditure as a percentage of revenue has climbed from 6.3% in 2024Q1 to 7.8% in 2026Q1, indicating that the company is deploying more capital to maintain its asset base in an increasingly challenging and inflationary operating environment.
The rising capital intensity suggests that the company may be facing higher costs to replace reserves or maintain aging infrastructure. This trend appears to be a headwind for free cash flow, as the company must commit a larger portion of its revenue to sustain production volumes rather than returning capital to shareholders.
As evidenced by the provided cash flow data, XOM has maintained a consistent pattern of returning capital to shareholders through dividends and buybacks, with 2026Q1 outflows totaling $9.2B, even as free cash flow dropped to $2.2B, suggesting a reliance on balance sheet capacity to fund distributions.
The decision to continue aggressive share repurchases despite a significant decline in free cash flow may indicate management's confidence in the long-term cash-generating potential of the Guyana and Permian assets. However, investors should monitor whether this capital allocation strategy remains sustainable if commodity prices remain depressed or if capital expenditure requirements continue to escalate.
Quick answers to the most common questions about buying XOM stock.
Exxon Mobil Corporation (XOM) generated $51.97B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Exxon Mobil Corporation (XOM) generated $23.61B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Exxon Mobil Corporation (XOM) spent $28.36B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Exxon Mobil Corporation (XOM) returned $17.23B to shareholders via cash dividends and spent $20.27B on share repurchases. This shows the company's commitment to returning capital to its equity investors.