10-Q · May 6, 2026
Diamondback Energy, Inc. reported robust Q1 2026 results with total revenue of $4.24 billion and EPS of $4.23, significantly outperforming estimates and the prior year's figures. Management indicated an increase in…
Earnings analysis · 10-Q
FANG earnings analysis
Filed November 4, 2026 · Our reading of the company's report
The latest report
Diamondback reported $5.431 billion of revenue, $5.86 diluted EPS and approximately $2.148 billion of free cash flow in the third quarter of 2026. Revenue and EPS declined sequentially from $5.56 billion and $6.65,…
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Diamondback reported $5.431 billion of revenue, $5.86 diluted EPS and approximately $2.148 billion of free cash flow in the third quarter of 2026. Revenue and EPS declined sequentially from $5.56 billion and $6.65, respectively, but both improved materially year over year, while free cash flow remained exceptionally strong. Management also raised production and capital-spending outlooks, although the filing identifies increased Viper revolver interest-rate exposure and continued commodity, legal and environmental risks.
Reported figures
- Earnings per share
- $5.86
What stood out
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Revenue remained near record levels
Revenue was $5.431 billion, down 2.3% from $5.56 billion in 2026 Q2 but up 38.5% from $3.92 billion in 2025 Q3.
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EPS beat consensus despite sequential decline
Diluted EPS was $5.86, down from $6.65 in the prior quarter but up from $3.51 in the prior-year quarter; EPS also exceeded the $5.46 consensus estimate by $0.40.
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Strong free cash flow generation
Free cash flow was approximately $2.148 billion, broadly in line with $2.15 billion in 2026 Q2 and sharply above $73 million in 2025 Q3.
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Significant capital-return capacity
The company repurchased 1.348 million shares under its public program during the quarter at an average price of $186.00 per share, and $9.725 billion remained available under the authorization at September 30, 2026.
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Repurchase authorization doubled
The board increased the stock-repurchase authorization from $8.0 billion to $16.0 billion on July 30, 2026, excluding excise tax.
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No reported control deficiencies
Management concluded that disclosure controls and procedures were effective as of September 30, 2026, and reported no changes in internal controls that materially affected or were reasonably likely to materially affect financial reporting.
What to watch
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Higher revolver borrowings add rate risk
The filing states that interest-rate risk increased because of higher borrowings on the Viper Revolving Credit Facility. It also identifies repayment and termination of the Viper 2025 Term Loan in the first quarter of 2026 and the 2025 Term Loan in the second quarter of 2026 as changes from the prior market-risk disclosure.
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Large buyback commitment
The company had $9.725 billion remaining under its repurchase authorization after buying 1.348 million shares at an average $186.00 per share in the quarter, creating a substantial ongoing capital-allocation commitment if commodity conditions weaken.
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Ongoing environmental and legal exposure
The company uses a $1 million threshold for disclosure of certain environmental proceedings and remains exposed to routine legal, title, royalty, contract, personal-injury and environmental claims.
Management's outlook
The supplied earnings disclosure indicates 2026 oil production guidance was raised to approximately 524 MBO/d from 522+ MBO/d and total production guidance to approximately 1,015 MBOE/d from 1,000+ MBOE/d. Full-year cash capital-expenditure guidance increased to $3.95-$4.00 billion from approximately $3.9 billion; Q4 oil production guidance is 518-528 MBO/d. No numeric revenue or EPS guidance was provided.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.