California Resources

Q2 FY2026 EarningsQ2 FY26 results presented a significant beat on top-line and GAAP metrics, with revenue of $1,297M exceeding consensus of $905M. Net income of $514M was heavily influenced by a $390M non-cash derivative gain, resulting in a GAAP EPS of $5.76 vs. the $1.33 expected. However, adjusted EPS of $0.99 missed the $1.37 mean estimate due to temporary inventory builds and weaker differentials. Management raised its outlook for operational efficiency, reducing maintenance capital while maintaining production targets.