BP p.l.c. (BP) AI Stock Analysis

BP p.l.c., headquartered in London, United Kingdom, operates worldwide across Gas & Low Carbon Energy, Oil Production & Operations, Customers & Products, and Rosneft segments. The company produces and trades natural gas and crude oil, refines petroleum products, and markets retail fuels, convenience goods, aviation fuels, and Castrol lubricants. Its low-carbon operations encompass onshore and offshore wind, solar power generating facilities, biofuels, hydrogen production, and carbon capture and storage technologies. Additionally, BP operates electric vehicle charging infrastructure and invests in digital transformation, power storage, and advanced mobility initiatives.

BP grew revenue at a 5-year CAGR of 12.3% from FY2020 to FY2025. Annual revenue reached $241.39B in FY2022 before declining 13.0% in FY2023 to $210.13B and 10.0% in FY2024 to $189.19B. In FY2025, revenue was essentially flat at $189.34B, with an operating margin of 8.2% and net income of $55.0M, down from $15.24B in FY2023. Over the trailing twelve months, revenue reached $215.47B with a profit margin of 2.5% and an operating margin of 13.2%. For the latest quarter ended June 30, 2026, quarterly revenue growth was 48.2% year over year, while quarterly earnings expanded by 138.9%.

As of June 30, 2026, BP held $37.23B in cash and short-term investments against total debt of $72.69B, resulting in net debt of $35.47B. Total assets stood at $294.63B and shareholders' equity was $58.43B, yielding a debt-to-equity ratio of 1.24 and a current ratio of 1.27. In FY2025, operating cash flow reached $24.49B, supporting capital expenditures of $13.22B and free cash flow of $11.27B. Capital returns in FY2025 included $5.06B in dividends paid and $4.49B in share buybacks, contributing to a 5-year share count change of -21.5%.

BP closed at $50.21 on October 16, 2026, with a market capitalization of $129.32B and an enterprise value of $150.34B. The stock trades at a trailing P/E of 24.5x, above the 15.0x median of its US-listed Energy peers. However, its forward P/E of 9.8x and EV/EBITDA of 3.7x trade at discounts to the peer medians of 12.7x and 8.0x, respectively. The price-to-sales ratio is 0.6x compared to the peer median of 1.8x. Over the past year, BP gained 61.1% versus a 16.8% return for the S&P 500, and over five years it returned 115.2% against 83.0% for the index.

BP pays an annualized forward dividend of $2.02 per share, representing a dividend yield of 4.02% and a payout ratio of 41.1%. The dividend is distributed quarterly, and the company has paid dividends for 57 consecutive years. The 5-year annualized dividend growth rate stands at 0.7%, and the most recent ex-dividend date was August 14, 2026.

Wall Street coverage includes 8 Strong Buy, 3 Buy, 6 Hold, 1 Sell, and 1 Strong Sell ratings. The mean price target is $52.17, which is 3.9% above the last close of $50.21. For the fiscal year ending December 31, 2026, analysts estimate EPS of $7.87, representing 173.3% growth, on revenue of $234.88B. For the following fiscal year, 16 analysts project EPS of $5.50 on revenue of $209.16B. BP beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is October 30, 2026.

This page is an AI-written research summary of BP p.l.c. (BP). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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