What's happened
Several major corporations released their 2025 financial results, showing varied performance. Tui reported stable revenue and growth in cruises and holiday experiences. AstraZeneca and Novo Nordisk faced challenges with sales forecasts amid pricing pressures. Shell and BP experienced profit declines due to falling oil prices, with Shell increasing debt to sustain shareholder payouts. Exxon posted a solid quarter despite lower revenue. The results highlight ongoing industry shifts and economic pressures as 2026 begins.
What's behind the headline?
Industry resilience varies sharply in 2025
- Oil majors like Shell and BP have seen profits decline by over 20%, primarily due to a 19-20% drop in crude prices, which fell below $60 a barrel for the first time in nearly five years.
- Shell's strategy to sustain shareholder payouts involves increasing debt, with net debt rising to $45.7 billion, despite a 22% fall in adjusted earnings.
- BP has suspended its share buyback program to strengthen its balance sheet, reflecting a shift towards capital discipline amid market volatility.
- The energy sector's decline contrasts with pharmaceutical companies like AstraZeneca and Eli Lilly, which are experiencing growth driven by demand for weight-loss and diabetes drugs.
- AstraZeneca's sales forecast for 2026 has been impacted by pricing pressures and patent expiries, while Eli Lilly's Mounjaro drug doubled sales, boosting its outlook.
- Tui's stable performance underscores resilience in the travel industry, with growth in cruises and holiday experiences, despite broader economic uncertainties.
- The divergence highlights how commodity prices, geopolitical factors, and innovation influence corporate fortunes differently.
Future outlook
- Oil companies will likely continue to face pressure from volatile prices and investor demands for capital discipline.
- Pharmaceutical firms will need to navigate pricing pressures and increased competition, especially in weight-loss markets.
- Travel companies like Tui may benefit from ongoing demand recovery, but face risks from macroeconomic shifts.
- Overall, 2026 will see continued industry adaptation to market and geopolitical challenges, with a focus on balancing shareholder returns and strategic investments.
What the papers say
The Independent reports that Shell and BP's profits declined sharply due to falling oil prices, with Shell increasing debt to sustain dividends, while BP suspended share buybacks to strengthen its balance sheet. Holly Williams notes that Shell's 2025 underlying earnings fell 22%, with profits dropping 30% in Q4, driven by a 19% drop in crude prices. The Guardian highlights Shell's increased debt and continued shareholder payouts despite profit declines, emphasizing the company's aggressive financial strategies. AstraZeneca and Novo Nordisk face sales pressures amid pricing and competition, with Novo Nordisk's forecasted sales dropping 5-13% in 2026, according to The Independent. Eli Lilly's results show a doubling of Mounjaro sales, boosting its outlook. Tui's stable performance is detailed by The Independent, reflecting resilience in the travel sector. Exxon reported a strong quarter with revenue of $82.31 billion, despite lower earnings, as per Reuters, indicating some industry resilience amid broader market challenges.
How we got here
The 2025 financial year was marked by significant volatility in global energy markets, driven by falling oil prices, geopolitical tensions, and shifts in consumer demand. Major oil companies like Shell and BP reported profit declines amid a backdrop of oversupply and lower crude prices. Meanwhile, pharmaceutical giants AstraZeneca and Novo Nordisk faced pricing pressures and increased competition in their key markets, impacting sales forecasts. Tui benefited from strong demand in cruises and holiday experiences, reflecting a resilient travel sector. Exxon maintained solid performance despite a challenging macroeconomic environment, highlighting differing industry impacts.
Go deeper
Common question
-
Why Did Shell's Profits Drop in 2025?
Shell's profits declined significantly in 2025, raising questions about the factors behind this downturn. Falling oil prices, market volatility, and geopolitical tensions played a role, but what does this mean for investors and the energy sector? Below, we explore the key reasons for Shell's financial struggles and what the future might hold for energy stocks.
-
Why Did Shell's Profits Drop in 2025?
Shell's sharp decline in profits during 2025 has raised many questions. Falling oil prices, market volatility, and geopolitical tensions all played a role. But what does this mean for the company's future and its shareholders? Below, we explore the key reasons behind Shell's financial struggles and what they could signal for the energy sector.
-
How Are Global Oil Prices Affecting Economies in 2026?
With oil prices experiencing significant fluctuations in 2026, many are wondering how this impacts economies worldwide. Falling oil prices can benefit consumers and industries reliant on cheap energy, but they also pose challenges for oil-producing nations and energy companies. In this page, we explore how these market shifts influence economic stability, government revenues, and investment strategies. Keep reading to understand what these trends mean for your finances and the global market.
-
Why Did Shell's Profits Drop in 2025?
Shell's 2025 financial results reveal a significant drop in profits, raising questions about the factors behind this decline. Market volatility, falling oil prices, and geopolitical tensions all played a role. But what does this mean for Shell's future, and how are they responding? Below, we explore the key reasons for the profit drop and what it signals for investors and the energy sector.
-
What’s Happening in Today’s News Cycle?
Stay updated with the latest headlines shaping our world today. From political elections and economic shifts to regional tensions and cultural moments, these stories are influencing global and local landscapes. Curious about how these events connect or what they mean for your daily life? Keep reading for clear, concise answers to the most common questions about today’s news.
More on these topics
-
Wael Sawan is a Lebanese-Canadian business executive, and the CEO of Shell plc since January 2023.
-
Murray Michael Auchincloss (born 1970) is a Canadian business executive who was the chief executive of BP from January 2024 to December 2025.
-
Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
-
Brent Crude may refer to any or all of the components of the Brent Complex, a physically and financially traded oil market based around the North Sea of Northwest Europe; colloquially, Brent Crude usually refers to the price of the ICE Brent Crude Oil fut
-
Shell may refer to:
-
BP plc is a British multinational oil and gas company headquartered in London, United Kingdom. It is one of the world's seven oil and gas "supermajors", whose performance in 2012, made it the world's sixth-largest oil and gas company, the sixth-largest en