Shell Announces $3.5 Billion Share Buyback and 4% Dividend Increase Despite Lower Profits
Feb 5, 2026
Shell plc has announced a new share buyback program worth $3.5 billion, expected to last around three months. The company made this announcement on February 5, 2026, stating the purpose is to reduce its total number of shares.
Alongside the buyback, Shell has increased its quarterly dividend by 4%. For the fourth quarter of 2025, the interim dividend will be $0.372 per ordinary share. Shareholders have the option to receive the dividend in US dollars, euros, or pounds sterling.
Shell reported adjusted earnings of $3.26 billion for the fourth quarter of 2025, which is lower than the $3.7 billion recorded a year earlier and below analyst expectations of $3.5 billion. This marks the lowest quarterly profit since 2021, mainly due to lower oil prices.
Despite the fall in profit, Shell highlighted its strong cash generation and ongoing cost-saving efforts. Since 2022, the company has achieved $5 billion in cost savings.
What is a share buyback and why is Shell doing it?
A share buyback is when a company buys its own shares from the market, reducing the number of shares available. Shell is doing this to decrease its share count, which can increase the value of remaining shares.
Why did Shell's profit decrease this quarter?
Shell's profit fell mainly because oil prices were lower during the fourth quarter of 2025 compared to previous periods.
How does the dividend increase affect shareholders?
A higher dividend means shareholders will receive more money per share. For this quarter, the dividend is raised to $0.372 per ordinary share.
Does the buyback or dividend increase mean Shell is financially strong?
Even though profits fell, Shell still generated strong cash flow and announced cost savings, which allowed it to continue rewarding shareholders through buybacks and higher dividends.
Sources
Shell announces commencement of a share buyback programme
GlobeNewsWire
GlobeNewsWire
Shell plc Shell announces commencement of a share buyback programme February 5, 2026 Shell plc (the ‘Company') today announces the commencement of a $3.5 billion share buyback programme covering an aggregate contract term of approximately three months (the ‘programme'). The purpose of the programme...
Shell plc Fourth Quarter 2025 Interim Dividend
GlobeNewsWire
GlobeNewsWire
Shell plc Fourth Quarter 2025 Interim Dividend London, February 5, 2026 − The Board of Shell plc (the “Company”) (XLON: SHEL, XNYS: SHEL, XAMS: SHELL) today announced an interim dividend in respect of the fourth quarter of 2025 of US$ 0.372 per ordinary share. Details relating to the fourth quar...
Shell plc publishes fourth quarter 2025 press release
GlobeNewsWire
GlobeNewsWire
London, February 5, 2026 "2025 was a year of accelerated momentum, with strong operational and financial performance across Shell. We generated free cash flow of $26 billion, made significant progress in focusing our portfolio and reached $5 billion of cost savings since 2022, with more to come.In Q...
Shell Keeps $3.5 Billion Buyback Despite Earnings Fall
WSJ
WSJ
Adjusted earnings—a closely watched metric that strips out certain commodity-price adjustments and one-time charges—fell to $3.26 billion from $5.43 billion in the preceding quarter.
Shell's fourth-quarter profit misses expectations at $3.3 billion
Reuters
Reuters
Shell's SHEL.L adjusted earnings, its definition of net profit, reached $3.26 billion in the fourth quarter, it said on Thursday, compared with $3.7 billion a year earlier and an average analyst estimate of $3.5 billion in a company-provided poll.
Shell Keeps $3.5 Billion Buyback Despite Earnings Fall
WSJ
WSJ
Adjusted earnings—a closely watched metric that strips out certain commodity-price adjustments and one-time charges—fell to $3.26 billion from $5.43 billion in the preceding quarter.
Shell launches another $3.5bn buyback despite weakest profit since 2021
Proactive Investors
Proactive Investors
Shell PLC reported its lowest quarterly profit since the start of 2021 as oil prices fell, but announced a 4% dividend increase and launched another $3.5 billion share buyback programme. Adjusted earnings came in at $3.26 billion for the fourth quarter of 2025, down 40% and below analyst expectation...
Shell posts weakest quarterly profit in five years, misses Q4 estimates
Invezz
Invezz
British oil major Shell reported its weakest quarterly profit in nearly five years on Thursday, a slump attributed to a softer crude price environment and unfavorable tax adjustments in the fourth quarter. Crude oil prices hovered around $60 per barrel in the last quarter of 2025 as oversupply conce...
ConocoPhillips reports fourth-quarter and full-year 2025 results; announces 2026...
Business Wire
Business Wire
HOUSTON--(BUSINESS WIRE)--ConocoPhillips (NYSE: COP) today reported fourth-quarter 2025 earnings of $1.4 billion, or $1.17 per share, compared with fourth-quarter 2024 earnings of $2.3 billion, or $1.90 per share. Excluding special items, fourth-quarter 2025 adjusted earnings were $1.3 billion, or $...
Shell buyback cushions profit miss as analysts raise questions on cash use
Proactive Investors
Proactive Investors
Shell PLC shares were relatively steady, down 0.85% at 2,843.5p, after the oil major missed earnings expectations for the fourth quarter but held the line on shareholder payouts, announcing a fresh $3.5 billion buyback and a 4% dividend increase. Adjusted earnings fell short of forecasts at $3.3 bil...
Shell Misses Q4 Profit Target; This Other UK Oil Giant Is In A Buy Zone
Investors Business Daily
Investors Business Daily
Shell reported fourth-quarter earnings early Thursday, missing on profit.
Shell plc (SHEL) Q4 2025 Earnings Call Transcript
Seeking Alpha
Seeking Alpha
Shell plc (SHEL) Q4 2025 Earnings Call Transcript
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