Shell plc completed share‑buyback transactions on February 23 and February 24, 2026, repurchasing shares for cancellation under its $3.5 billion quarterly program. Morgan Stanley & Co. International Plc executed the trades on behalf of Shell, which has been conducting the program since February 5, 2026.
The buyback is part of Shell’s disciplined capital‑allocation strategy, aimed at supporting earnings per share and reinforcing its “value over volume” approach. By reducing the share count, the program helps lift EPS and signals management’s confidence in the company’s cash‑flow generation.
The transactions followed Shell’s Q4 2025 earnings, which posted a revenue beat of $64.09 billion versus consensus $62.87 billion but an EPS miss of $1.12 versus $1.23 expected. The miss was driven by higher operating costs and a one‑time restructuring charge, while the revenue beat reflected strong demand in core segments.
Shell’s free cash flow of $26 billion in 2025 and cash flow from operations of $9.4 billion underpin the company’s ability to fund the buyback. CFO Sinead Gorman highlighted the strong cash position, noting, “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.”
Analysts view the buyback positively as a signal of management confidence, even though the EPS miss tempered enthusiasm for the Q4 results. The program is conducted in compliance with UK Listing Rules and EU Market Abuse Regulation, and aligns with Shell’s goal of maintaining a robust capital structure while pursuing core business growth.
Looking ahead, Shell maintains its 2026 capital‑expenditure guidance of $20–$22 billion and targets over 10 % annual growth in normalized free cash flow per share through 2030, positioning the company to continue disciplined capital returns and strategic investment.
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