stockrowLatest quarter
Viper reported Q2 FY2026 revenue of $677.0 million, above the $633.9 million consensus. Adjusted earnings per share of $0.76 also exceeded the $0.73 consensus.
Revenue was $297.0 million a year earlier, while diluted earnings per share rose to $0.73 from $0.28. The company reported an operating margin of 63.2%, compared with 45.5% a year earlier, and free cash flow of $384.0 million, up from $156.0 million.
In its filing, Viper attributed the increase in royalty income from the first quarter to higher average commodity prices, primarily for oil, and increased production. The company said the production increase largely reflected an additional day in the quarter and new wells. For the first half, Viper attributed higher royalty income compared with a year earlier to production growth and higher average oil prices.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $677.0 million | $297.0 million | 127.9% |
| Diluted EPS | $0.73 | $0.28 | 160.7% |
| Gross margin | 100.0% | 100.0% | 0.0 percentage points |
| Operating margin | 63.2% | 45.5% | 17.8 percentage points |
| Free cash flow | $384.0 million | $156.0 million | 146.2% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $0.76 | $0.73 | Beat by 4.11% |
| Revenue | $677.0 million | $633.9 million | Beat by 6.80% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
The latest earnings call is not available, so its discussion cannot be reviewed. In its filing, Viper said its board increased the annual base dividend and removed its commitment to return a fixed share of cash available for distribution each quarter.
Guidance
Viper raised its FY2026 average daily production guidance for both oil and total oil equivalent volumes. The company also initiated Q3 FY2026 guidance for average daily oil and total production.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Tax rate, Cash Tax Rate On Non Gaap Pre Tax Income Attributable To Company | FY2026 | 27.0%–30.0% | — | New |
| Tax rate, Production and Ad Valorem Taxes Percent of Revenue | FY2026 | 7.00% | — | New |
| Operating expenses, Non Cash Share Based Compensation Per Boe | FY2026 | $0.10–$0.20 | — | New |
| Operating expenses, Cash General and Administrative Per Boe | FY2026 | $0.70–$0.90 | — | New |
| Units, Barrels of Oil Equivalent Per Day | FY2026 | 132500–135000 | — | — |
| Units, Oil Barrels Per Day | FY2026 | 66000–67250 | — | — |
| Units, Barrels of Oil Equivalent Per Day | Q3 FY2026 | 133500–135500 | — | — |
| Units, Oil Barrels Per Day | Q3 FY2026 | 67500–68500 | — | — |