Key Highlights

● Energy Earnings are roughly two and a half times their year-ago level.

● Energy leads even information technology.

● Information technology earnings are up by more than two-thirds.

● Oil plunged on Monday.

In a quarter of robust corporate profits, one sector has lapped the rest. According to news reports's Earnings Insight of November 6, S&P 500 energy companies are reporting third-quarter earnings at roughly two and a half times their year-ago level, the strongest growth of any of the index's 11 sectors.

That puts energy ahead even of information technology, where FactSet says earnings are up by more than two-thirds on the strength of semiconductors. Across the whole index, blended earnings growth is running at nearly a third.

What has been driving it

High oil prices are the obvious engine. The war with Iran and disruption around the Strait of Hormuz have kept crude elevated; reports said that Brent was above $112 at the start of November. Energy producers' profits are highly sensitive to the price of the Commodity they sell, so higher prices tend to flow almost straight to the bottom line.

Comparisons with a year earlier also matter. Growth rates are measured against the same quarter a year earlier, so when the base period is softer, even a solid quarter can produce an eye-catching figure.

Monday's twist: oil plunged

The irony is that the energy sector was the laggard on Monday, November 9, 2026, even as the broader market roared. Brent Crude sank $5.75 to $92.57 and US crude fell $3.98 to settle at $86.85, according to market coverage, as hopes grew for a US-Iran peace deal. Brent had already fallen sharply the prior week, its steepest weekly drop since the start of the COVID pandemic, reports said. Market data said oil hit its lowest close since August.

President Trump said that renewed strikes on Iran were "highly unlikely" if talks progress, reports said. Iran's Abbas Araghchi said an offer to reopen Hormuz "within two days stands, provided the war ends on all fronts," according to market reports.

Exxon Mobil (NYSE:XOM) slipped, according to market data, and Chevron (NYSE:CVX) edged lower. Energy still finished in positive territory, but well behind the rest of the market as the S&P 500 jumped 173.08 points to 7,549.94.

Results keep coming

Occidental Petroleum (NYSE:OXY) slipped during the regular session and reported after the close. Its adjusted earnings of $1.91 a share topped the $1.47 consensus, though Revenue of $6.77 billion came in just below the $6.82 billion estimate, reports said. Shares edged up to $56.36 after the release.

Elsewhere in the energy complex, Kodiak Gas Services (NYSE:KGS) jumped after record third-quarter results and a higher 2026 adjusted EBITDA target, reports said. Greenfire Resources (NYSE:GFR), a Canadian heavy-oil producer, soared after agreeing to be acquired by Strathcona Resources.

Sable Offshore (NYSE:SOC) slipped after reporting a wider third-quarter net loss and saying it is reviewing working-capital options, according to news reports.

Oil Slide Tests Energy Profits

The big question is whether energy can sustain its earnings Leadership if oil keeps falling. Third-quarter numbers reflect prices that have already moved, so a lasting peace deal could slow the sector's growth in coming quarters. Investors will watch for confirmation of any US-Iran agreement and for shipping traffic through Hormuz. Falling oil is welcome news for inflation, too, which matters ahead of Tuesday's October consumer price index and the Federal Reserve's December 8-9 meeting. Airlines, which surged on cheaper fuel, offer a mirror image of the energy trade.