Saudi corporates lead GCC earnings as energy and banking drive gains, but the outlook stays uncertain

Saudi corporate earnings weathered geopolitical headwinds, but the longer-term outlook remains uncertain. Saudi companies led GCC corporate earnings in 2Q 2026 with a combined net income of USD 45.3 bn, a 36.4% increase from the same quarter last year, according to Kamco Invest’s latest corporate earnings report (pdf).

The performance was led by energy, banking, and materials, which together accounted for 92% of total earnings. Energy was the largest contributor, with net income up 49.4% to USD 33.8 bn, driven by Aramco’s USD 32.7 bn income in 2Q. Banking net income rose 8.3% to USD 6.6 bn on strong lending growth and resilient operating income, while utilities, telecom, real estate, and food recorded declines.

The half-yearly performance told the same story, net income rose 29% y-o-y to USD 89.7 bn. Energy was again the largest contributor, with earnings climbing 38.8% y-o-y to USD 66.9 bn. Banking and telecom also recorded growth of 7.9% and 2.4%, respectively. Total revenue across Saudi-listed companies rose 20.7% y-o-y to USD 230 bn.

The geopolitical conflict had an upside after all: The energy sector’s earnings accounted for around 75% of the Kingdom’s total earnings, with higher prices across oil products and chemicals driving the increase as average crude prices surged to USD 108.1 / bbl in 2Q from USD 66.7 / bbl in 2Q 2025. The increase more than offset lower sales volumes amid shipping disruptions and the closure of Hormuz. Saudi banks also provided support due to strong lending activity.

Zooming out

GCC corporate earnings are breaking records: Aggregate net income jumped 31.3% y-o-y to USD 74.8 bn, marking the region’s second straight quarter of annual growth, according to the report. GCC listed companies’ 1H 2026 net income grew 23.1% y-o-y to USD 142.81 bn.

Oil did much of the heavy lifting: Energy sector earnings surged 41.6% y-o-y to USD 36.2 bn as higher crude prices more than offset weaker regional export volumes. It was followed by the banking sector at a net income of USD 17.8 bn, the food and beverages sector at USD 3.9 bn, and the telecom sector at USD 3.3 bn.

The regional scoreboard was less uniform: Abu Dhabi-listed companies saw their earnings jump 41.8% to USD 14.7 bn, outpacing Dubai-listed companies, whose earnings rose 4.9% to USD 6.9 bn. Across the two emirates, banking, real estate, and F&B sectors drove the rise. Oman gained 24.2%, while Qatari-listed earnings fell 20% as telecom, energy, and real estate dragged. Bahrain was broadly flat, and Kuwait’s near-doubling came off a weak comparison base distorted by Agility’s prior-year losses.

What’s next?

The Houthi threat challenges the Kingdom’s outlook: Iran-backed Houthi militants launched a major wave of missile and drone strikes on southern Saudi Arabia yesterday, including Abha, Khamis Mushait, Jazan and Najran. For the private sector, a prolonged escalation could raise logistics, ins., and operating costs, disrupt supply chains, and weigh on business confidence, which can put a dent in earnings in the upcoming months. Higher oil prices could, however, provide some offset through stronger energy revenues and government spending.