RBC Tweaks Shell Forecasts After 'Disappointing' Q4 2025 Trading Update

09:51 AM EST, 01/08/2026 (MT Newswires) -- RBC Capital Markets revised its earnings forecasts for Shell (SHEL.L, SHELL.AS) following the oil and gas major's trading update for the fourth quarter of 2025. "We thought Shell's trading update this morning was disappointing, with a number of additional charges to earnings and cash flow impacting 4Q estimates," the research firm said in a Thursday note. "The key question going forward is whether Shell is willing to defend the buyback at the $3.5bn quarterly run rate. The company has been clear about its willingness to look through weak quarters to maintain consistency in distributions ... We think the company would be better served by holding the line and reassessing into 2H26." RBC lowered its projected EPS for 2025 by 2.4% to $3.12, while the estimates for 2026 and 2027 were trimmed by 1.9% and 0.7%, respectively, to $3.38 and $4.25. The adjusted net income estimates over the three-year period were also reduced. Shell's stock is rated at outperform, with a price target of 36 pounds sterling.