Eni (ENI) nearly doubles buyback to €2.8bn, raises cash flow guidance
Eni has significantly increased its 2026 share buyback programme, nearly doubling it to €2.8 billion, and simultaneously raised its full-year cash flow from operations guidance by 20% to €13.8 billion. These revisions follow the Italian energy major's first-quarter 2026 adjusted net profit of €1.3 billion, which fell short of analyst expectations.
The company's updated forecasts reflect, according to Eni, a more robust underlying performance and an improved commodity price environment. Despite the 8% decline in Q1 2026 adjusted net profit compared to the first quarter of 2025, and missing the €1.5 billion consensus, Eni's management also confirmed its 2026 dividend forecast at €1.1 per share, a 5% increase from 2025. This decision underscores the firm's confidence in its ability to generate shareholder value and maintain financial stability.
The announcements, made in recent hours, outline a strategic focus on shareholder returns. On Monday, 27 April 2026, Eni shares closed at €23.04 on Piazza Affari, marking a modest 0.4% gain from the previous close of €22.95. Market reaction remained contained, with investors likely weighing the quarterly profit decline against the positive outlook presented by the enhanced buyback and cash flow guidance.
Why Eni's Buyback Boost Signalled Confidence
Eni, the Italian energy giant, operates across the entire energy value chain. This means they are involved in everything from discovering and extracting oil and natural gas, to processing these resources, and finally selling them to customers. Their clientele ranges from everyday consumers who use refined products and gas for heating and transport, to large industrial businesses. Eni primarily generates its revenue from the extraction and sale of hydrocarbons, alongside producing electricity and offering various energy services.
The primary driver behind Eni's stock movement was the announcement that it would significantly increase its share buyback programme for 2026, nearly doubling it to €2.8 billion. This move signals that the company's management believes its shares are currently undervalued, aiming to return value to shareholders by reducing the number of outstanding shares, which can boost earnings per share. This strategic confidence, alongside an increased full-year cash flow from operations guidance of €13.8 billion, outweighed a slightly disappointing first-quarter adjusted net profit of €1.3 billion against an expected €1.5 billion.
This strategic show of confidence resonated with investors, as Eni's shares ended the session on 27 April 2026 up 0.4%, closing at €23.04, compared to its previous close of €22.95.
Imagine you own a thriving business that, despite a quarter of sales falling slightly short of expectations, announces a substantial plan to repurchase a significant portion of its own shares. At the same time, you raise your overall earnings forecast for the year. This action, even with a minor quarterly hiccup, communicates strong belief in the company's long-term financial health and its ability to generate value, reassuring your partners about the robustness of your management.
Eni
Eni S.p.A. (ENI) is an integrated energy company with operations spanning the exploration, development, and production of crude oil and natural gas. Its activities are organised across several segments, including Exploration & Production, which also encompasses forestry conservation and CO2 capture projects. The Global Gas & LNG Portfolio manages the supply and wholesale of natural gas via pipelines and LNG. Eni's Refining & Marketing and Chemicals division handles the processing, supply, and distribution of fuels and chemical products. The Plenitude and Power segment focuses on retail sales of gas and electricity, alongside the generation and wholesale of power from both thermoelectric and renewable sources. As of December 2021, Eni reported net proved reserves of 6,628 million barrels of oil equivalent and an installed operational capacity of 4.5 GW. The company was established in 1953 and is headquartered in Rome, Italy.