Houston, May 1, 2026, 07:52 CDT
- Chevron turned in adjusted earnings of $1.41 per share, topping LSEG’s 95-cent forecast. Still, net income slid to $2.2 billion, down from $3.5 billion in the same period last year.
- The upstream segment pulled in $3.9 billion, lifted by stronger crude prices even as other parts of the business lagged.
- Before the bell, shares traded at $193.31. The latest analyst readout? “Moderate Buy” consensus, per a recent snapshot. Barchart.com
Chevron beat analysts’ first-quarter earnings estimates Friday, thanks to a boost from stronger oil prices linked to the Iran conflict, which supported its production segment. Still, headline profit fell to a five-year low, but the results laid bare the oil major’s underlying operating heft.
Timing played a role here. Chevron’s results didn’t get the usual lift from higher crude prices. Instead, the quarter got tangled up in roughly $2.9 billion in negative timing effects from derivatives—used to hedge price swings—and inventory accounting quirks, the company said.
Chevron posted adjusted earnings of $2.8 billion, or $1.41 per share, sliding from $3.8 billion, or $2.18 a share, in the same period last year. The company’s reported earnings fell to $2.2 billion from $3.5 billion. This latest quarter saw a $360 million legal reserve set aside and a $223 million charge related to foreign-currency moves, according to Chevron.
Upstream—Chevron’s oil and gas production arm—held up the rest, pulling in $3.909 billion compared with $3.758 billion the previous year. Net oil-equivalent output moved higher, reaching 3.858 million barrels a day from 3.353 million. U.S. production topped 2 million barrels a day for the third quarter running.
Mike Wirth, the chief executive, described the quarter as a “solid first quarter performance,” highlighting U.S. operations after the Hess integration. He also noted gains in the Gulf of America and the Permian Basin. Chevron reported global production up 15%, with U.S. output jumping 24%. Business Wire
The refining and marketing segment dragged results, posting an $817 million loss after being in the black by $325 million a year ago. Accounting quirks—mainly mismatches involving derivatives and inventory—drove most of the downside. Reuters noted that Exxon Mobil, the bigger player, got hit by the same timing problem.
Chevron’s Chief Financial Officer Eimear Bonner told Reuters roughly $1 billion in paper positions are on track to close, turning into profit in the second quarter. Strip out the timing impact, and Bonner described the core business as strong. She pointed to potential for “cash flow growing” and “earnings growing.” Reuters
Cash flow painted a tougher picture this quarter. Chevron logged $2.5 billion in cash flow from operations, a sharp drop from $5.2 billion the same period last year. Free cash flow, after accounting for capital expenditures, slipped into negative territory at $1.5 billion. Adjusted free cash flow, though, held steady year on year at $4.1 billion.
Chevron handed back $6.0 billion to shareholders this quarter—$3.5 billion paid out as dividends, plus $2.5 billion through buybacks. That marks the 16th consecutive quarter the tally has topped $5 billion, according to the company. Buybacks, though, slipped from the previous quarter’s figure.
Biraj Borkhataria at RBC Capital Markets called the results strong, but noted that Chevron’s decision not to boost buybacks might leave some investors wanting more. If cash flow picks up in the current year, buybacks could increase by the second quarter, he told Reuters.
Heading into the release, analysts had a generally upbeat stance. According to a Barchart analyst snapshot published this week, out of 26 analysts, the stock drew a consensus “Moderate Buy” call: 16 rated it “Strong Buy,” three landed on “Moderate Buy,” six went with “Hold,” and there was a lone “Strong Sell.” The group’s 2026 adjusted EPS forecast: $13.55. Barchart.com
There’s a catch: the same swings in oil prices that boost upstream results are making reported profit less predictable. Chevron flagged that more timing effects might surface if prices go up again, only to reverse if they drop. Output also took a hit—downtime at Tengizchevroil in Kazakhstan and some curtailments in the Middle East weighed on production.
