01—Abstract
Summary
Summary of the 10-Q filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Chevron Corporation reported a net income attributable to the company of $2.21 billiona ($1.11 per diluted share) for the first quarter of 2026, a decrease from $3.50 billion ($2.00 per diluted share) in the same period of 2025.
This decline was primarily driven by lower downstream margins, particularly in international operations, and unfavorable timing effects related to commodity derivative instruments, coupled with higher operating and depreciation expenses. Despite the overall decrease in net income, the upstream segment demonstrated resilience, with earnings increasing slightly year-over-year due to higher sales volumes.
The company's balance sheet remains robust, though total debt increased due to the Hess Corporation acquisition and commercial paper borrowings. Chevron continued its commitment to shareholder returns, paying substantial dividends and repurchasing shares, while also navigating a complex global energy landscape marked by geopolitical instability and evolving energy transition policies.
02—Key points
Key Highlights
- Net income attributable to Chevron Corporation decreased to $2.21 billion in Q1 2026 from $3.50 billion in Q1 2025.
- Diluted earnings per share fell to $1.11 in Q1 2026 from $2.00 in Q1 2025.
- Upstream segment earnings increased slightly to $3.91 billion from $3.76 billion, driven by higher sales volumes.
- Downstream segment reported a loss of $817 million, a significant decrease from earnings of $325 million in the prior year, impacted by lower margins and higher operating expenses.
- Total debt increased to $45.4 billion at March 31, 2026, from $40.8 billion at December 31, 2025, largely due to the Hess acquisition and increased commercial paper.
- Chevron paid $3.5 billion in dividends in Q1 2026 and repurchased $2.5 billion in shares.
- The company continues to manage geopolitical risks, particularly those arising from the Middle East conflict, which has impacted operations and supply chains.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 7, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $47.56B$46.10B | +3.2% |
| Cost of Revenue | $28.27B$28.61B | −1.2% |
| Gross Profit | $19.29B$17.49B | +10.3% |
| SG&A Expenses | $1.07B$1.22B | −12.7% |
| Operating Expenses | $44.66B$42.03B | +6.3% |
| Interest Expense | $345.00M$212.00M | +62.7% |
| Net Income | $2.21B$3.50B | −36.9% |
| EPS (Basic) | $1.12$2.01 | −44.3% |
| EPS (Diluted) | $1.11$2.00 | −44.5% |
| Shares Outstanding (Basic) | 1.98B1.74B | +13.5% |
| Shares Outstanding (Diluted) | 1.99B1.75B | +13.4% |
05—Questions
Frequently Asked Questions
What drove the decrease in net income for Chevron in Q1 2026 compared to Q1 2025?
The decrease in net income was primarily driven by a significant decline in the downstream segment's profitability, largely due to lower refining margins and higher operating expenses, particularly in international operations. Unfavorable timing effects from commodity derivative instruments also contributed to the lower results.
How did the Hess Corporation acquisition impact the financial results?
The acquisition of Hess Corporation, completed in July 2025, is reflected in the Q1 2026 results through higher operating expenses, depreciation, depletion, and amortization, as well as an increase in total debt. While the upstream segment benefited from increased production volumes due to the acquisition, the overall financial impact includes higher costs associated with integration and debt.
What is the company's outlook on commodity prices and their impact?
Chevron's earnings are highly sensitive to commodity prices. While Brent crude oil prices averaged higher in Q1 2026 compared to Q1 2025, the company experienced unfavorable timing effects from derivatives due to price volatility, particularly in March 2026. Geopolitical events in the Middle East are noted as a significant factor influencing price and supply dynamics, creating uncertainty for future operations.
How is Chevron addressing shareholder returns amidst lower earnings?
Despite the decrease in net income, Chevron continues to prioritize shareholder returns. The company paid $3.5 billion in dividends in Q1 2026 and repurchased $2.5 billion in shares. Chevron also stated its commitment to maintaining its common stock dividend and its high-quality debt ratings, indicating a strategic focus on balancing profitability with shareholder distributions.
06—Continue