Chevron tops Q3 profit estimates, revenue beats on higher refining margins

Chevron Corporation (CVX) said on Oct. 30 that it earned $9.9 billion, or $5.06 per diluted share, in the third quarter of 2026.

Shares rose 1.4% in regular-session trading as of 9:35 a.m. ET, from a regular-session close of $231.46.

Excluding special items and foreign currency effects, adjusted earnings were $10.4 billion, or $5.28 per diluted share. The adjusted figure topped the $4.93 per share consensus estimate compiled by Finnhub.

Revenue also topped estimates. Total revenues and other income were $67.80 billion, against the $61.72 billion estimate.

Here's how the company did:

• Adjusted EPS: $5.28 vs. $4.93 expected, according to Finnhub
• GAAP diluted EPS: $5.06 vs. $1.82 a year earlier
• Revenue: $67.80 billion vs. $61.72 billion expected, according to Finnhub
• Net income attributable to Chevron: $9.92 billion vs. $3.54 billion a year earlier

The company said return on capital employed was 17.7% for the quarter, up from 7.6% a year earlier.

The company attributed higher reported earnings to reliable operations, higher margins on refined product sales and higher crude oil realizations. Those gains were partly offset by unfavorable timing effects from the rising price environment.

Charges and other items

The company said the quarter included a legal reserve of $160 million, an impairment of $110 million and pension settlement costs of $24 million. Foreign currency effects reduced earnings by $143 million.

Segment results

U.S. upstream earnings were $3.29 billion, up from $1.28 billion a year earlier. The company said the increase was primarily due to higher liquids realizations and lower operating expenses, including the absence of prior-year severance and transaction costs related to the Hess Corporation acquisition.

International upstream earnings were $2.41 billion, compared with $2.02 billion a year earlier. The company cited higher realizations and higher liftings in Venezuela, partly offset by unfavorable taxes and the charges noted above.

U.S. downstream earnings were $3.59 billion, against $638 million a year earlier. The company said refinery crude unit inputs rose 3% from the year-ago period, and U.S. refinery crude unit throughput set a new record of 1.09 million barrels per day.

International downstream earnings were $1.35 billion, up from $499 million a year earlier, despite unfavorable timing effects. Refined product sales in the segment fell 9% from the year-ago period because of supply disruptions from the Middle East conflict.

Net oil-equivalent production was 3.98 million barrels of oil equivalent per day, compared with 4.09 million a year earlier. The company said lower entitlements from higher prices and the Middle East conflict were partly offset by record production at operated assets in Australia.

Cash and capital returns

Cash flow from operations was $16.0 billion, up from $9.4 billion a year earlier. Capital expenditures were $4.0 billion, down from $4.4 billion.

The company said it reduced total debt by an additional $3.5 billion and net debt by $7.8 billion in the quarter. It repurchased $2.5 billion of shares during the period.

The board declared a quarterly dividend of $1.78 per share, payable Dec. 10 to holders of record at the close of business on Nov. 18.

"We delivered strong operational performance and disciplined execution, while continuing to invest to grow energy supply," said Mike Wirth, Chevron's chairman and chief executive officer. In Venezuela, the company's joint ventures plan to invest $7 billion over the next five years.

Wirth also pointed to a Bakken deal. The company said it signed agreements to reduce Bakken midstream costs by approximately 50%, strengthening the asset's competitiveness.