Chevron Corporation reported first‑quarter 2026 results on May 1 2026, posting revenue of $48.61 billion and net income of $2.21 billion, a decline of 36% from the same period a year earlier. Diluted earnings per share were $1.11, while adjusted earnings per share reached $1.41, beating the consensus estimate of $1.17 per share by $0.24. The revenue miss relative to some forecasts—$48.61 billion versus expectations of $51.39 billion—was the primary headwind for the quarter.
The upstream segment drove the earnings beat, with worldwide net oil‑equivalent production up 15% year‑over‑year. U.S. output rose 24% and international output increased 7% (from 1,717 to 1,834 MBOE/d). Upstream earnings were $3.91 billion, up 4% from the prior year, reflecting higher oil and gas prices and the integration of Hess assets.
Downstream operations posted a loss of $817 million, driven by lower refining margins, higher transportation costs, and unfavorable timing effects. Despite the downstream loss, free cash flow remained robust at $4.1 billion, supporting the company’s dividend and share‑repurchase program.
A $2.9 billion unfavorable timing charge related to mark‑to‑market derivatives and LIFO inventory accounting reduced reported earnings. CFO Eimear Bonner noted that the underlying business was strong when excluding these timing effects, and that paper positions worth roughly $1 billion would generate profit in the next quarter.
Management maintained its full‑year 2026 guidance, projecting 7%‑10% production growth, organic capital expenditures of $18 billion to $19 billion, and structural cost reductions of $3 billion to $4 billion by year‑end. CEO Mike Wirth emphasized capital discipline and a consistent playbook through volatility.
Geopolitical tensions that raised oil prices, combined with the Hess integration, underpinned the upstream growth. Management expects the timing effects to reverse in subsequent quarters, reinforcing confidence in the company’s operational strength and long‑term strategy.
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