second quarter 2026
Filed Jul 31, 2026Chevron reported second quarter 2026 earnings of $12.1 billion ($6.11 per share - diluted), supported by record U.S. production, record U.S. refinery crude throughput, higher commodity prices and stronger refined-product margins.
Reported earnings rose to $12.1 billion from $2.5 billion in second quarter 2025, while cash flow from operations reached $22.6 billion, free cash flow was $18.1 billion and worldwide production increased 20 percent from last year. Both upstream and downstream earnings increased substantially, and Chevron reduced total debt by a record $8.4 billion during the quarter.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total Earnings / (Loss)GAAP | $ 12,072 MM | – | – |
| Upstream Earnings / (Loss)GAAP | $ 8,182 MM | – | – |
| Downstream Earnings / (Loss)GAAP | $ 4,868 MM | – | – |
| All Other Earnings / (Loss)GAAP | $ (978) MM | – | – |
| Earnings Per Share - DilutedGAAP | $ 6.11 /Share | – | – |
| Adjusted Earningsnon-GAAP | $ 11,977 MM | – | – |
| Adjusted Earnings Per Share - Dilutednon-GAAP | $ 6.06 /Share | – | – |
| Cash Flow From Operations (CFFO)other | $ 22.6 B | – | – |
| CFFO Excluding Working Capitalnon-GAAP | $ 19.7 B | – | – |
| Avg. Brent Spot Price (Source: Platts)other | $ 104 /BBL | – | – |
| Return on Capital Employed (ROCE)other | 21.4 % | – | – |
| Capital Expenditures (Capex)other | $ 4.5 B | – | – |
| Affiliate Capexother | $ 0.3 B | – | – |
| Free Cash Flow (FCF)non-GAAP | $ 18.1 B | – | – |
| Adjusted Free Cash Flownon-GAAP | $ 15.4 B | – | – |
| Debt-to-CFFO Ratioother | 0.8x | – | – |
| Net debt-to-CFFOnon-GAAP | 0.6x | – | – |
| Net Oil-Equivalent Productionother | 4,070 MBOED | – | 20 percent |
| U.S. Upstream Earnings / (Loss)GAAP | $ 3,541 MM | – | – |
| U.S. Upstream Net Oil-Equivalent Productionother | 2,077 MBOED | – | – |
| U.S. Upstream Liquids Productionother | 1,491 MBD | – | – |
| U.S. Upstream Natural Gas Productionother | 3,520 MMCFD | – | – |
| U.S. Upstream Liquids Realizationother | $ 70.80 /BBL | – | – |
| U.S. Upstream Natural Gas Realizationother | $ 0.91 /MCF | – | – |
| International Upstream Earnings / (Loss)GAAP | $ 4,641 MM | – | – |
| International Upstream Net Oil-Equivalent Productionother | 1,993 MBOED | – | – |
| International Upstream Liquids Productionother | 1,094 MBD | – | – |
| International Upstream Natural Gas Productionother | 5,390 MMCFD | – | – |
| International Upstream Liquids Realizationother | $ 96.41 /BBL | – | – |
| International Upstream Natural Gas Realizationother | $ 7.84 /MCF | – | – |
| International Upstream Foreign Currency Effectsother | $ (77) MM | – | – |
| U.S. Downstream Earnings / (Loss)GAAP | $ 2,411 MM | – | – |
| U.S. Downstream Refinery Crude Unit Inputsother | 1,070 MBD | – | 2 percent |
| U.S. Downstream Refined Product Salesother | 1,320 MBD | – | decreased 4 percent |
| International Downstream Earnings / (Loss)GAAP | $ 2,457 MM | – | – |
| International Downstream Refinery Crude Unit Inputsother | 598 MBD | – | decreased 10 percent |
| International Downstream Refined Product Salesother | 1,287 MBD | – | decreased 13 percent |
| International Downstream Foreign Currency Effectsother | $ 31 MM | – | – |
| All Other Net chargesGAAP | $ (978) MM | – | – |
| All Other Foreign Currency Effectsother | $ (3) MM | – | – |
Capital returns
- The company’s Board of Directors declared a quarterly dividend of one dollar and seventy-eight cents ($1.78) per share, payable September 10, 2026, to all holders of common stock as shown on the transfer records of the corporation at the close of business on August 19, 2026.
What drove it
- Reported earnings increased compared to second quarter 2025 primarily due to reliable operations with higher commodity prices, higher margins on refined product sales, and impacts from higher sales volumes. This includes $1.4 billion in favorable timing effects.
- Production in the second quarter of 2026 was 20 percent higher than second quarter last year largely due to the contribution from legacy Hess assets, and growth in the Permian Basin and Gulf of America.
- U.S. refinery crude unit throughput was a record 1.07 million barrels per day, reflecting reliable crude unit capacity utilization of more than 97 percent.
- Chevron achieved $3 billion in annual run-rate structural cost reductions since 2024 and delivered $1.5 billion of annual run-rate Hess-related synergies within one year of closing.
- Chevron signed a 20-year power purchase agreement with Microsoft to provide 2.67 gigawatts of behind-the-meter power for a data center in West Texas.
Concerns
- U.S. upstream natural gas realization was $ 0.91 /MCF, compared with $ 1.75 /MCF in second quarter 2025 and $ 2.48 /MCF in first quarter 2026.
- International upstream production was partly offset by curtailments in the Partitioned Zone between Saudi Arabia and Kuwait due to the Middle East conflict.
- International downstream refinery crude unit inputs decreased 10 percent from the year-ago period due to supply disruptions from the Middle East conflict.
- International downstream refined product sales decreased 13 percent from the year-ago period due to supply disruptions from the Middle East conflict and lower demand for gasoline and diesel fuel.
- U.S. downstream refined product sales decreased 4 percent compared to the year-ago period due to lower demand for gasoline.
What to watch
- The sustainability of higher commodity prices, refined-product margins and $1.4 billion in favorable timing effects.
- Production contribution from legacy Hess assets and growth in the Permian Basin and Gulf of America.
- Curtailments and supply disruptions associated with the Middle East conflict.
- Execution against the structural-cost program target of $3-4 billion by the end of 2026.
- Closing of the planned sale of the company’s 50 percent interest in the Singapore Refining Company and other downstream assets, which is expected to close in 2027.
- Development of the West Texas power facility designed to provide approximately 2.67 gigawatts of capacity under the 20-year Microsoft agreement.
Balance sheet and cash flow
- Cash Flow From Operations (CFFO) was $ 22.6 B.
- Free Cash Flow (FCF) was $ 18.1 B.
- Adjusted Free Cash Flow was $ 15.4 B.
- Total debt was reduced by a record $8.4 billion in the quarter.
- Debt-to-CFFO Ratio was 0.8x.
- Net debt-to-CFFO was 0.6x.
Analysis
Chevron delivered a strong second quarter, with reported earnings of $12.1 billion and diluted earnings per share of $6.11. Adjusted earnings were $12.0 billion and adjusted diluted earnings per share were $6.06. The reported result was supported by reliable operations, higher commodity prices, higher margins on refined product sales and higher sales volumes. Chevron identified $1.4 billion in favorable timing effects within the earnings improvement.
Upstream earnings were $ 8,182 MM, with both U.S. and international upstream contributing. Worldwide net oil-equivalent production was 4,070 MBOED, and Chevron stated that production increased 20 percent from second quarter 2025. U.S. net oil-equivalent production reached 2,077 MBOED, a new quarterly production record, while international production was 1,993 MBOED. Legacy Hess assets and growth in the Permian Basin and Gulf of America drove production, although international volumes were partly offset by curtailments in the Partitioned Zone between Saudi Arabia and Kuwait. U.S. natural gas realization declined to $ 0.91 /MCF.
Downstream earnings were $ 4,868 MM, versus a loss in the first quarter. U.S. downstream earnings reached $ 2,411 MM on higher refined-product margins and higher earnings from Chevron Phillips Chemical Company LLC. U.S. refinery crude unit inputs were 1,070 MBD, with record throughput and utilization of more than 97 percent. International downstream earnings were $ 2,457 MM, aided by refined-product margins, favorable timing effects, an asset sale gain and a favorable swing in foreign currency effects. Supply disruptions tied to the Middle East conflict reduced international crude inputs and product sales.
Cash generation and balance-sheet actions were notable. Cash flow from operations was $ 22.6 B, free cash flow was $ 18.1 B and adjusted free cash flow was $ 15.4 B. Capex was $ 4.5 B, higher than second quarter 2025 largely because of legacy Hess spending. Chevron reduced total debt by a record $8.4 billion during the quarter, while the debt-to-CFFO ratio was 0.8x and net debt-to-CFFO was 0.6x. The board declared a $1.78 per-share quarterly dividend.
Management also emphasized execution on costs and strategic development. Chevron reported $3 billion of annual run-rate structural cost reductions since 2024, achieving its stated target six months early, and $1.5 billion of Hess-related annual run-rate synergies within one year of closing. The company signed a 20-year agreement with Microsoft for approximately 2.67 gigawatts of dedicated behind-the-meter electricity capacity in West Texas. The release did not provide forward financial or operating guidance.
Management, verbatim
Our strong second quarter performance is a result of disciplined investment and strong execution that drove record U.S. upstream production, record crude throughput in our U.S. refineries, and exceptional reliability across key assets.
Mike Wirth, Chevron's chairman and chief executive officer
We remain focused on cost discipline and long-term value creation. During the second quarter, the company achieved its structural cost reduction target six months early by capturing $3 billion in annual run-rate savings. Furthermore, we delivered $1.5 billion of annual run-rate synergies related to the Hess Corporation acquisition within one year of closing.
Mike Wirth, Chevron's chairman and chief executive officer
And we have positioned the company to help power American AI dominance and generate resilient cash flows through leveraging our unique capabilities.
Mike Wirth, Chevron's chairman and chief executive officer
Not in the filing
stated, not guessed- Period end date was not provided in the filing text.
- Total revenue and revenue comparisons were not provided.
- Segment revenue was not provided for Upstream, Downstream, U.S. Upstream, International Upstream, U.S. Downstream, International Downstream or All Other.
- Gross profit, gross margin, operating income, operating margin, operating expenses, income tax expense and tax rate were not provided.
- Net income attributable to Chevron Corporation was not separately provided under that line-item label.
- Cash balances, total debt balance and net debt balance were not provided.
- Share repurchases and repurchase authorization information were not provided.
- Forward financial and operating guidance was not provided.
- Previous-period outlook was not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.