Chevron (NYSE: CVX) reported a sharp year-over-year decline in first-quarter earnings, though results still came in slightly ahead of Wall Street expectations, leading to a 1.64% gain in stock price on Friday. Revenue and operating cash flow, however, missed forecasts.
Earnings per share fell to $2.18 from $2.93 a year earlier, but edged past analyst expectations of $2.15. Revenue totaled $47.6 billion, falling short of the $48.39 billion consensus.
Weaker performance across both upstream and downstream segments weighed on overall results. U.S. upstream earnings declined 10% to $1.86 billion, while international upstream fell 40% to $1.90 billion—both below Wall Street estimates. Downstream earnings also softened, with U.S. operations down 58% to $325 million and international downstream down 33% to $222 million.
The management attributed the earnings decline to reduced contributions from equity affiliates, lower margins on refined product sales, and adverse tax and foreign exchange movements.
Operating cash flow dropped to $5.2 billion, a 24% decrease from the prior year and below the expected $6.82 billion. Capital expenditures were lower during the quarter, with increased investments in U.S. data center energy solutions offset by reduced downstream spending.
Despite the softer quarter, Chevron returned $3.9 billion to shareholders through share repurchases and maintained its quarterly dividend at $1.71/share. The company reaffirmed its focus on disciplined capital management and its goal of delivering industry-leading free cash flow growth by 2026.
As of the latest update, Chevron (NYSE: CVX) shares are down 1.55%, trading at $136.36 in pre-market trading on Monday.
David Kirakosyan is a seasoned financial journalist with nearly a decade of hands-on experience in covering the U.S. stock markets. Since 2016, he has written thousands of equity news articles, detailed market analyses, and investment insights for trusted platforms like Benzinga, Investing.com, and StreetInsider. David holds a Master of Science in Finance and is a Level 2 CFA® candidate, reflecting his deep commitment to financial expertise and ethical standards. His reporting combines real-world market experience with a strong academic foundation, helping readers make informed decisions backed by reliable information. Read Full Bio
