Chevron's Earnings: A Closer Look at Dilution and Future Prospects

Chevron's earnings fell 27% YoY, with EPS down 23% and profit down 53% over three years. The company's recent earnings didn't contain any surprises, but investors should be aware of underlying weaknesses, including dilution of shareholders' interests and a divergence between EPS and net income growth. Analysts' forecasts for future profitability can be viewed here.

Chevron Corporation reported its latest earnings, revealing a 27% year-over-year (YoY) decline in earnings, with earnings per share (EPS) down 23% and profits down 53% over the past three years. The company's recent earnings did not contain any major surprises, but investors should be aware of the underlying weaknesses that have contributed to this performance.

One of the key issues is the dilution of shareholders' interests, which has been exacerbated by the company's recent stock buybacks and dividend increases. This dilution has put pressure on EPS growth, as the number of shares outstanding has increased, while earnings have not kept pace. Additionally, there has been a divergence between EPS growth and net income growth, which suggests that the company's profitability is being impacted by factors other than its core operations.

Analysts have also noted that Chevron's recent earnings did not contain any significant surprises, which is a positive sign for the company's future prospects. However, the company's performance has been impacted by a challenging macroeconomic environment, including lower oil prices and increased competition in the energy sector.

Looking ahead, Chevron's analysts have forecasted a modest improvement in the company's profitability, with EPS expected to grow by 10.79% over the current year. However, investors should remain cautious and closely monitor the company's performance, as the underlying weaknesses in its business model could continue to impact its earnings growth.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-e-fund-management-co-ltd-has-367-million-stock-holdings-in-chevron-corporation-nysecvx-2025-08-13/
[2] https://www.fibre2fashion.com/news/apparel-news/us-pvh-q1-revenue-up-2-eps-outlook-trimmed-on-tariffs-303088-newsdetails.htm