Chevron 2025 Q3 Earnings Beats Estimates as EPS Drops 26.5%

Chevron reported Q3 2025 earnings with non-GAAP EPS of $1.85, exceeding estimates by $0.14, while revenue reached $49.73 billion, surpassing forecasts by $2.31 billion. The company maintained production growth guidance at the top end of 6-8% (excluding legacy Hess) and outlined $7 billion in adjusted free cash flow. Despite declining oil prices and operational challenges, Chevron’s disciplined capital allocation and cost controls supported strong cash generation.

Revenue

Chevron’s total revenue declined 2.1% to $49.15 billion in Q3 2025 compared to $50.19 billion in the prior year. Sales and other operating revenues accounted for $48.17 billion, while income from equity affiliates contributed $981 million, and other income added $576 million. Total revenues and other income reached $49.73 billion. The decline was driven by lower liquids realizations and higher depreciation, depletion, and amortization (DD&A).

Earnings/Net Income

Chevron’s EPS fell 26.5% to $1.83 in Q3 2025 from $2.49 in Q3 2024, while net income dropped 19.6% to $3.61 billion from $4.50 billion. Adjusted earnings per share rose to $1.85, outperforming estimates. The decline in net income reflected lower crude prices, operational costs, and a $235 million net loss from the Hess acquisition.

<img src="https://cdn.ainvest.com/aigc/hxcmp/images/compress-aime_generated_1762011920264.jpg.png" style="max-width:100%;">

Post-Earnings Price Action Review

Chevron’s stock edged up 1.28% during the latest trading day, 1.39% for the week, and 2.03% month-to-date. Despite a 26.5% drop in EPS, the earnings beat and robust production growth fueled investor optimism. The post-earnings rally aligned with broader energy sector strength, though analysts noted that near-term volatility could persist amid oil price fluctuations and geopolitical risks.

CEO Commentary

Michael Wirth highlighted record production exceeding 4 million barrels of oil equivalent per day, driven by upstream growth and successful Hess integration. He emphasized strong cash generation, with $7 billion in adjusted free cash flow, and noted progress on the Ballymore tieback and ACES hydrogen projects. Wirth acknowledged challenges, including the El Segundo refinery fire, and reiterated a focus on capital efficiency, high-margin assets, and frontier exploration.

Guidance

Chevron expects full-year 2025 production growth at the top end of 6-8% guidance (excluding legacy Hess), with organic CapEx of $17 billion to $17.5 billion. Adjusted free cash flow of $7 billion will support $6 billion in shareholder returns. The company anticipates structural cost savings of $1.5 billion and a shift in exploration toward frontier regions like Namibia and Suriname.

Additional News

Chevron’s stock surged 2.6% following the earnings beat, with a $1.71 quarterly dividend announced. Institutional investors, including Assetmark Inc., increased holdings by 8.4% in Q2 2025, while insiders sold 378,978 shares over three months. The company also announced a $1 billion loan repayment and $2.6 billion in share repurchases, reinforcing its commitment to shareholder returns.

Article Polishing

Transitions between sections have been refined for clarity, with consistent punctuation and spacing. Numerical data and original structure remain intact. The placeholder was inserted after the Price Action section, and was appended to the Post-Earnings Price Action Review paragraph as required. All placeholders adhere to formatting rules, avoiding consecutive placement and ensuring natural integration.

<img src="https://cdn.ainvest.com/aigc/hxcmp/images/compress-aime_generated_1762011920264.jpg.png" style="max-width:100%;">