Chevron Corporation (NYSE: CVX) released its financial results for the fourth quarter of fiscal year 2025, delivering a mixed performance. While total revenue for the period reached $46.9 billion, marginally missing market expectations of $47.2 billion, the company’s adjusted earnings per share (EPS) surpassed consensus forecasts. Adjusted EPS stood at $1.52, down from $2.06 a year prior but above the anticipated $1.47.
The reported net income declined to $2.8 billion, or $1.39 per share, compared to $3.2 billion, or $1.84 per share, in the corresponding quarter of the previous year. This drop was primarily attributed to lower crude oil prices, reductions in affiliate earnings, and adverse foreign currency fluctuations.
Operational cash flow for the quarter rose sharply to $10.8 billion, a significant increase from $8.7 billion in the same timeframe last year. Throughout 2025, Chevron returned a substantial $27.1 billion to its shareholders. This included $12.1 billion in share repurchases, $12.8 billion paid in dividends, and $2.2 billion allocated to Hess share acquisitions in early 2025.
The integration of Hess Corporation was a notable highlight, with Chevron achieving its synergy target of $1 billion. This merger has contributed to operational efficiencies and production gains. Concurrently, Chevron made progress in emerging energy sectors, expanding its initiatives in power generation, lithium development, and hydrogen technologies. The company realized $1.5 billion in structural cost savings during 2025 as part of a broader program aimed at cutting structural expenses by $3 to $4 billion by the end of 2026.
Production Growth Fueled by Strategic Acquisitions and New Projects
Chevron reported a rise in U.S. net oil-equivalent production, which increased by 409,000 barrels per day year-over-year to 2,055 thousand barrels of oil equivalent per day (MBOED). This growth was supported by the Hess acquisition, higher output in the Gulf of Mexico from recently launched deepwater projects, and increased production in the Permian Basin.
Internationally, net oil-equivalent production expanded by 286,000 barrels per day year-over-year to 1,990 MBOED, propelled by the Hess deal and greater output from Tengizchevroil (TCO) operations in Kazakhstan. Notably, Tengizchevroil, in which Chevron holds a 50% stake, commenced its Future Growth Project in 2025. In the U.S., major projects in the Gulf of Mexico achieved first oil, and the Permian Basin marked a production milestone by reaching 1 million barrels of oil equivalent per day.
Segment Earnings Reflect Price and Currency Headwinds
In the U.S. upstream segment, earnings decreased to $1.26 billion from $1.42 billion in the same quarter the previous year, influenced mainly by lower prices for liquid hydrocarbons. International upstream earnings declined more markedly to $1.78 billion from $2.88 billion year-over-year. This reduction was attributed to unfavorable foreign currency movements, chiefly in Australia, diminished affiliate earnings, and weaker pricing realizations.
Responding to operational and shareholder considerations, Chevron’s Board of Directors approved a 4% increase in the quarterly dividend, setting it at $1.78 per share. The dividend is slated for payment on March 10, 2026, to stockholders on record as of February 17, 2026.
Management Perspective and Market Context
Chevron’s management highlighted the company’s production performance, indicating a 12% increase in worldwide production and a 16% rise in U.S. volumes during 2025, both reaching record highs. Capital expenditure rose over the year, driven by post-acquisition investments in legacy Hess assets and expanding investments in power for U.S. data centers, despite reduced spending in the downstream segment.
Chief Executive Officer Mike Wirth stated, "The year 2025 represented substantial accomplishments. We effectively integrated Hess, commissioned major projects, achieved record production, and restructured our operations. These efforts translated into leading free cash flow growth and outstanding returns for shareholders, despite a downturn in oil prices."
Wirth underscored Chevron’s enduring relationship with Venezuela, expressing commitment to both current partnerships and future prospects while emphasizing the role in enhancing U.S. energy security and regional stability.
Industry reports noted that both Chevron and Exxon Mobil experienced their lowest annual profits since 2021, influenced by global crude oil oversupply and the consequential pressure on oil prices. The fourth-quarter earnings for both firms also declined year-over-year despite production increases.
Stock Market Performance
Shares of Chevron showed modest volatility, trading slightly higher by 0.06% at $171.30 in premarket sessions following the earnings release. The stock approached its 52-week peak of $174.92, reflecting cautious investor optimism amid the company’s operational achievements.
The quarterly results reinforce Chevron’s strategic approach to balancing production growth, shareholder returns, and investments in future energy solutions amid fluctuating commodity prices.