CVX · Earnings · Q3 fiscal 2026strong quarterChevron Q3 2026 earnings: profit nearly triples on higher oil prices and refining
Chevron's Q3 2026 net income jumped to $9.9 billion from $3.5 billion a year ago, powered by stronger crude prices and record U.S. refinery output.
Alpha Finance
CVXQ3 fiscal 2026 earnings- Net income surged 180% year over year to $9.9 billion, with adjusted earnings per share of $5.28, which came in 10.5% above the analyst estimate of $4.78.
- U.S. refineries set a new crude throughput record of 1.09 million barrels per day, running at nearly 98% capacity utilization.
- Chevron cut total debt by $3.5 billion during the quarter, bringing the net debt-to-cash-flow ratio down to 0.4x from 1.1x a year ago.
The quarter in numbers
Chevron reported net income of $9.9 billion for Q3 2026, up 180% from $3.5 billion in Q3 2025. Sales and other operating revenues rose 35% year over year to $65.2 billion. Diluted earnings per share on a reported basis came in at $5.06, while adjusted earnings per share, which strip out one-time items and currency moves, reached $5.28.
Cash flow from operations (the cash the business generated before investing or financing) hit $16.0 billion, up 71% from $9.4 billion a year earlier. Adjusted free cash flow, which is the cash left after paying for the business and its investments, excluding working capital timing swings, was $14.2 billion. Capital expenditures came in at $4.0 billion, down 10% year over year.
What drove the results
Higher crude oil prices were the main engine. The average Brent spot price was $97 per barrel in Q3 2026, up from $69 a year ago. That lifted realizations across both U.S. and international upstream operations, where liquids realizations jumped from $48.12 to $62.72 per barrel domestically and from $63.16 to $86.09 per barrel internationally.
The downstream segment contributed strongly as well. U.S. downstream earnings jumped to $3.6 billion from $638 million a year ago, driven by higher margins on refined product sales. U.S. refineries set a new crude throughput record at 1.09 million barrels per day, running at nearly 98% utilization. International downstream added $1.3 billion, also up sharply from $499 million a year ago.
Total upstream earnings reached $5.7 billion, with U.S. upstream at $3.3 billion and international upstream at $2.4 billion. Net oil-equivalent production was 3,980 thousand barrels of oil equivalent per day (MBOED). That was slightly below the 4,086 MBOED from a year ago, as lower international liftings from the Middle East conflict and higher-price-related entitlement reductions offset record output in Australia and new Gulf of America volumes. Increased cash distributions from affiliate Tengizchevroil (TCO), including a $1 billion loan repayment, also boosted cash flow. Chevron repurchased $2.5 billion in shares and paid a quarterly dividend of $1.78 per share during the quarter. Total debt fell by $3.5 billion, and net debt dropped $7.8 billion.
How the stock looks now
According to Alpha Finance data, CVX shares were priced at $216.96 at the time of this analysis, down 3.7% on the day. The stock trades at a price-to-earnings ratio of 15.9x and an EV/EBITDA multiple (enterprise value divided by earnings before interest, taxes, depreciation and amortization) of 6.6x. Those compare to sector medians of 11.6x and 4.2x, respectively, for Oil and Gas Integrated companies, putting Chevron at a premium on both measures. Its price-to-book ratio of 2.2x is in line with the sector median of 2.2x.
The free cash flow yield (annual free cash flow divided by market price) is 8.0%, and the dividend yield stands at 3.16%. Alpha Finance's average intrinsic value estimate for CVX is $159.70, based on discounted cash flow, EBITDA, historical and multiples models, which is about 26% below the current share price. The 26 analysts tracked by Alpha Finance have a consensus target price of $241.67, roughly 11% above the current price, with 15 strong buy ratings, 6 buys, 4 holds, and 1 strong sell. Alpha Finance assigns CVX an Alpha Score of 67 out of 100, rated STRONG. The score reflects high marks for growth and financial strength, with valuation scoring the lowest among the pillars.
| Share price | $216.96 |
|---|---|
| Market value | $423.3 billion |
| P/E | 15.9x (sector median 11.6x (Oil & Gas Integrated)) |
| EV/EBITDA | 6.6x |
| Free cash flow yield | 8.0% |
| Alpha Score | 67 / 100 strong |
| Intrinsic value | $159.70 -26.4% vs price |
| Analyst target | $241.67 11.4% vs price, 26 analysts |
What to watch next
International production remains a concern. The Middle East conflict reduced liftings and entitlement volumes by 109,000 barrels per day compared to a year ago. How long that pressure persists will matter for future earnings.
Timing effects from mark-to-market derivatives and LIFO inventory accounting (a method of valuing inventory that can create gains or losses as prices move) reduced Q3 reported earnings by $1.58 billion. If oil prices pull back, those effects could reverse and flatter future reported numbers. The quarter also included a $160 million legal reserve and a $110 million impairment that bear watching.
On the growth side, Chevron's Venezuela joint ventures plan to invest $7 billion over the next five years, targeting more than double current production. The company also signed a new exploration deal in Libya's Sirte Basin and announced an offshore discovery in Angola. Separately, agreements to cut Bakken midstream costs by about 50% could improve margins in that region going forward.
Chevron's Q3 2026 results show how sharply higher oil prices and a record U.S. refining quarter can flip earnings. The key open question is whether international production can recover as Middle East disruptions and price-driven entitlement reductions continue to weigh on output.
Change the growth, margins and discount rate and see what the stock is worth to you.
- Chevron Corp earnings release (Form 8-K), filed October 30, 2026
- CVX on Alpha Finance: price, Alpha Score, valuation and analyst data
Written with Alpha AI from the company's SEC filing and Alpha Finance data, with every figure checked against those sources. For information only, not investment advice.
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