Chevron Corporation (NYSE:CVX) shares gained 2.2% in premarket trading on Friday after the US energy giant reported third-quarter 2026 earnings and revenue above analyst expectations, supported by stronger refining margins and higher crude oil prices.
The company reported adjusted earnings per share of $5.28, exceeding Wall Street’s consensus estimate of $4.88. Revenue increased 36% year over year to $67.8 billion, surpassing forecasts of $60.55 billion.
Adjusted quarterly earnings reached $10.4 billion, compared with $3.6 billion in the corresponding period last year.
Refining Performance Drives Earnings Growth
Chevron’s US refineries achieved record crude oil throughput of 1.09 million barrels per day, with utilisation rates approaching 98%.
The company’s downstream operations benefited from stronger margins on refined petroleum products, contributing significantly to the increase in quarterly profitability.
“We delivered strong operational performance and disciplined execution, while continuing to invest to grow energy supply,” said Mike Wirth, Chevron’s Chairman and Chief Executive Officer.
Oil Production Declines Despite Strong US Output
Total net oil-equivalent production reached 3.98 million barrels per day, representing a 3% decline from the previous year.
Chevron attributed the reduction primarily to lower production entitlements associated with higher oil prices and disruptions related to the Middle East conflict.
These factors were partially offset by record production at operated assets in Australia and increased output from the Gulf of America.
US upstream production exceeded 2 million barrels of oil equivalent per day for the fifth consecutive quarter.
Strong Cash Flow Supports Debt Reduction
Chevron generated $16.0 billion in operating cash flow during the quarter, alongside $12.0 billion in free cash flow.
The company reduced total debt by $3.5 billion and reported a return on capital employed of 18%.
Chevron also declared a quarterly dividend of $1.78 per share, payable on December 10, 2026.
The stronger-than-expected results highlighted the benefits of improved refining profitability and higher commodity prices, while substantial cash generation supported debt reduction and shareholder returns.