Chevron $CVX posted its lowest profit in five years in the first quarter of 2026, even as adjusted earnings came in well ahead of analyst expectations, the company said Friday.

The oil major earned $2.2 billion, or $1.11 per share, a sharp decline from the $3.5 billion, or $2.00 per share, it reported during the same three months in 2025. Stripping out one-time items, the per-share figure came to $1.41, surpassing the 95-cent consensus forecast — a margin wide enough to represent Chevron's most significant earnings beat going back to October 2020, according to CNBC.

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The difference between reported and adjusted results came from about $2.9 billion in negative timing effects related to financial derivatives and inventory accounting, according to the company. International refining was hit hardest, with a loss of about $1 billion replacing a $222 million gain from the same period last year. This change was caused by margin pressure, timing mismatches from hedges, and higher transportation costs.

Upstream results provided the offset. Domestic upstream earnings climbed to $2.112 billion from $1.858 billion in the prior-year period; American output held above 2 million barrels of oil equivalent daily for the third quarter running. Worldwide net oil-equivalent production climbed 15% year-over-year to 3,858 thousand barrels of oil equivalent per day, the company said.

In a statement, CEO Mike Wirth said: "Despite heightened geopolitical volatility and related supply disruptions, Chevron $CVX delivered solid first-quarter performance, underscoring the resilience of our portfolio and the value of disciplined execution."

The conflict in the Middle East, which started on Feb. 28, disrupted energy markets and raised oil prices during the quarter. Chevron’s operations in the region are limited, making up less than 5% of its total production, according to Reuters.

Looking ahead, CFO Eimear Bonner told Reuters that roughly $1 billion in open paper positions are on track to be closed out at a gain during the current quarter. She also reiterated the company's stated goal of growing adjusted free cash flow by a minimum of 10% per year out to 2030, according to Reuters.

All told, shareholders received $6.0 billion during the quarter — $3.5 billion via dividends and another $2.5 billion through buybacks — marking the 16th straight quarter in which combined cash returns topped $5 billion. The company declared a quarterly dividend of $1.78 per share, payable June 10, 2026.

Revenue for the quarter was $47.556 billion, up from $46.101 billion in the first quarter of 2025. Spending on capital projects totaled $4.1 billion, compared with $3.9 billion a year earlier, with the increase attributable in part to outlays related to the Hess acquisition, though that was partially offset by a pullback in Permian Basin investment, the company said.

Chevron stock was up about 2% in premarket trading Friday.

Chevron posted its lowest profit in 5 years but still beat earnings expectations

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