AI Takeaway
CVX reported a significant earnings decline in FY2025, with net income falling 30.5% to $12.3B and revenue dropping 6.8% to $189.0B, though operating cash flow rose 7.8% to $33.9B, supported by a major balance sheet expansion likely reflecting the Hess acquisition.
Revenue
$189.03B
-6.79% YoY
EPS (Basic)
$6.65
-31.86% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
CVX's total revenue fell 6.8% year-over-year to $189.0B in FY2025 (from $202.8B), while net income dropped sharply by 30.5% to $12.3B (from $17.7B), reflecting the impact of weaker oil and gas prices on upstream earnings and overall profitability.
Source: Source: 10-K Income Statement
Despite the earnings decline, CVX generated $33.9B in operating cash flow in FY2025, a 7.8% increase from $31.5B in the prior year, driven by higher depreciation and amortization of $20.1B (up 16.5% YoY), which partially offset lower net income.
Source: Source: 10-K Cash Flow Statement
Total assets surged 26.1% to $324.0B (from $256.9B), and stockholders' equity rose 22.4% to $186.5B, while total liabilities increased 27.0% to $131.8B, indicating a large-scale acquisition — consistent with the pending Hess Corporation deal — substantially reshaping CVX's asset base.
Source: Source: 10-K Balance Sheet
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Upgrade to unlockCVX's net margin fell to just 6.5% in FY2025 from approximately 8.7% in FY2024, illustrating how sensitive earnings are to oil and gas price movements. A sustained period of lower commodity prices could further erode profitability and free cash flow generation.
Source: Source: 10-K Income Statement & Key Ratios
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Upgrade to unlockReported EPS of $1.52 versus the $1.46 analyst consensus — a +3.9% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $189.03B | $202.79B | -6.79% |
Cost of Revenue | $108.21B | $119.21B | -9.22% |
Net Income | $12.3B | $17.7B | -30.51% |
EPS (Basic) | $6.65 | $9.76 | -31.86% |
EPS (Diluted) | $6.63 | $9.72 | -31.79% |
R&D Expense | $427M | $353M | +20.96% |
SG&A Expense | $5.13B | $4.83B | +6.04% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $324.01B | $256.94B | +26.11% |
Current Assets | $38.55B | $40.91B | -5.77% |
Total Liabilities | $131.84B | $103.78B | +27.03% |
Current Liabilities | $33.39B | $38.56B | -13.41% |
Stockholders' Equity | $186.45B | $152.32B | +22.41% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $33.94B | $31.49B | +7.77% |
Investing Cash Flow | $-15.91B | $-8.94B | -78.06% |
Financing Cash Flow | $-19.06B | $-23.47B | +18.78% |
Share Buybacks | $12.08B | $15.23B | -20.68% |
D&A | $20.13B | $17.28B | +16.49% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 6.5% | — | — |
ROE | 6.6% | — | — |
ROA | 3.8% | — | — |
Current Ratio | $1.155 | — | — |
Debt to Equity | $0.707 | — | — |
Other companies in Integrated Oil & Gas
CVX had a challenging FY2025, with revenue declining 6.8% to $189.0B and net income falling sharply by 30.5% to $12.3B, largely due to weaker oil and gas prices. However, operating cash flow bucked the trend, rising 7.8% to $33.9B, highlighting the company's resilient cash generation even in a lower-price environment.
CVX's net income fell 30.5% to $12.3B in FY2025, primarily because lower commodity prices reduced upstream revenue and margins more than cost savings could offset. Net margin compressed to 6.5% from approximately 8.7% in FY2024, illustrating how sensitive integrated oil companies are to oil and gas price cycles.
The financial data strongly suggests a major acquisition was completed in FY2025: total assets surged 26.1% to $324.0B, investing cash outflows nearly doubled to $15.9B, and stockholders' equity rose 22.4% to $186.5B. This is consistent with CVX's pursuit of Hess Corporation, which significantly expanded its asset base.
Based on the financial data, key risks include commodity price volatility (net margin fell to 6.5%), integration risk from a large acquisition (total assets up 26.1%), and rising leverage (total liabilities up 27.0% to $131.8B). Additionally, declining ROE of 6.6% and ROA of 3.8% suggest the expanded asset base must generate stronger returns to justify the investment.
CVX remains financially sound with a current ratio of 1.15, $33.9B in operating cash flow, and a manageable debt-to-equity ratio of 0.71. While earnings declined significantly, the company continued to return $12.1B to shareholders via buybacks and maintained positive free cash flow, indicating solid underlying financial health despite a tougher earnings environment.