AI Takeaway
CVX reported Q1 FY2026 revenue of $48.6B (+2.1% YoY), but net income fell sharply to $2.2B (-36.9% YoY) and operating cash flow dropped 51.6% to $2.5B, reflecting significant margin compression despite modest top-line growth.
Revenue
$48.61B
++2.09% YoY
EPS (Basic)
$1.12
-44.28% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue increased 2.1% YoY to $48.6B in Q1 FY2026, while cost of revenue declined 1.2% to $28.3B. However, net income collapsed 36.9% to $2.2B, suggesting significant headwinds below the gross profit line, likely from higher D&A charges and other operating costs.
Source: Source: 10-Q Financial Data, Income Statement
D&A expense jumped 40.9% YoY to $5.8B from $4.1B in the prior year period, a substantial increase that likely reflects the integration of acquired assets (potentially from the Hess acquisition) and is a key driver of the net income decline.
Source: Source: 10-Q Financial Data, Cash Flow Statement
Total assets grew 28.5% YoY to $329.6B, while total liabilities rose 31.9% to $140.2B and stockholders' equity increased 23.1% to $183.7B, indicating a major acquisition or asset consolidation occurred over the past year.
Source: Source: 10-Q Financial Data, Balance Sheet
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Upgrade to unlockNet income fell 36.9% YoY despite only a 2.1% increase in revenue, highlighting CVX's extreme sensitivity to oil and gas price realizations and downstream margins. A sustained decline in crude oil or natural gas prices could further compress profitability and cash generation.
Source: Source: 10-Q Financial Data, Income Statement
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Upgrade to unlockReported EPS of $1.41 versus the $0.96 analyst consensus — a +46.5% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $48.61B | $47.61B | +2.09% |
Cost of Revenue | $28.27B | $28.61B | -1.21% |
Net Income | $2.21B | $3.5B | -36.86% |
EPS (Basic) | $1.12 | $2.01 | -44.28% |
EPS (Diluted) | $1.11 | $2.00 | -44.50% |
SG&A Expense | $1.07B | $1.22B | -12.69% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $329.55B | $256.4B | +28.53% |
Current Assets | $46.16B | $38.57B | +19.67% |
Total Liabilities | $140.18B | $106.32B | +31.85% |
Current Liabilities | $42.18B | $35.7B | +18.13% |
Stockholders' Equity | $183.72B | $149.24B | +23.10% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.51B | $5.19B | -51.55% |
Investing Cash Flow | $-3.01B | $-5.62B | +46.39% |
Financing Cash Flow | $-448M | $-1.66B | +73.08% |
Share Buybacks | $2.57B | $3.92B | -34.34% |
D&A | $5.81B | $4.12B | +40.87% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 4.5% | — | — |
ROE | 1.2% | — | — |
ROA | 0.7% | — | — |
Current Ratio | $1.094 | — | — |
Debt to Equity | $0.763 | — | — |
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CVX reported Q1 FY2026 revenue of $48.6B, up 2.1% YoY, but net income fell sharply by 36.9% to $2.2B. The earnings decline was driven primarily by a 40.9% surge in depreciation and amortization to $5.8B, likely tied to a major asset acquisition completed over the past year.
CVX's net income fell 36.9% YoY to $2.2B despite modest revenue growth, largely because D&A expense surged 40.9% to $5.8B, significantly increasing the cost burden on the income statement. This suggests the company integrated a large acquisition that added substantial depreciable assets to its balance sheet.
CVX's operating cash flow dropped 51.6% YoY to just $2.5B in Q1 FY2026, compared to $5.2B in the prior year period. This decline, combined with $2.6B in share buybacks, means CVX's cash returns to shareholders exceeded its operating cash generation for the quarter.
CVX's balance sheet expanded significantly, with total assets growing 28.5% to $329.6B and stockholders' equity rising 23.1% to $183.7B, reflecting major asset additions. However, the current ratio of 1.09 and declining operating cash flow indicate tighter near-term liquidity, and the debt-to-equity ratio of 0.76 reflects moderately elevated leverage.
Yes, CVX reduced share buybacks by 34.3% YoY to $2.6B in Q1 FY2026, down from $3.9B in the prior year period. This reduction aligns with the significant decline in operating cash flow, which fell 51.6% to $2.5B, limiting the cash available for capital returns.