Chevron reported second-quarter 2026 earnings of $12.1 billion, more than four times the $2.49 billion it earned in the same quarter last year. Return on capital employed reached 21 percent. The company also signed a 20-year agreement to supply power to a Microsoft data center in West Texas.
Diluted earnings per share came to $6.11, up from $1.45 a year earlier. Cash flow from operations reached $22.6 billion, compared with $8.6 billion in the second quarter of 2025. The average Brent spot price, tracked by Platts, was $104 a barrel for the quarter, up from $68 a year earlier.
| Metric | 2Q 2026 | 2Q 2025 |
|---|---|---|
| Earnings | $12.1 billion | $2.49 billion |
| Diluted EPS | $6.11 | $1.45 |
| Cash flow from operations | $22.6 billion | $8.6 billion |
| Free cash flow | $18.1 billion | $4.9 billion |
The Microsoft power agreement
Chevron signed an agreement to build a power facility in West Texas designed to supply about 2.67 gigawatts of dedicated electricity to a Microsoft data center, under a 20-year power purchase agreement. The power is delivered behind the meter, meaning the facility supplies the customer directly rather than through the public grid.
Wirth said the agreement would help Chevron "power American AI dominance" while drawing on the company's existing capabilities to generate cash flow.
Production and refining records
Worldwide production increased 20 percent from a year ago. Net oil-equivalent production reached 4,070 thousand barrels of oil equivalent per day in the quarter, up from 3,396 thousand barrels a year earlier, a record. Chevron attributed the increase largely to the contribution from legacy Hess assets and growth in the Permian Basin and the Gulf of America.
U.S. refinery crude unit throughput hit a record 1.07 million barrels per day, with crude unit utilization above 97 percent. International upstream production rose 292,000 barrels per day from a year ago, primarily on the Hess acquisition, partly offset by curtailments in the Partitioned Zone between Saudi Arabia and Kuwait tied to the Middle East conflict.
Balance sheet and dividend
Chevron cut total debt by a record $8.4 billion during the quarter. Debt-to-CFFO stood at 0.8 times and net debt-to-CFFO at 0.6 times. The board declared a quarterly dividend of $1.78 a share, payable September 10, 2026, to shareholders of record as of the close of business on August 19, 2026.
Cost cuts tied to the Hess deal
Chevron reached $1.5 billion in annual run-rate cost savings tied to its Hess acquisition, ahead of schedule and 50 percent above its original target. The company also hit $3 billion in annual run-rate structural cost reductions since 2024, six months ahead of schedule, as part of a program aiming to cut $3 billion to $4 billion in structural costs by the end of 2026. Wirth said the company remains "focused on cost discipline and long-term value creation."
Other moves
Chevron signed heads of agreement with the government of Iraq to pursue potential participation in the West Qurna 2 and Nasiriyah oilfield developments and an export pipeline.
The company completed the sale of its Hong Kong downstream fuels and lubricants businesses. It also agreed to sell its 50 percent stake in the Singapore Refining Company along with other downstream assets in Vietnam, Australia, Indonesia, the Philippines and Malaysia, a deal expected to close in 2027. Separately, Chevron announced a licensing agreement to commercialize its chemical surfactant technology, designed to improve recovery from unconventional reservoirs.
