Chevron's Lower Q3 Profits Might Change The Case For Investing In CVX

• Chevron Corporation reported financial results for the third quarter of 2025, showing sales of US$48.17 billion and net income of US$3.54 billion, both below the levels posted a year earlier.
• This marks a period where the company's earnings per share from continuing operations saw a meaningful decline, highlighting ongoing pressures on profitability despite Chevron's scale and diversified energy operations.
• We’ll examine how lower revenue and net income in the recent quarter may influence Chevron’s long-term investment narrative and outlook.

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Chevron Investment Narrative Recap

To be a Chevron shareholder, you need to believe that scale, integrated assets, and global reach will allow the company to ride through commodity cycles and deliver steady returns, even as demand for oil may fluctuate. The recent decline in third-quarter revenue and net income underscores ongoing margin pressure, but unless there is a sustained downturn in upstream earnings, this news is not likely to materially derail the short-term catalyst, robust cash returns and disciplined capital spending. The largest immediate risk remains around commodity price volatility and project execution in major international operations.

Among recent announcements, the appointment of Kevin McLachlan as Chevron's new Vice President of Exploration, following the Hess acquisition, stands out for its relevance, especially given the background of falling exploration success rates. Leadership changes here may be pivotal as the company works to stabilize production volumes, address reserve replacement challenges, and reinforce free cash flow generation, which remains closely linked to the largest risks and catalysts currently facing the business.

Yet, in contrast, investors should be aware of how project delays or underperformance in key regions could suddenly shift...

Read the full narrative on Chevron (it's free!)

Chevron's narrative projects $196.0 billion revenue and $21.8 billion earnings by 2028. This requires 1.2% yearly revenue growth and a $8.1 billion earnings increase from $13.7 billion today.

Uncover how Chevron's forecasts yield a $168.78 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Twenty-eight members of the Simply Wall St Community estimate Chevron’s fair value between US$125.69 and US$389.63 per share. With recent margin pressure and risk tied to project execution, your view may differ widely from the majority, explore how these perspectives could shape Chevron’s future.

Explore 28 other fair value estimates on Chevron - why the stock might be worth 18% less than the current price!

Build Your Own Chevron Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Chevron research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Chevron research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Chevron's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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