How CVX (Chevron) Makes Money in 2026: A Deep-Dive With Income Statement

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Understanding how a major integrated energy company like Chevron (CVX) makes money is essential for investors and anyone interested in the business of oil and gas. In this post, we break down Chevron's quarterly income statement (Q4 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

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What Drives Chevron's Money Machine?

• Other Revenue by Product: 100%+ of revenue — Encompasses aggregated sales from oil, gas, refining, and chemicals, with explosive +1,063.0% YoY growth signaling reclassification or surge in key products.
• Production Volumes and Pricing: Chevron produced steady upstream output, but revenue dipped -12.3% YoY on lower realized prices per barrel.
• Cost Management: Strategic cuts in operating expenses (-88.0% YoY) preserved margins.
• Future growth areas: Renewable energy investments and LNG expansion, though not yet profitable in core reporting.

Chevron's model thrives on global energy demand, with upstream dominance providing cash flow resilience even as downstream faces margin volatility.

Visualizing Chevron's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A and aggregated opex) taking the largest chunk.
• Even after significant cost of revenue and taxes, 6.0% of revenue drops to the bottom line.

Sankey diagrams excel here by proportionally showing flows—revenue's wide stream narrows through $40.6B cost of revenue (88.6% of total), then operating expenses, taxes, and other items, landing at $2.8B net income. This reveals Chevron's resilience, as other income $1.1B widens the pre-tax flow.

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Key Takeaways

• Chevron's money comes overwhelmingly from Other Revenue by Product 100%
• Moderate gross and net margins illustrate the power of Chevron's integrated energy model with cost discipline
• Heavy investment in upstream assets, balanced by efficiency in operating costs (-88.0% YoY)
• Ongoing growth is driven by production stability and energy transition plays

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FAQ About Chevron's Income Statement

1. What is the main source of Chevron's revenue in 2025?

Chevron generates over 100% of its revenue from Other Revenue by Product in Q4 2025. This aggregated category captures sales across oil, gas, refining, and chemicals, with no separate reporting for Upstream or Downstream in this period.

2. How profitable is Chevron in Q4 2025?

Chevron reported net income of $2.8B in Q4 2025, with a net margin of approximately 6.0%, reflecting moderate profitability driven by cost controls and other income despite revenue declines.

3. What are the largest expense categories for Chevron?

The biggest expenses on Chevron's income statement are cost of revenue $40.6B and income taxes $1.8B. Operating expenses totaled $1.3B, particularly SG&A costs at $324.0M in Q4 2025, as Chevron prioritizes operational efficiency in energy production.

4. Why does [segment/division] operate at a loss?

Downstream and Upstream segments reported $0.0B revenue each, effectively at zero contribution in Q4 2025 reporting. This is because Chevron aggressively invests in portfolio optimization and reclassification, believing these will drive long-term growth—even if segments appear unprofitable today.

5. How does Chevron's effective tax rate compare to previous years?

Chevron's effective tax rate in Q4 2025 was 38.1%, potentially higher than previous years due to higher taxable income from other sources and jurisdictional mixes. This elevated rate reflects U.S. corporate taxes and international operations without noted benefits like credits in this quarter.