Chevron Corporation Q1 2026 Financial Outlook

Chevron Corporation (CVX) has issued a Form 8-K detailing its preliminary financial and operational outlook for the first quarter of 2026. The company anticipates a negative impact on earnings and cash flow due to timing effects related to financial derivatives and LIFO accounting, estimated between \$2.7 to \$3.7 billion. This is primarily driven by a rise in commodity prices, with the majority of these effects expected to reverse in future periods, predominantly within the Downstream segment. Conversely, the Upstream segment is projected to benefit from higher commodity prices, with an estimated gain of \$1.6 to \$2.2 billion compared to Q4 2025. Upstream production is forecasted to be between 3.8 to 3.9 million barrels of oil-equivalent per day. A legal matter is expected to result in a charge of \$350 to \$400 million, impacting Downstream earnings and cash flow. Working capital is anticipated to have a net outflow of \$2 to \$4 billion. First-quarter weighted-average shares outstanding are estimated at 1.98 billion, with share repurchases largely offset by employee stock option exercises, which generated approximately \$1 billion in financing cash inflows. This preliminary information is subject to finalization and audit by the company\'s independent registered public accounting firm.