Chevron Corp (NYSE: CVX) posted a record-breaking second-quarter performance, surpassing Wall Street expectations, as soaring crude oil, gasoline, and diesel prices fueled by conflict-driven supply disruptions drove a massive surge in earnings.

The company reported second-quarter revenue of $70 billion, a 56.2% year-over-year increase that exceeded forecasts by $9.62 billion. Adjusted earnings per share came in at $6.06, beating the average estimate by 41 cents. Both net income and EPS for the quarter shattered the previous highs set in 2022, when Russia's invasion of Ukraine upended global energy markets.

Chevron's U.S. production hit an all-time high, while global output rose 20% compared to last year. The oil giant joined Shell plc and TotalEnergies SE in reporting sharply higher profits, as it captured wider margins across crude production, refining, and trading operations.

Since the US-Iran conflict erupted in late February, vessel traffic through the Strait of Hormuz has been severely restricted, forcing oil buyers to pay a premium for alternatives to Persian Gulf crude. The turmoil has created extreme volatility in energy stocks, though the sector has underperformed the broader market this year. Despite the profit windfall, energy shares have struggled as investors view the gains as temporary war-driven windfalls. Chevron shares have risen 23% in 2026, but most of that gain came in the first six weeks of the year. Since the start of the US-Iran war, the stock has advanced only about 3%.

Chevron used the unexpected cash to cut debt by a record $8.4 billion, bolstering its balance sheet. "We were able to reduce debt and retain more cash on the balance sheet, given the highly volatile operating environment we're in," Chief Financial Officer Eimear Bonner said in an interview. The company's board declared a quarterly dividend of $1.78 per share, while stock buybacks rose 20% to $3 billion in the quarter, landing at the low end of its guidance range.

Crude oil prices, which surged above $125 per barrel in late April, were the primary driver of Chevron's profit growth. Although oil has since retreated to the $90 range, refining margins remain near record levels due to regional supply tightness in diesel, jet fuel, and gasoline. Ukrainian strikes on Russian refineries have exacerbated the shortage.

Chevron's second-quarter production jumped 20% to 4.07 million barrels of oil equivalent per day. Assets in the U.S. Gulf of Mexico and Kazakhstan significantly boosted output during the quarter, and the company also benefited from the integration of assets acquired in last year's $55 billion purchase of Hess Corp. U.S. production reached a new all-time high. The company's U.S. refineries operated at nearly full capacity, with utilization rates exceeding 97%. Profits from U.S. fuel manufacturing surged to $2.4 billion, more than ten times the earnings from the prior quarter. Chevron's international refining business also rebounded strongly, flipping from a $1 billion loss in the first quarter to a $2.5 billion profit three months later.

With less than 5% of its production coming from the Middle East, Chevron has few assets directly exposed to the Iran war, but the company remains vulnerable to global disruptions. Near the Russian Black Sea port of Novorossiysk, drone attacks on tankers temporarily halted crude receipts from a pipeline, forcing Chevron-operated Kazakhstan's giant Tengiz field to reduce output.