Chevron Corporation stock research
FY2025 Q4
Chevron (CVX) Gross Margin — Quarter Ended Dec 31, 2025
Revenue decreased compared to both the prior quarter and the same quarter a year earlier, while gross profit was lower than the prior quarter but higher than the year-ago period. Gross margin improved versus both periods, driven by a proportionally larger decline in cost of revenue relative to revenue.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue decreased compared to both the prior quarter and the same quarter a year earlier, while gross profit was lower than the prior quarter but higher than the year-ago period. Gross margin improved versus both periods, driven by a proportionally larger decline in cost of revenue relative to revenue.
- Compared to the prior quarter, revenue was lower but cost of revenue fell by a greater proportion, resulting in an expanded gross margin. The year-over-year comparison shows a similar pattern, with cost of revenue declining more sharply relative to revenue.
- Compared to the immediately prior quarter, revenue and gross profit were lower, while gross margin improved. Versus the same quarter one year earlier, revenue was lower but gross profit was higher, and gross margin strengthened materially.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.6%
Gross profit
$20.4B
Revenue
$45.8B
Cost of revenue
$25.3B
Quarter-over-quarter change
+1.5 pts
Year-over-year change
+7.0 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $46.1B | $17.5B | $28.6B | 37.9% |
| Jun 30, 2025 | $44.4B | $17.5B | $26.9B | 39.5% |
| Sep 30, 2025 | $48.2B | $20.8B | $27.4B | 43.1% |
| Dec 31, 2025 | $45.8B | $20.4B | $25.3B | 44.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+1.5 pts
Year-over-year change
Dec 31, 2024
+7.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Compared to the prior quarter, revenue was lower but cost of revenue fell by a greater proportion, resulting in an expanded gross margin. The year-over-year comparison shows a similar pattern, with cost of revenue declining more sharply relative to revenue.
Compared to the immediately prior quarter, revenue and gross profit were lower, while gross margin improved. Versus the same quarter one year earlier, revenue was lower but gross profit was higher, and gross margin strengthened materially.
Monitor whether the decline in cost of revenue relative to revenue can be sustained in future periods, as it was the key factor in margin improvement.