ExxonMobil vs. Chevron: Revenue Gap Narrows on Margins

ExxonMobil (XOM) and Chevron (CVX) are the two heavyweights of the U.S. energy sector, and their revenue comparison is a perennial market focus. According to a July 1 analysis from Motley Fool, while ExxonMobil has long held a commanding revenue lead over Chevron, their profit margins are surprisingly close. As of 8:00 AM ET on July 3, ExxonMobil was at $137.09, up 0.59% (+$0.81) from its prior close of $136.28, with an opening price of $137.15, a session high of $139.14, and a low of $136.33.^{[Motley Fool]}

Revenue Gap Is Wide, Upstream Income Is Close

Looking at recent earnings, ExxonMobil’s revenue continues to dwarf Chevron’s. In the first quarter ending March 31, 2026, ExxonMobil reported $83.2 billion in revenue versus Chevron’s $47.6 billion—a roughly 75% difference. Over the past eight quarters, ExxonMobil’s revenue has consistently ranged between $79 billion and $90 billion, while Chevron has fluctuated between $44.4 billion and $49.6 billion.^{[Motley Fool]}

However, the report notes that despite the huge gap in total revenue, the two companies’ upstream (oil & gas exploration and production) income is “strikingly close.” The revenue difference is largely driven by ExxonMobil’s massive international downstream refining operations and its higher total daily production. ExxonMobil’s full-year 2025 production averaged 4.7 million barrels of oil equivalent per day (MBOED), a 40-year high, with record output from the Permian Basin and Guyana. Chevron also set a production record in 2025, but its 3.7 MBOED average still trails ExxonMobil significantly.^{[Motley Fool]}

Profit Margins Are Close, M&A Paths Differ

On profitability, the two are neck-and-neck. ExxonMobil’s net profit margin for the quarter ending March 31, 2026, was roughly 5%; Chevron’s EBIT margin was 7%.^{[Motley Fool]}

Both companies have recently scaled up through massive M&A. ExxonMobil acquired Pioneer Natural Resources for $60 billion in 2024, significantly boosting its Permian Basin output. Chevron bought Hess for $53 billion in 2025, gaining key assets in Guyana and the Bakken.^{[Motley Fool]}

Valuation and Market Performance

As of June 23, ExxonMobil had a market cap of ~$567 billion, a P/E of 23.07x, TTM EPS of $5.93, and a dividend yield of 2.98% (annual dividend of $4.08). Chevron’s market cap was ~$330 billion, with a P/E of 28.77x, TTM EPS of $5.76, and a dividend yield of 4.21% (annual dividend of $6.98).^{[Motley Fool]}

On gross margin, ExxonMobil stands at 20.92%, well above Chevron’s 15.15%. Over the past 52 weeks, ExxonMobil has traded between $105.53 and $176.41, while Chevron has ranged from $145.47 to $214.71.^{[Motley Fool]}

Crude Prices and the Macro Backdrop

Recent crude price moves are weighing on the energy sector. According to a July 1 Reuters report, oil prices fell to around $70 a barrel—near pre-ceasefire levels—after an Iran ceasefire deal eased concerns about supply disruptions through the Strait of Hormuz. This is a tailwind for European energy importers but a headwind for U.S. oil producers.^{[Global Banking & Finance Review]}

Invesco investment strategist Andras Vig said: “Lower oil prices strengthen the investment case for Europe, especially relative to an energy exporter like the U.S.” He noted that Europe’s higher weighting in cyclical sectors could boost relative returns if input costs fall, inflation eases, and global growth reaccelerates.^{[Global Banking & Finance Review]}

This content is for informational purposes only and does not constitute investment advice, trading advice, or any guarantee of returns.