Is Chevron Stock Halal?
Chevron Corporation · CVX · NYSE
Chevron Corporation (CVX) passes our AAOIFI-based screen. Its core business is permissible, and (data as of 2026-03-31) interest-bearing debt is 12.1% of market cap and cash plus interest-bearing securities 1.4% — both inside the 30% AAOIFI thresholds. It is independently held by Shariah-screened ETF HLAL, confirming it passes professional screens. Ratios move with the share price, so check the data-as-of date; any incidental interest income should be purified.
Financial data as of 2026-03-31 · Screening basis: AAOIFI · Last reviewed 2026-06-14
Our Analysis
Chevron's core business is the same permissible energy activity as ExxonMobil's, producing oil and gas and refining and marketing fuels and chemicals, with no interest-based lending arm. On the business-activity test, Chevron passes cleanly. What makes Chevron interesting in this batch is that the two major US Shariah ETFs disagree about it right now.
HLAL holds Chevron (51,440 shares in its SEC-filed schedule of investments as of February 28, 2026), but Chevron does not appear in the SPUS holdings as of June 11, 2026, even though it is an S&P 500 company and ExxonMobil, its closest peer, is a top-ten SPUS holding. Neither fund publishes the reasoning behind individual inclusions and exclusions, so we cannot state the cause with certainty. The most likely explanation lies in leverage: SPUS's methodology additionally requires debt-to-market-capitalization below 30%, and Chevron's interest and debt expense roughly doubled to $1,217 million in 2025 as it added debt around its Hess acquisition. A company can pass FTSE's Shariah ratio formula while failing S&P's stricter leverage cap at a given measurement date.
For a Muslim investor, the takeaway is that Chevron is a permissible-business energy name whose screen status is currently ratio-dependent and methodology-dependent: compliant under FTSE/HLAL, excluded by SPUS. That is exactly the kind of stock to verify in a live screener at the time of purchase, since a swing in debt or market value could move it back inside SPUS's threshold or out of HLAL's.
Business Activity Screen
Chevron Corporation is an integrated energy company engaged in upstream oil and gas exploration and production and downstream refining, marketing, and chemicals. Per its FY2025 10-K, sales and other operating revenues were $184,432 million and total revenues and other income were $189,031 million; net income attributable to Chevron was $12,299 million.
Conventional oil, gas, refining, and chemicals is generally a permissible business activity and is not on AAOIFI's prohibited-industry list; Chevron does not run a meaningful interest-based lending business. FY2025 interest and debt expense was $1,217 million against $189,031 million of total revenue, which rose from $594 million in 2024 as the company took on more debt around its Hess acquisition. A noteworthy screen divergence exists: Chevron is HELD by HLAL but is NOT held by SPUS as of the checked dates (both screen US large caps). Neither fund publishes per-stock reasons; SPUS additionally requires debt-to-market-cap below 30%, so a higher leverage reading at SPUS's measurement date is the most plausible (but unconfirmed) explanation. Any incidental interest income was not separately quantified for this brief (null).
Financial Ratio Screen
| Screen | Value | AAOIFI limit | Result |
|---|---|---|---|
| Interest-bearing debt / market cap | 12.1% | < 30% | Pass |
| Cash + interest-bearing securities / market cap | 1.4% | < 30% | Pass |
| Impermissible income / total revenue'Other income' was $1.60B (includes interest income) on $184.4B sales (FY2025) ≤ 0.9% — upper bound; well under 5%. | 0.9% | < 5% | Pass |
Spot market cap at research date (consider trailing average for borderline names). Data as of 2026-03-31 · thresholds per AAOIFI Shariah standards.
This verdict uses the AAOIFI standard — the most widely used and, at a 30% debt limit, the most conservative mainstream Shariah standard. Interest-bearing debt and interest-bearing securities each stay under 30% of market cap, and impermissible income under 5% of revenue. Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets, so a borderline company can be rated differently by each. How we screen & why screeners disagree →
How Chevron screens across Shariah standards
All three mainstream bases below reach the same conclusion for this company.
| Standard | Debt | Cash & interest securities | Limit / basis | Result |
|---|---|---|---|---|
| AAOIFI (our standard) | 12.1% | 1.4% | < 30% of market cap | Pass |
| Dow Jones Islamic / S&P Shariah thresholdDow Jones and S&P apply this limit against a trailing 24–36-month average market cap; shown here on the same point-in-time market cap for comparison. | 12.1% | 1.4% | < 33% of market cap | Pass |
| MSCI Islamic / FTSE Yasaar basisTotal-assets denominator. MSCI/FTSE also apply entry/exit buffers and a receivables screen we do not reproduce. | 13.8% | 1.6% | < 33.33% of total assets | Pass |
HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-03-31) — not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded). The impermissible-income screen (< 5% of revenue) is common to all of these standards and is shown in the ratio table above. Dow Jones and S&P apply their limit against a trailing 24–36-month average market cap; MSCI and FTSE add entry/exit buffers and a receivables screen. Full methodology →
Scholars' & Screeners' Positions
Published positions, cited as stated. Screeners can reach different conclusions on the same company because of ratio timing and methodology differences — we report the disagreement rather than flatten it.
Purification
Even Shariah-compliant companies typically earn a small amount of incidental interest on corporate cash. The standard practice is to purify: donate the proportion of your dividends (and, per some scholars, capital gains) attributable to impermissible income. Our purification calculator automates the math from your holding and the company's disclosed figures.
Purification calculatorKeep your portfolio halal
A pass today isn't a pass forever — ratios drift across thresholds between filings. A halal screener monitors holdings continuously.
Related guides
Consider Consulting an Islamic Scholar
Major whether Chevron Corporation is halal decisions often involve nuances that vary by scholarly opinion and personal circumstance. While HalalWallet provides educational comparisons and tools, we are not scholars or financial advisors. For personal guidance on Shariah compliance, consider speaking with a qualified Islamic scholar, your local imam, or a Shariah-certified financial advisor familiar with your situation.
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Frequently Asked Questions
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-06-01
- CVX latest quarterly filing (balance sheet 2026-03-31)
- AAOIFI Shariah Standards
- Chevron FY2025 10-K consolidated statement of income (SEC EDGAR XBRL)
- Chevron FY2025 10-K (SEC EDGAR primary document)
- SPUS holdings (SP Funds)
- HLAL Schedule of Investments 2026-02-28 (SEC EDGAR)
- HalalWallet Methodology
- Editorial Policy
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