Phillips 66 (PSX) Earnings

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Dec 2026upcoming

Next quarter

Expected to report Feb 3, 2027 — estimated from last year’s reporting date.

Consensus is $10.21 EPS for Dec 2026 across 6 estimates, ranging $4.38 to $12.28.

PSX Sep 2026

Reported Oct 28, 2026 · before the open

: 17.63%
: +1.95%

: $11.97
: $14.08
: —
: $50.54B

Reported results

: $50.54B; from $34.52B
: 19.24%; from 12.45%
: $5.62B; from $133.00M
: $14.08; from $0.32

Highlights

Earnings beat: Q3 diluted EPS was $14.08, 17.6% above the $11.97 consensus; adjusted EPS was also $14.08, versus $9.41 in Q2.
Refining surge: Refining generated $6.28 billion of adjusted EBITDA, up from $3.31 billion in Q2, supported by 98% utilization and a record 41% distillate yield.
Reported growth: Revenue was $50.54 billion, up 46% year over year but down 0.9% sequentially; net income attributable to Phillips 66 was $5.62 billion versus $133 million a year ago and $3.85 billion in Q2.
Cash generation: Operating cash flow was $7.3 billion, including a $1.1 billion working-capital benefit; excluding working capital, it was $6.2 billion.
Shareholder returns: Phillips 66 returned about $2.8 billion through repurchases and dividends, including $2.36 billion of share repurchases and $504 million of dividends.
Balance sheet: Debt fell by $2 billion during the quarter to $18.5 billion, with net debt at $12.7 billion and net debt to capital at 26%, reaching its 2027 target ahead of schedule.
Midstream volumes: Fractionation volumes exceeded 1 million barrels per day, wellhead volumes reached 4.6 Bcf per day, and Freeport LPG export dock utilization was 105%.
Growth investment: The company expects its $2.5 billion share of Western Gateway spending to peak in 2028; it also targets mid-single-digit adjusted EBITDA growth in midstream through the decade.

Analysis

Phillips 66 delivered a sharp earnings step-up in Q3 FY2026: diluted EPS of $14.08 beat the $11.97 consensus by 17.6%, while revenue of $50.54 billion was nearly flat sequentially and 46% above the year-ago quarter. Net income attributable to Phillips 66 reached $5.62 billion, compared with $3.85 billion in Q2 and $133 million a year earlier. The year-ago comparison is especially distorted by a $948 million pretax impairment; on an adjusted basis, EPS rose from $2.38 in Q3 2025 and $9.41 in Q2 2026 to $14.08 this quarter.

The print was defined by exceptionally strong refining, alongside robust cash generation and substantial capital returns. Refining adjusted EBITDA rose to $6.28 billion from $3.31 billion in Q2, with 98% utilization and a record 41% distillate yield; management pointed to strong product markets and commercial optimization. Operating cash flow was $7.3 billion, or $6.2 billion excluding a $1.1 billion working-capital benefit. The company returned about $2.8 billion to shareholders and cut debt by $2 billion, bringing net debt to capital to 26%—its 2027 target ahead of schedule. Management also emphasized a longer-term growth agenda, especially midstream projects intended to support roughly 5% annual adjusted EBITDA growth through the decade.

Refining drives earnings

Segment contribution: Refining produced $6.28 billion of adjusted EBITDA and $6.06 billion of pretax income in Q3, versus $3.31 billion and $3.06 billion, respectively, in Q2. Its contribution dominated the quarter’s earnings improvement.
Operations: Worldwide refining utilization was 98%, and distillate yield reached a third-quarter record of 41%. Management highlighted strong distillate economics, commercial optimization, and improved utilization of downstream units.
Commercial advantages: The company cited crude optionality, lower-cost time-chartered freight, and integration across its assets as drivers of capture. It said each $1 widening in the WCS-WTI differential is worth about $140 million to Phillips 66.
Market context: Management noted roughly 7 million barrels per day of refining capacity offline in Russia, Asia, and the Middle East, and expected margins to remain strong through much of next year. That outlook is a management view, not a reported result.

Quarterly earnings and cash

Reported results: Revenue was $50.54 billion, up from $34.52 billion in Q3 2025 and slightly below $51.00 billion in Q2 2026. Net income attributable to Phillips 66 was $5.62 billion, compared with $133 million a year ago and $3.85 billion in Q2.
Earnings comparison: Diluted EPS of $14.08 exceeded the $11.97 consensus. Adjusted EPS was $14.08, up from $9.41 in Q2 and $2.38 a year ago; the prior-year GAAP result included a $948 million pretax WRB-related impairment.
Cash flow: Operating cash flow was $7.3 billion, including a $1.1 billion working-capital benefit, leaving $6.2 billion excluding working capital. Management said the working-capital support included higher net payables and taxes accrued but not yet paid.
Fourth-quarter outlook: Phillips 66 expects worldwide crude utilization in the mid-90% range, chemicals utilization in the mid-80% range, turnaround expense of $140 million to $170 million, and corporate and other costs of $350 million to $380 million.

Capital returns and debt

Shareholder distributions: The company returned about $2.8 billion in Q3, comprising $2.36 billion of share repurchases and $504 million of dividends. It reiterated a commitment to return more than 50% of operating cash flow excluding working capital.
Payout pace: Cumulative returns through Q3 were 40% of operating cash flow, with Q3 alone at 45%; management said Q4 returns would need to be above 50% to bring the full-year figure to its target.
Debt reduction: Debt declined by $2 billion to $18.5 billion, including about $796 million of open-market debt repurchases and repayment of the remaining March 2027 term loan balance. Net debt was $12.7 billion and net debt to capital was 26%.
Dividend policy: Phillips 66 announced a second dividend increase in 2026; the increase was 10.8% compared with the Q4 2025 dividend. Management described mid- to high-single-digit annual per-share dividend growth as a reasonable expectation, not a formal commitment.

Midstream and chemicals

Midstream throughput: Fractionation volumes topped 1 million barrels per day, wellhead volumes were 4.6 Bcf per day, and Freeport LPG export dock utilization reached 105%. Q3 adjusted EBITDA was $977 million, compared with $1.05 billion in Q2.
Growth outlook: Management expects midstream adjusted EBITDA to grow about 5% annually through the decade, supported by Permian volumes and projects including Iron Mesa and Zeus gas plants, Coastal Bend pipeline expansion, and a third Corpus Christi fractionator.
Capacity access: Although Gulf Coast fractionation utilization was high, the company said third-party fractionation access allows it to handle additional Permian volumes ahead of the planned Corpus Christi facility, expected in 2028.
Chemicals: Q3 adjusted EBITDA was $423 million, below $528 million in Q2 but above $148 million in Q3 2025. Golden Triangle Polymers and Ras Laffan Petrochemicals remain on track for full operations in 2027; Golden Triangle startup costs are expected to affect results as it begins operating.

Western Gateway investment

Project scale: Phillips 66 expects to invest $2.5 billion as its share of Western Gateway, a refined-products pipeline project intended to create an integrated value chain and support returns across multiple segments.
Spending profile: Spending is expected across 2027–2029, with 2028 currently forecast as the heaviest year as construction progresses. Engineering and right-of-way work are the near-term focus.
Capital discipline: Management said the larger project will lift spending from prior levels but emphasized that growth investments must compete on a risk-adjusted basis. The company also plans to fund sustaining capital and retain flexibility for repurchases and debt reduction.

Phillips 66

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