AI Takeaway
MPC delivered a strong Q1 FY2026 turnaround with revenue rising 8.5% YoY to $34.2B, operating income more than doubling to $1.4B, and net income swinging from a $74M loss to a $511M profit.
Revenue
$34.2B
++8.51% YoY
EPS (Basic)
$1.73
++820.83% YoY
Operating Income
$1.4B
++104.37% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue increased 8.5% YoY from $31.5B to $34.2B in Q1 FY2026, suggesting improved refining throughput volumes and/or higher refined product prices compared to the prior-year period.
Source: Source: 10-Q Income Statement Data
Operating income surged 104.4% YoY from $687M to $1.4B, reflecting improved refining margins and better cost management relative to revenue growth, with cost of revenue rising at a slower 6.5% pace versus revenue's 8.5% gain.
Source: Source: 10-Q Income Statement Data
Net income recovered dramatically from a loss of $74M in Q1 FY2025 to a profit of $511M in Q1 FY2026, a 790.5% YoY improvement, driving basic and diluted EPS to $1.73 versus -$0.24 in the prior year.
Source: Source: 10-Q Income Statement Data
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Upgrade to unlockMPC's debt-to-equity ratio stands at approximately 3.87x, indicating significant financial leverage. Total liabilities grew 10.6% YoY to $64.8B, outpacing asset growth of 8.0%, which could constrain financial flexibility if refining margins deteriorate.
Source: Source: 10-Q Balance Sheet Data
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Upgrade to unlockReported EPS of $1.65 versus the $0.75 analyst consensus — a +118.6% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $34.2B | $31.52B | +8.51% |
Cost of Revenue | $31.26B | $29.36B | +6.47% |
Operating Income | $1.4B | $687M | +104.37% |
Net Income | $511M | $-74M | +790.54% |
EPS (Basic) | $1.73 | $-0.24 | +820.83% |
EPS (Diluted) | $1.73 | $-0.24 | +820.83% |
SG&A Expense | $867M | $783M | +10.73% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $88.19B | $81.63B | +8.03% |
Current Assets | $28.7B | $27.14B | +5.74% |
Total Liabilities | $64.76B | $58.57B | +10.57% |
Current Liabilities | $24.41B | $22.73B | +7.42% |
Stockholders' Equity | $16.75B | $16.4B | +2.18% |
Cash & Equivalents | $2.15B | $3.81B | -43.57% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.12B | $-64M | +1851.56% |
Investing Cash Flow | $-1.05B | $-923M | -13.43% |
Financing Cash Flow | $-1.6B | $1.59B | -200.44% |
Share Buybacks | $750M | $1.06B | -29.04% |
D&A | $809M | $793M | +2.02% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 4.1% | 2.2% | +1.93% |
Net Margin | 1.5% | — | — |
ROE | 3.1% | — | — |
ROA | 0.6% | — | — |
Current Ratio | $1.176 | — | — |
Debt to Equity | $3.866 | — | — |
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MPC reported Q1 FY2026 EPS of $1.73 (basic and diluted), a dramatic improvement from -$0.24 in Q1 FY2025. Whether this beat Wall Street consensus estimates would require comparison to analyst forecasts, which are not included in the 10-Q filing itself.
MPC's Q1 FY2026 results showed a strong recovery: revenue grew 8.5% to $34.2B, operating income more than doubled to $1.4B, and net income swung from a $74M loss to a $511M profit. Operating cash flow also turned sharply positive at $1.12B, though cash on hand fell 43.6% to $2.15B due to $750M in share buybacks and other financing outflows.
MPC's revenue grew 8.5% YoY from $31.5B to $34.2B in Q1 FY2026, while cost of revenue grew at a slower 6.5% pace, allowing gross profit and operating margins to expand meaningfully. This suggests improved refining throughput and/or more favorable crack spreads compared to the prior-year quarter.
Based on the financial data, key risks include MPC's high leverage (debt-to-equity of ~3.87x), a 43.6% decline in cash to $2.15B, and a thin net margin of ~1.49% that leaves earnings highly sensitive to commodity price swings. Rising current liabilities and the ongoing pace of share buybacks also create potential liquidity pressure if refining margins weaken.
MPC's financial health shows improvement in profitability — with net income of $511M and positive operating cash flow of $1.12B — but the balance sheet carries significant leverage at ~3.87x debt-to-equity and total liabilities of $64.8B. The current ratio of ~1.18x provides a modest liquidity cushion, though the sharp decline in cash reserves to $2.15B is a watchpoint for investors.