AI Takeaway
PSX reported Q1 FY2026 revenue of $32.54B (+6.9% YoY) but net income collapsed 57.5% to $207M, driven by margin compression and a sharp swing to negative operating cash flow of -$2.26B.
Revenue
$32.54B
++6.93% YoY
EPS (Basic)
$0.51
-57.14% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 6.9% YoY to $32.54B, but Cost of Revenue rose 5.6% to $29.22B, leaving very thin margins. The spread between revenue growth and cost growth narrowed profitability significantly, with net income falling to just $207M from $487M in the prior-year period.
Source: Source: 10-Q Income Statement
Net income dropped 57.5% YoY to $207M, with basic EPS falling from $1.19 to $0.51. This sharp decline suggests significant margin compression beyond just cost of revenue, including flat-to-rising SG&A expenses of $537M (+3.5% YoY).
Source: Source: 10-Q Income Statement
Operating cash flow swung from +$187M in Q1 FY2025 to -$2.26B in Q1 FY2026, a deterioration of over $2.45B. This signals significant working capital headwinds, potentially from inventory build-up or receivables expansion, consistent with current assets surging 49.9% YoY to $27.40B.
Source: Source: 10-Q Cash Flow Statement
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Upgrade to unlockOperating cash flow swung to -$2.26B in Q1 FY2026 from +$187M in Q1 FY2025, a deterioration of over $2.45B. This raises concerns about PSX's ability to self-fund operations and capital expenditures without relying on external financing. Sustained negative operating cash flow could pressure the balance sheet and dividend sustainability.
Source: Source: 10-Q Cash Flow Statement
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Upgrade to unlockReported EPS of $0.49 versus the $-0.40 analyst consensus — a +221.3% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $32.54B | $30.43B | +6.93% |
Cost of Revenue | $29.22B | $27.66B | +5.63% |
Net Income | $207M | $487M | -57.49% |
EPS (Basic) | $0.51 | $1.19 | -57.14% |
EPS (Diluted) | $0.51 | $1.18 | -56.78% |
SG&A Expense | $537M | $519M | +3.47% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $84.08B | $71.84B | +17.05% |
Current Assets | $27.4B | $18.28B | +49.88% |
Total Liabilities | $54.4B | $43.48B | +25.11% |
Current Liabilities | $24.19B | $14.88B | +62.54% |
Stockholders' Equity | $28.53B | $27.27B | +4.60% |
Cash & Equivalents | $5.15B | $1.49B | +245.87% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $-2.26B | $187M | -1310.70% |
Investing Cash Flow | $-606M | $1.59B | -138.09% |
Financing Cash Flow | $6.92B | $-2.05B | +437.73% |
Share Buybacks | $269M | $247M | +8.91% |
D&A | $558M | $791M | -29.46% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 0.6% | — | — |
ROE | 0.7% | — | — |
ROA | 0.2% | — | — |
Current Ratio | $1.132 | — | — |
Debt to Equity | $1.907 | — | — |
Other companies in Oil & Gas Refining & Marketing
PSX reported Q1 FY2026 revenue of $32.54B, up 6.9% YoY, but net income fell sharply by 57.5% to $207M, with basic EPS dropping from $1.19 to $0.51. The quarter was marked by significant margin compression and a dramatic swing to negative operating cash flow of -$2.26B.
PSX's net income fell 57.5% YoY to $207M in Q1 FY2026 despite revenue growing 6.9%, suggesting that cost pressures, higher financing expenses, or non-operating charges significantly eroded profitability. The net margin compressed to approximately 0.64%, reflecting the thin-margin environment in downstream refining.
PSX's operating cash flow swung to -$2.26B in Q1 FY2026 from +$187M in Q1 FY2025, a deterioration of over $2.45B, driven by working capital headwinds as current assets surged 49.9% YoY. The company offset this by raising $6.92B through financing activities, which boosted cash balances to $5.15B.
Yes, PSX's debt-to-equity ratio rose to 1.91 in Q1 FY2026, with total liabilities growing 25.1% YoY to $54.40B while stockholders' equity grew only 4.6% to $28.53B. Current liabilities surged 62.5% YoY to $24.19B, leaving a current ratio of just 1.13, indicating tighter near-term liquidity.
Yes, PSX repurchased $269M in shares during Q1 FY2026, up 8.9% from $247M in Q1 FY2025, signaling that management continued returning capital to shareholders despite the sharp decline in net income and negative operating cash flow during the quarter.