Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Phillips 66's Q2 FY2026 results were defined by a dramatic increase in refining margins and a turnaround in renewable fuels, sending net income to $3.8 billion from $0.9 billion a year earlier. The Refining segment captured a composite crack spread that more than doubled to $41.63 per barrel, while Renewable Fuels benefited from sharply higher regulatory credit values. These gains were partly offset by lower marketing fuel margins in the U.S. and a modest increase in net interest expense. The company generated substantial cash from operations and continued to return capital to shareholders, though total debt rose to $20.6 billion.
Revenue
$51B
+53.06% YoY
EPS (Diluted)
$9.55
+344.19% YoY
Source: SEC XBRL
Phillips 66 (PSX) reported Q2 FY2026 revenue of $51B, up 53.1% year over year. PSX's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Mar 2026 | 0.49 | -0.40 | Beat +221.3% |
| Dec 2025 | 2.47 | 2.19 | Beat +13.0% |
| Sep 2025 | 2.52 | 2.19 | Beat +15.2% |
| Jun 2025 | 2.38 | 1.72 | Beat +38.1% |
5 reported segments · SEC XBRL
Segment revenue totals $50.99B; with $9M of reconciling items (corporate, unallocated and eliminations) it ties to the $51B of consolidated revenue on the income statement.
Compiled by AI from 10-Q Item 2 of this filing
Refining realized margins surged as the composite 3:2:1 market crack spread increased to $41.63 per barrel from $21.65, driven by low seasonal product inventories and geopolitical events reducing global product resupply.
Source: 10-Q Item 2 MD&A
Chemicals segment income before taxes rose to $404 million from $20 million, primarily due to improved polyethylene margins as benchmark high-density polyethylene chain margin increased to 43.6 cents per pound from 7.4 cents.
Source: 10-Q Item 2 MD&A
Renewable Fuels segment turned from a loss of $133 million to a gain of $544 million, as higher values for RINs, LCFS credits, and CARB ULSD prices lifted margins.
Source: 10-Q Item 2 MD&A
The company targets reducing total debt to $17 billion by end-2027 and returning greater than 50% of net cash from operations (excluding working capital) to shareholders through dividends and buybacks.
Source: 10-Q Item 2 MD&A
Cash from operations for the first six months reached $5.0 billion, up from $1.0 billion, enabling $1.3 billion in capex, $1 billion in dividends, and $0.6 billion in share repurchases.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
Refining earnings are highly sensitive to market crack spreads and crude oil differentials, which are influenced by geopolitical events and supply-demand imbalances; a sharp reversal could materially reduce profitability.
Source: 10-Q Item 2 MD&A
The Renewable Fuels segment depends on regulatory frameworks like the U.S. Renewable Fuel Standard and California LCFS; any adverse policy changes could significantly reduce the value of credits and hurt earnings.
Source: 10-Q Item 2 MD&A
Total debt stands at $20.6 billion with a debt-to-equity ratio of 1.56, increasing interest expense and refinancing risk in a rising rate environment.
Source: 10-Q Balance Sheet (XBRL)
U.S. and international marketing fuel margins have declined, partly due to commodity derivative losses, which could continue to pressure the M&S segment's contribution.
Source: 10-Q Item 2 MD&A
The full consolidation of WRB since October 2025 increases operational complexity, and any integration issues could lead to unexpected costs or operational disruptions.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 51.00 $B | 33.32 $B | +53.06% |
Cost of Revenue $B | 43.66 $B | 29.08 $B | +50.17% |
Net Income $B | 3.85 $B | 0.88 $B | +338.65% |
EPS (Basic) $ | 9.59 $ | 2.15 $ | +346.05% |
EPS (Diluted) $ | 9.55 $ | 2.15 $ | +344.19% |
SG&A Expense $M | 538.00 $M | 582.00 $M | -7.56% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
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.
PSX delivered a strong FY2025 with net income more than doubling to $4.4B (+108% YoY) and EPS of $10.82, even as revenue declined 7.5% to $132.4B amid lower commodity prices and reduced cost of revenue.
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