A fixed rule set over this filing's XBRL figures and the number of high-severity risks found in it — no model judgement.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Valero Energy Corporation reported strong Q2 FY2026 results with net income rising 421% year-over-year to $3.72B, driven by robust global fuel demand, tight refining capacity, and expanding product margins across all operating segments.
Cost of Revenue
$39.01B
+36.20% YoY
EPS (Diluted)
$12.62
+453.51% YoY
Operating Income
$5.2B
+421.16% YoY
Valero Energy (VLO) reported Q2 FY2026 revenue of $39.01B, up 36.2% year over year. The company posted net income of $3.72B, up 421.0% from a year earlier, with diluted EPS of $12.62. Operating income was $5.2B, up 421.2% year over year. VLO's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Valero reported exceptional Q2 FY2026 net income of $3.72B (+421% YoY) as tight global supply and strong demand expanded refining and biofuel margins.
Last 4 quarters: 4 beats
Adjusted (non-GAAP) EPS of $12.54 versus the $10.22 analyst consensus — a +22.7% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $12.62.
Valero's operating income increased by $4.2B year-over-year to $5.20B in Q2 FY2026. Refining segment operating income expanded to $4.47B from $1.27B in Q2 FY2025 due to stronger distillate and gasoline margins, while Renewable Diesel swung from a $79M loss to $717M in operating income and Ethanol increased to $318M from $54M.
Source: 10-Q Item 2 MD&A, p.40
Valero recognized $99M in clean fuel production credits under the One Big Beautiful Bill Act (OBBB) during Q2 FY2026, benefiting the Ethanol segment margin following updated emissions modeling methodologies released during the quarter.
Source: 10-Q Item 2 MD&A, p.49
Operations at the Benicia Refinery were completely ceased by late April 2026. Meanwhile, the Port Arthur Refinery recovered from a March 2026 distillate hydrotreater fire, returning to normal throughput rates during Q2 FY2026 after temporary operational reductions.
Source: 10-Q Item 2 MD&A, p.39
Operating cash flow reached $6.97B for the first six months of FY2026. Valero returned $3.6B to stockholders YTD through $2.84B in share buybacks and dividend payments, ending Q2 FY2026 with $12.7B in total liquidity, including $7.87B in cash and cash equivalents.
Source: 10-Q Item 2 MD&A, p.40
Refining margins remain highly sensitive to fluctuations in global crude oil prices, product demand, geopolitical conflicts, and feedstock supply constraints.
Source: 10-Q Item 2 MD&A, p.39
Unplanned shutdowns, fires, or extreme weather events—such as the Port Arthur fire and Benicia idling—can impact throughput volumes and materially increase operating costs.
Source: 10-Q Item 2 MD&A, p.39
Changes to Renewable Volume Obligations (RVOs), low-carbon fuel standards, RIN compliance costs, or clean fuel production credit rules under OBBB could impact segment profitability.
Source: 10-Q Item 2 MD&A, p.42
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
Valero Energy (VLO) is next expected to report on , when the following quarter's results and any updated outlook will be available.
See the VLO earnings preview — expected date, analyst estimates and what to watch →
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Cost of Revenue | $39.01B | $28.64B | +36.20% |
Operating Income | $5.2B | $997M | +421.16% |
Net Income | $3.72B | $714M | +421.01% |
EPS (Basic) | $12.62 | $2.28 | +453.51% |
EPS (Diluted) | $12.62 | $2.28 | +453.51% |
Valero reported net income of $3.72B ($12.62 per diluted share) for Q2 FY2026, compared to $714M ($2.28 per share) in Q2 FY2025. Operating income reached $5.20B, driven by strong market crack spreads in the Refining segment and improved profitability in Renewable Diesel and Ethanol.
Valero generated total revenues of $44.48B in Q2 FY2026, representing a 48.8% increase from $29.89B in Q2 FY2025. The revenue increase was primarily driven by higher market prices for petroleum-based transportation fuels.
During the first six months of FY2026, Valero returned $3.6B to stockholders through $2.84B in share buybacks and dividend payments. The company ended the quarter with $7.87B in cash and $12.7B in total liquidity.
Valero Energy (VLO) is next expected to report earnings on Oct 21, 2026. The date comes from the analyst earnings calendar and can shift until the company confirms it.
Expected release date, analyst estimates & what to watch
Valero Energy (VLO) delivered a strong Q1 FY2026 turnaround, swinging to $1.26B net income from a $595M loss a year ago, driven by a 292% surge in operating income to $1.73B as refining margins recovered significantly.
Valero Energy (VLO) reported a challenging FY2025 with net income declining 15.2% to $2.35B and EPS of $7.57, as lower refining margins compressed profitability despite a meaningful reduction in cost of revenue.
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