Phillips 66 is expected to release its Q2 2026 10-Q filing in the upcoming earnings season. Last quarter: 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.
Drawn from management commentary in the Q1 2026 10-Q:
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.
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).
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.
Revenue
$32.54B
++6.93% YoY
EPS (Basic)
$0.51
-57.14% YoY
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