Targa Resources Corp. is expected to release its Q2 2026 10-Q filing in the upcoming earnings season. Last quarter: TRGP delivered a strong Q1 FY2026 with net income surging 77.3% YoY to $479.6M and operating margin expanding nearly 9 percentage points to 20.7%, even as total revenue declined 10.2% due to lower cost-of-revenue pass-throughs, while the company significantly ramped capital investment with investing cash outflows rising 165.7% YoY.
Drawn from management commentary in the Q1 2026 10-Q:
Total revenue fell 10.2% YoY to $4.09B in Q1 FY2026, but this was more than offset by a 26.5% drop in cost of revenue to $2.39B, suggesting the revenue decline reflects lower commodity prices or purchase-gas costs passed through to customers rather than a deterioration in underlying business volumes.
Operating income surged 55.9% YoY to $846.9M, with operating margin expanding from 11.9% to 20.7%. This significant margin improvement indicates that TRGP's fee-based and higher-margin revenue streams grew as a proportion of the total mix, even as lower commodity-linked revenues compressed the top line.
Net income rose 77.3% YoY to $479.6M, and basic EPS more than doubled, jumping 144.0% to $2.22 from $0.91 in the prior-year period. The outsized EPS growth relative to net income growth likely reflects share count changes or preferred dividend adjustments benefiting common shareholders.
Revenue
$4.09B
-10.23% YoY
EPS (Basic)
$2.22
++143.96% YoY
Operating Income
$846.9M
++55.88% YoY
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