10-Q · April 29, 2026
Phillips 66 reported a net income of $207 million for Q1 2026, representing a significant decrease compared to $487 million in the same quarter last year. The company also experienced a drop in revenue to $30.43…
Earnings analysis · 10-Q
PSX earnings analysis
Filed October 28, 2026 · Our reading of the company's report
The latest report
Phillips 66’s Q3 2026 diluted EPS of $14.08 increased from $9.55 in Q2 2026 and $0.32 in Q3 2025, indicating a sharp sequential and year-over-year earnings improvement. The company also expanded its repurchase…
Read full summary
Phillips 66’s Q3 2026 diluted EPS of $14.08 increased from $9.55 in Q2 2026 and $0.32 in Q3 2025, indicating a sharp sequential and year-over-year earnings improvement. The company also expanded its repurchase authorization by $10 billion and had $9,296 million remaining under the program at September 30, 2026. The principal offsets are elevated commodity-derivative sensitivity of approximately $480 million for a hypothetical 10% price move and material legal and environmental exposures, including the $833 million Propel Fuels judgment.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $14.08
What stood out
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EPS improved sharply
Diluted EPS was $14.08 in Q3 2026, up from $9.55 in Q2 2026 and $0.32 in Q3 2025, according to the associated earnings disclosure.
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Expanded shareholder returns
The board approved a $10 billion increase in share-repurchase authorization. Phillips 66 repurchased 9,674,242 shares during the quarter at an average price of $244.29.
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$9.3 billion repurchase capacity
Repurchase capacity remained substantial at $9,296 million as of September 30, 2026, after $2,051 million of purchases during the quarter based on the reported monthly balances.
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Controls remain effective
Management concluded that disclosure controls were effective as of September 30, 2026, and reported no changes in internal control that materially affected, or were reasonably likely to materially affect, financial reporting.
What to watch
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Elevated commodity-price exposure
Commodity volatility increased the VaR exposure of derivative instruments versus December 31, 2025. A hypothetical 10% commodity-price increase would reduce pretax income by approximately $480 million, while a 10% decrease would increase it by approximately $480 million.
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Propel Fuels litigation
The Propel Fuels judgment totals $833 million, with post-judgment interest accruing at 10%; the company states that losses could exceed the amount recorded until the appeal is resolved.
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Potential Clean Air Act penalty
Phillips 66 expects the potential Clean Air Act resolution involving the Wood River, Borger, Ferndale and Carson refineries to include a civil penalty above the company’s $1 million environmental-proceeding disclosure threshold, plus injunctive relief.
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DCP environmental proceedings
NMED proposed resolving DCP-related alleged violations through a combined civil penalty above the company’s $1 million disclosure threshold and injunctive terms; negotiations are continuing.
Management's outlook
The filing does not provide quantitative forward EPS or revenue guidance; numeric outlook appears to be deferred to the earnings release or call.
Earlier filings 4
10-K · February 20, 2026
Phillips 66 reported consolidated revenues of $136,560 million for 2025, down from $145,496 million in 2024, while recording a $2.8 billion recognition of properties, plants and equipment related to the WRB Refining LP…
10-K · February 21, 2025
Phillips 66's 10-K filing for 2024 reports a challenging year with declining revenues, margins, and earnings per share. The company's focus on midstream and renewable fuels markets highlights strategic shifts amidst…
10-Q · April 29, 2024
Phillips 66 reported Q1 2024 total revenues and other income of $36,436 million, up from $35,089 million in Q1 2023 (+$1,347 million, +3.8%), while diluted EPS fell to $1.73 from $4.20 a year ago. Operating cash flow…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.