EarningsQ2 2026 Earnings Report
MX:PSX Q2 2026 EPS Results
Actual EPS$159.81
Consensus EPS$127.39
Beat/MissBeat by +$32.42
One Year Ago EPS$40.42
MX:PSX Q2 2026 Revenue Results
Actual Revenue$862.20B
Expected Revenue$740.39B
Beat/MissBeat by +$121.81B
YoY Revenue Growth+53.04%
Earnings Announcement Details
QuarterQ2 2026
Date08/05/2026
TimeBefore Open
Conference CallWednesday, August 5, 2026
MX:PSX Upcoming Earnings
Phillips 66's next earnings date is estimated for November 3, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:PSX Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong operational and financial execution: solid adjusted earnings ($3.8B), robust cash flow ($4.3B ex-WC), tangible balance sheet progress (net debt $16.5B with guidance to < $16B), and continued organic growth in Midstream, Refining performance improvements, and Renewables utilization above nameplate. Management reiterated disciplined capital allocation (dividends plus buybacks) and concrete project roadmaps (Midstream expansions, Western Gateway FID expected). Offsetting risks include mark-to-market earnings volatility ($450M favorable in the quarter), regulatory uncertainty for renewable credits, China demand/export unpredictability, commodity and cost inflation, and sensitivity to global refining capacity disruptions. On balance the positive operational results, clear targets for debt reduction and cash returns, and visible organic growth projects materially outweigh the noted risks.Company Guidance
Strong Quarterly Earnings and Cash Generation
Second quarter reported and adjusted earnings of $3.8 billion; reported EPS $9.55 and adjusted EPS $9.41. Operating cash flow excluding working capital was $4.3 billion for the quarter.
Balance Sheet Progress and Liquidity
Total debt reduced to $20.6 billion and net debt to $16.5 billion at quarter-end; management expects net debt to be less than $16.0 billion by year-end and indicated an aspirational next net-debt target near $13.5 billion. Ending cash $4.1 billion and committed capacity $6.4 billion, for total committed liquidity of $10.5 billion.
Capital Returns to Shareholders
Returned $887 million to shareholders in Q2, including $379 million of share repurchases (≈42.7% of total returned) and $508 million of dividend payments (≈57.3%). Management reiterated target of returning >50% of net operating cash flow (ex-WC) to shareholders.
Refining Outperformance and Market Capture
Refining results increased driven by higher realized margins and market crack spreads; captured 98% of the company's market indicator in Q2. Management reiterated a ~95% historical capture guidance for the business and sees room for further self-help and high-return small projects.
Midstream Capacity Growth and Record Volumes
Midstream expanded fractionation capacity to over 1.0 million barrels per day over the past two years and achieved >100% average fractionation utilization. The company recorded record LPG export volumes and reported stronger margins and volumes (absence of prior winter storm impacts). Midstream run-rate EBITDA target of $4.5 billion by year-end 2027 remains on track.
Renewables Operational Strength
Renewables ran above nameplate capacity (Rodeo 106% utilization) and benefited from higher regulatory credits and production. Q2 included a ~$47 million favorable mark-to-market impact and a one-time ~$100 million tariff refund assistance to results. Indicator methodology updated to include $0.40/gal PTC benefit.
Chemicals Upside and Capital Additions
Chemicals results improved driven by higher polyethylene margins and sales prices. Two large world-scale crackers are expected to come online and contribute meaningfully in 2027 toward management's chemical growth targets.
Operational and Commercial Execution
Ongoing operational improvements across Refining (targeting $5.50/boe operating cost ex-turnarounds; Q2 at $5.57) and commercial optimization (time-charter freight expansion ~4x in two years, favorable Panama Canal ranking 26/556). Distillate production increased ~35,000 barrels/day in Q2.
Cash/Working Capital and Debt Repayment Actions
Working capital benefited the quarter by $2.9 billion (inventory reduction and tax timing). Company paid off all outstanding commercial paper, repaid $1.0 billion of a March 2027 term loan in the quarter and the remaining $1.25 billion balance was paid in July, improving near-term maturities.
MX:PSX Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed