| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 82 | 14.8x | 17.8x | Top tier | |
Growth | 60 | 14.4% | 7.1% | Around median | |
Quality | 62 | 16.8% | 4.5% | Around median | |
Safety | 74 | 1.2x | 2.6x | Top tier | |
Capital Return | 51 | 1.90% | 2.12% | Around median | |
Momentum | 99 | 65.5% | 2.9% | Top tier | |
Sentiment | 53 | 11 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Phillips 66 operates through an integrated North American energy system that converts low-cost hydrocarbons from the United States, Canada, and Latin America into higher-value products. The company combines transportation, processing, retail, and exports in Midstream, fuel refining, product marketing and specialties, renewable fuel production, and its interest in the CPChem chemicals business; Midstream and marketing and specialties provide more stable cash flows, while refining, chemicals, and renewable fuels offer greater exposure to commodity margins and regulatory credits.
In Q2 FY2026, revenue was $51.0 billion, gross profit was $7.3 billion, net income was $3.8 billion, and reported EPS was $9.55. These figures equate to a gross margin of approximately 14.3% and a net margin of approximately 7.5%, compared with revenue of $32.5 billion, net income of $207 million, and EPS of $0.51 in Q1 FY2026. Adjusted earnings were $3.8 billion and adjusted EPS was $9.41 in Q2 FY2026, with approximately $450 million of positive mark-to-market effects distributed primarily across refining, marketing and specialties, and renewable fuels.
The Q2 FY2026 earnings mix was supported by higher Midstream margins and volumes, increased polyethylene margins in Chemicals, wider realized refining margins, improved global marketing margins, and higher regulatory credit prices and renewable fuel production. The business generated $4.3 billion of operating cash flow before working capital changes, compared with capital expenditures of $726 million, and the company returned $887 million to shareholders through $379 million of share repurchases and $508 million of dividends.
The analyst consensus rates PSX shares a “Buy,” with an average target of $220.44 and a target range of $196 to $239. The average target is approximately 10.7% below the 52-week range high of $246.95, and even the highest target is below that high, reflecting valuation risk if exceptional refining margins return to normal levels. The available information does not provide a published P/E ratio, so the valuation assessment is based on the 52-week range of $126.74–$246.95 and the dispersion of analyst targets, rather than on an unavailable earnings multiple.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
Net income was $3.8 billion and reported EPS was $9.55, while adjusted EPS was $9.41. Results benefited from a refining margin of $24.08 per barrel, refinery utilization of 96%, and capture of 98% of the market indicator. Results in Midstream, Chemicals, marketing, and renewable fuels also improved, but earnings included approximately $450 million of positive mark-to-market effects.
The company returned $887 million to shareholders in Q2 FY2026, including $379 million for share repurchases and $508 million for dividends. Management is committed to returning more than 50% of operating cash flow, excluding working capital, through dividends and repurchases. On July 31, 2026, the board approved a $10 billion increase in the share repurchase authorization, with the pace of repurchases expected to increase in the second half of FY2026.
Western Gateway is a joint pipeline project among Phillips 66, Kinder Morgan, and HF Sinclair with an estimated cost of approximately $5 billion. The project aims to transport fuel supplies from the central United States to western markets in the latter part of 2029, enhancing transportation flexibility and market access. On the August 5, 2026 call, management said it was finalizing the documentation, project scope, and execution plan, so its future contribution depends on completing these stages and executing according to plan.
Automated analysis for informational purposes only — not investment advice.
The company ended Q2 FY2026 with total debt of $20.6 billion and net debt of $16.5 billion, with committed liquidity of $10.5 billion. Management expects net debt to decline below $16 billion by the end of FY2026, and then views a subsequent range of $13.5 billion to $14 billion as appropriate. This is supported by operating cash flow before working capital of $4.3 billion during the quarter, while returning more than 50% of it to shareholders remains a stated priority.
The company operated the Rodeo complex at 106% of its nameplate capacity in Q2 FY2026, and profitability benefited from higher RINs prices and diesel margins. However, segment results included a nonrecurring benefit of $100 million primarily related to a tariff refund, in addition to a pre-tax mark-to-market gain of approximately $47 million. Management also warned of regulatory policy risks, including the possibility that RINs generation associated with foreign feedstocks could be cut in half after the end of 2027.
The company is targeting a Midstream EBITDA run rate of $4.5 billion by the end of FY2027. It is also targeting annual refining operating costs, excluding turnaround work, of $5.50 per barrel, compared with $5.57 in Q2 FY2026. Midstream growth depends on Iron Mesa and the Coastal Bend expansion, while Chemicals growth is based on two world-scale crackers expected to contribute in FY2027.
