| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 34 | 27.7x | 17.8x | Bottom tier | |
Growth | 68 | -2.0% | 7.1% | Top tier | |
Quality | 73 | 15.0% | 4.5% | Top tier | |
Safety | 41 | 3.5x | 2.6x | Around median | |
Capital Return | 61 | 1.46% | 2.12% | Around median | |
Momentum | 97 | 65.8% | 2.9% | Top tier | |
Sentiment | 62 | 12 | 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.
Targa Resources Corp. operates an integrated midstream energy infrastructure network extending from wellheads to export facilities, including natural gas gathering and processing, natural gas liquids transportation and fractionation, and liquefied petroleum gas export loading. The company depends heavily on the Permian Basin, where it serves producers through contracts that include fee-based services, then moves processed volumes through its integrated network to transportation, fractionation, and export facilities, enabling it to generate revenue from multiple stages within the same value chain.
In Q2 fiscal 2026, revenue was $4.4 billion, gross profit was $2.1 billion, net income was $764.6 million, and earnings per share were $3.54. These figures represent a gross profit margin of approximately 47.7% and a net income margin of approximately 17.4%, compared with revenue of $4.1 billion, gross profit of $1.7 billion, and net income of $479.6 million in Q1 fiscal 2026. The company also recorded adjusted earnings before interest, taxes, depreciation, and amortization of $1.603 billion, up 14% from the previous quarter and 38% year over year.
The operating activity mix in Q2 fiscal 2026 was driven by record volumes across the network: 7.2 billion cubic feet per day in Permian Basin gathering and processing, 1.1 million barrels per day of natural gas liquids transportation, 1.2 million barrels per day of fractionation, and 14.8 million barrels per month of liquefied petroleum gas export loadings. On a trailing-twelve-month basis in 2026, Targa recorded revenue of $16.7 billion, gross profit of $7.2 billion, net income of $2.3 billion, and earnings per share of approximately $10.54, compared with revenue of $17.0 billion and net income of $1.9 billion in fiscal 2025.
The average analyst price target is $301.85, within a wide range of $257 to $345, with a consensus rating of “Buy.” The average is near the upper end of the 52-week range of $144.14 to $307.94, while the highest target exceeds that level; no published price-to-earnings ratio is available in the data, so the available profitability valuation is based on trailing-twelve-month earnings per share of approximately $10.54 in 2026 and on the ability of the substantial capital projects to convert volume growth into free cash flow after completion.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Q2 fiscal 2026 revenue was approximately $4.4 billion, net income was $764.6 million, and earnings per share were $3.54. Adjusted earnings before interest, taxes, depreciation, and amortization reached $1.603 billion, up 14% from the previous quarter and 38% year over year. Support came from record Permian volumes of 7.2 billion cubic feet per day, along with marketing and optimization opportunities and record natural gas liquids transportation, fractionation, and liquefied petroleum gas exports.
In August 2026, the two companies signed 20-year integrated fee-based service agreements to support ExxonMobil's operations in the Delaware and Midland basins of the Permian. The expansion includes three new gas processing plants, 825 million cubic feet per day of additional capacity, and the Bull Run II pipeline, while a 70-mile pipeline was also reported. The long duration and fee-based contracts provide a contractual foundation for growth, but they are also associated with an increase in the net growth capital estimate for fiscal 2026 to approximately $5.0 billion.
Management expects adjusted earnings before interest, taxes, depreciation, and amortization to approach the upper end of the $5.7 billion to $5.9 billion range in fiscal 2026. It indicated that growth over fiscal 2025 could approach $1 billion, supported by higher Permian volumes and the return of most price-related shut-ins by July 2026. However, the outlook does not include additional material marketing and optimization gains after these gains exceeded expectations by approximately $250 million in the first half of fiscal 2026.
Automated analysis for informational purposes only — not investment advice.
The East Driver plant, Delaware Express pipeline, and Train 11 entered service during Q2 fiscal 2026. Blackcomb remains targeted for Q4 fiscal 2026, while Traverse is targeted for mid-2027. Speedway, with an initial capacity of 500 thousand barrels per day, and the expansion of liquefied petroleum gas exports to approximately 19 million barrels per month are scheduled to begin operating in Q3 2027.
The company ended Q2 fiscal 2026 with available liquidity of $3.2 billion and an adjusted consolidated leverage ratio of approximately 3.4 times, within its long-term target of 3 to 4 times. It approved a distribution of $1.25 per share, up 25% from Q2 fiscal 2025, and repurchased approximately $80 million of shares during the quarter. In contrast, the net growth capital estimate in August 2026 news was approximately $5.0 billion, making project execution timing and the conversion of projects into free cash flow key factors.
A large part of the company's growth is tied to the Permian Basin, where volumes reached 7.2 billion cubic feet per day in Q2 fiscal 2026, creating clear geographic concentration. Lead times for adding processing plants also extend to approximately 18–24 months because of long delivery periods for electrical infrastructure, compressors, and certain vessels. Financially, management expects lower marketing gains in Q3 fiscal 2026 compared with the previous quarter, alongside a capital growth program estimated at approximately $5.0 billion in August 2026.
