Phillips 66 reported second-quarter 2026 revenue of $52.04 billion, up 55.3% year-over-year and significantly exceeding the consensus estimate of $36.17 billion. This represented a revenue surprise of 43.88%. Earnings per share came in at $9.41, compared to $2.38 in the same quarter last year, beating the consensus estimate of $7.68 by 22.53%. The company's refining margins outperformed across most regions. Western/Pacific margins reached $29.65 per barrel, well above the $19.93 analyst estimate. Central Corridor margins hit $29.56 per barrel versus the $26.35 estimate, whilst Gulf Coast margins came in at $24.25 per barrel against a $22.42 estimate. Sales and other operating revenues totalled $51 billion, compared to analyst estimates of $35.95 billion. Equity in earnings of affiliates reached $635 million, substantially exceeding the $386.78 million estimate.

Phillips 66 announced a $10 billion increase to its share repurchase authorisation on 31 July 2026, bringing total buyback capacity to $23 billion as the prior programme neared completion. The expanded authorisation reflects management's focus on returning capital to investors alongside dividends, capital investment and debt reduction. The company had already repurchased approximately 21.7% of shares under its 2019 plan by Q1 2026, spending over $10.9 billion. Regular dividends of $1.27 per share were maintained in 2026. The energy manufacturer's investment narrative projects $133.8 billion in revenue and $8.3 billion in earnings by 2029. Key near-term catalysts include execution on refinery turnarounds and midstream expansion, whilst risks centre on margin pressure from macroeconomic headwinds and the Los Angeles Refinery exit. The enlarged buyback pool adds financial flexibility but doesn't alter fundamental operating challenges.

Phillips 66 reported a sharp turnaround in Q1 2026, driven by recovering refining margins and improved capacity utilisation. The company's realised refining margin jumped 48% to $10.11 per barrel, whilst crude capacity utilisation rose to 95% from 80%. This lifted the refining business from a $937 million adjusted loss in Q1 2025 to a $208 million profit, with overall adjusted EPS reaching $0.49, beating Wall Street's expected $0.40 loss. Despite operational improvements, investor opinion remains divided due to balance sheet concerns. Phillips 66 ended the quarter with $27.1 billion in total debt, pushing its debt-to-capital ratio to 48% from 39% previously. Management aims to reduce debt to $17 billion by early 2027.