Phillips 66 Q3 2026: Refining Surge Drives a 19% Earnings Beat
As seen on the 24/7 Wall St. homepage on October 28, 2026.
Refining went from a $518 million pre-tax loss a year ago to $6.03 billion in pre-tax income, and that swing carried the quarter past expectations on both lines. Management is still committed to returning more than half of net operating cash flow to shareholders.
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Refining swung from a pre-tax loss a year ago to $6.03 billion in pre-tax income, driving adjusted earnings of $14.08 per share past consensus by roughly 19%.
Revenue of $51.51 billion also beat expectations, extending Phillips 66's streak of clearing analyst estimates to five consecutive quarters.
Realized refining margins tell the story most plainly at $38.00 per barrel, up from Q3 2025. Crude capacity utilization ran near full, and the consolidation of WRB Refining added scale.
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CEO Mark Lashier reiterated the target of returning more than 50% of net operating cash flow to shareholders, and the company announced a second dividend increase for 2026.
Phillips 66 expects initial volumes from its Coastal Bend NGL expansion in Q4 2026, with a full ramp targeted for early 2027. CPChem's Golden Triangle and Ras Laffan Polymers projects reach full operations in 2027.
Mentioned: PSX