Phillips 66 (PSX) is having a very good Wednesday, with shares climbing after the integrated energy company delivered fourth-quarter results that made Wall Street's expectations look conservative.
Phillips 66 Crushes Q4 Expectations With Strong Refining Performance
Get Phillips 66 Alerts
Weekly insights + SMS alerts
The Numbers That Matter
The company reported adjusted earnings of $2.47 per share, comfortably beating the analyst consensus of $2.16 per share. That's the kind of beat that gets investors' attention. On a GAAP basis, earnings came in at $2.9 billion, or $7.17 per share for the quarter.
There was a wrinkle in the results: Phillips took a $239 million pre-tax charge related to accelerated depreciation at its Los Angeles Refinery. Even with that haircut, the numbers looked strong.
Revenue hit $36.3 billion for the quarter, well above expectations of $32.06 billion. The company generated $2.8 billion in net operating cash flow, or $2.0 billion when you strip out working capital changes. As of December 31, 2025, Phillips 66 had $1.1 billion in cash and equivalents, plus $5.7 billion in committed credit facility capacity.
The real story is in the operational performance. Refining utilization reached 99%, which is about as good as it gets in this business. Clean product yield hit 88%, showing the company is squeezing maximum value from every barrel it processes.
How Each Business Performed
The Midstream segment saw adjusted pre-tax income climb from the previous quarter, thanks to higher volumes moving through the system. Refining also got a boost from the acquisition and consolidation of the remaining stake in WRB Refining LP.
Chemicals wasn't as fortunate, with adjusted pre-tax income declining on weaker margins. Marketing and Specialties also took a step back, hurt by the partial sale of the Germany and Austria retail marketing business and softer margins in the domestic market.
On a brighter note, Renewable Fuels improved sequentially on higher realized margins, though reduced credits took some of the shine off those results.
Looking Ahead
For the first quarter of fiscal 2026, Phillips 66 expects global olefins and polyolefins utilization in the mid-90% range. Refining crude utilization is projected to land in the low-90% range, which would represent a slight moderation from the exceptional 99% posted in the fourth quarter.
Shares were up 3.81% at $153.72 on Wednesday, hitting a new 52-week high. When a stock pushes to new highs on the back of solid fundamentals rather than hope and hype, that tends to mean something.
More News

Markets Rise as U.S. and Iran Hit Pause on Strikes; Big Tech Earnings and Fed Decision Loom

Trump Admin to Pump $1 Billion into this "Off-the-Radar" AI Stock

Oil Tumbles and Stocks Rise as Trump Gives Iran Diplomacy 'Some Space'

Iran Says It Won't Let the US Dictate the War's Pace, Strait of Hormuz Stays Closed

Trump’s Tariff Gambit Puts Canadian Oil in the Crosshairs—and U.S. Gas Prices on the Line

Your Download Link (Expiring)

Sen. John Kennedy Warns Trump's Saudi Nuclear Deal Sends Wrong Signal Amid Iran Tensions: 'The World Is on a Hair Trigger'

Apple's AI Strategy Is a High-Stakes Bet—and One Analyst Thinks It's Wrong
Get Phillips 66 Alerts
Real-time alerts on price moves, news, and trading opportunities.
Join 20,000+ investors. No spam, ever.
Featured Articles
View all news
Markets Rise as U.S. and Iran Hit Pause on Strikes; Big Tech Earnings and Fed Decision Loom

Trump Admin to Pump $1 Billion into this "Off-the-Radar" AI Stock (Ad)

Oil Tumbles and Stocks Rise as Trump Gives Iran Diplomacy 'Some Space'

Iran Says It Won't Let the US Dictate the War's Pace, Strait of Hormuz Stays Closed

Trump’s Tariff Gambit Puts Canadian Oil in the Crosshairs—and U.S. Gas Prices on the Line

Have you tried Elon Musk’s 70X AI agent? (Ad)

Sen. John Kennedy Warns Trump's Saudi Nuclear Deal Sends Wrong Signal Amid Iran Tensions: 'The World Is on a Hair Trigger'






