Earnings Snapshot

The integrated energy company reported adjusted earnings of 49 cents per share, comfortably topping the consensus estimate of a loss of 40 cents per share.

Quarterly revenue reached $33.0 billion, missing the consensus of $35.35 billion.

GAAP earnings were $207 million, or 51 cents per share, in the quarter. The quarter included pre-tax special item adjustments of $29 million in the Chemicals segment and a $(20) million impact in the Marketing and Specialties segment.

The company reported cash flow used in operations of $2.26 billion vs. the operating cash flow of $2.75 billion in the prior quarter.

Refining utilization came in at 95%, and clean product yield reached 87%.

As of March 31, 2026, cash and cash equivalents stood at $5.2 billion, with $800 million in committed credit facility capacity.

Segment Performance

In the first quarter, Midstream adjusted pre-tax income declined sequentially due to lower volumes, largely impacted by Winter Storm Fern, weaker margins from customer recontracting, and accelerated depreciation tied to a Permian Basin gas facility.

Refining adjusted pre-tax income fell due to weaker margins and lower volumes. The margin decline was mainly due to mark-to-market effects, partially cushioned by improved clean product differentials, while lower volumes reflected planned maintenance activity.

Marketing and Specialties recorded a larger adjusted pre-tax loss, primarily due to weaker margins driven by mark-to-market impacts.

Renewable Fuels also reported a higher pre-tax loss, mainly reflecting mark-to-market effects, partially offset by increased credits.

Meanwhile, Chemicals adjusted pre-tax income increased on stronger margins and higher equity earnings from affiliates.

Outlook

For the second quarter of FY26, the company expects global olefins & polyolefins utilization to be in low-80% and refining crude utilization ithe n low-to-Mid 90%.

PSX Price Action: Phillips 66 shares were up 5.70% at $174.54 at the time of publication on Wednesday, according to Benzinga Pro data.

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