Phillips 66 Earnings Summary — Q1 2026

• Revenue grew 6.9% year-over-year to $32.54 billion, though it declined sequentially from Q4 2025.
• Net income attributable to common shareholders plummeted to $207 million, a steep decline from $2.9 billion in the prior quarter.
• Operating income fell to $106 million, barely remaining positive as cost of revenue and operating expenses pressured margins.
• Profitability was significantly buoyed by non-operating income of $154 million, offsetting weak core operating performance.
• Refining and manufacturing expenses remain elevated, with other operating expenses totaling $2.12 billion for the quarter.
• The basic share count reduced to 402 million, continuing the company's trend of equity reduction through buybacks.

Management is focused on a 'Midstream-centric' transformation to capture more stable fee-based income and is targeting $1.4B in annual run-rate savings through its Business Transformation initiative.

Deteriorating

While revenue remains relatively stable, the precipitous drop in operating and net income suggests severe margin compression and cyclical headwinds compared to the prior quarter.

The company faces continued volatility in refining crack spreads and global energy prices, with a strategic pivot toward digital transformation and lower-carbon investments to future-proof its asset base.