Phillips 66 (PSX) Reports Strong Results for Q4

Core Insights - Phillips 66 (NYSE:PSX) experienced a significant share price increase of 10.73% from February 2 to February 9, 2026, marking it as one of the top-performing energy stocks during that week [1] Financial Performance - The company reported better-than-expected Q4 2025 results, with an adjusted EPS of $2.47, surpassing expectations by $0.32 [2] - Revenue for Q4 2025 reached $36.33 billion, reflecting a 7% year-over-year increase and exceeding estimates by nearly $2.9 billion [2] - Realized refining margins more than doubled to $12.48 per barrel, leading to refining earnings of $542 million, a significant recovery from a loss of $759 million in the same quarter the previous year [3] - The company's refining operations achieved a 99% crude capacity utilization rate and a record clean product yield of 88% [3] - Overall earnings for Q4 amounted to $2.9 billion, a substantial increase from Q3 earnings of $133 million [3] - The company successfully reduced its debt by $2 billion during the quarter, ending the year with a net debt of $19.7 billion, aided by the sale of a 65% stake in its German and Austrian fuel retail business [3] Analyst Reactions - Following the strong Q4 performance, several analysts raised their price targets for Phillips 66, with Citi increasing its target from $146 to $159 while maintaining a 'Neutral' rating [4] - Other firms such as TD Cowen, UBS, BMO Capital, Morgan Stanley, and Piper Sandler also adjusted their price targets upward in response to the Q4 results [4]