Phillips 66 (PSX) AI Stock Analysis

Phillips 66 operates as a diversified energy manufacturing and logistics company with four primary segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). Its Midstream operations transport crude oil and feedstocks, offer terminaling and storage, and process natural gas liquids. In Chemicals, the company produces ethylene, aromatics, styrenics, and specialty chemicals. The Refining segment runs 12 refineries across the United States and Europe, turning crude oil into gasolines, distillates, aviation fuels, and renewable fuels. Marketing and Specialties purchases, distributes, and markets refined petroleum products across the US and Europe, alongside specialty products like base oils and lubricants.

Phillips 66 saw revenue decline from $170.12B in FY2022 to $147.26B in FY2023, $143.12B in FY2024, and $132.19B in FY2025. Over the five years from FY2020 to FY2025, revenue grew at a CAGR of 15.7%. Net income moved from $11.02B in FY2022 to $7.00B in FY2023, $2.12B in FY2024, and rebounded to $4.40B in FY2025, accompanied by a 3.3% net margin. Operating margin stood at 2.7% in FY2025. For the trailing twelve months ended June 30, 2026, revenue reached $152.17B. In that latest quarter, quarterly revenue rose 53.1% year-over-year while quarterly earnings grew 344.9%.

As of June 30, 2026, Phillips 66 held $4.10B in cash and short-term investments against total debt of $20.57B, resulting in net debt of $16.47B. Total assets were $81.81B and shareholders' equity was $31.51B. The company maintained a current ratio of 1.32 and a debt-to-equity ratio of 0.65. In FY2025, operating cash flow reached $4.96B and free cash flow was $2.73B. Capital expenditures were $2.23B, while the company returned capital through $1.21B in share buybacks and $1.92B in dividends.

At $293.17, Phillips 66 trades at a trailing P/E of 16.8x, below the 18.2x median of its S&P 500 Energy peers. Its forward P/E is 9.7x, compared to the peer median of 14.3x. The stock trades at an EV/EBITDA of 9.2x, higher than the peer median of 7.9x, and a price-to-sales multiple of 0.8x versus the peer median of 2.4x. Over the past year, PSX gained 135.2%, outpacing the 16.8% return of the S&P 500 (SPY). Over five years, PSX returned 332.8% versus 83.0% for SPY.

Phillips 66 pays a forward annual dividend of $5.32 per share, representing a 1.81% dividend yield. The payout ratio stands at 33.7%, and dividends are distributed quarterly. The company has paid dividends for 15 consecutive years, with an annualized 5-year dividend growth rate of 5.7%. The last ex-dividend date was August 18, 2026.

Wall Street coverage consists of 8 Strong Buy, 3 Buy, 7 Hold, 0 Sell, and 2 Strong Sell recommendations. The mean price target of $280.47 is 4.3% below the last close of $293.17. For the fiscal year ending December 31, 2026, analysts estimate EPS of $32.48 on revenue of $171.95B. For the next fiscal year, 19 analysts project EPS of $29.95, representing a 7.8% decline. Phillips 66 beat EPS estimates in each of the last 4 quarters, and the next earnings date is October 28, 2026.

This page is an AI-written research summary of Phillips 66 (PSX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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