Phillips 66 (NYSE:PSX) shares are trading higher on Wednesday after the company delivered a strong fourth-quarter performance, surpassing Wall Street forecasts.

Earnings Snapshot

The integrated energy company reported adjusted earnings of $2.47 per share, comfortably topping the consensus estimate of $2.16 per share.

GAAP earnings were $2.9 billion, or $7.17 per share, in the quarter.

Earnings include a $239 million pre-tax charge tied to accelerated depreciation at the Los Angeles Refinery.

Quarterly revenue reached $36.3 billion, coming above the consensus of $32.06 billion.

The company generated $2.8 billion in net operating cash flow and $2.0 billion excluding working capital.

Refining utilization climbed to 99%, and clean product yield reached 88%.

As of December 31, 2025, cash and cash equivalents stood at $1.1 billion, with $5.7 billion in committed credit facility capacity.

Segment Performance

In the fourth quarter of 2025, Midstream adjusted pre-tax income rose sequentially, driven by higher volumes.

Chemicals’ adjusted pre-tax income in the quarter declined sequentially, mainly due to lower margins. In contrast, refining adjusted pre-tax income benefited from the acquisition and consolidation of the remaining stake in WRB Refining LP.

Marketing and Specialties adjusted pre-tax income fell sequentially, largely reflecting the partial sale of the Germany and Austria retail marketing business and softer domestic margins.

Renewable Fuels’ pre-tax results improved sequentially on higher realized margins, including inventory effects, though reduced credits weighed on results.

Outlook

For the first quarter of FY26, the company expects global olefins & polyolefins utilization in mid-90% and refining crude utilization in low-90%.

PSX Price Action: Phillips 66 shares were up 3.81% at $153.72 at the time of publication on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

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