Zacks Investment Research·1d ago
Is Phillips 66 Stock Worth Buying Despite Its Premium Valuation?PSX trades at a premium valuation, but strong refining margins, surging earnings and midstream expansion bolster its investment appeal.
PSX's revenue rebounded to $50.5B in 2026Q3, up 46.5% year-over-year, and free cash flow reached $8.6B at a 17.0% margin, suggesting the refining cycle is currently strongly favorable.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue reached $50.5B in 2026Q3 with a 15.6% gross margin and 14.08 diluted EPS, a sharp cyclical peak that follows margins of only 1.8% to 2.3% in 2024 and 2025.
Phillips 66 has a moderate moat, indicating competitive advantages that support long-term profitability.
In-depth institutional research covers valuation, catalysts, and risks, providing a robust analysis for investors.
The company's financial and business outlook from 2026 to 2031 is positive, suggesting growth potential.
Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Oct 28, 2026 | $14.08+20.0% vs $11.73 | $51.5B+14.7% vs $44.9B |
Q3 2026 Aug 5, 2026 | $9.41+25.5% vs $7.50 | $51.9B+19.1% vs $43.6B |
Q2 2026 Apr 29, 2026 | $0.49+190.3% vs -$0.54 | $33.0B-8.0% vs $35.9B |
Q1 2026 Feb 4, 2026 | $2.47+14.9% vs $2.15 | $36.3B+7.3% vs $33.9B |
PSX trades at a premium valuation, but strong refining margins, surging earnings and midstream expansion bolster its investment appeal.
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Associated Banc Corp bought a new stake in Phillips 66 (NYSE: PSX) in the undefined quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm bought 86,331 shares of the oil and gas company's stock, valued at approximately $22,041,000. Several other institutional investors and hedge funds have
PSX, VLO and DINO are gaining momentum after October's rally, backed by strong quarterly earnings, favorable refining conditions and improving growth prospects.
Benchmark PSX against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Phillips 66 (PSX)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $245.72 | $98.52B | 7.80 | -7.64% | 7.41% | 39.26% | 1.92% | |
| $346.45 | $102.87B | 7.63 | -5.54% | 8.81% | 45.87% | 1.31% | |
| $372.74 | $108.82B | 7.13 | -4.44% | 8.35% | 56.77% | 1% | |
| $67.27 | $7.96B | 3.04 | -11.42% | 6.98% | 42.13% | 1.64% | |
| $63.95 | $3.92B | 3.37 | -9.53% | 8.7% | 148.74% | 1.6% | |
| $212.61 | $423.43B | 15.47 | -4.64% | 11.95% | 13.89% | 3.23% |
Phillips 66 (PSX) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Phillips 66 (PSX) SEC filings — annual & quarterly reports (10-K, 10-Q)
Oct 28, 2026·SEC
Oct 5, 2026·SEC
Aug 5, 2026·SEC
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Phillips 66 (PSX) stock FAQ — growth, dividends, profitability & financials explained
Phillips 66 (PSX) reported $169.63B in revenue over the trailing twelve months. Revenue was $132.19B in fiscal year 2025. That is 17% more than the $112.69B of fiscal year 2009.
Phillips 66 (PSX) grew revenue by 28.6% over the trailing twelve months, compared with the twelve months before.
Yes. Phillips 66 (PSX) earned $12.58B in net income over the trailing twelve months (a 7.4% net margin).
Yes. Phillips 66 (PSX) pays a dividend that yields 1.92% at the current price, a moderate yield.
Phillips 66 (PSX) had a return on equity (ROE) of 39.3% over the trailing twelve months. That is well above the market's typical 10-15%.
Phillips 66 (PSX) generated $14.35B in free cash flow over the trailing twelve months.
