Revenue volatility remains a primary concern, evidenced by a 15.6% contraction in 2026Q1, while gross margins have fluctuated significantly from a 43.1% peak in 2025Q4 to 31.1% in the most recent quarter.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 |
|---|
| Sales/Revenue | 16.38B | 17.14B | 16.63B | 15.62B | 21.68B | 17.44B | 8.27B | 8.67B | 10.55B | 8.86B | 6.64B | 6.58B | 8.63B | 6.54B | 5.84B | 6.99B | 5.46B | 4.54B | 8B |
| Revenue Growth % | -2.29% | 3.06% | 6.45% | -27.97% | 24.33% | 110.82% | -4.6% | -17.85% | 19.07% | 33.4% | 1.02% | -23.74% | 32% | 11.92% | -16.52% | 28.09% | 20.39% | -43.29% | - |
| Cost of Goods Sold | 11.48B | 12.59B | 13.3B | 13.08B | 18.89B | 15.35B | 6.75B | 7.18B | 9.78B | 8.34B | 6.23B | 6.05B | 7.83B | 6.03B | 5.39B | 6.51B | 4.87B | 4.2B | 7.65B |
| COGS % of Revenue | - | 73.49% | 80% | 83.77% | 87.12% | 88% | 81.6% | 82.8% | 92.62% | 94.07% | 93.82% | 92.04% | 90.78% | 92.22% | 92.3% | 93.03% | 89.24% | 92.51% | 95.7% |
| Gross Profit | 4.89B | 4.54B | 3.33B | 2.54B | 2.79B | 2.09B | 1.52B | 1.49B | 778.8M | 526.1M | 410.7M | 523.3M | 795.2M | 508.3M | 449.4M | 487.4M | 587.6M | 339.6M | 344.3M |
| Gross Margin % | 29.88% | 26.51% | 20% | 16.23% | 12.88% | 12% | 18.4% | 17.2% | 7.38% | 5.93% | 6.18% | 7.96% | 9.22% | 7.78% | 7.7% | 6.97% | 10.76% | 7.49% | 4.3% |
| Gross Profit Growth % | - | 36.62% | 31.16% | -9.25% | 33.45% | 37.49% | 2.08% | 91.51% | 48.03% | 28.1% | -21.52% | -34.19% | 56.44% | 13.11% | -7.8% | -17.05% | 73.03% | -1.37% | - |
| Operating Expenses | 1.44B | 1.1B | 381.4M | 348.6M | 309.7M | 273.3M | 257.2M | 1.3B | 260.5M | 204.9M | 187.7M | 162.8M | 149.7M | 152.2M | 140.5M | 136.1M | 399.9M | 120.4M | 96.4M |
| OpEx % of Revenue | - | 6.4% | 2.29% | 2.23% | 1.43% | 1.57% | 3.11% | 14.98% | 2.47% | 2.31% | 2.82% | 2.47% | 1.74% | 2.33% | 2.41% | 1.95% | 7.32% | 2.65% | 1.21% |
| Selling, General & Admin | 419.3M | 406M | 384.9M | 348.7M | 309.7M | 273.2M | 254.6M | 280.7M | 256.9M | 203.4M | 187.2M | 161.7M | 148M | 151.5M | 139.8M | 136.1M | 144.4M | 120.4M | 96.4M |
| SG&A % of Revenue | - | 2.37% | 2.31% | 2.23% | 1.43% | 1.57% | 3.08% | 3.24% | 2.43% | 2.29% | 2.82% | 2.46% | 1.72% | 2.32% | 2.39% | 1.95% | 2.64% | 2.65% | 1.21% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 690.1M | -3.5M | -100K | 0 | 100K | 2.6M | 1.02B | 3.6M | 1.5M | 500K | 1.1M | 1.7M | 700K | 700K | 0 | 255.5M | 0 | 0 |
| Operating Income | 3.46B | 3.45B | 2.94B | 2.19B | 2.48B | 1.82B | 1.27B | 192.9M | 518.3M | 321.2M | 223M | 360.5M | 645.5M | 356.1M | 308.9M | 351.3M | 187.7M | 219.2M | 247.9M |
| Operating Margin % | 21.11% | 20.11% | 17.71% | 14% | 11.45% | 10.44% | 15.3% | 2.22% | 4.91% | 3.62% | 3.36% | 5.48% | 7.48% | 5.45% | 5.29% | 5.02% | 3.44% | 4.83% | 3.1% |
| Operating Income Growth % | - | 17.08% | 34.63% | -11.97% | 36.48% | 43.84% | 555.94% | -62.78% | 61.36% | 44.04% | -38.14% | -44.15% | 81.27% | 15.28% | -12.07% | 87.16% | -14.37% | -11.58% | - |
| EBITDA | 5.03B | 4.96B | 4.38B | 3.52B | 3.58B | 2.69B | 2.13B | 1.16B | 1.34B | 1.13B | 985.3M | 1.04B | 1B | 632M | 510.5M | 532.3M | 373.2M | 390.9M | 410.7M |
| EBITDA Margin % | 30.72% | 28.96% | 26.33% | 22.55% | 16.53% | 15.45% | 25.8% | 13.43% | 12.68% | 12.8% | 14.83% | 15.85% | 11.6% | 9.67% | 8.74% | 7.61% | 6.83% | 8.62% | 5.13% |
| EBITDA Growth % | 13.4% | 13.35% | 24.28% | -1.74% | 33.03% | 26.27% | 83.25% | -12.96% | 17.92% | 15.15% | -5.52% | 4.19% | 58.39% | 23.8% | -4.1% | 42.63% | -4.53% | -4.82% | - |
| D&A (Non-Cash Add-back) | 1.57B | 1.52B | 1.43B | 1.34B | 1.1B | 874.6M | 868.7M | 971.6M | 819.6M | 813.4M | 762.3M | 682.4M | 355.5M | 275.9M | 201.6M | 181M | 185.5M | 171.7M | 162.8M |
| EBIT | 3.64B | 3.34B | 2.71B | 2.63B | 2.11B | 824.8M | -1.18B | 291.1M | 323.8M | -59.2M | -5.5M | 120.1M | 635.7M | 377.5M | 309.1M | 345.6M | 187.4M | 231.9M | 294.9M |
| Net Interest Income | -655.7M | -852.8M | -767.2M | -687.8M | -446.1M | -387.9M | -391.3M | -337.8M | -257.9M | -233.7M | -254.2M | -231.9M | -144.7M | -128M | -112.9M | -103.6M | -101.6M | -132.1M | -141.2M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 655.7M | 852.8M | 767.2M | 687.8M | 446.1M | 387.9M | 391.3M | 337.8M | 257.9M | 233.7M | 254.2M | 231.9M | 144.7M | 128M | 112.9M | 103.6M | 101.6M | 132.1M | 141.2M |
| Other Income/Expense | -711.9M | -960.4M | -1.01B | -244.2M | -820.7M | -1.38B | -2.84B | -239.6M | -452.4M | -614.1M | -482.7M | -472.3M | -154.5M | -106.6M | -112.7M | -100.5M | -101.9M | -114.4M | -80.2M |
| Pretax Income | 2.75B | 2.49B | 1.94B | 1.94B | 1.66B | 436.9M | -1.57B | -46.7M | 65.9M | -292.9M | -259.7M | -111.8M | 491M | 249.5M | 196.2M | 242M | 85.8M | 99.8M | 153.7M |
| Pretax Margin % | 16.76% | 14.51% | 11.66% | 12.44% | 7.67% | 2.51% | -19.02% | -0.54% | 0.62% | -3.3% | -3.91% | -1.7% | 5.69% | 3.82% | 3.36% | 3.46% | 1.57% | 2.2% | 1.92% |
| Income Tax | 581.4M | 529.7M | 384.5M | 363.2M | 131.8M | 14.8M | -248.1M | -87.9M | 5.5M | -397.1M | -100.6M | 39.6M | 68M | 48.2M | 36.9M | 26.6M | 22.5M | 20.7M | 19.3M |
| Effective Tax Rate % | 21.17% | 21.3% | 19.84% | 18.7% | 7.92% | 3.39% | 15.77% | 188.22% | 8.35% | 135.58% | 38.74% | -35.42% | 13.85% | 19.32% | 18.81% | 10.99% | 26.22% | 20.74% | 12.56% |
| Net Income | 2.13B | 1.84B | 1.27B | 828.2M | 1.14B | 71.2M | -1.55B | -209.2M | 1.6M | 54M | -187.3M | 58.3M | 102.3M | 65.1M | 38.1M | 30.7M | -15M | 29.3M | 37.3M |
| Net Margin % | 12.98% | 10.76% | 7.64% | 5.3% | 5.27% | 0.41% | -18.78% | -2.41% | 0.02% | 0.61% | -2.82% | 0.89% | 1.19% | 1% | 0.65% | 0.44% | -0.27% | 0.65% | 0.47% |
| Net Income Growth % | 72.71% | 45.29% | 53.28% | -27.5% | 1504.35% | 104.58% | -642.78% | -13175% | -97.04% | 128.83% | -421.27% | -43.01% | 57.14% | 70.87% | 24.1% | 304.67% | -151.19% | -21.45% | - |
| Net Income (Continuing) | 2.16B | 1.96B | 1.55B | 1.58B | 1.53B | 422.1M | -1.32B | 41.2M | 60.4M | 104.2M | -159.1M | -151.4M | 423M | 201.3M | 159.3M | 215.4M | 63.3M | 79.1M | 134.4M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 132.5M | 130.3M | 1.83B | 1.87B | 2.32B | 3.17B | 3.25B | 3.52B | 1.39B | 595.7M | 475.8M | 4.79B | 2.37B | 1.94B | 1.61B | 1.17B | 891.8M | 667.5M | 687.3M |
| EPS (Diluted) | 9.88 | 8.52 | 5.74 | 3.66 | 3.88 | -0.07 | -7.26 | -1.44 | -0.53 | -0.31 | -1.80 | 1.09 | 2.43 | 1.55 | 0.91 | 0.74 | -31.12 | 1.79 | 2.28 |
| EPS Growth % | 80.44% | 48.43% | 56.63% | -5.57% | 5612.22% | 99.03% | -405.07% | -169.99% | -71.65% | 82.78% | -265.14% | -55.14% | 56.77% | 70.33% | 22.97% | 102.38% | -1838.72% | -21.49% | - |
| EPS (Basic) | - | 8.54 | 5.77 | 3.69 | 3.95 | -0.07 | -7.26 | -1.44 | -0.53 | -0.31 | -1.80 | 1.09 | 2.44 | 1.56 | 0.93 | 0.75 | -31.12 | 1.79 | 2.28 |
| Diluted Shares Outstanding | 215M | 215M | 221.3M | 226M | 231.1M | 228.6M | 232.2M | 232.5M | 224.2M | 206.9M | 184.72M | 53.6M | 42.1M | 42.1M | 41.8M | 41.4M | 41.8M | 42.3M | 42.3M |
| Basic Shares Outstanding | 215M | 215M | 220.2M | 224.6M | 227.3M | 228.6M | 232.2M | 232.5M | 224.2M | 204.52M | 184.72M | 53.5M | 42M | 41.6M | 41M | 41M | 41.6M | 42.3M | 42.3M |
| Dividend Payout Ratio | - | 44.37% | 48.48% | 51.59% | 33.24% | 263.34% | - | - | 56768.75% | 1561.48% | - | 307.03% | 110.46% | 134.87% | 163.25% | 124.43% | - | - | - |
Permian Basin volume dependency
As reported in recent financial filings, TRGP's revenue experienced a 15.6% contraction in 2026Q1, reflecting the inherent sensitivity of top-line figures to commodity price pass-throughs rather than a fundamental decline in the company's core gathering and processing volumes across its integrated Permian Basin infrastructure network.
The headline revenue figures appear heavily influenced by the gross value of commodities purchased and resold, which obscures the stability of fee-based logistics services. Investors should monitor whether the recent revenue fluctuations indicate a shift in contract mix or merely the expected volatility of percent-of-proceeds arrangements.
Based on the company's quarterly income statements, gross margins have fluctuated significantly, reaching a peak of 43.1% in 2025Q4 before retreating to 31.1% in 2026Q1, suggesting that the firm's profitability remains tethered to commodity price spreads rather than consistent operational efficiency gains in its fractionation business.
While the company benefits from its wellhead-to-water integration, the variability in gross margins implies that the firm has not yet fully insulated its bottom line from commodity price cycles. Further investigation into the sustainability of these margin swings is warranted to determine if they represent temporary hedging outcomes or structural shifts.
According to the provided income statement data, operating income has demonstrated resilience, maintaining levels above $800 million in most recent quarters despite revenue volatility, which suggests that TRGP is successfully leveraging its fixed-cost asset base to protect core profitability against broader energy sector cyclicality and inflationary pressures.
The ability to maintain operating margins near 20% during periods of revenue contraction indicates effective management of overhead and operational expenses. This suggests that the company's scale in the Permian Basin provides a meaningful buffer, though investors should monitor if rising labor and maintenance costs begin to erode this efficiency.
Analysis of the company's historical performance suggests that the market may be overestimating the durability of growth, as the 15.6% revenue decline in 2026Q1 highlights the potential for rapid deceleration if Permian Basin drilling activity levels fail to meet the high expectations currently embedded in the valuation.
Short-term performance appears robust, but the reliance on concentrated Permian volumes creates a significant risk if production growth plateaus. The company's heavy capital investment in new fractionation capacity may face diminishing returns if the underlying basin throughput does not sustain the projected long-term growth trajectory.
Quick answers to the most common questions about buying TRGP stock.
For fiscal year 2025, Targa Resources Corp. (TRGP) reported total revenue of $17.14B. This represents a 114.2% increase compared to $8.00B in 2008.
Targa Resources Corp. (TRGP) is profitable, generating $1.84B in net income for the fiscal year ending 2025 with a net profit margin of 10.8%.
Targa Resources Corp. (TRGP) reported an operating income of $3.45B, resulting in an operating profit margin of 20.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Targa Resources Corp. (TRGP) generated $4.54B in gross profit for the year, representing a gross profit margin of 26.5%. This demonstrates the company's core pricing power and production efficiency.