Phillips 66 made a lot more money in the three months ended June 30.
Revenue rose from $33.3 billion to $51.0 billion, while net income climbed from $877 million to $3.8 billion. Net margin moved from 2.6% to 7.5%, so this was not just a bigger sales number passing through a refinery-shaped spreadsheet.
The source of that improvement matters. Phillips 66 says the period benefited from higher realized refining margins, and its Chemicals segment added $384 million as polyethylene sales prices improved. The business also got help from commodity conditions, including tighter NGL supply.
"The increase in NGL prices was primarily due to a tight supply market with fewer cargos from the Middle East, while the decrease in natural gas prices was due to increased natural gas supply and the end of the winter demand season."
Phillips 66, 10-Q filed Aug. 5, 2026
That is a useful reminder of what the $51.0 billion revenue figure contains: demand and pricing across several energy markets. NGL prices rose in a constrained market, while natural gas prices fell as supply increased and winter demand ended. Commodity markets rarely send one memo.
Cash improved sharply too, rising from $1.1 billion to $4.1 billion. Management attributed operating cash generation primarily to higher earnings and favorable net working-capital impacts, including the timing of payments and collections.
"The cash provided by operating activities was due to higher earnings, primarily driven by an increase in realized refining margins and favorable net working capital impacts."
Phillips 66, 10-Q filed Aug. 5, 2026
The cash result therefore has two pieces. Higher refining earnings did the heavy lifting, while working-capital timing added support. The balance sheet shows inventory at $5.9 billion, up 6.1% from the comparable period, and accounts receivable at $11.7 billion, up 3.3%. Phillips 66 does not disclose a single cause for those year-over-year changes beyond the working-capital explanation above.
There is also a financing wrinkle. Interest and debt expense increased 19% for the three months, primarily because average debt balances were higher. That cost did not stop net income from expanding, but it is part of the business attached to the stronger earnings period.
The company's annual results put the current numbers in a wider frame. Revenue reached $170.0 billion in 2022 before falling to $132.4 billion in 2025. The latest three-month result is substantial, but the longer record is marked by large swings alongside the energy cycle, not a smooth upward line.
Shares closed at $205.99 on Aug. 4, down 0.1% that day. At that price, the stock carries a 19.1x price-to-earnings multiple based on the latest annual facts. The filing leaves a fairly specific tension for readers: a much fatter current margin and cash balance, alongside earnings drivers tied to refining margins, commodity prices, working-capital timing, and higher average debt.
The next report's operating-cash disclosure will put the current cash build in context, while the clearest balance-sheet marker to compare is inventory, starting from $5.9 billion.
Source: Phillips 66 10-Q filed Aug. 5, 2026.