Phillips 66's Earnings Growth Faces Margin Challenges Ahead of Earnings Season

Phillips 66's projected 25.9% annual earnings growth faces challenges from a 2.3% expected annual revenue decline and a 1.1% net profit margin, which narrowed from 2.3% last year. The company's valuation is premium versus peers, and the battle between robust earnings growth and margin pressure will be a key focus during earnings season. Analysts project a 4.3% profit margin by 2027, driven by growth in Midstream operations and refining upgrades.