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Phillips 66 (PSX) Shows Earnings Momentum Amid Strategic Portfolio Transformation

Phillips 66 (NYSE:PSX) is one of the best long-term retirement stocks. On February 9, Citi raised its price target on Phillips 66 (NYSE:PSX) to $159 from $146 while maintaining a Neutral rating, following updates to its oil and gas refiner models after the company’s fourth-quarter results.

On February 4, Phillips 66 delivered impressive fourth-quarter and full-year results, benefiting from a rebound in US refining margins that lifted earnings.

The company delivered $2.9 billion in earnings in the fourth quarter compared to $133 million in the third quarter. The fourth quarter earnings included pre-tax special item adjustments of $2.0 billion in the Marketing and Specialties segment. Full-year earnings totaled $4.4 billion or $10.79 a share.

During the quarter, the company achieved record natural gas transportation and fractioning volumes of over 1MMBD, while also delivering a record clean product yield of 88%. The company generated $2.8 billion in net operating cash flow.

During the year, Phillips 66 enhanced its portfolio to focus on core assets and geographies. It also adopted a disciplined approach to improve refining operations.

“2025 was a transformative year for Phillips 66. We sold the majority of our European retail business, acquired the remaining 50% interest in WRB, and improved our Midstream competitive position with the acquisition of Coastal Bend and expansion of Dos Picos II,” said Mark Lashier, chairman and CEO of Phillips 66.

Phillips 66 (NYSE:PSX) is a major diversified energy manufacturing and logistics company. It refines crude oil into fuel, transports products via pipeline, produces petrochemicals, and markets gasoline, diesel, and lubricants globally.

While we acknowledge the potential of PSX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PSX and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: Top 10 Materials Stocks to Buy According to Analysts and 10 Best Organic Food and Farming Stocks to Buy Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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