Phillips 66 stock research
FY2026 Q1
Phillips 66 (PSX) Gross Margin & Quarterly History
Explore Phillips 66 (PSX) gross margin from 2023 through the latest reported quarter, using SEC-sourced revenue, gross profit, and direct costs.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue decreased compared to the prior quarter, while gross profit declined more sharply, causing gross margin to weaken. Versus the same quarter last year, revenue and gross profit both increased, and gross margin improved.
- The relationship between cost of revenue and revenue drove the margin change: cost of revenue was nearly flat versus the prior quarter while revenue fell, compressing gross margin. Compared to a year ago, revenue grew faster than cost of revenue, expanding gross margin.
- Gross margin weakened sequentially from the prior quarter but improved compared to the same quarter one year earlier. Revenue was lower than the prior quarter and higher than a year ago.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
10.2%
Gross profit
$3.3B
Revenue
$32.5B
Cost of revenue
$29.2B
Quarter-over-quarter change
-4.4 pts
Year-over-year change
+1.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2025 | $33.3B | $4.2B | $29.1B | 12.7% |
| Sep 30, 2025 | $34.5B | $4.3B | $30.2B | 12.4% |
| Dec 31, 2025 | $34.1B | $5.0B | $29.1B | 14.6% |
| Mar 31, 2026 | $32.5B | $3.3B | $29.2B | 10.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
-4.4 pts
Year-over-year change
Mar 31, 2025
+1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between cost of revenue and revenue drove the margin change: cost of revenue was nearly flat versus the prior quarter while revenue fell, compressing gross margin. Compared to a year ago, revenue grew faster than cost of revenue, expanding gross margin.
Gross margin weakened sequentially from the prior quarter but improved compared to the same quarter one year earlier. Revenue was lower than the prior quarter and higher than a year ago.
Monitor the trajectory of cost of revenue relative to revenue, as its near-steady level in the current quarter was the primary observable factor in margin compression.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Phillips 66 (PSX) | 10.2% |