Why Wall Street Is Split on Phillips 66 (PSX) Even as Its Numbers Improve

Phillips 66 (PSX) is experiencing improved refining margins, recovering chemical margins, and profitability in renewable diesel, leading to a strong Q1 2026 performance. Despite operational improvements and higher EPS, Wall Street is split on the company due to its high debt load, which increased in Q1 2026, and the ongoing challenge of deleveraging to its target of $17 billion by early 2027. While its valuation is in line with historical averages and shows mixed parity with peers, the company's stock is expected to remain below peer averages until significant debt reduction is achieved.