$VLO · VALERO ENERGY CORP/TX
Valero Energy filed its Q3 2026 10-Q, reporting net income attributable to stockholders of $6.828B ($23.90/share) on revenue of $46.098B for the quarter ended September 30, 2026. This compares to $1.095B ($3.54/share) on $32.168B revenue in Q3 2025. For the nine months, net income reached $11.811B ($40.30/share) versus $1.214B ($3.89/share) in the prior-year period. The company repurchased $6.245B in common stock during the first nine months of 2026, nearly quadruple the $1.544B pace in 2025.
- Q3 net income attributable to stockholders: $6.828B vs $1.095B in Q3 2025 — a 524% YoY increase
- Q3 revenue: $46.098B vs $32.168B in Q3 2025 — a 43% YoY increase
- Q3 EPS: $23.90 vs $3.54 in Q3 2025; nine-month EPS: $40.30 vs $3.89
- Refining operating income: $8.782B in Q3 2026 vs $1.509B total company operating income in Q3 2025
- Treasury stock purchases: $6.245B in first nine months of 2026 vs $1.544B in same period 2025 — nearly 4x acceleration
Stock dropped 9.24% in regular trading to $387.34, but extended-hours last trade at $391.17 (+0.99%) suggests modest after-hours recovery. The massive YoY earnings surge appears partially priced in given the $111.53B market cap.
Valero's $6.8B quarterly profit exceeds its entire nine-month 2025 net income by more than 5x, signaling one of the strongest refining cycles in company history.
Valero's refining segment operating income of $8.78B in a single quarter reflects exceptionally wide crack spreads industry-wide. Peer refiners MPC and PSX are likely seeing similar margin tailwinds, though Valero's diversified renewable diesel and ethanol segments add earnings resilience not present at pure-play refiners.
Refining margins are cyclical and sensitive to crude oil price spreads, renewable fuel standard compliance costs, and seasonal demand shifts. The filing notes foreign currency translation losses of $265M over nine months and cash flow hedge losses of $160M. A sustained margin compression could reverse the earnings trajectory rapidly.