Valero Q2 Refining Income Hits USD 4.5 Billion, EPS of USD 12.54 Beats Estimates

Valero Energy Corp reported second-quarter earnings of USD 12.54 per share on revenue of USD 44.48 billion, against analyst estimates compiled by Investing.com of USD 10.03 per share and USD 37.95 billion. Refining segment operating income reached USD 4.5 billion, up from USD 1.3 billion a year earlier.

Throughput volumes across the refining system averaged 3.0 million barrels per day. Valero operates 15 refineries with a combined throughput capacity of 3.2 million barrels a day across the United States, Canada, and the United Kingdom.

In its 8-K filing released July 30, 2026, the company reported net income attributable to stockholders of USD 3.7 billion, or USD 12.62 per share, compared with USD 714 million, or USD 2.28 per share, in the same period last year. That figure outpaced an analyst projection of USD 10.15 per share. Total revenues came in at USD 44.5 billion versus USD 29.9 billion in the prior-year quarter.

The renewable diesel segment swung to USD 717 million in operating income from an operating loss of USD 79 million in Q2 2025. Ethanol operating income rose to USD 318 million from USD 54 million. Valero manages 12 ethanol plants with an annual capacity of 1.6 billion gallons and holds a significant share in Diamond Green Diesel.

Stockholder cash returns totalled USD 2.6 billion, and the board declared a regular quarterly cash dividend of USD 1.20 per share.

TD Cowen raised its price target on Valero to USD 350 from USD 338 while maintaining a Hold rating. The analyst attributed the quarterly EPS beat to strong throughput on the US Gulf Coast and the performance of the Renewables division. TD Cowen estimates Valero repurchased as much as 4% of its market capitalisation in a single quarter and models 3.5%, a forecast that implies USD 2.8 billion of buybacks per quarter through the end of 2027, equal to 20% of the share count.

Valero indicated that third-quarter refining indicators and capture should be stronger than in the second quarter, clearing the way for a record quarterly EPS. Thirteen analysts have recently revised their earnings estimates for the company upward.

The stock has gained 85% so far this year against a 6% rise in the S&P 500 over the same period, according to Investing.com. A separate account puts the year-to-date return at 95% and the twelve-month gain at 140%. Shares trade at USD 312.90, close to a 52-week high of USD 320.24. On a price-earnings ratio of 13.08, InvestingPro data suggests the stock remains undervalued relative to its fair value.

GuruFocus reaches the opposite conclusion. It assigns Valero a GF Score of 62 out of 100 and a GF Value of USD 148.11 against a price of USD 301.32, which it describes as roughly 103.4% overvalued. Insiders sold USD 5.7 million in shares over the past three months, according to GuruFocus.

The refining print stands apart from integrated peers in the same reporting round. Shell ADR posted second-quarter EPS of USD 1.76 on revenue of USD 94.66 billion, against forecasts of USD 2.8 and USD 86.8 billion. Equinor ADR reported on July 22 EPS of USD 1.33 on revenue of USD 35.18 billion, below expectations of USD 1.38 and USD 35.21 billion.

Intraday moves in the Investing.com quote panel showed VLO up 0.01%, SHEL up 0.67%, and EQNR down 1.34%. The earnings roundup was published July 30, 2026.