Valero Energy (NYSE:VLO) Announces Earnings Results, Beats Expectations By $2.41 EPS

Posted by Francis Steltz on Jul 30th, 2026

Valero Energy (NYSE:VLO – Get Free Report) released its earnings results on Thursday. The oil and gas company reported $12.54 EPS for the quarter, topping the consensus estimate of $10.13 by $2.41, Zacks reports. The firm had revenue of $44.48 billion during the quarter, compared to analysts’ expectations of $39.47 billion. Valero Energy had a net margin of 3.37% and a return on equity of 15.94%. Valero Energy’s revenue for the quarter was up 48.8% on a year-over-year basis. During the same period in the previous year, the company earned $2.28 EPS.

Here are the key takeaways from Valero Energy’s conference call:

Record second-quarter results: Net income attributable to Valero stockholders rose to $3.7 billion, or $12.62 per share, versus $714 million, or $2.28 per share, a year earlier. Refining, renewable diesel, and ethanol all reported substantially higher operating income.
Management expects a constructive near-term environment, citing stronger refining margins and capture rates early in the third quarter, low global fuel inventories, limited excess capacity, resilient demand, and ongoing disruptions affecting Middle Eastern and Russian refining capacity.
Valero ended the quarter with $7.9 billion in cash, $11% net debt-to-capitalization, and $5.3 billion of available liquidity excluding cash. The company returned $2.6 billion to shareholders, declared a $1.20 per-share dividend, and said excess cash could support accelerated buybacks if commodity-price volatility declines.
Valero maintained approximately $2 billion of 2026 capital-investment guidance, including $250 million to repair the Port Arthur DHT unit, which is expected to return to service by year-end and be substantially covered by insurance. The company also plans shorter-cycle refinery optimization projects and 100–200 million gallons per year of ethanol debottlenecking, while it does not currently plan renewable-diesel expansion.
Management warned that the renewable-fuels market faces policy and supply uncertainty, including a potentially depleted RIN bank, tariff impacts on feedstocks and imports, and uncertainty over EPA action if compliance becomes infeasible. Refining and renewable-fuels earnings also remain exposed to geopolitical volatility, commodity prices, and the timing of disrupted capacity returning to service.

Valero Energy Trading Up 3.7%

VLO traded up $11.28 during trading on Thursday, hitting $312.60. 2,253,954 shares of the company’s stock were exchanged, compared to its average volume of 3,430,840. Valero Energy has a 1 year low of $130.78 and a 1 year high of $320.24. The stock has a 50 day moving average price of $267.87 and a 200 day moving average price of $237.27. The firm has a market cap of $92.82 billion, a P/E ratio of 22.72, a price-to-earnings-growth ratio of 0.19 and a beta of 0.55. The company has a current ratio of 1.58, a quick ratio of 1.15 and a debt-to-equity ratio of 0.39.

Valero Energy Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, August 31st. Shareholders of record on Friday, July 31st will be paid a dividend of $1.20 per share. This represents a $4.80 annualized dividend and a yield of 1.5%. The ex-dividend date is Friday, July 31st. Valero Energy’s payout ratio is currently 34.88%.

Insider Activity at Valero Energy

In related news, SVP Eric A. Fisher sold 7,500 shares of Valero Energy stock in a transaction on Monday, June 29th. The shares were sold at an average price of $268.17, for a total transaction of $2,011,275.00. Following the transaction, the senior vice president owned 19,742 shares in the company, valued at approximately $5,294,212.14. The trade was a 27.53% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Corporate insiders own 0.36% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. JPL Wealth Management LLC purchased a new stake in shares of Valero Energy in the third quarter worth about $27,000. Triumph Capital Management acquired a new stake in shares of Valero Energy in the third quarter valued at about $35,000. IFC & Insurance Marketing Inc. purchased a new stake in shares of Valero Energy during the 4th quarter valued at about $41,000. Osterweis Capital Management Inc. lifted its position in Valero Energy by 7,180.0% during the 2nd quarter. Osterweis Capital Management Inc. now owns 364 shares of the oil and gas company’s stock worth $49,000 after acquiring an additional 359 shares in the last quarter. Finally, DV Equities LLC purchased a new position in Valero Energy in the 4th quarter worth approximately $70,000. 78.69% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research firms have recently issued reports on VLO. Citigroup raised their price objective on Valero Energy from $259.00 to $302.00 and gave the stock a “neutral” rating in a report on Tuesday, July 14th. TD Cowen raised their price target on Valero Energy from $292.00 to $338.00 and gave the stock a “hold” rating in a research note on Tuesday, July 21st. Morgan Stanley increased their price objective on shares of Valero Energy from $232.00 to $255.00 and gave the stock an “equal weight” rating in a report on Friday, June 12th. Mizuho raised their target price on shares of Valero Energy from $222.00 to $289.00 and gave the stock a “neutral” rating in a research report on Wednesday, May 27th. Finally, BMO Capital Markets upped their price target on shares of Valero Energy from $230.00 to $270.00 and gave the stock an “outperform” rating in a research report on Monday, April 6th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $266.71.

Read Our Latest Stock Report on VLO

Valero Energy News Summary

Here are the key news stories impacting Valero Energy this week:

Positive Sentiment: Major earnings and revenue beat: Valero reported second-quarter adjusted earnings of $12.54 per share, well above analyst estimates ranging from $9.87 to $10.13, while revenue reached $44.48 billion versus the $39.47 billion consensus. Adjusted earnings rose sharply from $2.28 per share a year earlier, and revenue increased 48.8%. Valero Energy beats quarterly profit estimates on higher refining margins
Positive Sentiment: Higher refining margins supported results: Strong fuel demand and elevated refining margins, aided by increased U.S. fuel-export demand amid Middle East tensions, drove the profit outperformance. The company reported $3.7 billion in net income, or $12.62 per share, compared with $714 million a year ago. Valero Profit Soars on Major Revenue Gains
Positive Sentiment: Positive industry backdrop and estimates: Analysts highlighted tight fuel supplies, steady demand and improving earnings prospects across the refining sector, with VLO among the recommended refining and marketing stocks. Erste Group also raised its 2026 EPS estimate for Valero to $33.58 from $32.09 and its 2027 estimate to $23.83 from $23.00.
Positive Sentiment: Shareholder returns remain supportive: Valero reaffirmed its quarterly dividend at $1.20 per share, payable August 31 to shareholders of record July 31, reinforcing its capital-return appeal.
Neutral Sentiment: Renewable-fuels policy complication: A Valero executive said changes to tax credits and registration hurdles have slowed biofuel imports, making it more difficult for the industry to meet EPA blending mandates. The issue could affect renewable-fuels operations, although it may also increase pressure for policy adjustments. Tax credit overhaul has slowed biofuel imports
Negative Sentiment: Cycle-related risks remain: Commentary before the report noted that VLO’s valuation reflected strong, potentially peak-cycle earnings. High crude costs and renewable-diesel volatility could pressure margins if refining conditions weaken.

About Valero Energy

(Get Free Report)

Valero Energy Corporation is a San Antonio, Texas–based integrated downstream energy company that manufactures and markets transportation fuels, petrochemical feedstocks and other industrial products. The company’s operations focus on refining crude oil into finished fuels such as gasoline, diesel and jet fuel, as well as producing asphalt and other refined product streams for commercial and industrial customers.

In addition to refining, Valero has significant operations in renewable fuels, including the production of ethanol and other biofuels, and it manages an extensive logistics network of pipelines, terminals, rail and marine assets to move feedstocks and finished products.