Valero Energy (NYSE:VLO) Releases Quarterly Earnings Results, Beats Estimates By $1.06 EPS

Valero Energy (NYSE:VLO) issued its quarterly earnings data on Thursday. The oil and gas company reported $4.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.16 by $1.06, Zacks reports. Valero Energy had a return on equity of 15.96% and a net margin of 3.37%.The firm had revenue of $32.38 billion during the quarter, compared to the consensus estimate of $31.38 billion. During the same period in the previous year, the firm posted $0.89 EPS. The company’s quarterly revenue was up 7.0% compared to the same quarter last year.

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

• Valero delivered a strong Q1 with net income attributable to stockholders of $1.3 billion ($4.22/share) and $1.8 billion of refining operating income, reversing last year’s loss across the business segments.
• Management emphasized operational flexibility—an advantaged Gulf Coast slate that can run discounted heavy sour crudes and a record monthly jet yield in March—which, together with tight global product inventories, should support margins.
• A March Port Arthur fire damaged the diesel hydrotreater (and affected an adjacent kerosene unit), leading to reduced rates, uncertain repair timing, and potential incremental 2026 capex (expected to be insured subject to deductibles) that could weigh on near‑term capture rates.
• Financial strength and shareholder returns remain priorities—Valero opportunistically issued $850 million of 10‑year notes, ended the quarter with $5.7 billion cash (net debt-to-cap ~18%), raised the dividend 6%, and returned $938 million to shareholders in Q1.

Valero Energy Trading Down 2.2%

VLO stock traded down $5.46 during midday trading on Friday, hitting $247.12. The stock had a trading volume of 2,479,855 shares, compared to its average volume of 2,917,933. The firm has a market cap of $73.90 billion, a PE ratio of 32.35, a price-to-earnings-growth ratio of 0.41 and a beta of 0.58. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.64 and a quick ratio of 1.11. Valero Energy has a 12-month low of $114.76 and a 12-month high of $258.43. The company’s 50-day moving average price is $232.26 and its 200 day moving average price is $196.27.

Analyst Ratings Changes

Several brokerages recently issued reports on VLO. Zacks Research upgraded Valero Energy from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, April 21st. Wolfe Research restated an “underperform” rating and set a $203.00 price objective on shares of Valero Energy in a research report on Tuesday, April 21st. Barclays lifted their price objective on Valero Energy from $184.00 to $261.00 and gave the stock an “overweight” rating in a research report on Wednesday, April 8th. Raymond James Financial lifted their price objective on Valero Energy from $215.00 to $290.00 and gave the stock a “strong-buy” rating in a research report on Wednesday, March 25th. Finally, JPMorgan Chase & Co. lifted their price objective on Valero Energy from $197.00 to $200.00 and gave the stock an “overweight” rating in a research report on Thursday, January 8th. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $236.71.

Valero Energy News Summary

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

• Positive Sentiment: Q1 earnings and revenue beat — Valero reported $4.22 EPS and $32.38B revenue, a sharp rebound from a loss a year earlier as refining and renewable diesel margins surged; the print topped Street estimates and was accompanied by a positive press release. Valero Energy Reports First Quarter 2026 Results
• Positive Sentiment: Operational strength — Valero plans to run its 13 refineries in the U.S. and U.K. at up to 95% of combined throughput (~3.0M bpd) in Q2, supporting margin capture and free cash flow potential. Valero to run refineries up to 95% capacity in Q2 2026, conf call
• Positive Sentiment: Analyst revisions — Erste Group lifted FY2026 and FY2027 EPS forecasts materially, reflecting the stronger margin outlook and boosting earnings estimates. (Analyst note summarized in coverage)
• Neutral Sentiment: Long-term value view — Zacks highlights Valero as a top value stock for long-term investors based on style scores; useful for buy-and-hold thesis but less relevant to intra-day moves. Why Valero Energy (VLO) is a Top Value Stock for the Long-Term
• Negative Sentiment: Sector headwinds and macro uncertainty — Broader “Big Oil” commentary warns of a tug-of-war (geopolitical news, margins volatility) that could keep energy stocks volatile and cap multiple expansion despite Valero’s beat. Big Oil Earnings Set To Sharply Decline. Blame This Tug-Of-War.
• Negative Sentiment: Near-term profit-taking risk — After a significant run toward a 52-week high, traders may be trimming positions, contributing to the pullback despite strong fundamentals. (Market technical/flow effect)

Insider Buying and Selling

In other Valero Energy news, SVP Eric A. Fisher sold 400 shares of Valero Energy stock in a transaction that occurred on Thursday, March 12th. The shares were sold at an average price of $238.60, for a total value of $95,440.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 0.36% of the company’s stock.

Institutional Trading of Valero Energy

Hedge funds and other institutional investors have recently bought and sold shares of the company. Arrowstreet Capital Limited Partnership purchased a new stake in shares of Valero Energy during the 3rd quarter valued at $275,239,000. Victory Capital Management Inc. grew its stake in shares of Valero Energy by 49.3% during the 4th quarter. Victory Capital Management Inc. now owns 1,696,811 shares of the oil and gas company’s stock valued at $276,224,000 after buying an additional 560,116 shares during the period. Renaissance Technologies LLC grew its stake in shares of Valero Energy by 527.6% during the 4th quarter. Renaissance Technologies LLC now owns 299,288 shares of the oil and gas company’s stock valued at $48,721,000 after buying an additional 251,600 shares during the period. EP Wealth Advisors LLC purchased a new stake in shares of Valero Energy during the 4th quarter valued at $36,825,000. Finally, Voloridge Investment Management LLC grew its stake in shares of Valero Energy by 96.5% during the 3rd quarter. Voloridge Investment Management LLC now owns 444,919 shares of the oil and gas company’s stock valued at $75,752,000 after buying an additional 218,448 shares during the period. 78.69% of the stock is owned by hedge funds and other institutional investors.

Valero Energy Company Profile

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.