Targa Q3 2026: record volumes, $5.60 billion revenue, 2027 dividend up 20%
Targa's third quarter was a volume story, not a margin story: revenue rose 35.0% to $5.60 billion and adjusted EBITDA 18.0% to $1.50 billion, yet gross margin slipped to 36.1%. The takeaway for readers is that record Permian and NGL throughput is now the engine, while commodity prices and marketing spreads decide how much of that volume actually reaches the bottom line.
1 · Expected vs. Actual
Free preview belowDiluted EPS of $3.04 compared with $2.20 a year ago, tracking the 38.0% rise in net income to $0.66 billion. The sequential picture is weaker: EPS was $3.54 in Q2 2026 and adjusted EBITDA fell 6.0% quarter over quarter on lower marketing and LPG export margins. Record Permian inlet and NGL transportation volumes carried the quarter; spreads did not.
Revenue of $5.60 billion rose 35.0% from $4.15 billion a year earlier, helped by higher NGL, natural gas and condensate prices ($0.80 billion), higher volumes ($0.38 billion) and $0.07 billion of favorable hedges. Fees from midstream services, the steadier fee-based piece, grew 29.0% to $0.88 billion. Gross margin still fell to 36.1% from 39.6% because product purchases and fuel jumped 43.0% to $3.58 billion.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-11-05
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