Targa Resources earnings: third quarter 2026

Targa Resources, which gathers, processes, moves and exports natural gas and gas liquids in the US, had a record-volume third quarter of 2026. Sales rose to $5.6 billion from $4.2 billion and profit grew faster. Almost all the extra cash went into new plants and pipelines, and the company raised its forecast for the year. ¹

Against what analysts expected

Analysts expected earnings per share of $2.74 for the quarter, by the average in Nasdaq's earnings calendar. ¹²

The strong points

• Adjusted EBITDA, the company's own headline measure of what its assets earn before interest, tax and depreciation, rose about 18% to $1.5 billion in a record-volume quarter. ¹
• Profit for Targa's shareholders, after interest, tax and everything else, rose to $658 million from $478 million a year earlier. ¹
• Cash earned from running the business, after interest and tax, rose 18% to about $1.28 billion, with the same share of operating earnings turning into cash as a year ago. ¹

The weak points

• Free cash flow, the cash left after running the business and investing in it, fell to $34 million from $173 million a year earlier. ¹
• The quarterly dividend will cost about $268 million, far more than the cash left after investment. ¹
• Debt stands at $19.8 billion, and interest costs rose 5% because of higher borrowing. ¹

What the company expects

• Targa raised its forecast for 2026 adjusted EBITDA to at least $6.0 billion, from the top end of a $5.7 billion to $5.9 billion range three months ago. ¹
• It now expects about $5.0 billion of spending on growth projects this year, up from about $4.5 billion three months ago, a rise the release does not flag. ¹

Our verdict on the quarter

A very strong report. Targa raised its forecast for the year above the top of its earlier range and grew both sales and profit strongly; the one shadow is that it now plans to spend even more on growth, leaving little spare cash and more debt.

The results as published

• The results release itself
• The filing it came with (SEC)
• The previous results, for what it forecast then

Our full analysis of Targa Resources: https://marketmedals.com/companies/targa-resources.html

Notes

1. Targa Resources' results release, 5 November 2026: sec.gov. ↩
2. Nasdaq's earnings calendar, 5 November 2026. ↩