Targa Resources stock reports record Q2 EBITDA as guidance firms

Published on 10/05/2026 at 16:37 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Targa Resources stock posted USD 1.603 billion in adjusted EBITDA for Q2 2026, up 38 percent year over year. Full-year guidance points to USD 5.7 billion to USD 5.9 billion.

TRGP, US87612G1013, Illustration mit AI erstellt.

Targa Resources (ISIN US87612G1013) was trading at USD 283.73 on the NYSE on October 5, 2026, up 0.71 percent at 10:36 a.m. ET. The company entered the session with record second-quarter adjusted EBITDA and full-year guidance at the top of its existing range, according to Quartr in its Q2 2026 earnings summary.

EBITDA rises to USD 1.603 billion

Targa Resources generated USD 1.603 billion in adjusted EBITDA in Q2 2026, an increase of 38 percent from the same quarter a year earlier and 14 percent from Q1 2026. Net income reached USD 764.6 million, up 22 percent year over year, while revenue increased 4 percent to USD 4.44 billion, Quartr reported.

The earnings mix matters because adjusted EBITDA expanded much faster than revenue. Targa also delivered USD 1.371 billion in adjusted cash flow from operations during the quarter, up 47 percent year over year, while adjusted free cash flow was USD 205 million after higher capital spending.

Permian volumes support guidance

Management expects full-year 2026 adjusted EBITDA toward the top end of its USD 5.7 billion to USD 5.9 billion guidance range. The company also expects net growth capital of USD 4.5 billion and maintenance capital of USD 250 million for 2026, with new processing plants and fractionation trains scheduled through 2028.

Permian volumes provide the operating link to that outlook. Q2 Permian volumes reached 7.2 billion cubic feet per day, rising 7 percent from Q1 2026 and 14 percent from Q2 2025, while the fee-based margin is expected to exceed 90 percent. Targa's investor materials also list 20-year agreements with ExxonMobil subsidiaries and three new Permian Delaware processing plants dated August 17, 2026, on its Targa Resources investor page.

Analysts see further upside

TD Cowen upgraded Targa Resources from Hold to Buy and raised its price target from USD 275 to USD 350 on September 18, 2026, according to Investing.com. The same report said Raymond James raised its target to USD 335 and Wells Fargo lifted its target to USD 324 after the ExxonMobil agreements.

MarketBeat lists a Buy consensus from 19 analysts, including one Strong Buy rating and 18 Buy ratings, with an average price target of USD 317.24, MarketBeat reported on September 28, 2026. The current price lies 10.6 percent below that average target, while the Q2 revenue of USD 4.44 billion came in below the USD 4.90 billion consensus cited by MarketBeat.

TRGP trades below its yearly high

TRGP was trading at USD 283.73 on the NYSE on October 5, 2026, with a day range of USD 279.99 to USD 284.42 and volume of 167,494 shares. Its 52-week range was USD 144.14 to USD 307.94, and its market capitalization was USD 60.9 billion.