McIlroy made a late push at Pebble Beach Golf Links on Sunday, briefly re-entering contention with four birdies in a five-hole stretch during his final round, before adding three more in four holes from the 11th.
The world No 2 signed off with a flawless 64, capped by a birdie at the last. Over an eventful week, he recorded 25 birdies and two eagles, but also mixed in three bogeys, three double bogeys and a triple bogey.
He finished tied 14th at 17 under par, five shots adrift of champion Collin Morikawa, who sealed a one-shot victory with a birdie on the final hole. McIlroy conceded that four costly holes proved decisive, denying him the chance of a winning start to the PGA Tour season.
"That's all I felt like I needed to tidy up, because the good stuff in there is really, really good," McIlroy explained. "Struck my irons well, drove it well for the most part. There was a couple of destructive tee shots yesterday [third round], but everything feels in pretty good shape.
"I wish I could have those four holes back this week. I played 68 really good ones and even you turn those three doubles into bogeys and that triple into a bogey, that's five shots and all of a sudden you're looking at a lead.
"All in all, some really good stuff this week and pretty encouraged going into next week for sure."
McIlroy opened his season with a tied-third finish at the Dubai Invitational, before struggling at the Hero Dubai Desert Classic, which prompted him to revert to the irons he used during his The Masters-winning campaign and had recently changed.
Asked which aspects of his game have improved the most of late, he said: "I think iron play, short game - I think those two areas. Maybe the driver as well even though, as I said, I hit a couple of destructive tee shots.
"I got one going on the wind on 18 yesterday and then the one on four [triple-bogey], but for the most part like I drove the ball better, which is good to see as well.
"I'm in a good spot. Get rid of those big numbers and I wouldn't be just right there, I would probably be in the lead."