DNOW (NYSE:DNOW) Announces Quarterly Earnings Results

DNOW (NYSE:DNOW) posted its quarterly earnings results on Thursday. The oil and gas company reported $0.18 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.15 by $0.03, FiscalAI reports. The company had revenue of $1.34 billion for the quarter, compared to analyst estimates of $1.35 billion. DNOW had a positive return on equity of 3.91% and a negative net margin of 4.58%. DNOW’s revenue for the quarter was up 110.9% compared to the same quarter last year. During the same quarter last year, the company earned $0.26 EPS.

Here are the key takeaways from DNOW’s conference call:

• Third-quarter revenue rose 2.3% sequentially to $1.34 billion, while adjusted EBITDA increased $16 million to $76 million and adjusted gross margin expanded 40 basis points to 21.2%. Management credited improved mix and margin initiatives, which partly offset higher logistics costs.
• Cash from operations was $120 million in the quarter, lifting year-to-date cash generation to $158 million; the company now expects full-year cash from operations to approach $200 million. Net debt fell to $265 million, leverage declined to 1.1x, and DNOW repurchased $17 million of shares in the quarter.
• Management expects fourth-quarter revenue to decline by a high-single-digit percentage sequentially due to seasonality, fewer business days, and year-end customer spending patterns, with EBITDA targeted at 4.5% of revenue.
• Management outlined conditional 2027 EBITDA scenarios of $300 million to $350 million, using third-quarter EBITDA annualized as a reference point—not formal guidance. The upper end depends on market growth, continued revenue recovery, and further margin improvement, while customer budgets remain unknown.
• Demand was healthy across several markets: gas utilities reached their highest quarterly revenue in three years, downstream and industrial revenue rose 10% sequentially, and Process Solutions posted a record quarter. International growth was held back by about $15 million of delayed projects, some of which are expected to shift into 2027.

DNOW Stock Performance

Shares of NYSE DNOW traded down $0.44 during trading hours on Friday, reaching $13.28. The stock had a trading volume of 6,516,171 shares, compared to its average volume of 2,493,041. The firm has a market cap of $2.40 billion, a price-to-earnings ratio of -11.45 and a beta of 0.95. The company has a current ratio of 2.14, a quick ratio of 1.06 and a debt-to-equity ratio of 0.23. DNOW has a fifty-two week low of $10.94 and a fifty-two week high of $17.26. The firm has a 50-day moving average of $15.70 and a 200-day moving average of $14.11.

Wall Street Analysts Forecast Growth

Several research firms have commented on DNOW. Susquehanna lowered their price target on shares of DNOW from $19.00 to $18.00 and set a “positive” rating for the company in a report on Friday. Wall Street Zen upgraded shares of DNOW from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. Freedom Broker cut shares of DNOW from a “buy” rating to a “hold” rating and set a $18.00 price objective for the company. in a research report on Thursday, September 10th. Weiss Ratings raised shares of DNOW from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Thursday, October 8th. Finally, DA Davidson boosted their target price on shares of DNOW from $17.00 to $19.00 and gave the stock a “buy” rating in a research note on Monday, August 10th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $18.00.

Key Stories Impacting DNOW

Here are the key news stories impacting DNOW this week:

• Positive Sentiment: Adjusted earnings were $0.18 per share, topping the $0.15 consensus estimate. DNOW also reported $120 million in operating cash flow and $76 million in adjusted EBITDA, which the CEO said was nearly double the first-quarter result. DNOW Reports Third Quarter 2026 Results
• Positive Sentiment: The company repurchased $17 million of shares in the quarter and $92 million year to date, supporting shareholder returns. DNOW Reports Third Quarter 2026 Results
• Neutral Sentiment: Susquehanna lowered its price target to $18 from $19 but kept a positive rating, signaling continued optimism alongside a more cautious valuation outlook. Susquehanna analyst ratings
• Negative Sentiment: Revenue of $1.337 billion fell short of the $1.35 billion consensus, while adjusted EPS declined from $0.26 a year earlier to $0.18. The earnings beat may therefore be tempered by weaker year-over-year profitability and missed sales expectations. DNOW misses Q3 2026 sales expectations

About DNOW

DNOW Inc (NYSE: DNOW) is a global distributor of products and services used in the energy and industrial sectors. The company supplies equipment and materials for upstream, midstream and downstream oil and gas operations, as well as related industrial, utility and infrastructure markets.

Its offerings include pipe, valves, fittings, flanges, and other mechanical products; production and artificial-lift equipment; electrical and instrumentation products; and maintenance, repair and operating supplies.