Equity Profile

DNOW

DNOW Inc.

IndustrialsTrading Companies & Distributors$2.9B

Aug5Wed

Pre-Earnings Brief

UpcomingQ2-2026Pre-Market9:00 AM EDT

Company Snapshot

DNOW Inc. is a trading company and distributor in the industrial sector, focusing on providing equipment and services to the energy and industrial markets....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of the company's profitability and financial health, which investors closely monitor.

$0.09

Revenue

Revenue figures provide insight into the company's sales performance and overall business growth.

$1.3B

Wall Street expectations, options signals, track record, and call prep available with Pro.

DNOW Q2-2026 Earnings Preview

Context

Company Snapshot

DNOW Inc. is a trading company and distributor in the industrial sector, focusing on providing equipment and services to the energy and industrial markets. With a market cap of $3 billion, the company plays a crucial role in supporting infrastructure and energy projects, which are vital as global demand for energy continues to evolve.

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

75%

Avg EPS Surprise

+16.29%

Avg Stock Reaction

-2.90%

Last Quarter Recap

In Q1 2026, DNOW reported an EPS of $0.01, significantly missing the expected $0.04, which resulted in a stock decline of 3.33% the following day. The company did not provide revenue figures for this quarter.

Management Promises & Guidance

Expectations

Wall Street Expectations

Analysts expect DNOW to report an EPS of $0.09 and revenue of $1.3 billion for Q2 2026, indicating cautious optimism following a disappointing previous quarter. The market is watching closely to see if the company can regain momentum.

Bull Case

If DNOW meets or exceeds the EPS and revenue expectations, it could signal a recovery in demand and operational efficiency, potentially boosting investor confidence.

Bear Case

Conversely, if DNOW fails to meet expectations again, it may raise concerns about its ability to navigate market challenges, leading to further stock declines.

Key Metrics to Watch

Earnings Per Share (EPS)

$0.09

EPS is a key indicator of the company's profitability and financial health, which investors closely monitor.

Revenue

$1.3B

Revenue figures provide insight into the company's sales performance and overall business growth.

Expectations

Two Questions That Matter

The print will turn on these two things.

Will DNOW's EPS meet or exceed the consensus estimate of $0.09?

A strong EPS performance is critical for restoring investor confidence after the significant miss last quarter.

What commentary will management provide on revenue growth and market demand?

Insights into revenue trends and market conditions will help investors gauge the company's recovery trajectory.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be overly cautious given DNOW's recent earnings miss, but the underlying demand in the energy sector suggests a potential rebound that isn't fully reflected in current estimates.

Supporting Evidence

The options market is pricing a 7.71% move, indicating expectations for volatility that could be driven by positive surprises.

DNOW's historical EPS beat rate of 75% suggests that the company has a strong track record of exceeding expectations.

Recent trends in energy demand may not be fully accounted for in the consensus revenue estimate.

Key Risk

If DNOW can demonstrate a recovery in demand and achieve an EPS above $0.09, it could significantly shift market sentiment.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is pivotal for DNOW, as it seeks to recover from a disappointing previous quarter and demonstrate its ability to adapt to market demands.

Bull Confirmed If

Achieving an EPS of $0.09 or higher, along with positive commentary on revenue growth, would confirm the bull case.

Bear Confirmed If

An EPS below $0.07, coupled with negative feedback on market conditions, would confirm the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±7.71%

Historical Avg

±7.9%

In line with history

The options market is pricing in a significant move around the earnings report, indicating that traders expect volatility based on the upcoming results.

Options are pricing ±7.7% while DNOW has averaged ±7.9% over the last 8 prints — setup is roughly in line with history.

Detail

ATM IV

0.4%

30d HV

25.7%

Calls (8K)P/C Ratio: 0.24Puts (300)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter miss + options pricing in-line setup in Industrials

n=30

Fade rate: 12 of 30 (40%)

This setup has occurred 30 times across Industrials in the last 2 years. 12 of 30 faded and 18 held — no strong directional bias after the initial reaction. The average absolute 1-day move is 6.5%, with a raw directional average of +1.3% (modestly positive historical bias).

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If DNOW beats expectations, history suggests a potential average one-day move of +2.57%, confirming a positive outlook.

In-Line / Cautious

If results are in line with expectations, the stock may experience muted movement as investors await further clarity from management.

Miss

Should DNOW miss expectations again, history indicates an average one-day decline of -3.87%, which could heighten concerns about the company's performance.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on demand trends in the energy sector.
2Management's commentary on cost management and operational efficiency.
3Insights into customer order patterns and backlog.
4Any changes to the company's strategic initiatives or market positioning.
5Guidance on future quarters and expectations for revenue growth.

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Company Snapshot

DNOW Inc. is a trading company and distributor in the industrial sector, focusing on providing equipment and services to the energy and industrial markets....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of the company's profitability and financial health, which investors closely monitor.

$0.09

Revenue

Revenue figures provide insight into the company's sales performance and overall business growth.

$1.3B

Wall Street expectations, options signals, track record, and call prep available with Pro.

DNOW Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

75%

Avg EPS Surprise

+16.29%

Avg Stock Reaction

-2.90%

Last Quarter Recap

Management Promises & Guidance

Expectations

Wall Street Expectations

Bull Case

If DNOW meets or exceeds the EPS and revenue expectations, it could signal a recovery in demand and operational efficiency, potentially boosting investor confidence.

Bear Case

Conversely, if DNOW fails to meet expectations again, it may raise concerns about its ability to navigate market challenges, leading to further stock declines.

Key Metrics to Watch

Earnings Per Share (EPS)

$0.09

EPS is a key indicator of the company's profitability and financial health, which investors closely monitor.

Revenue

$1.3B

Revenue figures provide insight into the company's sales performance and overall business growth.

Expectations

Two Questions That Matter

The print will turn on these two things.

Will DNOW's EPS meet or exceed the consensus estimate of $0.09?

A strong EPS performance is critical for restoring investor confidence after the significant miss last quarter.

What commentary will management provide on revenue growth and market demand?

Insights into revenue trends and market conditions will help investors gauge the company's recovery trajectory.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be overly cautious given DNOW's recent earnings miss, but the underlying demand in the energy sector suggests a potential rebound that isn't fully reflected in current estimates.

Supporting Evidence

The options market is pricing a 7.71% move, indicating expectations for volatility that could be driven by positive surprises.

DNOW's historical EPS beat rate of 75% suggests that the company has a strong track record of exceeding expectations.

Recent trends in energy demand may not be fully accounted for in the consensus revenue estimate.

Key Risk

If DNOW can demonstrate a recovery in demand and achieve an EPS above $0.09, it could significantly shift market sentiment.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is pivotal for DNOW, as it seeks to recover from a disappointing previous quarter and demonstrate its ability to adapt to market demands.

Bull Confirmed If

Achieving an EPS of $0.09 or higher, along with positive commentary on revenue growth, would confirm the bull case.

Bear Confirmed If

An EPS below $0.07, coupled with negative feedback on market conditions, would confirm the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±7.71%

Historical Avg

±7.9%

In line with history

The options market is pricing in a significant move around the earnings report, indicating that traders expect volatility based on the upcoming results.

Options are pricing ±7.7% while DNOW has averaged ±7.9% over the last 8 prints — setup is roughly in line with history.

Detail

ATM IV

0.4%

30d HV

25.7%

Calls (8K)P/C Ratio: 0.24Puts (300)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter miss + options pricing in-line setup in Industrials

n=30

Fade rate: 12 of 30 (40%)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If DNOW beats expectations, history suggests a potential average one-day move of +2.57%, confirming a positive outlook.

In-Line / Cautious

If results are in line with expectations, the stock may experience muted movement as investors await further clarity from management.

Miss

Should DNOW miss expectations again, history indicates an average one-day decline of -3.87%, which could heighten concerns about the company's performance.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on demand trends in the energy sector.
2Management's commentary on cost management and operational efficiency.
3Insights into customer order patterns and backlog.
4Any changes to the company's strategic initiatives or market positioning.
5Guidance on future quarters and expectations for revenue growth.