Equity Profile

DNOW

DNOW Inc.

IndustrialsTrading Companies & Distributors$2.4B

Aug5Wed

Pre-Earnings Brief

UpcomingQ2-2026Pre-Market9:00 AM EDT

Company Snapshot

DNOW Inc. operates in the industrial sector, focusing on trading and distributing products and services for 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, and investors will be keen to see if DNOW can improve on its last quarter's performance.

N/A

Revenue Growth

Revenue growth reflects the company's ability to increase sales and expand its market presence, which is vital for future growth.

N/A

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

DNOW Q2-2026 Earnings Preview

Context

Company Snapshot

DNOW Inc. operates in the industrial sector, focusing on trading and distributing products and services for the energy and industrial markets. With a market cap of $2 billion, the company plays a crucial role in supplying essential equipment and services to various industries, which can be influenced by trends in energy demand and infrastructure spending.

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, leading to a stock decline of 3.33% the following day. The company has struggled to meet earnings expectations recently, raising concerns among investors.

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall, expectations for DNOW's upcoming earnings are cautious, given the recent earnings miss and lack of guidance. Investors are looking for signs of recovery in profitability and revenue.

Bull Case

If DNOW can exceed earnings expectations and show signs of revenue growth, it could restore investor confidence and lead to a positive stock reaction.

Bear Case

Conversely, if DNOW reports another earnings miss or weak revenue, it could further erode investor trust and lead to a significant decline in stock price.

Expectations

Two Questions That Matter

The print will turn on these two things.

Can DNOW achieve a positive EPS this quarter, ideally above $0.04?

Given the significant miss last quarter, a positive EPS would signal a turnaround and boost investor confidence.

What is the revenue outlook for the upcoming quarters?

Investors will be looking for any guidance on revenue growth, as it is critical for assessing the company's future performance.

Edge

What the Street Is Missing

Why consensus could be wrong

The market may be underestimating DNOW's potential for a recovery, as recent operational changes could lead to improved efficiency and profitability.

Supporting Evidence

Despite recent misses, DNOW has a history of surprising on the upside, with a 75% EPS beat rate over the last eight quarters.

The options market is pricing a significant move, suggesting that traders expect volatility that could favor a positive outcome.

The lack of recent insider activity may indicate that management is focused on stabilizing the business rather than selling shares.

Key Risk

If DNOW can report an EPS above $0.04, it would challenge the current bearish sentiment and shift investor expectations.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is crucial as DNOW seeks to recover from recent earnings misses and demonstrate its ability to grow revenue and profitability.

Bull Confirmed If

An EPS of $0.04 or higher would confirm the bull case and indicate a recovery in profitability.

Bear Confirmed If

An EPS below $0.01 would confirm the bear case and raise concerns about the company's financial health.

Pre-Earnings Positioning

Options Market

Implied Move

±7.71%

Historical Avg

±7.9%

In line with history

The options market is pricing in a move of approximately 7.71%, indicating that traders expect some volatility around the earnings report.

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)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If DNOW beats expectations, history suggests the stock may initially react positively, potentially moving up by around 2.57%.

In-Line / Cautious

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

Miss

A miss could lead to a decline in stock price, with historical data suggesting an average drop of around 3.87% following such outcomes.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on cost management initiatives and their impact on profitability.
2Insights into customer demand trends in the energy sector.
3Management's commentary on competitive positioning and market share.
4Guidance on revenue expectations for the next quarter.
5Any strategic changes or investments aimed at driving future growth.

See the full picture

AI-powered briefs, options data, and 20 quarters of history — everything you need before earnings.

No charge today · Auto-bills $8/mo after 7 days · Cancel anytime

More Earnings This Week

5 Reports

Aug3

ONBMO

ON Semiconductor Corporation

PreviewView

Aug3

LBMO

Company Snapshot

DNOW Inc. operates in the industrial sector, focusing on trading and distributing products and services for 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, and investors will be keen to see if DNOW can improve on its last quarter's performance.

N/A

Revenue Growth

Revenue growth reflects the company's ability to increase sales and expand its market presence, which is vital for future growth.

N/A

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

Overall, expectations for DNOW's upcoming earnings are cautious, given the recent earnings miss and lack of guidance. Investors are looking for signs of recovery in profitability and revenue.

Bull Case

If DNOW can exceed earnings expectations and show signs of revenue growth, it could restore investor confidence and lead to a positive stock reaction.

Bear Case

Conversely, if DNOW reports another earnings miss or weak revenue, it could further erode investor trust and lead to a significant decline in stock price.

Expectations

Two Questions That Matter

The print will turn on these two things.

Can DNOW achieve a positive EPS this quarter, ideally above $0.04?

Given the significant miss last quarter, a positive EPS would signal a turnaround and boost investor confidence.

What is the revenue outlook for the upcoming quarters?

Investors will be looking for any guidance on revenue growth, as it is critical for assessing the company's future performance.

Edge

What the Street Is Missing

Why consensus could be wrong

The market may be underestimating DNOW's potential for a recovery, as recent operational changes could lead to improved efficiency and profitability.

Supporting Evidence

Despite recent misses, DNOW has a history of surprising on the upside, with a 75% EPS beat rate over the last eight quarters.

The options market is pricing a significant move, suggesting that traders expect volatility that could favor a positive outcome.

The lack of recent insider activity may indicate that management is focused on stabilizing the business rather than selling shares.

Key Risk

If DNOW can report an EPS above $0.04, it would challenge the current bearish sentiment and shift investor expectations.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is crucial as DNOW seeks to recover from recent earnings misses and demonstrate its ability to grow revenue and profitability.

Bull Confirmed If

An EPS of $0.04 or higher would confirm the bull case and indicate a recovery in profitability.

Bear Confirmed If

An EPS below $0.01 would confirm the bear case and raise concerns about the company's financial health.

Pre-Earnings Positioning

Options Market

Implied Move

±7.71%

Historical Avg

±7.9%

In line with history

The options market is pricing in a move of approximately 7.71%, indicating that traders expect some volatility around the earnings report.

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)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If DNOW beats expectations, history suggests the stock may initially react positively, potentially moving up by around 2.57%.

In-Line / Cautious

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

Miss

A miss could lead to a decline in stock price, with historical data suggesting an average drop of around 3.87% following such outcomes.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on cost management initiatives and their impact on profitability.
2Insights into customer demand trends in the energy sector.
3Management's commentary on competitive positioning and market share.
4Guidance on revenue expectations for the next quarter.
5Any strategic changes or investments aimed at driving future growth.