DNOW (NYSE:DNOW) Posts Earnings Results

DNOW (NYSE:DNOW) released its quarterly earnings results on Thursday. The oil and gas company reported $0.01 EPS for the quarter, missing analysts’ consensus estimates of $0.05 by ($0.04), FiscalAI reports. DNOW had a positive return on equity of 5.43% and a negative net margin of 4.14%.The company had revenue of $1.18 billion for the quarter, compared to the consensus estimate of $1.08 billion. During the same quarter last year, the firm posted $0.22 earnings per share. The firm’s quarterly revenue was up 97.5% compared to the same quarter last year.

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

• ERP disruptions at MRC Global U.S. materially weighed on results — MRC U.S. revenue fell about $94 million (16% YoY), the business showed a high 31% decremental to adjusted EBITDA, and Q1 adjusted EBITDA was only $39 million, with incremental temporary ERP-related costs and elevated SG&A driving a Q1 net loss of $44 million.
• Management reports the MRC Oracle environment is stabilized and migration to DNOW’s SAP is accelerating (Permian locations now live), which has already unlocked ~$40 million of inventory to improve fulfillment, service levels, and support revenue/margin recovery.
• Integration cost savings are accelerating — the company raised its near‑term annualized synergy expectation to about $30 million (with a 3‑year target of $70 million) and is realizing facility consolidations sooner than planned.
• Board pursued opportunistic capital returns amid what management views as an undervalued stock: $50 million of repurchases in Q1 (total $87 million to date of a $160 million program), funded in part with debt while targeting net leverage of ~1–2x by year‑end.
• Outlook and growth levers: management expects Q2 revenue up mid‑to‑high single digits sequentially, full‑year 2026 revenue near $5 billion with EBITDA ~4.5% and operating cash flow of $100–$200 million, while highlighting midstream, upstream, gas utilities and early data‑center wins (~$30 million orders) as priority growth markets.

DNOW Price Performance

Shares of NYSE DNOW traded up $0.03 during midday trading on Friday, reaching $13.08. The company’s stock had a trading volume of 4,913,954 shares, compared to its average volume of 3,172,987. The company has a current ratio of 2.34, a quick ratio of 1.11 and a debt-to-equity ratio of 0.18. The company has a 50 day moving average price of $12.11 and a 200 day moving average price of $13.48. DNOW has a one year low of $10.94 and a one year high of $17.26. The company has a market cap of $2.43 billion, a price-to-earnings ratio of -17.92 and a beta of 0.85.

Institutional Trading of DNOW

A number of hedge funds and other institutional investors have recently made changes to their positions in DNOW. Quarry LP raised its holdings in shares of DNOW by 712.6% in the 4th quarter. Quarry LP now owns 1,942 shares of the oil and gas company’s stock worth $26,000 after purchasing an additional 1,703 shares in the last quarter. EverSource Wealth Advisors LLC raised its holdings in shares of DNOW by 190.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,423 shares of the oil and gas company’s stock worth $36,000 after purchasing an additional 1,589 shares in the last quarter. Arax Advisory Partners raised its holdings in shares of DNOW by 336.3% in the 4th quarter. Arax Advisory Partners now owns 2,797 shares of the oil and gas company’s stock worth $37,000 after purchasing an additional 2,156 shares in the last quarter. Kemnay Advisory Services Inc. bought a new stake in shares of DNOW in the 4th quarter worth approximately $46,000. Finally, Quadrant Capital Group LLC raised its holdings in shares of DNOW by 266.4% in the 4th quarter. Quadrant Capital Group LLC now owns 3,620 shares of the oil and gas company’s stock worth $48,000 after purchasing an additional 2,632 shares in the last quarter. 97.63% of the stock is currently owned by institutional investors.

Key DNOW News

Here are the key news stories impacting DNOW this week:

• Positive Sentiment: DNOW reported first-quarter revenue of $1.18 billion, which came in above analyst expectations of $1.08 billion and rose sharply year over year, suggesting solid demand and helping support the stock. DNOW Reports First Quarter 2026 Results
• Positive Sentiment: The company also highlighted its first-quarter 2026 results and midstream expansion plans, which may reinforce the longer-term growth story for investors. Assessing DNOW (DNOW) Valuation After Recent Share Price Momentum And Midstream Expansion Plans
• Neutral Sentiment: Several earnings recap articles and the earnings call presentation are drawing attention to the quarter, but they largely repeat the same key takeaways: strong revenue growth, but weaker profitability. DNOW Inc. 2026 Q1 – Results – Earnings Call Presentation
• Neutral Sentiment: Market commentary notes that DNOW beat on revenue but missed earnings estimates, which is a mixed signal for the stock. DNOW’s (NYSE:DNOW) Q1 CY2026: Beats On Revenue
• Negative Sentiment: DNOW posted earnings of $0.01 per share, below the $0.05 consensus estimate and far under last year’s $0.22, raising concerns about profitability and margin pressure. DNOW (DNOW) Q1 Earnings Lag Estimates
• Negative Sentiment: Rosen Law Firm announced and reiterated a securities class action investigation into whether DNOW may have issued misleading business information, which can add legal overhang and pressure sentiment. ROSEN, LEADING INVESTOR COUNSEL, Encourages DNOW Inc. Investors to Inquire About Securities Class Action Investigation – DNOW

Analyst Upgrades and Downgrades

A number of analysts have commented on the stock. Stifel Nicolaus dropped their price target on shares of DNOW from $18.00 to $16.00 and set a “buy” rating on the stock in a research report on Monday, February 23rd. Weiss Ratings downgraded shares of DNOW from a “hold (c)” rating to a “sell (d+)” rating in a research report on Friday, February 27th. Zacks Research downgraded shares of DNOW from a “hold” rating to a “strong sell” rating in a research report on Tuesday, March 24th. Finally, Wall Street Zen downgraded shares of DNOW from a “hold” rating to a “sell” rating in a research report on Saturday. Two research analysts have rated the stock with a Buy rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $17.00.

About DNOW

DistributionNOW (NYSE: DNOW) is a global distributor of energy and industrial products, serving a broad range of end-markets including oil and gas, petrochemical, power generation, and industrial manufacturing. Headquartered in Houston, Texas, the company provides solutions across the life cycle of energy and industrial assets, with an emphasis on safety, reliability and operational efficiency.

The company’s core product portfolio includes piping systems and related components (such as valves, fittings, flanges and gaskets), instrumentation, electrical and automation equipment, fasteners, industrial safety supplies, chemicals and composite products.