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, specifically focusing on trading and distribution of 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 is closely watched by investors.

N/A

Revenue Growth

Revenue growth reflects the company's ability to increase sales and expand its market share, which is important for long-term sustainability.

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, specifically focusing on trading and distribution of products and services for the energy and industrial markets. With a market cap of $2 billion, the company plays a crucial role in supporting infrastructure and energy projects, which are vital for economic growth and development.

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 3.33% decline in stock price the following day. The revenue figures were not disclosed, which adds uncertainty to investor sentiment.

Management Promises & Guidance

Expectations

Wall Street Expectations

Investors are cautious ahead of DNOW's earnings report, especially after the significant miss last quarter. The lack of analyst estimates adds to the uncertainty surrounding expectations for this quarter.

Bull Case

If DNOW can show a rebound in EPS and revenue growth, it could signal a recovery in demand for its products and services, potentially boosting investor confidence.

Bear Case

Continued underperformance or another earnings miss could lead to further declines in stock price, as investors may lose faith in the company's ability to execute its business strategy.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will be the EPS for Q2 2026, and how does it compare to previous quarters?

Given the significant miss last quarter, investors will closely monitor EPS to gauge the company's recovery and operational efficiency.

What are the revenue figures for Q2 2026, and how do they reflect market demand?

Revenue insights will help investors understand if the company is gaining traction in its markets or facing ongoing challenges.

Edge

What the Street Is Missing

Why consensus could be wrong

The market may be underestimating the potential for a recovery in demand for DNOW's products, especially given the cyclical nature of the industrial sector.

Supporting Evidence

The options market is pricing a significant move, indicating that traders expect volatility and potential surprises.

DNOW has a history of beating EPS estimates, which could suggest that the company has the ability to surprise positively this quarter.

Key Risk

If the EPS comes in above $0.05, it could shift the narrative around the company's growth potential.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is critical as it will indicate whether DNOW can recover from recent disappointments and regain investor confidence.

Bull Confirmed If

An EPS of $0.05 or higher would confirm a positive turnaround in performance.

Bear Confirmed If

An EPS below $0.01 would reinforce concerns about the company's growth prospects.

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 of about 7.71%, indicating that traders expect volatility around the earnings announcement.

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 the stock could see a modest uptick, confirming a positive trend in operational recovery.

In-Line / Cautious

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

Miss

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

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on market demand for industrial products and services.
2Details on cost management strategies and their impact on profitability.
3Insights into customer acquisition and retention efforts.
4Any commentary on supply chain challenges and how they are being addressed.
5Management's outlook for the remainder of the fiscal year.

See the full picture

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

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Company Snapshot

DNOW Inc. operates in the industrial sector, specifically focusing on trading and distribution of 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 is closely watched by investors.

N/A

Revenue Growth

Revenue growth reflects the company's ability to increase sales and expand its market share, which is important for long-term sustainability.

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

Bull Case

If DNOW can show a rebound in EPS and revenue growth, it could signal a recovery in demand for its products and services, potentially boosting investor confidence.

Bear Case

Continued underperformance or another earnings miss could lead to further declines in stock price, as investors may lose faith in the company's ability to execute its business strategy.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will be the EPS for Q2 2026, and how does it compare to previous quarters?

Given the significant miss last quarter, investors will closely monitor EPS to gauge the company's recovery and operational efficiency.

What are the revenue figures for Q2 2026, and how do they reflect market demand?

Revenue insights will help investors understand if the company is gaining traction in its markets or facing ongoing challenges.

Edge

What the Street Is Missing

Why consensus could be wrong

The market may be underestimating the potential for a recovery in demand for DNOW's products, especially given the cyclical nature of the industrial sector.

Supporting Evidence

The options market is pricing a significant move, indicating that traders expect volatility and potential surprises.

DNOW has a history of beating EPS estimates, which could suggest that the company has the ability to surprise positively this quarter.

Key Risk

If the EPS comes in above $0.05, it could shift the narrative around the company's growth potential.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is critical as it will indicate whether DNOW can recover from recent disappointments and regain investor confidence.

Bull Confirmed If

An EPS of $0.05 or higher would confirm a positive turnaround in performance.

Bear Confirmed If

An EPS below $0.01 would reinforce concerns about the company's growth prospects.

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 of about 7.71%, indicating that traders expect volatility around the earnings announcement.

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 the stock could see a modest uptick, confirming a positive trend in operational recovery.

In-Line / Cautious

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

Miss

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

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on market demand for industrial products and services.
2Details on cost management strategies and their impact on profitability.
3Insights into customer acquisition and retention efforts.
4Any commentary on supply chain challenges and how they are being addressed.
5Management's outlook for the remainder of the fiscal year.