10-Q · April 28, 2026
NOV reported 1Q26 revenue of $2,052 million, down from $2,103 million in 1Q25, while GAAP net income fell to $19 million (down $54 million year‑over‑year) and diluted EPS was $0.05. Adjusted EBITDA declined to $177…
Earnings analysis · 10-Q
NOV earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
NOV delivered a strong sequential earnings recovery: Q2 revenue rose 4% to $2.134 billion, operating margin expanded to 9.0%, and diluted EPS reached $0.31. The improvement was led by Energy Equipment offshore-project…
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NOV delivered a strong sequential earnings recovery: Q2 revenue rose 4% to $2.134 billion, operating margin expanded to 9.0%, and diluted EPS reached $0.31. The improvement was led by Energy Equipment offshore-project execution, favorable mix, and approximately $40 million of tariff refunds, while Energy Products and Services revenue fell 5% amid Middle East-related capital-equipment disruption. The filing's principal offsets are negative $155 million implied six-month free cash flow, a $220 million year-over-year backlog decline, and earnings sensitivity to the nonrecurring tariff-refund benefit.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.31
- Operating margin
- 9%
What stood out
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Revenue recovered sequentially and beat consensus
Q2 revenue was $2.134 billion, up 4% sequentially from $2.052 billion in Q1 2026, though down 2% from $2.188 billion in Q2 2025. Revenue exceeded the provided consensus estimate of $2.086 billion by 2.3%.
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Margin and EPS improved sharply
Operating profit reached $193 million, or 9.0% of sales, versus 6.5% sequentially and 5.8% in Q2 2025. Diluted EPS of $0.31 rose from $0.05 in Q1 2026 and $0.29 a year earlier, exceeding the $0.16 consensus estimate.
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Energy Equipment drove profit expansion
Energy Equipment operating profit increased $55 million year over year to $177 million, lifting its operating margin to 14.5%. Offshore-project execution and favorable mix, plus approximately $14 million of tariff refunds, were cited as drivers.
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Offshore backlog supports visibility
Energy Equipment booked $474 million of new orders, up $54 million from $420 million a year earlier. Its $4.08 billion backlog is 57% offshore and 94% international, providing meaningful multiyear activity visibility.
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Energy-security backdrop supports demand
Management expects heightened energy-security investment to increase demand for NOV equipment and technology, following a 48.2% year-over-year increase in average WTI prices to $95.75 per barrel in Q2.
What to watch
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Products and Services sales remain under pressure
Energy Products and Services revenue declined $51 million, or 5%, year over year to $974 million, as Middle East conflict affected capital-equipment sales. Its adjusted EBITDA declined $2 million to $144 million despite approximately $26 million of tariff refunds.
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Q2 profit benefited from tariff refunds
The $193 million operating profit included roughly $40 million of tariff refunds. Excluding this benefit, reported profitability and the 9.0% operating margin would have been materially lower.
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Working capital drove negative cash generation
Six-month operating cash flow was negative $9 million, driven primarily by working-capital movements, while capital expenditures were $146 million; implied six-month free cash flow was negative $155 million. Cash declined $388 million from $1.552 billion at year-end to $1.164 billion.
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Backlog declined as shipments exceeded orders
Energy Equipment backlog was $4.08 billion, down $220 million from $4.30 billion a year earlier, and quarterly orders of $474 million were below $638 million shipped from backlog, a 74% book-to-bill ratio.
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No formal risk-factor update; FX exposure persists
No risk-factor changes were disclosed versus the 2025 Form 10-K. Nevertheless, NOV quantified foreign-currency transactional exposure at $592 million; a hypothetical 10% currency move could reduce net income by $47 million.
Management's outlook
No company-wide numeric revenue or EPS guidance was provided in the 10-Q. NOV expects approximately 29% of its $4.08 billion Energy Equipment backlog to convert to revenue during the remainder of 2026; it also said first-half 2026 orders are expected to support higher Energy Products and Services shipments in the second half.
Earlier filings 4
10-K · February 12, 2026
NOV’s 2025 10-K shows a company with a large, global revenue base and a meaningful capital-equipment backlog ($4.34 billion at December 31, 2025) but operating margins and profitability remain pressured. Management…
10-Q · October 28, 2025
NOV reported third-quarter 2025 revenue of $2,176 million, down 1% year‑over‑year, while net income fell 68% to $42 million, or $0.11 per share. Operating profit declined 45% to $107 million (4.9% of sales) and Adjusted…
10-Q · July 29, 2025
NOV reported Q2 2025 revenue of $2,188 million, down 1% year-over-year, while operating profit fell to $143 million (6.5% of sales) and net income declined 52% to $108 million ($0.29 per share). Adjusted EBITDA was $252…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.