NOV Inc. NOV is set to release second-quarter 2026 results on July 28. The Zacks Consensus Estimate for earnings is pegged at 16 cents per share, and that for revenues is pinned at $2.1 billion.
Let us delve into the factors that are likely to have influenced NOV’s performance in the second quarter. But first, it is worth taking a look at NOV’s performance in the last reported quarter.
Highlights of Q1 Earnings & Surprise History
In the last reported quarter, the Houston, TX-based oil and gas equipment company missed the consensus mark due to conflict in the Middle East, which disrupted logistics, delayed deliveries and increased operational costs. NOV reported adjusted earnings of 15 cents per share, missing the Zacks Consensus Estimate of 17 cents. However, revenues of $2.05 billion beat the Zacks Consensus Estimate by $2 million. NOV’s earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 40.3%.
This is depicted in the graph below:
NOV Inc. Price and EPS Surprise
NOV Inc. price-eps-surprise | NOV Inc. Quote
NOV Stock’s Trend in Estimate Revision
The Zacks Consensus Estimate for second-quarter 2026 earnings has remained unchanged over the past 30 days. The estimated figure indicates a 44.8% year-over-year decrease. The Zacks Consensus Estimate for revenues indicates a 4.7% decrease from the year-ago period.
Factors to Consider Ahead of NOV’s Q2 Release
NOV makes money by selling tools and equipment used to drill and produce oil and gas. These include things like drill bits, pipes and machinery for onshore and offshore drilling.
The company’s outlook appears somewhat positive for the second quarter of 2026, as much of the first-quarter weakness stemmed from shipment delays rather than lost demand, with several deferred deliveries expected to be recognized in the quarter to be reported. NOV had reported its strongest first-quarter Energy Equipment order intake since 2019, record bookings in its fiberglass business and a 2.5-year high drill pipe backlog, supporting healthy revenue conversion. Strong offshore demand, record profitability in the subsea flexible pipe business, rising adoption of digital services and drill bit market share gains further strengthen the outlook. In addition, ongoing cost-reduction initiatives, including facility consolidations and workforce optimization, should partially offset inflationary pressures and support margin performance.
However, on a bearish note, NOV could still miss expectations as persistent Middle East disruptions continue to delay shipments, inflate freight costs and weigh on manufacturing efficiency. Management also expects the Energy Equipment and Energy Products & Services segments to post year-over-year revenue declines in the to-be-reported quarter, while weak global drilling activity, tariff-related costs and an unfavorable aftermarket revenue mix remain near-term headwinds.
What Does Our Model Say About NOV Stock?
The proven Zacks model predicts an earnings beat for NOV this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. That is exactly the case here.
NOV’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is +19.69%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
NOV’s Zacks Rank: NOV currently carries a Zacks Rank #2.
Other Stocks to Consider
Here are some other firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.
Enterprise Products Partners L.P. EPD has an Earnings ESP of +1.37% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Enterprise Products is scheduled to release earnings on July 30. The Zacks Consensus Estimate for 2026 earnings indicates year-over-year growth of about 9.8%. Valued at around $84.1 billion, EPD’s shares have gained 23.1% in a year.
TC Energy Corporation TRP has an Earnings ESP of +5.53% and a Zacks Rank #3 at present. It is scheduled to release earnings on July 30.
The Zacks Consensus Estimate for TRP’s 2026 earnings indicates year-over-year growth of about 8.4%. Valued at around $72.8 billion, TRP’s shares rose 48.2% in a year.
Oil States International, Inc. OIS currently has an Earnings ESP of +27.27% and a Zacks Rank #3. It is scheduled to release earnings on July 30.
Notably, the Zacks Consensus Estimate for OIS’ 2026 earnings indicates year-over-year growth of about 43.2%. Valued at around $525.5 million, OIS’ shares have jumped 50.1% in a year.
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NOV Inc. (NOV): Free Stock Analysis Report
Enterprise Products Partners L.P. (EPD): Free Stock Analysis Report
Oil States International, Inc. (OIS): Free Stock Analysis Report
TC Energy Corporation (TRP): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).