It has been about a month since the last earnings report for Nov Inc. (NOV). Shares have added about 6.1% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Nov Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
NOV Q2 Earnings Surpass Estimates, Revenues Decrease Y/Y
NOV reported second-quarter 2026 adjusted earnings of 31 cents per share, which beat the Zacks Consensus Estimate of 16 cents. The bottom line also increased 6.9% from the year-ago quarter’s 29 cents, driven by outperformance of the Energy Equipment segment.
The oil and gas equipment and services company’s total revenues of $2.1 billion beat the Zacks Consensus Estimate by $39 million. However, NOV’s revenues fell 2.5% from the year-ago quarter’s figure of $2.2 billion due to lower year-over-year revenues from the Energy Products and Services segment.
In the second quarter, NOV repurchased approximately 3.2 million shares of common stock for a total of $63 million. The company also returned $64 million in dividends, resulting in a total of $127 million in capital to its shareholders during the quarter.
Q2 Segmental Performances
Energy Products and Services: The unit reported second-quarter revenues of $974 million, which beat our estimate of $951 million, driven by market share gains by the segment’s drill bit and artificial lift operations and continued growth in digital services. However, the figure decreased from the prior-year quarter’s reported number by 5% due to lower capital equipment sales. Adjusted EBITDA of $144 million beat our estimate of $110 million but decreased from $146 million in the corresponding period of 2025.
Energy Equipment: Revenues in this segment increased marginally by 1% year over year to $1.22 billion, beating our estimate by 2.7%.
Adjusted EBITDA of $200 million increased from the year-earlier quarter’s $158 million and beat our estimate of $145 million. Strong execution on offshore production projects, which are nearing completion, and a more favorable sales mix drove the improvement in the company’s revenues and profitability.
In the second quarter of 2026, the segment registered $474 million in new orders. Shipments from the backlog amounted to $638 million, resulting in a book-to-bill ratio of 74.
As of June 30, 2026, the backlog for Energy Equipment capital orders was $4.1 billion, reflecting a $220 million decrease from the prior year.
Balance Sheet
As of June 30, the company had cash and cash equivalents of $1.2 billion and long-term debt of $1.7 billion with a debt-to-capitalization of 21.3%. NOV had $1.5 billion available on its primary revolving credit facility during the same time.
The company generated an operating cash flow of $17 million and a negative free cash flow of $64 million in this quarter.
Significant & Strategic Advancements
NOV’s broad operational and technology achievements underscore its strong position in offshore energy, drilling automation and digital solutions. The company secured multiple contracts for production processing equipment, seawater treatment systems, FPSO topside modules and subsea structures across key offshore markets, including West Africa, Indonesia, Suriname, Brazil and Southeast Asia, reinforcing its leadership in offshore infrastructure.
NOV also expanded adoption of its proprietary technologies, such as Bondstrand fiberglass piping, Delta drill pipe connections, Zap-Lok pipeline systems and XLC-S connectors, reflecting strong customer demand for safer, more efficient and high-performance solutions. The company advanced its digital transformation strategy by deploying AI-enabled equipment diagnostics, remote rig monitoring and real-time data acquisition through its Max Platform while strengthening its capabilities with the acquisitions of Rigsmart and Cranesmart.
In addition, growing orders for ATOM RTX robotics, NOVOS automation systems and Downhole Broadband Solutions demonstrate increasing industry demand for automation, real-time drilling intelligence and productivity-enhancing technologies that improve operational efficiency, safety and drilling performance across global energy markets.
Q3 & 2026 Outlook
For the third quarter of 2026, NOV expects year-over-year consolidated revenues to increase by up to 2%, with adjusted EBITDA expected to be between $240 million and $270 million.
NOV expects third-quarter 2026 performance to improve sequentially, assuming operating conditions in the Middle East remain broadly consistent with those seen in the second quarter. Management forecasts both sequential and year-over-year revenue growth, supported by stronger activity across key markets, healthy free cash flow generation in the second half of the year and continued benefits from operational efficiency initiatives.
The Energy Equipment segment is expected to post revenues that are 1-3% lower year over year, with EBITDA in the range of $160-$190 million, as growth in drilling capital equipment and aftermarket services is partly offset by the completion of several large projects.
Meanwhile, the Energy Products and Services segment is projected to deliver stronger performance, with revenues rising 5-7% year over year and EBITDA of $130-$150 million, driven by seasonal Eastern Hemisphere demand, improved backlog conversion in drill pipe and composite solutions, and market share gains from differentiated technologies.
The guidance excludes any additional IEEPA tariff refunds and reflects management's expectation of continued operational discipline, margin improvement and stronger cash generation in the second half of 2026.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -6.7% due to these changes.
VGM Scores
At this time, Nov Inc. has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Nov Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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NOV Inc. (NOV): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).