NOV Inc. NOV is set to release first-quarter 2026 results on April 27. The Zacks Consensus Estimate for earnings is pegged at 18 cents per share, and that for revenues is pinned at $2.05 billion.
Let us delve into the factors that are likely to have influenced NOV’s performance in the first quarter. But first, it is worth taking a look at the company’s performance in the last reported quarter.
Highlights of Q4 Earnings & Surprise History
In the last reported quarter, the Houston, TX-based oil and gas equipment company missed the consensus mark due to a decline in global drilling activity. NOV reported adjusted earnings per share (EPS) of 2 cents, missing the Zacks Consensus Estimate of 25 cents. However, revenues of $2.3 billion were up 4.9% from the consensus mark. NOV’s earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 43.4%.
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 first-quarter 2026 earnings has been revised 5.3% downward over the past seven days. The estimated figure indicates a 5.3% year-over-year decrease. The Zacks Consensus Estimate for revenues indicates a 2.4% decrease from the year-ago period.
Factors to Consider Ahead of NOV’s Q1 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 highlighted continued challenges in the market during the first quarter of 2026, as multiple operational and macro headwinds converged. It has already pre-announced results below prior guidance, citing Middle East conflict-driven disruptions that reduced revenues by around $54 million and EBITDA by approximately $32 million, with delays in high-margin capital equipment and spare parts shipments disproportionately impacting profitability. These disruptions also triggered higher freight and logistics costs, alongside weaker manufacturing absorption, amplifying margin pressure. Additionally, management flagged a seasonally weak first quarter, with Energy Products & Services revenues expected to be down 6-8% year over year, compounded by ongoing declines in North American activity and softer global drilling demand. Tariff inflation, supply chain cost spikes and limited pricing power in a weak market further constrain margins. The Zacks Consensus Estimate for NOV’s revenues for the first quarter of 2026 is expected to decline 2.4% to $2.05 billion.
On a positive note, even with the above-mentioned challenges, NOV retains upside potential driven by resilient international and offshore demand, strong backlog execution and continued growth in high-margin offshore production technologies. Operational efficiencies and cost-out initiatives are progressing, while strong free cash flow generation and a robust balance sheet provide flexibility. Any faster-than-expected recovery in shipments or easing of disruptions could support upside.
What Does Our Model Say About NOV Stock?
The proven Zacks model does not conclusively predict 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. However, that’s not 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 -5.71%. 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 #3.
Stocks to Consider
Here are some 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 season.
ARC Resources Ltd. AETUF has an Earnings ESP of +21.55% and sports a Zacks Rank #1 at present. The firm is scheduled to release earnings on April 28. You can see the complete list of today’s Zacks #1 Rank stocks here.
ARC Resources is engaged in the exploration, acquisition and development of oil and natural gas properties in western Canada. AETUF’s earnings missed the Zacks Consensus Estimate in one of the trailing four quarters, beat the same in two and were in line in one of the quarters, delivering an average surprise of 2.2%.
Enterprise Products Partners L.P. EPD currently has an Earnings ESP of +1.91% and a Zacks Rank of 2. It is scheduled to release its first-quarter 2026 earnings on April 28.
The Zacks Consensus Estimate for EPD’s 2026 EPS indicates 7.1% year-over-year growth. Valued at around $79.3 billion, EPD’s shares have gained 22% in a year.
Antero Resources Corporation AR has an Earnings ESP of +5.46% and a Zacks Rank #3 at present. The firm is scheduled to release earnings on April 29.
Antero Resources is an independent exploration and production company focused on the development of natural gas, NGLs and oil resources primarily in the Appalachian Basin. The Zacks Consensus Estimate for 2026 EPS indicates 137.4% year-over-year growth. Valued at around $11.3 billion, AR’s shares have risen 14.1% in a year.
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Enterprise Products Partners L.P. (EPD): Free Stock Analysis Report
NOV Inc. (NOV): Free Stock Analysis Report
Arc Resources Ltd. (AETUF): Free Stock Analysis Report
Antero Resources Corporation (AR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).