NOV US Russell 1000 Earnings call
NOV Inc. (NOV) · Q2 2026 results and valuation
Share price: $18.00 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 29 Jul 2026 and 28 Apr 2026
Net income up 489.5% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+489.5%
Net income vs Q1 2026
Outlook given
Net income 112.0M vs 19.0M
Revenue +4.0%
Against the same quarter last year (Q2 2025) it is −1.8%, so the move on last quarter looks seasonal or timing-related rather than a trend.
2 · How management spoke
Typical
More upbeat than 62% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
Key theme
Adjusted operating profit reached $190 million, or 9% of sales, which included a $40 million benefit from AIPA tariff refunds.
Valuation
Is NOV Inc. undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 6.5% growth a year (3-year revenue growth), the model's fair value is $41.00 a share — the stock trades 56% below it. Today's price assumes −3.5% growth a year.
Current price
$18.00
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
-3.5% for 10 yrs
Fair value / share
$41.00
Buy below
$30.75
Price vs fair value
Undervalued 56%
Price vs buy-below price
Undervalued 41%
Read between the lines
-
Guidance
NOV expects sequential and year-over-year revenue growth in the third quarter and plans to deliver healthy free cash flow in the second half of the year.
Source quote
“For the third quarter, we expect sequential and year over year revenue growth and we expect to deliver healthy free cash flow in the second half of the year.”
-
Guidance
The company expects working capital to benefit cash generation during the second half of the year, consistent with trends experienced in both 2024 and 2025.
Source quote
“We expect working capital to benefit cash generation during the second half of the year, consistent with trends experienced in both 2024 and 2025 and we still anticipate...”
-
Figure
NOV reported revenues of $2.13 billion and a net income of $112 on a GAAP basis for the second quarter of 2026.
Source quote
“GAAP basis, for the second quarter of 26, NOV reported revenues of $2.13 billion and a net income of $112...”
-
Fading
Margins improved this quarter as the company focused on expanding the Energy Equipment segment's growth and reducing cost structures following $30 million in tariff costs last quarter.
Source quote
“First-quarter margins were negatively impacted by about $30 million in tariff costs year over year and a lower mix of aftermarket... ...high-performance drill bits and increasing adoption of our digital services, offset by lower global drilling activity levels. We are focused on improving margins, both through accretive top-line growth—with our Energy Equipment segment achieving four straight quarters of year-over-year revenue growth—and reducing our cost structure.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Increasing offshore floater utilization and improving day rates will continue to drive stronger demand for our rig aftermarket business which we expect to grow meaningfully in the second half of...”
“Our artificial lift business also benefited from higher activity and market share gains of our electric submersible pump technologies, across the Permian and Bakken, posting strong revenue growth as the...”
“Strong bookings increasing customer demand for differentiated technologies, and increased backlog positions these businesses for improved performance during the second half of the year.”
Full figures
USD · ROIC.AI fundamentals (NYSE:NOV, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 2.13B | 2.05B | +4.0% | 2.19B | −2.5% |
| Gross profit | 521.0M | 379.0M | +37.5% | 446.0M | +16.8% |
| Operating income | 193.0M | 47.0M | +310.6% | 143.0M | +35.0% |
| Net income | 112.0M | 19.0M | +489.5% | 114.0M | −1.8% |
| EPS | 0.31 | 0.05 | +524.0% | 0.29 | +7.6% |
| P/E today 78.0 | — | 75.2 | — | 10.3 | — |
Topics
Most discussed now
- Margins improved year over year supported by strong operational execution on project nearing...
- For the third quarter, NOV's guidance assumes that the operating environment remains consistent with the conditions during the second…
- At the same time, NOV is seeing encouraging signs that customer investment is beginning to broaden across the markets it...
- Things slowly started resuming, during the second quarter, and that sort of gets us to where NOV is, today.
- Logistics remain, extremely constrained, in and out of the strait, which limited ability to deal with logistics from NOV's business...
Faded since Q1 2026
- Fading NOV's subsea flexible pipe business continued its outstanding performance, achieving record quarterly EBITDA for the third consecutive…
- Dropped It starts as it usually does: pricing and utilization go up for service companies and drilling contractors, cash flow improves,...
- Fading The conflict in the Middle East resulted in delayed shipments of capital equipment and spare parts and increased operating costs...
- Fading NOV is confident in how it is positioning the company for the future and remain intently focused on delivering long-term...
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Shareholder vote results; Other events · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Director or officer change · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K