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DNOW · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is DNOW Inc. (DNOW) stock moving?
DNOW's Q3 2026 results, released Nov 5, were mixed. Revenue of $1.337B missed the $1.351B estimate, while adjusted EPS of $0.18 beat the $0.14 estimate. Adjusted EBITDA of $76M nearly doubled the first quarter, operating cash flow reached $120M, and net debt leverage fell to 1.1x. The shares dropped from $15.37 to $13.72 on Nov 5 on 5.7M volume, about 2.5 times the roughly 2.3M daily average of the prior three weeks, and fell to $13.27 on Nov 6 on 6.5M volume. Susquehanna kept a positive view but cut its target to $18. Freedom Broker upgraded the stock to Buy with the same $18 target on Nov 9, and the shares rebounded to $13.94 on 4.0M volume before closing at $13.73 on Nov 10 on lighter volume of 2.4M. The $18 target sits about 31% above the Nov 10 close. Buybacks ($92M year-to-date against a $160M program) and the balance-sheet improvement support the case, but the revenue miss, the heavy-volume selloff, and a rebound that has so far stalled near $14 leave the near-term picture unresolved.
News behind the analysis
- Dnow Q3 Adj. EPS $0.18 Beats $0.14 Estimate, Sales $1.337B Miss $1.351B EstimateAdjusted EPS of $0.18 beat the $0.14 estimate, while sales of $1.337B missed the $1.351B estimate.
- DNOW Inc. Reports Third Quarter 2026 Financial ResultsQ3 2026 revenue was $1,337 million and adjusted EBITDA was $76 million. Management repurchased $92 million of stock year-to-date under its $160 million program.
- Dnow Q3 2026 Earnings Call TranscriptManagement discussed the third-quarter 2026 results, which reported revenue increases in all three geographic segments and operating cash flow of $120 million.
- Susquehanna Maintains Positive on Dnow, Lowers Price Target to $18Susquehanna kept its positive rating on DNOW but reduced its price target to $18.
- Freedom Broker Upgrades DNOW to Buy from HoldFreedom Broker upgraded DNOW from Hold to Buy and kept a $18.00 price target.
- Freedom Broker Upgrades Dnow to Buy, Maintains Price Target to $18Freedom Broker moved its rating on Dnow to Buy and kept its $18 price target.
About DNOW Inc.
DNOW is a Houston-based distributor of pipe, valves and fittings (PVF), pumps, fabricated equipment and automation products used by oil and gas, midstream, gas utility, water and other industrial customers. Its 2025 merger with MRC Global roughly doubled its size, to about $5 billion in expected 2026 revenue, and moved its customer base further toward steadier infrastructure markets such as midstream pipelines, gas utilities and, more recently, data centers.
How it makes money
It buys products from manufacturers and resells them, earning a gross margin of roughly 20% on sales. Most revenue comes from the U.S. segment, which is split mainly across midstream, upstream drilling and production, and gas utility customers, plus a Process Solutions unit that sells pumps, fabricated equipment and automation systems. Canada and International operations, including the U.K., Australia and the Middle East, make up the rest. Quarterly revenue was about $1.34 billion in Q3 2026.
What usually moves DNOW
- Oil and gas drilling and production activity
- Midstream, LNG and gas utility infrastructure spending
- MRC Global integration, cost savings and IT system (ERP) rollout
- Steel and pipe prices
- Share buybacks and acquisitions