Have you evaluated the performance of DNOW's (DNOW Quick QuoteDNOW - Free Report) international operations during the quarter that concluded in September 2025? Considering the extensive worldwide presence of this energy and industrial distribution company, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.

In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.

Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.

Our review of DNOW's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.

The company's total revenue for the quarter amounted to $634 million, marking an increase of 4.6% from the year-ago quarter. We will next turn our attention to dissecting DNOW's international revenue to get a clearer picture of how significant its operations are outside its main base.

A Closer Look at DNOW's Revenue Streams Abroad

Canada generated $53 million in revenues for the company in the last quarter, constituting 8.4% of the total. This represented a surprise of -4.93% compared to the $55.75 million projected by Wall Street analysts. Comparatively, in the previous quarter, Canada accounted for $48 million (7.6%), and in the year-ago quarter, it contributed $65 million (10.7%) to the total revenue.

International accounted for 8.5% of the company's total revenue during the quarter, translating to $54 million. Revenues from this region represented a surprise of -4%, with Wall Street analysts collectively expecting $56.25 million. When compared to the preceding quarter and the same quarter in the previous year, International contributed $52 million (8.3%) and $59 million (9.7%) to the total revenue, respectively.

Prospective Revenues in International Markets

It is projected by analysts on Wall Street that DNOW will post revenues of $603.35 million for the ongoing fiscal quarter, an increase of 5.7% from the year-ago quarter. The expected contributions from Canada and International to this revenue are 9.3%, and 9.5%, translating into $55.9 million, and $57.5 million, respectively.

For the full year, the company is projected to achieve a total revenue of $2.47 billion, which signifies a rise of 4% from the last year. The share of this revenue from various regions is expected to be: Canada at 8.9% ($220.2 million), and International at 9.3% ($228.45 million).

Key Takeaways

Relying on global markets for revenues presents both prospects and challenges for DNOW. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.

With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.

At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short-term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.

Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.

DNOW currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

A Review of DNOW's Recent Stock Market Performance

The stock has declined by 1.9% over the past month compared to the 0.3% increase of the Zacks S&P 500 composite. Meanwhile, the Zacks Industrial Products sector, which includes DNOW,has increased 3.6% during this time frame. Over the past three months, the company's shares have experienced a loss of 5.6% relative to the S&P 500's 6.4% increase. Throughout this period, the sector overall has witnessed a 5.5% increase.