A month has gone by since the last earnings report for Cactus, Inc. (WHD Quick QuoteWHD - Free Report) . Shares have added about 4.9% 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 Cactus due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.

Cactus Q1 Earnings Beat Estimates, Revenues Rise Y/Y

Cactus, Inc. reported adjusted earnings of 70 cents per share in the first quarter of 2026, down 4.1% from the year-ago level of 73 cents but ahead of the Zacks Consensus Estimate of 65 cents by 7.7%.

Quarterly revenues rose 38.5% year over year to $388.35 million and topped the consensus mark of $380.81 million by 2%. Remaining performance obligations ended the quarter at $537.5 million, led by international Pressure Control work tied to the newly added Cactus International business.

The better-than-expected quarterly results can be attributed to higher revenues in the Pressure Control segment, aided by the acquisition of Cactus International. However, several transaction-related and acquisition-accounting charges partly offset the gains.

Pressure Control Benefits From Cactus International Deal

The quarter marked the first period to include results from Cactus International, following the Jan. 1 closing of the majority-interest acquisition. Management stated that Pressure Control revenues stayed resilient even as the conflict in the Middle East created shipment delays and operational friction.

Pressure Control revenues totaled $300.2 million for the quarter, higher than $190.3 million in the year-ago quarter and above our estimate of $300 million. Segment operating income totaled $38.6 million, down from $54.3 million in the prior-year quarter, reflecting the impact of purchase price accounting, including an inventory step-up and intangible value amortization.

Adjusted segment EBITDA for Pressure Control was $71.8 million, higher than $64.8 million in the prior-year quarter. Our estimate for the same was pinned at $74.9 million. Adjusted segment EBITDA margin was 23.9%.

Spoolable Technologies Segment Holds Up

Management highlighted that the Spoolable Technologies segment recorded non-U.S. revenues in the quarter, with strength cited in the Middle East and Latin America, alongside better-than-expected domestic activity. The segment witnessed stronger-than-typical seasonal demand and continued international order growth.

Spoolable Technologies' revenues were $89.9 million, lower than $92.6 million in the year-ago quarter and above our estimate of $83.7 million. The segment's operating income totaled $23.6 million, slightly lower than $23.9 million in the prior-year quarter.

Adjusted segment EBITDA totaled $32.9 million, translating to a 36.6% margin, as improved operating leverage helped offset higher input costs. This is comparable to adjusted segment EBITDA of $33.5 million, with a 36.2% margin in the year-ago period. On the call, management also pointed to a recent increase in polyethylene pricing as a cost item that the team expects to address through mitigation and recovery actions.

WHD’s Adjusted Profit Hit by Purchase Accounting

While the acquisition expanded Cactus’ footprint, it also weighed on reported profitability comparisons due to non-cash items tied to purchase accounting. Operating income for the quarter totaled $49.5 million compared with $68.6 million in the first quarter of 2025. The company posted adjusted net income of $56.2 million, even as the income statement reflected several transaction-related and acquisition-accounting charges.

Adjusted EBITDA was $100.1 million, and key add-backs included $10.4 million of inventory step-up expenses, $5.8 million of transaction-related expenses and $7 million of stock-based compensation. Management emphasized that these adjustments are intended to improve comparability as integration work progresses.

Strong Cash Flow and Dividend Payout 

Cactus generated $128.3 million of cash flow from operations during the quarter, reflecting solid underlying cash conversion even as working-capital timing was influenced by acquisition-related restructuring steps. The company ended March with $291.6 million in cash and cash equivalents, including $97.8 million retained to finalize certain restructuring activities connected to Cactus International.

Capital allocation remained shareholder-friendly. The company paid a quarterly dividend of 14 cents per share, with cash outflows of $11.7 million, including related distributions. Net capital expenditures were $9 million, and the company repurchased $7.9 million of shares during the quarter while maintaining no bank debt outstanding.

Q2 Outlook Shift With Conflict Effects

For the second quarter, management expects Pressure Control revenues to be approximately flat. Stronger sentiment and activity in the domestic market are expected to be offset by the full-quarter impact of the Middle East conflict on the Cactus International joint venture. Pressure Control adjusted EBITDA margins are guided to 22-24%, excluding stock-based compensation and inventory write-up amortization tied to purchase accounting.

Spoolable Technologies’ revenues are expected to grow at a mid-single-digit pace, driven primarily by higher North American activity, with adjusted EBITDA margins guided to 36-38%. On costs and planning items, management cited a 19% expected effective tax rate, second-quarter depreciation and amortization of roughly $37 million and reiterated full-year 2026 net capital expenditures of $40-$50 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a flat trend in estimates review.

VGM Scores

Currently, Cactus has a nice Growth Score of B, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Cactus has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Cactus belongs to the Zacks Oil and Gas - Integrated - United States industry. Another stock from the same industry, ConocoPhillips (COP Quick QuoteCOP - Free Report) , has gained 3.8% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

ConocoPhillips reported revenues of $16.05 billion in the last reported quarter, representing a year-over-year change of -6.1%. EPS of $1.89 for the same period compares with $2.09 a year ago.

For the current quarter, ConocoPhillips is expected to post earnings of $2.72 per share, indicating a change of +91.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +18% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for ConocoPhillips. Also, the stock has a VGM Score of B.