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NOV Q2 Earnings Surpass Estimates, Revenues Decrease Y/Y
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Key Takeaways
NOV topped Q2 earnings and sales estimates despite a 2.5% year-over-year revenue decline.
NOV's Energy Equipment strength lifted profitability, while Energy Products and Services sales fell.
NOV expects Q3 revenue growth, stronger cash generation and improved margins in second-half 2026.
NOV Inc. (NOV - Free Report) reported second-quarter 2026 adjusted earnings of 31 cents per share, which beat the Zacks Consensus Estimate of 16 cents. The bottom line also increased 6.9% from the year-ago quarter’s 29 cents, driven by outperformance of the Energy Equipment segment.
The oil and gas equipment and services company’s total revenues of $2.1 billion beat the Zacks Consensus Estimate by $39 million. However, NOV’s revenues fell 2.5% from the year-ago quarter’s figure of $2.2 billion due to lower year-over-year revenues from the Energy Products and Services segment.
In the second quarter, NOV repurchased approximately 3.2 million shares of common stock for a total of $63 million. The company also returned $64 million in dividends, resulting in a total of $127 million in capital to its shareholders during the quarter.
Q2 Segmental Performances of NOV
Energy Products and Services: The unit reported second-quarter revenues of $974 million, which beat our estimate of $951 million, driven by market share gains by the segment’s drill bit and artificial lift operations and continued growth in digital services. However, the figure decreased from the prior-year quarter’s reported number by 5% due to lower capital equipment sales. Adjusted EBITDA of $144 million beat our estimate of $110 million but decreased from $146 million in the corresponding period of 2025.
Energy Equipment: Revenues in this segment increased marginally by 1% year over year to $1.22 billion, beating our estimate by 2.7%.
Adjusted EBITDA of $200 million increased from the year-earlier quarter’s $158 million and beat our estimate of $145 million. Strong execution on offshore production projects, which are nearing completion, and a more favorable sales mix drove the improvement in the company’s revenues and profitability.
In the second quarter of 2026, the segment registered $474 million in new orders. Shipments from the backlog amounted to $638 million, resulting in a book-to-bill ratio of 74.
As of June 30, 2026, the backlog for Energy Equipment capital orders was $4.1 billion, reflecting a $220 million decrease from the prior year.
NOV’s Balance Sheet
As of June 30, the company had cash and cash equivalents of $1.2 billion and long-term debt of $1.7 billion with a debt-to-capitalization of 21.3%. NOV had $1.5 billion available on its primary revolving credit facility during the same time.
This Zacks Rank #1 (Strong Buy) company generated an operating cash flow of $17 million and a negative free cash flow of $64 million in this quarter.
NOV’s broad operational and technology achievements underscore its strong position in offshore energy, drilling automation and digital solutions. The company secured multiple contracts for production processing equipment, seawater treatment systems, FPSO topside modules and subsea structures across key offshore markets, including West Africa, Indonesia, Suriname, Brazil and Southeast Asia, reinforcing its leadership in offshore infrastructure.
NOV also expanded adoption of its proprietary technologies, such as Bondstrand fiberglass piping, Delta drill pipe connections, Zap-Lok pipeline systems and XLC-S connectors, reflecting strong customer demand for safer, more efficient and high-performance solutions. The company advanced its digital transformation strategy by deploying AI-enabled equipment diagnostics, remote rig monitoring and real-time data acquisition through its Max Platform while strengthening its capabilities with the acquisitions of Rigsmart and Cranesmart.
In addition, growing orders for ATOM RTX robotics, NOVOS automation systems and Downhole Broadband Solutions demonstrate increasing industry demand for automation, real-time drilling intelligence and productivity-enhancing technologies that improve operational efficiency, safety and drilling performance across global energy markets.
NOV’s Q3 & 2026 Outlook
For the third quarter of 2026, NOV expects year-over-year consolidated revenues to increase by up to 2%, with adjusted EBITDA expected to be between $240 million and $270 million.
NOV expects third-quarter 2026 performance to improve sequentially, assuming operating conditions in the Middle East remain broadly consistent with those seen in the second quarter. Management forecasts both sequential and year-over-year revenue growth, supported by stronger activity across key markets, healthy free cash flow generation in the second half of the year and continued benefits from operational efficiency initiatives.
The Energy Equipment segment is expected to post revenues that are 1-3% lower year over year, with EBITDA in the range of $160-$190 million, as growth in drilling capital equipment and aftermarket services is partly offset by the completion of several large projects.
Meanwhile, the Energy Products and Services segment is projected to deliver stronger performance, with revenues rising 5-7% year over year and EBITDA of $130-$150 million, driven by seasonal Eastern Hemisphere demand, improved backlog conversion in drill pipe and composite solutions, and market share gains from differentiated technologies.
The guidance excludes any additional IEEPA tariff refunds and reflects management's expectation of continued operational discipline, margin improvement and stronger cash generation in the second half of 2026.
Important Earnings at a Glance
While we have discussed NOV’s second-quarter results in detail, let us take a look at three other key reports in this space.
Baker Hughes Company (BKR - Free Report) reported second-quarter 2026 adjusted earnings of 64 cents per share, up 2% year over year. The figure beat the Zacks Consensus Estimate of 51 cents by 25.5%. Revenues of $6.74 billion surpassed the consensus mark of $6.49 billion by 3.9%. However, the figure declined 2% from the year-ago quarter. Better-than-expected quarterly results reflected strong OFSE execution, firm IET profitability and record order momentum.
BKR ended June with cash and cash equivalents of $15.73 billion. Long-term debt stood at $15.48 billion at the end of the second quarter.
Halliburton Company (HAL - Free Report) reported second-quarter 2026 adjusted net income per share of 55 cents, marginally beating the Zacks Consensus Estimate of 54 cents. The outperformance was backed by year-over-year revenue growth. However, the bottom line was flat compared with the prior-year level. Meanwhile, the company’s second-quarter revenues of $5.7 billion were up 3.7% year over year and beat the Zacks Consensus Estimate of $5.5 billion. The outperformance was driven by higher revenues in both segments of the company — the Completion and Production segment and the Drilling and Evaluation segment.
Halliburton reported second-quarter capital expenditure of $235 million. As of June 30, 2026, the company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization of 39%.
Liberty Energy Inc. (LBRT - Free Report) reported a second-quarter 2026 adjusted net profit of 9 cents per share, beating the Zacks Consensus Estimate of 7 cents. The outperformance was driven by the company’s focus on AI-driven technology advancements and strong operational execution. However, the bottom line decreased from the year-ago quarter’s profit of 12 cents due to increased year-over-year costs and expenses. LBRT's revenues totaled $1.2 billion, which beat the Zacks Consensus Estimate of $1.1 billion. The top line also increased from the prior-year quarter’s $1 billion by 14%, supported by record utilization and a modest pricing uplift along with higher product sales.
As of June 30, Liberty Energy had approximately $555.4 million in cash and cash equivalents. The pressure pumper’s long-term debt of $1.3 billion represented a debt-to-capitalization of 39.5%.
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NOV Q2 Earnings Surpass Estimates, Revenues Decrease Y/Y
Key Takeaways
NOV Inc. (NOV - Free Report) reported second-quarter 2026 adjusted earnings of 31 cents per share, which beat the Zacks Consensus Estimate of 16 cents. The bottom line also increased 6.9% from the year-ago quarter’s 29 cents, driven by outperformance of the Energy Equipment segment.
The oil and gas equipment and services company’s total revenues of $2.1 billion beat the Zacks Consensus Estimate by $39 million. However, NOV’s revenues fell 2.5% from the year-ago quarter’s figure of $2.2 billion due to lower year-over-year revenues from the Energy Products and Services segment.
NOV Inc. Price, Consensus and EPS Surprise
NOV Inc. price-consensus-eps-surprise-chart | NOV Inc. Quote
In the second quarter, NOV repurchased approximately 3.2 million shares of common stock for a total of $63 million. The company also returned $64 million in dividends, resulting in a total of $127 million in capital to its shareholders during the quarter.
Q2 Segmental Performances of NOV
Energy Products and Services: The unit reported second-quarter revenues of $974 million, which beat our estimate of $951 million, driven by market share gains by the segment’s drill bit and artificial lift operations and continued growth in digital services. However, the figure decreased from the prior-year quarter’s reported number by 5% due to lower capital equipment sales. Adjusted EBITDA of $144 million beat our estimate of $110 million but decreased from $146 million in the corresponding period of 2025.
Energy Equipment: Revenues in this segment increased marginally by 1% year over year to $1.22 billion, beating our estimate by 2.7%.
Adjusted EBITDA of $200 million increased from the year-earlier quarter’s $158 million and beat our estimate of $145 million. Strong execution on offshore production projects, which are nearing completion, and a more favorable sales mix drove the improvement in the company’s revenues and profitability.
In the second quarter of 2026, the segment registered $474 million in new orders. Shipments from the backlog amounted to $638 million, resulting in a book-to-bill ratio of 74.
As of June 30, 2026, the backlog for Energy Equipment capital orders was $4.1 billion, reflecting a $220 million decrease from the prior year.
NOV’s Balance Sheet
As of June 30, the company had cash and cash equivalents of $1.2 billion and long-term debt of $1.7 billion with a debt-to-capitalization of 21.3%. NOV had $1.5 billion available on its primary revolving credit facility during the same time.
This Zacks Rank #1 (Strong Buy) company generated an operating cash flow of $17 million and a negative free cash flow of $64 million in this quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
NOV’s Significant & Strategic Advancements
NOV’s broad operational and technology achievements underscore its strong position in offshore energy, drilling automation and digital solutions. The company secured multiple contracts for production processing equipment, seawater treatment systems, FPSO topside modules and subsea structures across key offshore markets, including West Africa, Indonesia, Suriname, Brazil and Southeast Asia, reinforcing its leadership in offshore infrastructure.
NOV also expanded adoption of its proprietary technologies, such as Bondstrand fiberglass piping, Delta drill pipe connections, Zap-Lok pipeline systems and XLC-S connectors, reflecting strong customer demand for safer, more efficient and high-performance solutions. The company advanced its digital transformation strategy by deploying AI-enabled equipment diagnostics, remote rig monitoring and real-time data acquisition through its Max Platform while strengthening its capabilities with the acquisitions of Rigsmart and Cranesmart.
In addition, growing orders for ATOM RTX robotics, NOVOS automation systems and Downhole Broadband Solutions demonstrate increasing industry demand for automation, real-time drilling intelligence and productivity-enhancing technologies that improve operational efficiency, safety and drilling performance across global energy markets.
NOV’s Q3 & 2026 Outlook
For the third quarter of 2026, NOV expects year-over-year consolidated revenues to increase by up to 2%, with adjusted EBITDA expected to be between $240 million and $270 million.
NOV expects third-quarter 2026 performance to improve sequentially, assuming operating conditions in the Middle East remain broadly consistent with those seen in the second quarter. Management forecasts both sequential and year-over-year revenue growth, supported by stronger activity across key markets, healthy free cash flow generation in the second half of the year and continued benefits from operational efficiency initiatives.
The Energy Equipment segment is expected to post revenues that are 1-3% lower year over year, with EBITDA in the range of $160-$190 million, as growth in drilling capital equipment and aftermarket services is partly offset by the completion of several large projects.
Meanwhile, the Energy Products and Services segment is projected to deliver stronger performance, with revenues rising 5-7% year over year and EBITDA of $130-$150 million, driven by seasonal Eastern Hemisphere demand, improved backlog conversion in drill pipe and composite solutions, and market share gains from differentiated technologies.
The guidance excludes any additional IEEPA tariff refunds and reflects management's expectation of continued operational discipline, margin improvement and stronger cash generation in the second half of 2026.
Important Earnings at a Glance
While we have discussed NOV’s second-quarter results in detail, let us take a look at three other key reports in this space.
Baker Hughes Company (BKR - Free Report) reported second-quarter 2026 adjusted earnings of 64 cents per share, up 2% year over year. The figure beat the Zacks Consensus Estimate of 51 cents by 25.5%. Revenues of $6.74 billion surpassed the consensus mark of $6.49 billion by 3.9%. However, the figure declined 2% from the year-ago quarter. Better-than-expected quarterly results reflected strong OFSE execution, firm IET profitability and record order momentum.
BKR ended June with cash and cash equivalents of $15.73 billion. Long-term debt stood at $15.48 billion at the end of the second quarter.
Halliburton Company (HAL - Free Report) reported second-quarter 2026 adjusted net income per share of 55 cents, marginally beating the Zacks Consensus Estimate of 54 cents. The outperformance was backed by year-over-year revenue growth. However, the bottom line was flat compared with the prior-year level. Meanwhile, the company’s second-quarter revenues of $5.7 billion were up 3.7% year over year and beat the Zacks Consensus Estimate of $5.5 billion. The outperformance was driven by higher revenues in both segments of the company — the Completion and Production segment and the Drilling and Evaluation segment.
Halliburton reported second-quarter capital expenditure of $235 million. As of June 30, 2026, the company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization of 39%.
Liberty Energy Inc. (LBRT - Free Report) reported a second-quarter 2026 adjusted net profit of 9 cents per share, beating the Zacks Consensus Estimate of 7 cents. The outperformance was driven by the company’s focus on AI-driven technology advancements and strong operational execution. However, the bottom line decreased from the year-ago quarter’s profit of 12 cents due to increased year-over-year costs and expenses. LBRT's revenues totaled $1.2 billion, which beat the Zacks Consensus Estimate of $1.1 billion. The top line also increased from the prior-year quarter’s $1 billion by 14%, supported by record utilization and a modest pricing uplift along with higher product sales.
As of June 30, Liberty Energy had approximately $555.4 million in cash and cash equivalents. The pressure pumper’s long-term debt of $1.3 billion represented a debt-to-capitalization of 39.5%.