DNOW Reports Q4 Earnings and Merger Progress
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 26 2026
0mins
Should l Buy DNOW?
Source: seekingalpha
DNOW Inc. experienced a significant decline of 19.25% as it crossed below its 5-day SMA, reflecting investor concerns following its recent earnings report.
The company reported a net loss of $89 million for 2025, despite generating $2.82 billion in revenue and achieving a gross profit of $478 million. The merger with MRC Global, completed in November 2025, is expected to yield $23 million in cost savings, but challenges related to the ERP system transition have raised concerns about short-term performance. The CEO emphasized targeted actions to ensure long-term growth despite these complexities.
Investors are closely monitoring DNOW's financial health and market positioning as it navigates these challenges, with the recent merger expected to enhance its market opportunities in the long run.
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Analyst Views on DNOW
Wall Street analysts forecast DNOW stock price to rise
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 13.330
Low
16.00
Averages
17.67
High
19.00
Current: 13.330
Low
16.00
Averages
17.67
High
19.00
About DNOW
DNOW Inc. is an energy and industrial solutions provider. The Company distributes pipes, valves, fittings (PVF), gas products, pumps, fabricated process and production equipment and a range of Maintenance, Repair, and Operations (MRO) consumables and related products. It operates across sectors of the energy value chain and industrial end-markets, including Upstream, Midstream, Gas Utilities and Downstream and Industrial. Upstream is engaged in exploration, production, and extraction of oil and gas, as well as the use and disposal of produced water. Midstream offers transmission and gathering infrastructure for processing and transmission of oil, gas, or water. Gas Utilities provide storage and distribution of natural gas. Downstream and Industrial includes crude oil refining, petrochemical and chemical processing, general industrials, pharmaceutical, mining, water/wastewater treatment, data centers, liquefied natural gas (LNG) terminals and renewable natural gas (RNG) facilities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
DNOW Inc. Shares Plunge 19% Following ERP Issues and Investigation
- Stock Price Plunge: DNOW Inc. saw its shares fall approximately 19% on February 20, 2026, after reporting its FY 2025 results, resulting in a market cap loss of over $580 million, indicating severe investor concerns about the company's future prospects.
- ERP Issues Exposed: Following the acquisition of MRC Global, DNOW revealed persistent ERP system challenges that led to a decline in MRC's Q4 revenues, undermining previous optimistic assurances from management and impacting investor confidence.
- Investor Investigation Launched: Hagens Berman law firm has initiated an investigation into DNOW's disclosures, focusing on whether the company violated federal securities laws before and after the acquisition, potentially leading to further investor losses.
- Uncertain Future Outlook: DNOW has delayed its 2026 guidance, citing ongoing ERP implementation challenges with MRC that will affect operational efficiency, further exacerbating market doubts about the company's future performance.
See More
Rosen Law Firm Investigates Securities Claims for DNOW Inc. Shareholders
- Securities Claims Investigation: Rosen Law Firm is investigating potential securities claims on behalf of DNOW Inc. (NYSE: DNOW) shareholders due to allegations of misleading business information, indicating possible legal liabilities for the company.
- Stock Price Impact: On February 20, 2026, DNOW's stock plummeted by 19.1% after the company reported disappointing fourth-quarter 2025 financial results, reflecting market concerns about the company's financial health and potentially undermining investor confidence.
- Class Action Preparation: The firm is preparing a class action to seek compensation for affected investors, with no out-of-pocket fees required, providing legal support for those who suffered losses.
- Law Firm Background: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, showcasing its expertise and experience in handling such cases.
See More
Rosen Law Firm Investigates DNOW Securities Fraud Claims
- Securities Fraud Investigation: The Rosen Law Firm is investigating potential securities claims against DNOW Inc. (NYSE:DNOW) for allegedly issuing materially misleading business information, allowing affected investors to seek compensation without any out-of-pocket costs.
- Stock Price Impact: On February 20, 2026, DNOW's stock plummeted by 19.1% after the company reported disappointing fourth-quarter 2025 financial results, which significantly missed Wall Street expectations, resulting in substantial investor losses.
- Class Action Preparation: The Rosen Law Firm is preparing a class action lawsuit aimed at recovering investor losses, emphasizing the importance of selecting qualified legal counsel with a proven track record in securities litigation to ensure effective legal representation.
- Firm Reputation: The Rosen Law Firm has recovered over $438 million for investors in 2019 alone and was ranked No. 1 by ISS Securities Class Action Services in 2017, showcasing its strong capabilities in the securities class action space.
See More
Rosen Law Firm Investigates DNOW Securities Claims
- Securities Claims Investigation: Rosen Law Firm is investigating potential securities claims against DNOW Inc. (NYSE: DNOW) due to allegations of misleading business information, highlighting serious concerns over the company's transparency.
- Stock Price Impact: On February 20, 2026, DNOW's stock plummeted by 19.1% after disappointing fourth-quarter 2025 financial results were reported, which not only undermined investor confidence but may also lead to increased legal actions.
- Class Action Preparation: The firm is preparing a class action to seek compensation for affected investors, demonstrating its strong commitment to protecting investor rights and interests.
- Firm's Reputation: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, underscoring its leadership and expertise in the industry.
See More
NOW Inc. Q1 Earnings Announcement Scheduled
- Earnings Release Date: NOW Inc. is set to announce its Q1 earnings on May 7 before market open, with a consensus EPS estimate of $0.06, reflecting a significant year-over-year decline of 72.7%, indicating profitability challenges ahead.
- Revenue Growth Expectations: The anticipated revenue of $1.07 billion represents a robust year-over-year increase of 78.6%, highlighting the company's growth potential amid the recovery of the energy cycle, despite pressures on profitability.
- Historical Performance Review: Over the past two years, NOW has beaten EPS estimates 63% of the time and revenue estimates 38% of the time, suggesting a degree of stability in financial performance and market confidence.
- Integration and Synergy Goals: NOW has outlined a $23 million synergy target for the first year, although guidance has been delayed due to ERP integration challenges, reflecting the complexities faced during the integration process.
See More
DNOW Inc. Schedules Q1 2026 Earnings Call
- Earnings Call Scheduled: DNOW Inc. has scheduled a conference call for May 7, 2026, at 8:00 AM US Central Time to discuss its Q1 2026 financial results, which are expected to be released before market opening, aiming to provide transparent communication to investors.
- Participation Details: The call will be broadcast live through the Investor Relations link on DNOW's website, requiring listeners to log in beforehand to register, with a replay available for 30 days post-call, enhancing accessibility to information.
- Company Overview: DNOW is a premier energy and industrial solutions provider with over 160 years of history, headquartered in Houston, Texas, employing approximately 5,200 people, and boasting a global network of distribution and engineering locations to support diverse customer needs in infrastructure development.
- Product and Service Strengths: The company offers a range of products including pipes, valves, and fittings, complemented by advanced digital solutions that help customers enhance operational efficiency and meet their business objectives across upstream, downstream, and industrial markets.
See More
DNOW Inc. Shares Plunge 19% Following ERP Issues and Investigation
- Stock Price Plunge: DNOW Inc. saw its shares fall approximately 19% on February 20, 2026, after reporting its FY 2025 results, resulting in a market cap loss of over $580 million, indicating severe investor concerns about the company's future prospects.
- ERP Issues Exposed: Following the acquisition of MRC Global, DNOW revealed persistent ERP system challenges that led to a decline in MRC's Q4 revenues, undermining previous optimistic assurances from management and impacting investor confidence.
- Investor Investigation Launched: Hagens Berman law firm has initiated an investigation into DNOW's disclosures, focusing on whether the company violated federal securities laws before and after the acquisition, potentially leading to further investor losses.
- Uncertain Future Outlook: DNOW has delayed its 2026 guidance, citing ongoing ERP implementation challenges with MRC that will affect operational efficiency, further exacerbating market doubts about the company's future performance.
See More
Rosen Law Firm Investigates Securities Claims for DNOW Inc. Shareholders
- Securities Claims Investigation: Rosen Law Firm is investigating potential securities claims on behalf of DNOW Inc. (NYSE: DNOW) shareholders due to allegations of misleading business information, indicating possible legal liabilities for the company.
- Stock Price Impact: On February 20, 2026, DNOW's stock plummeted by 19.1% after the company reported disappointing fourth-quarter 2025 financial results, reflecting market concerns about the company's financial health and potentially undermining investor confidence.
- Class Action Preparation: The firm is preparing a class action to seek compensation for affected investors, with no out-of-pocket fees required, providing legal support for those who suffered losses.
- Law Firm Background: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, showcasing its expertise and experience in handling such cases.
See More
Rosen Law Firm Investigates DNOW Securities Fraud Claims
- Securities Fraud Investigation: The Rosen Law Firm is investigating potential securities claims against DNOW Inc. (NYSE:DNOW) for allegedly issuing materially misleading business information, allowing affected investors to seek compensation without any out-of-pocket costs.
- Stock Price Impact: On February 20, 2026, DNOW's stock plummeted by 19.1% after the company reported disappointing fourth-quarter 2025 financial results, which significantly missed Wall Street expectations, resulting in substantial investor losses.
- Class Action Preparation: The Rosen Law Firm is preparing a class action lawsuit aimed at recovering investor losses, emphasizing the importance of selecting qualified legal counsel with a proven track record in securities litigation to ensure effective legal representation.
- Firm Reputation: The Rosen Law Firm has recovered over $438 million for investors in 2019 alone and was ranked No. 1 by ISS Securities Class Action Services in 2017, showcasing its strong capabilities in the securities class action space.
See More
Rosen Law Firm Investigates DNOW Securities Claims
- Securities Claims Investigation: Rosen Law Firm is investigating potential securities claims against DNOW Inc. (NYSE: DNOW) due to allegations of misleading business information, highlighting serious concerns over the company's transparency.
- Stock Price Impact: On February 20, 2026, DNOW's stock plummeted by 19.1% after disappointing fourth-quarter 2025 financial results were reported, which not only undermined investor confidence but may also lead to increased legal actions.
- Class Action Preparation: The firm is preparing a class action to seek compensation for affected investors, demonstrating its strong commitment to protecting investor rights and interests.
- Firm's Reputation: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, underscoring its leadership and expertise in the industry.
See More
NOW Inc. Q1 Earnings Announcement Scheduled
- Earnings Release Date: NOW Inc. is set to announce its Q1 earnings on May 7 before market open, with a consensus EPS estimate of $0.06, reflecting a significant year-over-year decline of 72.7%, indicating profitability challenges ahead.
- Revenue Growth Expectations: The anticipated revenue of $1.07 billion represents a robust year-over-year increase of 78.6%, highlighting the company's growth potential amid the recovery of the energy cycle, despite pressures on profitability.
- Historical Performance Review: Over the past two years, NOW has beaten EPS estimates 63% of the time and revenue estimates 38% of the time, suggesting a degree of stability in financial performance and market confidence.
- Integration and Synergy Goals: NOW has outlined a $23 million synergy target for the first year, although guidance has been delayed due to ERP integration challenges, reflecting the complexities faced during the integration process.
See More
DNOW Inc. Schedules Q1 2026 Earnings Call
- Earnings Call Scheduled: DNOW Inc. has scheduled a conference call for May 7, 2026, at 8:00 AM US Central Time to discuss its Q1 2026 financial results, which are expected to be released before market opening, aiming to provide transparent communication to investors.
- Participation Details: The call will be broadcast live through the Investor Relations link on DNOW's website, requiring listeners to log in beforehand to register, with a replay available for 30 days post-call, enhancing accessibility to information.
- Company Overview: DNOW is a premier energy and industrial solutions provider with over 160 years of history, headquartered in Houston, Texas, employing approximately 5,200 people, and boasting a global network of distribution and engineering locations to support diverse customer needs in infrastructure development.
- Product and Service Strengths: The company offers a range of products including pipes, valves, and fittings, complemented by advanced digital solutions that help customers enhance operational efficiency and meet their business objectives across upstream, downstream, and industrial markets.
See More
