Dow Inc. (DOW) Posts Q3 Loss, Falls Short of Revenue Projections
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 23 2025
0mins
Should l Buy DOW?
Source: NASDAQ.COM
Quarterly Performance: Dow Inc. reported a quarterly loss of $0.19 per share, outperforming the Zacks Consensus Estimate of a loss of $0.31, but down from earnings of $0.47 per share a year ago. The company also posted revenues of $9.97 billion, missing estimates by 1.99%.
Stock Outlook: Dow Inc. shares have declined approximately 45.9% year-to-date, significantly underperforming the S&P 500's 13.9% gain. The stock currently holds a Zacks Rank #4 (Sell), indicating expectations of continued underperformance.
Earnings Estimate Trends: The earnings outlook for Dow Inc. is unfavorable, with current consensus estimates predicting a loss of $0.44 per share and revenues of $10.04 billion for the upcoming quarter. The industry rank for Chemical - Diversified is in the bottom 4% of Zacks industries.
Innospec's Upcoming Report: Innospec, another company in the same industry, is set to report its quarterly earnings on November 4, with expectations of a 23.7% year-over-year decline in earnings to $1.03 per share and a slight revenue decrease.
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Analyst Views on DOW
Wall Street analysts forecast DOW stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DOW is 25.71 USD with a low forecast of 20.00 USD and a high forecast of 32.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
1 Buy
13 Hold
1 Sell
Hold
Current: 32.400
Low
20.00
Averages
25.71
High
32.00
Current: 32.400
Low
20.00
Averages
25.71
High
32.00
About DOW
Dow Inc. serves as a holding company for The Dow Chemical Company and its subsidiaries. The Company conducts its operations through six global businesses, which are organized into segments, such as Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure and Performance Materials & Coatings. Packaging & Specialty Plastics segment consists of two integrated global businesses: Hydrocarbons & Energy and Packaging and Specialty Plastics. This segment employs a polyolefin product portfolio. Industrial Intermediates & Infrastructure segment consists of two customer-centric global businesses: Industrial Solutions and Polyurethanes & Construction Chemicals that develop intermediate chemicals that are essential to manufacturing processes, as well as downstream, customized materials and formulations that use advanced development technologies. Performance Materials & Coatings segment consists of two global businesses: Coatings & Performance Monomers and Consumer Solutions.
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.
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- Surge in Energy Prices: WTI crude oil prices increased by over 3% to a 4.25-month high, driven by President Trump's call for a nuclear deal with Iran, boosting energy producers' stock prices.
- Unemployment Claims Data: Initial jobless claims in the US fell by 1,000 to 209,000, indicating a slightly weaker labor market, while continuing claims dropped to a six-month low, suggesting overall market strength.
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- Net Sales Decrease: The Packaging and Specialty Plastics segment reported net sales of $4.7 billion, down year-over-year, reflecting the negative impact of lower downstream polymer prices on revenue, which could affect future profitability.
- Cost Savings Program: Dow expects to achieve over $500 million in cost savings by the end of 2026 through a $1 billion program aimed at enhancing operational efficiency, thereby strengthening the company's financial stability.
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- Surge in Layoffs: In January, U.S. employers announced 108,435 job cuts, a staggering 205% increase from December 2025, marking the worst start to a year since 2009, indicating a pessimistic outlook for the economy in 2026.
- Collapse in Hiring Plans: The hiring plans plummeted to just 5,306 positions, the lowest January level ever recorded, down 13% year-over-year and 49% from December, reflecting a cautious approach by companies amid economic uncertainty.
- AI's Impact on Job Cuts: In January alone, 7,624 layoffs were directly attributed to AI, accounting for 7% of all job cuts, with nearly 80,000 job losses linked to AI since 2023, highlighting the technology's profound impact on the labor market.
- Industry-Specific Layoffs: Dow Inc. triggered 4,701 layoffs, marking the worst month for chemicals since 2016, while Amazon cut 16,000 jobs, and healthcare firms announced 17,107 layoffs, illustrating the structural adjustments across various sectors due to rising costs and market pressures.
See More
Materials Sector Shows Signs of Recovery
- Strong Sector Recovery: The S&P 500 Materials Index gained 8.64% in January, indicating improved long-term momentum for the sector both absolutely and relative to the S&P 500 Index, which may attract more investor interest.
- Potential Turnaround for DOW: Dow Inc. (DOW) found support near the long-term low of $22 in the second half of 2025, suggesting a potential turnaround as the stock appears to have established a major low.
- Improving Technical Indicators: DOW broke above its 200-day moving average in mid-January and entered the weekly cloud, indicating a bullish trend that suggests upside follow-through over the next 2-3 months.
- Risk Management Advice: Given the higher risk nature of turnaround opportunities, investors are advised to implement stop-loss strategies, with a recommendation to reduce exposure if consecutive daily closes fall below $25.50 to protect investments.
See More
Chemical Giants Dow and LyondellBasell Face Major Setbacks in 2025
- Stock Price Plunge: Both Dow and LyondellBasell saw their stock prices plummet by 41.7% in 2025, reaching multiyear lows, reflecting intensified competition and weak demand that have undermined investor confidence.
- Cost-Cutting Measures: Dow plans to achieve $500 million in cost savings by the second half of 2025 and is cutting approximately 4,500 jobs, which will incur one-time severance costs of $600 million to $800 million, aimed at improving its financial health amid ongoing market downturns.
- Cash Flow Improvements: LyondellBasell anticipates $600 million in cash flow improvements in 2025, and while it has not cut its dividend, it is enhancing cash flow through asset sales and project pauses, demonstrating resilience in challenging conditions.
- Future Outlook: Although analysts expect Dow to remain negative in earnings for 2026, LyondellBasell is projected to build on its 2025 profitability, with even better performance anticipated in 2027, indicating potential for industry recovery.
See More
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- Microsoft's Disappointing Earnings: Microsoft shares plummeted over 10% due to underwhelming growth in its cloud business and higher-than-expected expenses, putting pressure on the overall market, particularly tech stocks.
- Meta's Strong Rebound: Meta Platforms' stock surged more than 10% after reporting Q4 revenue of $59.89 billion, exceeding expectations, with Q1 revenue forecasted between $53.5 billion and $56.5 billion, significantly above the $51.27 billion consensus.
- Energy Stocks Benefit: WTI crude oil prices jumped over 3% to a 4.25-month high as President Trump called for negotiations with Iran on a nuclear deal, boosting energy producers' stock prices.
- Economic Data Impact: US weekly initial unemployment claims fell to 209,000, indicating a slightly weaker labor market, while continuing claims dropped to 1.827 million, showing a stronger labor market, influencing market sentiment.
See More
US Stocks Plummet as Microsoft Reports Disappointing Earnings
- Microsoft's Earnings Decline: Microsoft shares plummeted over 12% after reporting disappointing cloud business growth, significantly impacting the broader market, particularly technology stocks.
- Meta Platforms' Strong Rebound: Meta Platforms' stock rose more than 7% after reporting Q4 revenue of $59.89 billion, exceeding market expectations, thus providing a positive influence on the market.
- Surge in Energy Prices: WTI crude oil prices increased by over 3% to a 4.25-month high, driven by President Trump's call for a nuclear deal with Iran, boosting energy producers' stock prices.
- Unemployment Claims Data: Initial jobless claims in the US fell by 1,000 to 209,000, indicating a slightly weaker labor market, while continuing claims dropped to a six-month low, suggesting overall market strength.
See More
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- Decline in Operating EBITDA: Dow's Q4 operating EBITDA fell to $741 million, reflecting a sequential decline primarily due to lower seasonal demand and margin compression, indicating signs of market weakness.
- Net Sales Decrease: The Packaging and Specialty Plastics segment reported net sales of $4.7 billion, down year-over-year, reflecting the negative impact of lower downstream polymer prices on revenue, which could affect future profitability.
- Cost Savings Program: Dow expects to achieve over $500 million in cost savings by the end of 2026 through a $1 billion program aimed at enhancing operational efficiency, thereby strengthening the company's financial stability.
- Strong Liquidity Position: As of the end of 2025, the company reported cash and cash equivalents exceeding $3.8 billion and approximately $14 billion in available liquidity, ensuring financial flexibility in uncertain market conditions.
See More
