NOV (NO8) AI Stock Analysis

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NOV

(XETRA:NO8)

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Action:N/A

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Positive Factors

Revenue Growth and BacklogStrong recent revenue growth combined with a substantial backlog improves forward revenue visibility and supports production planning. If execution continues, this contracted demand can sustain operating scale, support investment, and provide a durable foundation for earnings recovery over coming quarters.

Negative Factors

Profitability CompressionThe sharp decline in net and operating margins shows that recent revenue growth has not translated proportionally into earnings. Lower profitability reduces resilience to cost inflation and project volatility, while sustained recovery depends on better pricing, mix, execution, and operating efficiency.

NOV (NO8) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 6.42B
Dividend Yield: 2.28%
Average Volume (3M): 100
Price to Earnings (P/E): 45.0
Beta (1Y): 0.33
Revenue Growth: -5.93%
EPS Growth: -62.14%
Country: Germany
Employees: 31,605
Sector: Energy
Sector Strength: 65
Industry: Oil & Gas Equipment & Services

NOV Business Overview & Revenue Model

Company Description

NOV Inc. is a global leader in designing, manufacturing, and marketing essential systems, components, and products for the oil and gas drilling and production industries, as well as for industrial and renewable energy sectors worldwide. The company's...

NOV Earnings Call Summary

Earnings Call Date:Oct 27, 2026(Q3-2026)|% Change Since:-11.41%|Next Earnings Date:Feb 04, 2027

Earnings Call SentimentPositive

The call was strongly constructive. NOV reported higher revenue, improved adjusted EBITDA and margins, broad technology and backlog growth, strong offshore market indicators, and increasing confidence in its $1.5 billion annual EBITDA capacity. The main challenges were Middle East security and logistics disruptions, near-term pressure on Energy Equipment revenue and bookings, higher freight costs, a third-quarter free cash flow use, and incomplete pricing and margin recovery. The breadth of operational improvements and market opportunities significantly outweighed the stated headwinds.

Positive Updates

Higher Third-Quarter Revenue and Adjusted EBITDA

NOV reported third-quarter revenue of $2.23 billion, up 4% sequentially and 2% year-over-year. Adjusted EBITDA was $281 million, or 12.6% of sales, while adjusted operating profit was $188 million, or 8.4% of sales. Net income was $90 million, or $0.25 per fully diluted share.

Negative Updates

Middle East Logistical and Security Disruptions

Maritime security continued to deteriorate during the quarter, creating logistical disruptions, higher costs, delayed equipment and spare-parts deliveries, and delayed tenders. As tensions escalated late in the quarter, regional activity moderated, and NOV expects the Middle East business to be down in the mid single digit range in the fourth quarter.

Company Guidance

NOV expects around 7% revenue growth from the first half to the second half of 26, with strong incremental EBITDA margins in the mid 40% range, excluding tariff refund benefits; working capital to percentage of fourth quarter annualized revenue to be around 25%, EBITDA to free cash flow conversion in 2027 to return to the 50% range, full year capital expenditures between $340 million and $360 million, and an annual effective tax rate around 30%. For the fourth quarter, Energy Equipment revenue is expected to decrease 4% to 6% compared to the fourth quarter of 2025, with EBITDA in the range of $175 million to $205 million, while Energy Products and Services revenue is expected to be up 6% to 8% year over year, with EBITDA in the range of $140 million to $160 million. NOV expects The Middle East to be down in the mid single digit range for Q4, and the Energy Equipment book-to-bill ratio to finish the year between call it, 80% to 85%.

NOV Risk Analysis

NOV disclosed 20 risk factors in its most recent earnings report. NOV reported the most risks in the "Legal & Regulatory" category.

Finance & Corporate2
Tech & Innovation1
Legal & Regulatory8
Production3
Ability to Sell4
Macro & Political2

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

0 New Risks

NOV Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

DE:NO8 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTI	76Outperform	$25.10B	20.18	38.54%	0.31%	7.95%	42.53%
WFRD	73Outperform	$6.11B	15.40	22.51%	1.27%	-5.65%	0.77%
BKR	66Neutral	$47.44B	16.86	14.83%	1.86%	3.71%	0.14%
HAL	66Neutral	$26.35B	13.78	18.46%	2.06%	1.53%	58.46%
SLB	66Neutral	$73.65B	24.50	11.77%	2.30%	4.57%	-20.58%
Sector *	65Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

* Energy Sector Average

Performance Comparison

DE:NO8 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:NO8	NOV Inc.	16.30	3.45	26.80%
BKR	Baker Hughes Company	49.41	2.63	5.63%
FTI	TechnipFMC	65.39	22.37	52.00%
HAL	Halliburton Company	32.93	6.45	24.34%
SLB	SLB N.V.	50.96	15.52	43.78%
WFRD	Weatherford International Plc	86.69	15.30	21.42%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

NOV AI Stock Analysis