EarningsQ3 2026 Earnings Report
MX:NOV Q3 2026 EPS Results
Actual EPS$4.70
Consensus EPS$4.79
Beat/MissMissed by -$0.09
One Year Ago EPS$2.07
MX:NOV Q3 2026 Revenue Results
Actual Revenue$41.82B
Expected Revenue$41.30B
Beat/MissBeat by +$520.83M
YoY Revenue Growth+2.16%
Earnings Announcement Details
QuarterQ3 2026
Date10/27/2026
TimeAfter Close
Conference CallTuesday, October 27, 2026
MX:NOV Upcoming Earnings
NOV's next earnings date is estimated for February 4, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:NOV Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
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.Company Guidance
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.
Improving Profitability and Operational Execution
Both reporting segments delivered improved margins, supported by better execution, efficiency gains and actions taken across the company. Third-quarter sequential incremental EBITDA margins were 35%, following 80% in the second quarter, and NOV expects around 7% revenue growth from the first half to the second half of 2026 with strong incremental EBITDA margins in the mid 40% range, excluding tariff refund benefits.
Shareholder Returns and Capital Allocation
NOV paid $32 million in dividends and repurchased 800 thousand shares for $15 million during the quarter. Over the past 10 quarters, it repurchased 44.5 million shares for $689 million, representing over 10% of shares outstanding. Year-to-date shareholder returns totaled $242 million, excluding the $32 million supplemental dividend in the second quarter.
Middle East Revenue Growth Despite Difficult Conditions
NOV's Middle East business delivered sequential and year-over-year growth of over 20% during the quarter despite logistical disruptions, higher costs and delayed tenders. The company continues to view the region as one of the most important and attractive long-term markets, with increased investment in higher-specification drilling, completion and production technologies.
Growth in Argentina and International Unconventionals
Revenue in Argentina grew double digits year-over-year for three consecutive quarters as Vaca Muerta development scaled. NOV saw greater demand for higher-performance motors and drilling technologies, introduced new completion and drill-out solutions, secured production and midstream equipment orders for natural gas infrastructure, and identified additional opportunities in Algeria, Australia, Egypt and Pakistan.
Increasing Activity and Engagement in Venezuela
Activity and customer engagement in Venezuela increased across production and midstream equipment, artificial lift and pumping technologies, drilling systems and digital solutions. Revenue from Venezuela remained small but was growing at a high rate, with the company identifying potential for material increases tied to reinvestment in the country's asset base.
North American Equipment and Technology Wins
North American activity improved during the quarter, led by private operators and the seasonal increase in Canada. NOV booked the sale of two new 2,000-horsepower high-spec land rigs, a major rig upgrade including a DC-to-AC conversion, and an order for its TDS 1.4 thousand top drive. Customers also continued investing in robotic systems and fully electric well-servicing rigs.
Record Drilling Technology and Digital Demand
NOV's drill bit business delivered a record quarter, with particularly strong growth in the Permian, while its downhole tools business generated record motor revenues and gained traction with differentiated drilling technologies. NOV also won a contract to provide digital services across more than 30 rigs for a large U.S. operator, combining electronic drilling recorders and remote monitoring.
Strong Offshore Drilling Market Momentum
Floater contract days awarded year-to-date more than doubled compared with the same period last year. Utilization remained high and leading-edge day rates for high-specification rigs were approaching $500 thousand per day. NOV's offshore aftermarket business strengthened, with spare-parts backlog increasing for the fifth consecutive quarter and additional upgrade opportunities secured, including a drillship hook-load increase to over 1.4 thousand tons and multi-machine control functionality.
Attractive Offshore Production Pipeline
Offshore investment is expected to remain at very strong levels through the end of the decade, with increased activity expected across South America, Africa, Asia, Australia and Europe. The median water depth for FPSOs in the development pipeline is approximately 1.4 thousand meters versus roughly 24 meters for the active fleet, while average gas-handling capacity is approximately 36 million cubic feet per day versus 189 million cubic feet per day for the existing fleet. FPSO project sanctioning accelerated meaningfully in 2026, and the 2027 pipeline remains very strong.
Energy Equipment Margin and Order Improvements
Energy Equipment third-quarter revenue was $1.22 billion, with EBITDA of $187 million, or 15.3% of sales, representing a year-over-year margin improvement of around 90 basis points. Capital equipment orders increased 22% sequentially to $577 million. The segment has delivered margin expansion for four straight years, with management expecting that to extend to five years based on fourth-quarter expectations.
Flexible Pipe and Production Equipment Growth
The subsea flexible pipe business achieved its seventh straight quarter of year-over-year revenue, EBITDA and margin growth, and industry demand is expected to exceed supply through the end of the decade. Production and midstream reached its highest quarterly revenue ever, delivered double-digit year-over-year growth, and recorded record orders supporting pipeline capacity in Argentina and production optimization projects in Oman, Nigeria and Venezuela.
Energy Products and Services Growth
Energy Products and Services revenue increased 9% both sequentially and year-over-year to $1.06 billion, while adjusted EBITDA was $153 million, or 14.5% of sales. Excluding tariff refund benefits, third-quarter EBITDA incrementals were 39%, led by drill pipe, drill bits, fiberglass and artificial lift.
Strong Digital, Drill Bit and Downhole Results
NOV Digital achieved record quarterly revenue, increasing by a double-digit percentage both year-over-year and sequentially. The ReedHycalog drill bit business grew revenue over 20% year-over-year, including 30% growth in U.S. Land, while the Downhole Tools business delivered low double-digit percentage growth both year-over-year and sequentially.
Fiberglass and Drill Pipe Backlog Expansion
Fiberglass Systems revenue increased mid-teens percentage year-over-year and low double digits sequentially, with a fourth straight quarter of book-to-bill greater than 100% and backlog 30% higher than last year. Drill pipe revenue increased around 20% year-over-year, trailing-12-month book-to-bill exceeded 120%, and backlog improved 50% year-over-year.
Growing Backlog and 2027 Earnings Potential
NOV reported approximately $4 billion of backlog and noted that rig aftermarket backlog had increased for five straight quarters. Management said the portfolio has demonstrated capacity to generate $1.5 billion of annual EBITDA and expressed increasing confidence in achieving and exceeding that level through broader market improvement, growth in deepwater and international unconventionals, pricing, volume and operational efficiencies.
Expected Free Cash Flow Normalization
NOV expects a significant improvement in free cash flow, with working capital as a percentage of fourth-quarter annualized revenue expected to be around 25%. Management expects EBITDA-to-free-cash-flow conversion to return to the 50% range in 2027.
MX:NOV Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed