NOV’s third quarter saw revenue and adjusted profit ahead of Wall Street’s expectations, but the market reacted negatively as investors focused on persistent headwinds. Management highlighted robust international demand, particularly in offshore and unconventional markets, and solid execution in operational efficiency. However, disruptions in the Middle East and higher costs related to logistics and inflation weighed on overall sentiment. CEO Jose A. Bayardo acknowledged the ongoing logistical and security challenges in the Middle East, which delayed equipment deliveries and impacted regional activity, stating, “We began to see some moderation in regional activity, which we expect will continue through at least year end.”
Is now the time to buy NOV? Find out in our full research report (it’s free for active Edge members).
NOV (NOV) Q3 2026 highlights:
- Revenue $2.23 billion vs S&P analysts’ estimates of $2.19 billion (2.3% year-on-year growth, 1.5% beat)
- Adjusted EPS $0.35 vs S&P analysts’ estimates of $0.26 (35.9% beat)
- Adjusted EBITDA $281 million vs analyst estimates of $256.7 million (12.6% margin, 9.5% beat)
- Operating margin 6.4%, up from 4.9% in the same quarter last year
- Other production down -39.3% year on year
- Market capitalization $6.87 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our top 5 analyst questions from NOV’s Q3 earnings call
- Arun Jayaram (J.P. Morgan Securities) questioned the outlook for energy equipment segment bookings in 2027 amid a backdrop of recent book-to-bill ratios below 1.0. CEO Jose A. Bayardo emphasized strong backlog and expected significant order momentum as offshore project sanctioning accelerates.
- Jayaram also pressed for clarity on Middle East activity, noting security-driven disruptions. Bayardo said NOV expects a mid-single digit decline in Q4 regional activity and cannot predict beyond that due to ongoing instability.
- James Rollyson (Raymond James) asked about the timing for aftermarket revenue recovery as offshore rigs re-enter service. Bayardo stated that rising rig activity should drive a steady improvement in aftermarket demand, particularly in the second half of next year.
- Marc Bianchi (TD Cowen) probed the lack of margin leverage in Q4 guidance for the energy equipment segment. CFO Rodney Reed attributed this to unfavorable sales mix, higher service and repair work, and persistent freight costs.
- Alex Boni (Goldman Sachs) focused on free cash flow normalization and regional growth ex-Middle East. Reed projected a return to 50% EBITDA-to-cash flow conversion as inventory and working capital normalize, while Bayardo highlighted robust prospects in offshore and Latin America.
Catalysts in upcoming quarters
Looking ahead, our analysts will be monitoring (1) progress on backlog conversion and order intake for offshore and international unconventional projects, (2) the pace of operational efficiency gains and margin expansion, and (3) the impact of ongoing Middle East disruptions and logistical costs on revenue and profit delivery. Execution on pricing strategies and digital product adoption will also be important signposts.
NOV currently trades at $19.00, down from $20.55 just before the earnings. Is there an opportunity in the stock? Find out in our full research report (it’s free).
The best stocks for high-quality investors
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
