NOV Reports Third Quarter 2026 Earnings

NOV delivers strong Q3 2026 results with rising profits and robust backlog.

What the company is saying

NOV Inc. reports third quarter 2026 revenues of $2.23 billion, up 4% sequentially and 2% year-over-year, emphasizing operational momentum and disciplined execution. Net income increased by $48 million to $90 million, or $0.14 per diluted share, while operating profit rose 33% to $142 million. Adjusted operating profit reached $188 million, up 11%, and Adjusted EBITDA climbed $23 million to $281 million, both including a $5 million tariff refund benefit. The company highlights strong performance in its Energy Products and Services segment, with revenues up 9% to $1.06 billion, and acknowledges a 2% revenue decline in Energy Equipment due to project completions, offset by improved margins. Chairman, President, and CEO Jose Bayardo frames the results as evidence of NOV’s ability to capitalize on market opportunities, citing technology leadership and global reach. The company provides Q4 2026 guidance for flat revenues and Adjusted EBITDA between $260 million and $300 million, warning of potential disruptions from Middle East geopolitical events.

What the data suggests

The disclosed figures show clear financial improvement: Q3 2026 revenues reached $2.23 billion, net income was $90 million, and operating profit was $142 million, all up year-over-year. Adjusted EBITDA rose to $281 million, or 12.6% of sales, with a $5 million benefit from tariff refunds. Energy Equipment revenues fell 2% to $1.22 billion, but Adjusted EBITDA rose $7 million to $187 million, with margins expanding to 15.3%. Energy Products and Services revenues increased 9% to $1.06 billion, and Adjusted EBITDA grew $18 million to $153 million. The company booked $577 million in new Energy Equipment orders (book-to-bill 91%) and ended the quarter with a $3.98 billion backlog. Capital returns totaled $47 million, including $15 million in share repurchases and $32 million in dividends. The balance sheet shows $1.71 billion in debt, $1.50 billion in available credit, and $1.06 billion in cash. The operational narrative is supported by hard financial data, though order values and customer names for new contracts are not disclosed. Management attributes segment margin improvements to project mix and efficiency gains, and explains the Energy Equipment revenue decline as a result of completed offshore projects.

Analysis

The announcement's tone is positive but proportionate to the actual, measurable progress disclosed. The release provides detailed, audited financial results for Q3 2026, including revenue, net income, operating profit, and Adjusted EBITDA, all showing clear year-over-year improvement. Segment-level performance, capital returns, and balance sheet metrics are transparently reported. While some operational highlights (such as contract awards and qualitative performance claims) lack quantitative detail, these are not the focus of the release and do not materially inflate the overall narrative. The only forward-looking claim of note is the Q4 2026 guidance, which is conservative (flat revenue, EBITDA range) and clearly caveated. There is no evidence of exaggerated claims, long-dated benefit projections, or capital outlays paired with uncertain returns. The gap between narrative and evidence is minimal.

Risk flags

• ●Geopolitical instability in the Middle East poses a near-term risk to operations and financial performance, as management expects some moderation in regional activity and warns that worsening conditions could materially impact results.
• ●Energy Equipment segment revenues declined 2% year-over-year due to the completion of major offshore projects, highlighting exposure to project timing and lumpiness in capital equipment demand.
• ●Some operational highlights, such as contract awards for mooring systems and digital services, lack quantitative disclosure of order values or customer identities, limiting external verification and transparency.
• ●The company recorded $28 million in pre-tax Other Items and $18 million in net write-downs of fixed assets, reflecting ongoing restructuring and facility closures that may signal underlying cost pressures or market shifts.
• ●Despite a strong cash position, NOV carries $1.71 billion in total debt, which could constrain flexibility if market conditions deteriorate or if large capital expenditures are required.

Bottom line

NOV’s Q3 2026 results demonstrate solid financial momentum, with rising revenues, profits, and margins, particularly in the Energy Products and Services segment. The company’s $3.98 billion backlog and robust cash position support near-term stability, but exposure to Middle East geopolitical risk and project timing volatility remain material concerns. Operational claims about contract wins and technology deployments are directionally positive but lack detail on order size or counterparties. The Q4 2026 outlook is conservative, signaling management’s caution amid external uncertainties. Investors should focus on backlog conversion, margin sustainability, and the impact of geopolitical events on Q4 results. The most important takeaway is that NOV is delivering tangible financial improvements, but external risks and disclosure gaps warrant ongoing scrutiny.

Announcement summary

(NYSE:NOV) NOV Inc. reported third quarter 2026 revenues of $2.23 billion, representing a four percent sequential increase and a two percent increase compared to the third quarter of 2025. Net income for the quarter was $90 million, up $48 million or $0.14 per diluted share year-over-year. Operating profit reached $142 million, or 6.4 percent of sales, marking a 33 percent increase versus the third quarter of 2025. Adjusted operating profit was $188 million, up 11 percent year-over-year, and Adjusted EBITDA increased $23 million to $281 million, or 12.6 percent of sales. Both Adjusted operating profit and Adjusted EBITDA included a benefit of approximately $5 million related to tariff refunds. Energy Equipment segment revenues were $1.22 billion, a two percent decrease from the prior year, with operating profit at $122 million (10.0 percent of sales), including $14 million in pre-tax Other Items and a $22 million net loss on write-down of fixed assets. Adjusted EBITDA for Energy Equipment was $187 million, or 15.3 percent of sales, up $7 million year-over-year. New orders for Energy Equipment totaled $577 million, with a book-to-bill ratio of 91 percent compared to $632 million of orders shipped from backlog, and backlog for capital equipment orders stood at $3.98 billion as of September 30, 2026. Energy Products and Services segment revenues were $1.06 billion, up nine percent year-over-year, with operating profit at $88 million (8.3 percent of sales), including $7 million in pre-tax Other Items and a $4 million gain on sales of fixed assets. Adjusted EBITDA for this segment was $153 million, or 14.5 percent of sales, up $18 million from the prior year. For the fourth quarter of 2026, NOV expects consolidated revenues to be roughly flat year-over-year, with Adjusted EBITDA expected to be between $260 million and $300 million. NOV repurchased approximately 0.8 million shares of common stock for $15 million and paid $32 million in dividends during the third quarter, totaling $47 million in capital returned to shareholders. The company recorded $28 million in pre-tax Other Items, mainly related to severance, inventory write-downs, and streamlining costs, and $18 million in net write-downs of fixed assets, primarily due to facility closures. As of September 30, 2026, NOV had total debt of $1.71 billion, $1.50 billion available on its revolving credit facility, and $1.06 billion in cash and cash equivalents. NOV secured an award for data aggregation and remote monitoring services for a supermajor’s global offshore fleet, powered by the Max™ Platform. The company received multiple orders for mooring systems supporting floating oil and gas production in the U.S., Eastern Mediterranean, and Angola, including an APL™ Submerged Swivel and Yoke (SSY) system for a U.S. FLNG export project. NOV was awarded an upgrade package for a drillship, including a 1,435-ton hookload package, TDX-1500 top drive, NOVOS™ process automation upgrades, and Multi-Machine Control functionality. The company finalized a frame agreement in Oman for up to 300 km of Fiberspar™ composite spoolable linepipe and received an initial order for 160 km. NOV received an order for six well service rig electrification conversions and was selected to deliver vessel designs and jacking-system equipment for two offshore wind foundation installation jackups. In Nigeria, NOV received an order for a water injection reciprocating pump package, and in Australia, the DAYTONA™ drilling motors portfolio delivered strong performance in unconventional drilling applications. NOV received an order for 6-5/8-in. drill pipe for a geothermal project in Utah, and expanded the application of its temperature and pressure management technologies in northern Louisiana and South Texas.

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