Key Highlights

  • NOV Inc. (NYSE:NOV) traded at USD 19.86, up 0.53%, on October 26, 2026, with a USD 7.08 billion market value, P/E of 76.26, trailing EPS of USD 0.26 and a 1.75% yield, after closing up 5.33% on October 23.
  • Second quarter revenue was USD 2.13 billion, up 4% sequentially and down 2% year over year, with adjusted EBITDA of USD 283 million, a 13.3% margin, including about USD 40 million of tariff refunds.
  • Energy Equipment bookings were USD 474 million, a 74% book-to-bill ratio, and capital equipment backlog was USD 4.08 billion, down USD 220 million from a year earlier, said NOV Inc. (NYSE:NOV).
  • Third quarter adjusted EBITDA guidance is USD 240 million to USD 270 million, assuming Middle East conditions stay similar to the second quarter, with results due on October 28, 2026.

Why Oil Services Reacted

NOV rose 5.33% to USD 19.76 on October 23, from USD 18.76, as crude was reported to gain almost USD 3 and analyst notes cited oil near USD 100 a barrel, and added 0.53% on October 26. Trailing earnings of USD 0.26 per share are depressed, so the 76 times multiple is not a useful valuation signal. Oilfield equipment makers earn when producers order rigs, drill pipe, floating production systems and robotics, so a stronger oil price supports future orders rather than immediate earnings. The consensus is Hold with a target near USD 22.08, with BofA at USD 23 with a Buy and Citi at USD 21 with a Neutral rating. The shares sit between a 52-week low of USD 13.61 and a high of USD 21.93.

Orders, Backlog and the Middle East

Offshore demand is growing: NOV won orders for floating production equipment in West Africa and Indonesia and for drill pipe in Brazil and Suriname. In North America, robotics orders followed Permian deployments and fuel storage tank bookings nearly doubled over 18 months. Large capital equipment orders typically convert to revenue over several quarters, which is why backlog is watched closely. Management said price volatility and geopolitical uncertainty are causing temporary project deferrals, and Middle East logistics remain difficult. Excluding about USD 40 million of tariff refunds, adjusted EBITDA was about USD 243 million, simple arithmetic on company figures, which is close to the low end of the third quarter guidance.

Risks and What to Watch

The P/E of 76 reflects depressed earnings, not a bargain or a premium, and free cash flow was negative USD 64 million in the second quarter on working capital needs. A book-to-bill ratio below 1 means backlog shrank. A drop in oil would delay offshore decisions, as the company itself noted temporary deferrals during recent volatility. Tariffs and trade policy remain risks, and an oil spike driven by conflict can disrupt Middle East projects. The company returned USD 127 million, with USD 63 million of buybacks, and pays USD 0.09 quarterly. Results are due October 28, according to the company call notice, and the board declared a USD 0.09 quarterly dividend on August 19.

Where Things Stand

At USD 100 oil NOV gains a better backdrop for orders, especially offshore, but earnings follow orders with a lag, which answers the headline. NOV Inc. (NYSE:NOV) is a cyclical equipment maker, not a direct oil price play. The balance of evidence favors a growing offshore pipeline against falling backlog, negative cash flow and Middle East disruption. The next catalyst is the October 28 report and its backlog and book-to-bill figures.