Key Highlights

  • Dow shares closed up 4.71% at $31.81 on Oct. 22, outperforming the materials sector.
  • Adjusted EPS of $0.71 topped the roughly $0.64 consensus estimate.
  • Revenue rose 13% to $11.27 billion on a 14% increase in local prices.
  • Management guided Q4 operating EBITDA to about $1.5 billion, flat sequentially.

Dow Inc (NYSE:DOW) shares closed higher on Thursday, 22 October 2026, rising 4.71% to $31.81 after a third-quarter beat, rallying even as the Nasdaq slid on AI-trade worries. The gain outperformed the broader materials sector ETF and came on a day when the S&P 500 fell about 1.2%.

A Clear Earnings Beat

Adjusted earnings per share of $0.71 topped the roughly $0.64 consensus estimate, and revenue rose 13% to $11.27 billion on a 14% increase in local prices, led by higher polyethylene prices. Management guided fourth-quarter operating EBITDA to about $1.5 billion, flat sequentially.

Cost Program and Cash Flow

Management also said its Transform to Outperform cost program remains on track for about $700 million of benefits in 2026 and roughly $2 billion by the end of 2027. Free cash flow was $1.1 billion for the quarter, and the company continues to reduce debt.

An Upgrade Ahead of the Report

A BofA upgrade to Neutral earlier in the week had already lifted sentiment heading into the results. Risks flagged alongside the report include weak housing and construction demand, Asia Pacific volume softness tied to the Middle East conflict, and elevated European energy costs.

Outperforming a Weak Market

The stock rose 4.71% to $31.81, outperforming the materials sector ETF on a day when the S&P 500 fell about 1.2% amid a technology-led selloff tied to AI-spending concerns. Dow has no direct connection to that story; the cleanest reading is that the stock rose on its own results while much of the market was focused elsewhere. Shares were little changed after hours.