TLDR
- Dow beat Q2 revenue estimates with $12.09B vs. the $12.03B consensus, and adjusted EPS of $1.44 vs. $1.28 expected.
- Net income swung to $802M from a loss of $801M in the same quarter last year.
- The stock dropped 2.8% in premarket trading Thursday despite the earnings beat.
- Higher polyethylene prices drove a 20% jump in net sales, but overall volumes fell 1%.
- Dow raised its restructuring savings target to over $1.3B for 2026, about $200M more than previously guided.
Dow Inc. (DOW) posted a strong second quarter, beating Wall Street on both revenue and earnings. But the market wasn’t impressed — the stock slipped 2.8% in premarket trading Thursday to around $31.25 after the company flagged softer demand, lower volumes and higher costs ahead.
Through Wednesday’s close, DOW had gained 34% year to date.
Revenue came in at $12.09 billion, just above the $12.03 billion consensus. Adjusted EPS hit $1.44, clearing the $1.28 estimate by a solid margin.
Dow Inc. $DOW reports second quarter 2026 results, with net sales of $12.1 billion, up 20% year-over-year.
The company's GAAP net income was $802 million, while operating EBIT was $1.6 billion, up $1.7 billion year-over-year.
The Packaging & Specialty Plastics segment reported…
— Earnings Prism (@earnings_prism) July 23, 2026
Net income swung sharply from a loss of $801 million, or $1.18 per share, a year ago, to a profit of $802 million, or $0.99 per share.
The story behind the numbers is mostly about price, not volume. Net sales rose 20% year over year, driven by a 20% jump in local prices — polyethylene prices led the charge across all regions. Overall sales volume, however, dipped 1%.
Packaging Leads, but Volumes Slip
The Packaging & Specialty Plastics segment was the standout, with revenue climbing 27% to $6.4 billion. Operating profit surged to $1.28 billion from just $71 million a year ago. Higher polyethylene prices did the heavy lifting, offsetting a 4% drop in volumes tied to planned maintenance.
Demand in Europe, the Middle East, Africa, India and Asia Pacific was also hit by the ongoing conflict in the Middle East, the company said.
Industrial Intermediates & Infrastructure revenue rose 14%, helped by higher prices, though volumes fell due to weaker construction chemicals demand and Middle East disruptions.
Performance Materials & Coatings posted an 11% sales gain, with stronger downstream silicones and coatings demand. Operating profit dropped 13%, however, hurt by higher fixed costs, turnaround activity and an unplanned shutdown at the siloxanes plant in Barry, UK.
Restructuring Savings on the Rise
CEO Karen Carter said the company “delivered strong second quarter results through disciplined and timely execution,” pointing to the acceleration of its self-help efforts.
Dow raised the expected benefits from its Transform to Outperform restructuring program to more than $1.3 billion in 2026 — about $200 million above its prior target. Management expects those gains to pick up further through the rest of this year and into 2027.
What Dow did not do is offer updated financial guidance for the second half. That absence, combined with the volume declines across all three business segments, appeared to drive the cautious market reaction.
Company-wide volumes fell, Industrial Intermediates volumes dropped 2%, and management acknowledged ongoing pressure from Middle East disruptions and higher turnaround costs in Performance Materials & Coatings.
The stock’s 52-week high stands at $42.74, with shares currently trading well below that level at $31.25.
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