Dow Inc. Beats Estimates in Q2 2026 on Higher Prices and Cost Cuts
Dow Inc. (DOW) reported a strong second quarter of 2026, with adjusted earnings per share of $1.44, a significant improvement from the year-ago loss of 42 cents. The results surpassed the Zacks Consensus Estimate of $1.25 by 15%, driven by higher pricing and the company’s self-help initiatives. Including one-time items, Dow reported earnings per share of 99 cents, compared to a loss of $1.18 in the same period last year.
Net sales rose 19.7% year over year to $12.1 billion, beating the consensus estimate of $11.6 billion. Local prices increased 20%, while volume declined 1% due to planned maintenance in the Packaging & Specialty Plastics segment. GAAP net income was $802 million, reversing a net loss of $801 million from the previous year. Operating EBITDA increased to $2.3 billion from $703 million.
Segment highlights included a 27% rise in Packaging & Specialty Plastics sales, though volume fell 4% due to maintenance and the Middle East conflict. Industrial Intermediates & Infrastructure sales increased 14%, surpassing estimates, while Performance Materials & Coatings sales advanced 11%, supported by gains in silicones and coatings. Cash flow from operating activities improved to $1.3 billion, reversing a year-ago use of $470 million.
Looking ahead, Dow expects $200 million in additional benefits from its Transform to Outperform program, raising the total expected benefits to over $1.3 billion for 2026. The company plans to focus on growth, innovation, and balanced capital allocation for the second half of the year. Dow’s shares have gained 24.7% over the past year, outperforming the industry’s decline of 0.8%. The stock currently carries a Zacks Rank #3 (Hold).