Revenue rebounded 19.7% YoY to $12.1B in Q2 2026, but TTM revenue is still down 7.0% and TTM net margin is -6.56%, reflecting a volatile recovery from a deep cyclical trough.
Dow Inc. (DOW) annual income statement — 9-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 |
|---|
| Sales/Revenue | 41.32B | 39.97B | 42.96B | 44.62B | 56.9B | 54.97B | 38.54B | 42.95B | 60.28B | 43.73B |
| Revenue Growth % | -1.2% | -6.97% | -3.72% | -21.58% | 3.52% | 42.62% | -10.27% | -28.75% | 37.84% | - |
| Cost of Goods Sold | 37.27B | 37.57B | 38.51B | 39.65B | 49.05B | 44.58B | 33.73B | 36.99B | 41.44B | 44.24B |
| COGS % of Revenue | - | 94.01% | 89.63% | 88.86% | 86.19% | 81.1% | 87.51% | 86.13% | 68.75% | 101.16% |
| Gross Profit | 4.04B | 2.4B | 4.46B | 4.97B | 7.86B | 10.39B | 4.81B | 5.96B | 8.16B | 11.27B |
| Gross Margin % | 9.79% | 5.99% | 10.37% | 11.14% | 13.81% | 18.9% | 12.49% | 13.87% | 13.54% | 25.78% |
| Gross Profit Growth % | - | -46.24% | -10.4% | -36.72% | -24.36% | 115.88% | -19.21% | -27.01% | -27.61% | - |
| Operating Expenses | 4.08B | 2.13B | 2.39B | 2.46B | 2.53B | 2.5B | 2.24B | 2.35B | 2.58B | 4.57B |
| OpEx % of Revenue | - | 5.34% | 5.57% | 5.5% | 4.44% | 4.55% | 5.81% | 5.48% | 4.28% | 10.45% |
| Selling, General & Admin | 1.63B | 1.38B | 1.58B | 1.63B | 1.68B | 1.65B | 1.47B | 1.59B | 1.78B | 2.92B |
| SG&A % of Revenue | - | 3.46% | 3.68% | 3.65% | 2.94% | 2.99% | 3.82% | 3.7% | 2.96% | 6.68% |
| Research & Development | 752M | 751M | 810M | 829M | 851M | 857M | 768M | 765M | 1.54B | 803M |
| R&D % of Revenue | - | 1.88% | 1.89% | 1.86% | 1.5% | 1.56% | 1.99% | 1.78% | 2.55% | 1.84% |
| Other Operating Expenses | 3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -34M | 260M | 2.06B | 2.52B | 5.33B | 7.89B | 2.57B | 3.6B | 5.58B | 6.7B |
| Operating Margin % | -0.08% | 0.65% | 4.8% | 5.64% | 9.37% | 14.35% | 6.68% | 8.38% | 9.25% | 15.33% |
| Operating Income Growth % | - | -87.4% | -17.96% | -52.8% | -32.4% | 206.49% | -28.55% | -35.44% | -16.8% | - |
| EBITDA | 2.07B | 3.09B | 4.96B | 5.13B | 8.09B | 10.73B | 5.16B | 6.27B | 8.31B | 7.33B |
| EBITDA Margin % | 5.01% | 7.74% | 11.54% | 11.49% | 14.22% | 19.52% | 13.39% | 14.6% | 13.79% | 16.76% |
| EBITDA Growth % | -45.04% | -37.6% | -3.3% | -36.62% | -24.6% | 107.83% | -17.7% | -24.56% | 13.46% | - |
| D&A (Non-Cash Add-back) | 2.11B | 2.83B | 2.89B | 2.61B | 2.76B | 2.84B | 2.59B | 2.67B | 2.74B | 624M |
| EBIT | 192M | -1.65B | 2.36B | 1.39B | 6.74B | 8.83B | 2.95B | -300M | 4.81B | 3.77B |
| Net Interest Income | -704M | -713M | -558M | -507M | -478M | -634M | -840M | -866M | -978M | -976M |
| Interest Income | 165M | 152M | 200M | 229M | 173M | 55M | 38M | 81M | 82M | 0 |
| Interest Expense | 869M | 865M | 758M | 736M | 651M | 689M | 878M | 947M | 1.06B | 976M |
| Other Income/Expense | -963M | -2.77B | -464M | -1.86B | 759M | 259M | -502M | -4.85B | -1.83B | -3.9B |
| Pretax Income | -997M | -2.51B | 1.6B | 656M | 6.09B | 8.14B | 2.07B | -1.25B | 5.92B | 237M |
| Pretax Margin % | -2.41% | -6.28% | 3.72% | 1.47% | 10.7% | 14.82% | 5.37% | -2.9% | 9.82% | 0.54% |
| Income Tax | -1M | -67M | 399M | -4M | 1.45B | 1.74B | 777M | 470M | 1.28B | 1.52B |
| Effective Tax Rate % | 0.1% | 2.67% | 24.94% | -0.61% | 23.81% | 21.36% | 37.52% | -37.69% | 21.71% | 643.04% |
| Net Income | -1.21B | -2.62B | 1.12B | 589M | 4.58B | 6.31B | 1.23B | -1.36B | 4.5B | 465M |
| Net Margin % | -2.92% | -6.56% | 2.6% | 1.32% | 8.05% | 11.48% | 3.18% | -3.18% | 7.46% | 1.06% |
| Net Income Growth % | -22.83% | -335.04% | 89.47% | -87.15% | -27.4% | 415.18% | 189.74% | -130.34% | 867.53% | - |
| Net Income (Continuing) | -996M | -2.44B | 1.2B | 660M | 4.64B | 6.41B | 1.29B | -1.72B | 2.94B | 595M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 432M | 1.83B | 1.88B |
| Minority Interest | 1.51B | 1.51B | 496M | 501M | 529M | 574M | 570M | 553M | 1.14B | 1.19B |
| EPS (Diluted) | -1.70 | -3.69 | 1.57 | 0.82 | 6.28 | 8.38 | 1.64 | -2.31 | 6.00 | 0.62 |
| EPS Growth % | -29.75% | -335.03% | 91.46% | -86.94% | -25.06% | 410.98% | 171% | -138.5% | 867.74% | - |
| EPS (Basic) | - | -3.69 | 1.57 | 0.82 | 6.32 | 8.44 | 1.64 | -2.31 | 6.02 | 0.62 |
| Diluted Shares Outstanding | 709.5M | 711.6M | 705.1M | 709M | 725.6M | 749M | 742.3M | 742.5M | 750M | 750M |
| Basic Shares Outstanding | 709.5M | 711.6M | 703.8M | 705.7M | 721M | 743.6M | 740.5M | 742.5M | 747.2M | 742.66M |
| Dividend Payout Ratio | - | - | 176.16% | 334.8% | 43.78% | 32.85% | 169.06% | - | 82.48% | 695.7% |
Quick answers to the most common questions about buying DOW stock.
For fiscal year 2025, Dow Inc. (DOW) reported total revenue of $39.97B. This represents a 8.6% decline compared to $43.73B in 2017.
Dow Inc. (DOW) reported a net loss of $2.62B for the fiscal year ending 2025.
Dow Inc. (DOW) reported an operating income of $260.0M, resulting in an operating profit margin of 0.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Dow Inc. (DOW) generated $2.40B in gross profit for the year, representing a gross profit margin of 6.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Cyclical trough and legal overhang
Metrics are mathematically derived from official filings.
Revenue Rebound Amid Structural Decline
Dow's Q2 2026 revenue surged 19.7% YoY to $12.1B, but the trailing twelve-month revenue still contracted 7.0%, indicating a volatile recovery from a deep cyclical trough.
The 19.7% YoY growth in Q2 2026 is a sharp reversal from the prior quarters' declines, suggesting a potential inflection driven by restocking or improved demand. However, the TTM revenue decline of 7.0% indicates that the overall trend remains negative, and the sustainability of this rebound is uncertain given the mixed macro signals. Investors should monitor whether this growth is volume-driven or price-driven, as the latter may be less durable in a competitive chemical market.
Gross Margin Compression and Recovery
Gross margin improved to 17.9% in Q2 2026 from 5.4% a year earlier, yet the TTM gross margin stands at 5.99%, reflecting severe spread compression and a weak pricing environment.
The dramatic sequential improvement in gross margin suggests that feedstock costs have moderated or that Dow has regained some pricing power, but the TTM figure remains far below historical norms. This indicates that the company is still operating in a challenging cost environment, with the potential for margin expansion dependent on sustained energy price spreads and global supply discipline. The current gross margin is below peers like Eastman Chemical (21.1%), highlighting Dow's higher exposure to commodity cycles.
Operating Leverage Amplifies Volatility
Operating income swung from -$1.0B in Q4 2025 to $882M in Q2 2026, demonstrating extreme operating leverage, but TTM operating margin remains a thin 0.65%.
The fixed-cost nature of Dow's cracker operations means that small changes in revenue can lead to outsized swings in operating income, as evidenced by the recent quarter's rebound. However, the TTM operating margin of 0.65% suggests that the company is still not covering its fixed costs adequately, and any demand softness could quickly erode profitability. This high operating leverage cuts both ways, offering potential for significant upside if the recovery persists, but also posing downside risk if the rebound fades.
Net Losses Masked by One-Time Gains
Despite a positive EPS of $0.99 in Q2 2026, Dow's TTM net margin is -6.56% and ROE is -14.8%, suggesting that the quarter's profitability may be driven by non-recurring items.
The reported net income of $721M in Q2 2026 contrasts sharply with the prior quarters' losses, and the absence of stock-based compensation in the data suggests that reported earnings may be inflated by one-time gains or tax benefits. The persistent negative TTM net margin and ROE indicate that the underlying business is still struggling to generate sustainable returns. Investors should scrutinize the quality of earnings, particularly any non-operating items that may have boosted the quarter's results.
Cost Discipline Amidst Revenue Decline
SG&A expenses fell to $535M in Q2 2026 from $442M in Q1 2024, a 21% reduction, while R&D remained stable, indicating management's focus on overhead control.
The reduction in SG&A as a percentage of revenue from roughly 4% to 4.4% suggests that Dow is actively managing its cost base to mitigate the impact of lower volumes. R&D spending has been relatively flat, which may indicate a prioritization of near-term cost savings over long-term innovation. This cost discipline is critical for protecting cash flow during the downturn, but it may also limit the company's ability to capitalize on future growth opportunities.
Cyclical Recovery or False Dawn?
The Q2 2026 EPS beat of $1.44 versus $0.78 estimate may be a one-off, as TTM net margin remains -6.6% and revenue is still down 7% YoY.
Short-sellers would argue that the strong quarter is not indicative of a durable turnaround, given the persistent negative margins and weak returns on equity. The company's high operating leverage means that a modest demand pullback could reverse the recent gains, and the unresolved legal and regulatory risks could impose unexpected costs. Furthermore, the global chemical industry faces overcapacity, particularly in polyethylene, which could cap pricing power and keep margins compressed. Investors should be cautious about extrapolating the Q2 2026 results into a sustained recovery without evidence of broader demand improvement.