Operating margins have significantly narrowed to 2.3% in 2026Q1 from a 14.1% peak in 2024Q2, reflecting a failure to scale fixed costs amidst a 2.4% revenue contraction.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 8.69B | 8.74B | 8.87B | 8.58B | 7.24B | 5.52B | 6.09B | 8.48B | 8.45B | 7.3B | 7.25B | 14.76B | 21.44B | 19.22B | 17.19B | 14.66B | 12.16B | 12.71B | 13.43B | 9.79B | 7.03B | 4.64B | 2.32B | 2B | 1.52B | 1.75B | 1.15B | 839.65M | 1.45B | 1.1B | 761.8M |
| Revenue Growth % | -1.42% | -1.42% | 3.34% | 18.6% | 31.01% | -9.29% | -28.18% | 0.31% | 15.73% | 0.73% | -50.86% | -31.17% | 11.54% | 11.79% | 17.3% | 20.58% | -4.37% | -5.35% | 37.2% | 39.33% | 51.27% | 100.36% | 15.62% | 31.73% | -12.9% | 51.96% | 36.95% | -42.06% | 32.06% | 44.05% | - |
| Cost of Goods Sold | 6.99B | 6.98B | 6.86B | 6.75B | 5.9B | 4.75B | 5.66B | 7.63B | 7.01B | 6.41B | 7.35B | 11.69B | 15.63B | 14.12B | 12.15B | 10.16B | 8.32B | 8.93B | 9.36B | 6.96B | 5.27B | 3.66B | 1.81B | 1.54B | 1.16B | 1.32B | 849.74M | 686.51M | 1.1B | 865.3M | 630.6M |
| COGS % of Revenue | - | 79.79% | 77.34% | 78.64% | 81.57% | 85.99% | 92.87% | 90.03% | 82.92% | 87.79% | 101.39% | 79.24% | 72.91% | 73.45% | 70.67% | 69.32% | 68.48% | 70.23% | 69.68% | 71.09% | 74.94% | 78.74% | 78.27% | 76.59% | 76.22% | 75.52% | 73.9% | 81.76% | 75.66% | 78.85% | 82.78% |
| Gross Profit | 1.7B | 1.77B | 2.01B | 1.83B | 1.33B | 774M | 434M | 845M | 1.44B | 892M | -101M | 3.06B | 5.81B | 5.1B | 5.04B | 4.5B | 3.83B | 3.78B | 4.07B | 2.83B | 1.76B | 987.2M | 503.8M | 469.3M | 361.86M | 427.83M | 300.18M | 153.14M | 352.8M | 232.1M | 131.2M |
| Gross Margin % | 19.54% | 20.21% | 22.66% | 21.36% | 18.43% | 14.01% | 7.13% | 9.97% | 17.08% | 12.21% | -1.39% | 20.76% | 27.09% | 26.55% | 29.33% | 30.68% | 31.52% | 29.77% | 30.32% | 28.91% | 25.06% | 21.26% | 21.73% | 23.41% | 23.78% | 24.48% | 26.1% | 18.24% | 24.34% | 21.15% | 17.22% |
| Gross Profit Growth % | - | -12.09% | 9.66% | 37.41% | 72.35% | 78.34% | -48.64% | -41.48% | 61.88% | 983.17% | -103.3% | -47.27% | 13.81% | 1.21% | 12.14% | 17.35% | 1.27% | -7.07% | 43.88% | 60.75% | 78.34% | 95.95% | 7.35% | 29.69% | -15.42% | 42.53% | 96.02% | -56.59% | 52% | 76.91% | - |
| Operating Expenses | 1.24B | 1.2B | 1.13B | 1.18B | 1.07B | 908M | 2.86B | 7.12B | 1.23B | 1.17B | 2.31B | 3.45B | 2.2B | 1.91B | 1.65B | 1.56B | 1.39B | 1.47B | 1.15B | 785.8M | 649.5M | 510.4M | 327.8M | 305.2M | 227.54M | 238.56M | 221.96M | 150.03M | 195.96M | 129.7M | 87.1M |
| OpEx % of Revenue | - | 13.76% | 12.78% | 13.77% | 14.79% | 16.44% | 46.95% | 84.02% | 14.59% | 16% | 31.86% | 23.4% | 10.24% | 9.91% | 9.62% | 10.64% | 11.39% | 11.56% | 8.59% | 8.03% | 9.24% | 10.99% | 14.14% | 15.22% | 14.95% | 13.65% | 19.3% | 17.87% | 13.52% | 11.82% | 11.43% |
| Selling, General & Admin | 1.24B | 1.2B | 1.13B | 1.18B | 1.07B | 908M | 968M | 1.3B | 1.23B | 1.17B | 1.34B | 1.76B | 2.09B | 1.91B | 1.65B | 1.56B | 1.39B | 1.32B | 1.15B | 785.8M | 641.6M | 478.7M | 327.8M | 305.2M | 227.54M | 238.56M | 186.92M | 150.03M | 175.44M | 114.3M | 78.3M |
| SG&A % of Revenue | - | 13.76% | 12.78% | 13.77% | 14.79% | 16.44% | 15.89% | 15.37% | 14.59% | 16% | 18.45% | 11.95% | 9.76% | 9.91% | 9.62% | 10.64% | 11.39% | 10.4% | 8.59% | 8.03% | 9.13% | 10.31% | 14.14% | 15.22% | 14.95% | 13.65% | 16.26% | 17.87% | 12.11% | 10.42% | 10.28% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 1.89B | 5.82B | 0 | 0 | 972M | 1.69B | 104M | 0 | 0 | 0 | 0 | 147M | 0 | 0 | 7.9M | 31.7M | 0 | 0 | 0 | 0 | 35.03M | 0 | 20.52M | 15.4M | 8.8M |
| Operating Income | 459M | 564M | 876M | 651M | 264M | -134M | -2.42B | -6.28B | 211M | -277M | -2.41B | -390M | 3.61B | 3.2B | 3.39B | 2.94B | 2.45B | 2.31B | 2.92B | 2.04B | 1.11B | 476.8M | 176M | 164.1M | 134.32M | 189.28M | 78.22M | 3.1M | 156.84M | 102.4M | 44.1M |
| Operating Margin % | 5.28% | 6.45% | 9.88% | 7.58% | 3.65% | -2.43% | -39.82% | -74.05% | 2.5% | -3.79% | -33.25% | -2.64% | 16.85% | 16.64% | 19.71% | 20.04% | 20.13% | 18.21% | 21.73% | 20.88% | 15.81% | 10.27% | 7.59% | 8.18% | 8.83% | 10.83% | 6.8% | 0.37% | 10.82% | 9.33% | 5.79% |
| Operating Income Growth % | - | -35.62% | 34.56% | 146.59% | 297.01% | 94.47% | 61.38% | -3075.83% | 176.17% | 88.51% | -518.21% | -110.79% | 12.94% | -5.61% | 15.39% | 20.02% | 5.7% | -20.66% | 42.73% | 84% | 133.03% | 170.91% | 7.25% | 22.17% | -29.03% | 141.97% | 2420.04% | -98.02% | 53.16% | 132.2% | - |
| EBITDA | 725M | 919M | 1.22B | 953M | 565M | 172M | -2.07B | -5.75B | 901M | 421M | -1.71B | 357M | 4.39B | 3.94B | 4B | 3.49B | 2.95B | 2.81B | 3.32B | 2.26B | 1.27B | 591.4M | 220M | 203.3M | 159.37M | 228.15M | 113.26M | 28.64M | 177.36M | 117.8M | 52.9M |
| EBITDA Margin % | 8.34% | 10.51% | 13.74% | 11.1% | 7.81% | 3.11% | -34.04% | -67.77% | 10.66% | 5.76% | -23.56% | 2.42% | 20.48% | 20.48% | 23.29% | 23.82% | 24.3% | 22.07% | 24.72% | 23.07% | 18.1% | 12.73% | 9.49% | 10.14% | 10.47% | 13.06% | 9.85% | 3.41% | 12.24% | 10.73% | 6.94% |
| EBITDA Growth % | -40.33% | -24.61% | 27.91% | 68.67% | 228.49% | 108.3% | 63.92% | -737.74% | 114.01% | 124.65% | -578.43% | -91.87% | 11.53% | -1.7% | 14.69% | 18.21% | 5.31% | -15.51% | 47% | 77.6% | 115.03% | 168.82% | 8.21% | 27.56% | -30.15% | 101.45% | 295.38% | -83.85% | 50.56% | 122.68% | - |
| D&A (Non-Cash Add-back) | 266M | 355M | 343M | 302M | 301M | 306M | 352M | 533M | 690M | 698M | 703M | 747M | 778M | 738M | 616M | 555M | 507M | 490M | 402M | 214.1M | 160.6M | 114.6M | 44M | 39.2M | 25.05M | 38.87M | 35.03M | 25.54M | 20.52M | 15.4M | 8.8M |
| EBIT | 320M | 463M | 922M | 700M | 316M | -153M | -2.69B | -6.36B | 134M | -290M | -2.52B | -486M | 3.6B | 3.23B | 3.39B | 2.96B | 2.45B | 2.26B | 3.03B | 2.04B | 1.11B | 476.8M | 1.76B | 164.1M | 134.32M | 189.28M | 78.22M | 3.1M | 156.84M | 102.4M | 44.1M |
| Net Interest Income | -26M | -37M | -53M | -60M | -59M | -68M | -77M | -80M | -68M | -77M | -90M | -89M | -87M | -99M | -39M | -22M | -37M | -44M | -22M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 40M | 51M | 38M | 28M | 19M | 9M | 7M | 20M | 25M | 25M | 15M | 14M | 18M | 12M | 10M | 18M | 13M | 9M | 45M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 55M | 88M | 91M | 88M | 78M | 77M | 84M | 100M | 93M | 102M | 105M | 103M | 105M | 111M | 49M | 40M | 50M | 53M | 67M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -170M | -189M | -45M | -39M | -26M | -96M | -354M | -183M | -170M | -115M | -212M | -199M | -119M | -75M | -49M | -15M | -50M | -107M | 43M | -15.5M | -61.9M | -46.8M | -37.1M | -42.3M | -21.86M | -21.26M | -51.19M | -17.96M | -31.82M | -16.3M | -27.4M |
| Pretax Income | 289M | 375M | 831M | 612M | 238M | -230M | -2.78B | -6.46B | 41M | -392M | -2.62B | -589M | 3.49B | 3.12B | 3.34B | 2.92B | 2.4B | 2.21B | 2.96B | 2.03B | 1.05B | 430M | 138.9M | 121.8M | 112.47M | 168.02M | 27.04M | -14.86M | 125.02M | 86.1M | 16.7M |
| Pretax Margin % | 3.32% | 4.29% | 9.37% | 7.13% | 3.29% | -4.16% | -45.63% | -76.21% | 0.48% | -5.37% | -36.17% | -3.99% | 16.3% | 16.25% | 19.43% | 19.93% | 19.72% | 17.37% | 22.05% | 20.73% | 14.93% | 9.26% | 5.99% | 6.08% | 7.39% | 9.62% | 2.35% | -1.77% | 8.63% | 7.85% | 2.19% |
| Income Tax | 192M | 224M | 196M | -373M | 83M | 15M | -242M | -369M | 63M | -156M | -207M | 178M | 1.04B | 943M | 965M | 937M | 738M | 735M | 993M | 675.8M | 355.7M | 138.9M | 21.6M | 35.9M | 39.4M | 63.95M | 13.9M | -5.47M | 43.69M | 31.3M | 6.6M |
| Effective Tax Rate % | 66.44% | 59.73% | 23.59% | -60.95% | 34.87% | -6.52% | 8.71% | 5.71% | 153.66% | 39.8% | 7.89% | -30.22% | 29.74% | 30.19% | 28.89% | 32.07% | 30.79% | 33.29% | 33.54% | 33.31% | 33.9% | 32.3% | 15.55% | 29.47% | 35.03% | 38.06% | 51.41% | 36.84% | 34.94% | 36.35% | 39.52% |
| Net Income | 91M | 145M | 635M | 993M | 155M | -250M | -2.54B | -6.09B | -31M | -237M | -2.41B | -769M | 2.5B | 2.33B | 2.49B | 1.99B | 1.67B | 1.47B | 1.95B | 1.34B | 684M | 286.9M | 115.2M | 79.7M | 73.07M | 104.06M | 13.14M | -9.38M | 81.34M | 54.2M | 6.1M |
| Net Margin % | 1.05% | 1.66% | 7.16% | 11.57% | 2.14% | -4.53% | -41.74% | -71.88% | -0.37% | -3.24% | -33.26% | -5.21% | 11.67% | 12.11% | 14.49% | 13.6% | 13.71% | 11.56% | 14.53% | 13.66% | 9.74% | 6.18% | 4.97% | 3.98% | 4.8% | 5.96% | 1.14% | -1.12% | 5.61% | 4.94% | 0.8% |
| Net Income Growth % | -84.55% | -77.17% | -36.05% | 540.65% | 162% | 90.17% | 58.29% | -19561.29% | 86.92% | 90.17% | -213.65% | -130.74% | 7.52% | -6.58% | 24.92% | 19.62% | 13.48% | -24.74% | 45.99% | 95.48% | 138.41% | 149.05% | 44.54% | 9.07% | -29.78% | 692.2% | 239.97% | -111.54% | 50.07% | 788.52% | - |
| Net Income (Continuing) | 96M | 151M | 635M | 985M | 155M | -245M | -2.54B | -6.09B | -22M | -236M | -2.42B | -767M | 2.46B | 2.18B | 2.38B | 1.99B | 1.66B | 1.47B | 1.97B | 1.34B | 684M | 286.9M | 115.2M | 79.7M | 73.07M | 104.06M | 13.14M | -9.38M | 81.34M | 54.8M | 10.1M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 52M | 147M | 108M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 56M | 54M | 52M | 74M | 38M | 67M | 69M | 68M | 70M | 66M | 63M | 77M | 80M | 100M | 117M | 109M | 114M | 115M | 95.9M | 62.8M | 35.5M | 24.5M | 17.8M | 15.75M | 9.6M | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.25 | 0.39 | 1.60 | 2.50 | 0.39 | -0.65 | -6.61 | -15.95 | -0.08 | -0.63 | -6.41 | -1.99 | 5.82 | 5.44 | 5.83 | 4.70 | 3.98 | 3.52 | 4.90 | 3.76 | 1.94 | 0.91 | 0.67 | 0.47 | 0.45 | 0.64 | 0.08 | -0.07 | 0.60 | 0.50 | 0.08 |
| EPS Growth % | -84% | -75.63% | -36% | 541.03% | 160% | 90.17% | 58.56% | -19351.22% | 86.98% | 90.17% | -222.11% | -134.19% | 6.99% | -6.69% | 24.04% | 18.09% | 13.07% | -28.16% | 30.32% | 93.81% | 113.19% | 35.82% | 42.55% | 4.44% | -29.69% | 700% | 223.08% | -110.83% | 20% | 566.67% | - |
| EPS (Basic) | - | 0.39 | 1.62 | 2.53 | 0.40 | -0.65 | -6.61 | -15.95 | -0.08 | -0.63 | -6.41 | -1.99 | 5.85 | 5.46 | 5.86 | 4.73 | 3.99 | 3.53 | 4.91 | 3.77 | 1.95 | 0.92 | 0.67 | 0.47 | 0.45 | 0.65 | 0.09 | -0.07 | 0.60 | 0.51 | 0.08 |
| Diluted Shares Outstanding | 364M | 375M | 396M | 397M | 394M | 386M | 384M | 382M | 378M | 377M | 376M | 387M | 430M | 428M | 427M | 424M | 419M | 417M | 399M | 355.4M | 353.6M | 316.5M | 173M | 169.57M | 163.42M | 163.47M | 161.52M | 143.34M | 136.7M | 108.4M | 81.33M |
| Basic Shares Outstanding | 361M | 372M | 392M | 393M | 390M | 386M | 384M | 382M | 378M | 376.19M | 376M | 386.43M | 428M | 426M | 425M | 422M | 417M | 416M | 397M | 354.4M | 350.4M | 312.8M | 171.6M | 169.57M | 161.95M | 161.63M | 158.65M | 143.34M | 136.7M | 107.33M | 81.33M |
| Dividend Payout Ratio | - | 131.03% | 17.01% | 7.96% | 50.32% | - | - | - | - | - | - | - | 28.1% | 16.72% | 8.39% | 9.58% | 10.32% | 31.31% | - | - | - | - | - | - | - | - | - | - | - | - | - |
Cyclical Revenue Stagnation
As indicated by recent quarterly filings, NOV's revenue growth has decelerated into negative territory, with the most recent period showing a 2.4% year-over-year decline, suggesting that the company is struggling to capture incremental demand despite the ongoing recovery in global offshore drilling activity and rig utilization.
The consistent contraction in top-line performance implies that the company's reliance on long-cycle capital equipment sales is currently a drag, as customers appear to be prioritizing capital discipline over fleet expansion. Investors should monitor whether this trend reflects a structural shift in customer procurement behavior or merely a temporary lull in the replacement cycle.
Based on the provided financial data, NOV's gross margin has compressed to 18.5% in 2026Q1 from a peak of 26.6% in 2024Q2, highlighting significant challenges in maintaining pricing power while navigating inflationary pressures and an unfavorable shift in the overall product and service sales mix.
The erosion of gross profitability suggests that the company is unable to fully pass through rising raw material costs to its customer base. This margin degradation warrants further investigation into whether the current sales mix is tilting too heavily toward lower-margin equipment at the expense of higher-margin aftermarket service contracts.
According to the income statement, operating margins have narrowed to 2.3% as of 2026Q1, demonstrating that the company's high fixed-cost structure is currently failing to scale effectively with revenue, thereby limiting the potential for bottom-line expansion during periods of stagnant or declining top-line growth.
The inability to achieve meaningful operating leverage suggests that SG&A expenses remain disproportionately high relative to current revenue levels. This may indicate that the company is carrying excess capacity or overhead that requires a more aggressive restructuring effort to align with the current, more muted demand environment.
As reported in recent financial statements, the volatility in net income, which swung from a $598 million gain in 2023Q4 to a $78 million loss in 2025Q4, suggests that reported earnings are heavily influenced by non-operating items and potential accounting adjustments rather than core operational performance.
Short-sellers would likely focus on the disconnect between the company's reported net income and its underlying cash-generating ability, particularly given the reliance on percentage-of-completion accounting. The inconsistency in bottom-line results warrants caution, as it may mask underlying operational weaknesses that are not immediately apparent in the headline revenue figures.
Quick answers to the most common questions about buying NOV stock.
For fiscal year 2025, NOV Inc. (NOV) reported total revenue of $8.74B. This represents a 1047.8% increase compared to $761.8M in 1996.
NOV Inc. (NOV) is profitable, generating $145.0M in net income for the fiscal year ending 2025 with a net profit margin of 1.7%.
NOV Inc. (NOV) reported an operating income of $564.0M, resulting in an operating profit margin of 6.5%. This margin reflects the operational efficiency of the business before interest and taxes.
NOV Inc. (NOV) generated $1.77B in gross profit for the year, representing a gross profit margin of 20.2%. This demonstrates the company's core pricing power and production efficiency.