Revenue has been flat to slightly declining (TTM growth -1.4%), while gross margin compressed from 26.6% in Q2 2024 to 24.4% in Q2 2026, with operating margin swinging between 2.3% and 14.1% over the past year.
NOV Inc. (NOV) annual income statement — 30-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 | 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 | 8.64B | 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 % | -1.72% | -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 | 6.87B | 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 | 1.77B | 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 % | 20.53% | 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 | 1.26B | 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 | 1.26B | 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 | 509M | 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 % | 5.89% | 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 | 873M | 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 % | 10.11% | 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 % | -16.54% | -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) | 364M | 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 | 418M | 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 | -38M | -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 | 49M | 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 | 87M | 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 | -178M | -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 | 331M | 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 % | 3.83% | 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 | 232M | 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 % | 70.09% | 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 | 96M | 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 % | 1.11% | 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 % | -79.62% | -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) | 99M | 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) | 0.26 | 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 % | -78.69% | -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 | 360M | 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% | - | - | - | - | - | - | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
Margin compression and stagnant revenue
Metrics are mathematically derived from official filings.
Stagnant Revenue Amidst High Oil Prices
NOV's revenue has been flat to slightly declining, with TTM growth at -1.4% as of Q2 2026, despite elevated oil prices, suggesting customers prioritize capital discipline over new equipment orders.
Revenue has hovered around $2.1-2.3B per quarter over the past two years, with year-over-year growth consistently negative, ranging from -2.5% to -0.7%. This stagnation, despite a supportive commodity price environment, indicates that the replacement cycle for NOV's equipment is lengthening as operators focus on shareholder returns. The lack of volume growth may be partially offset by pricing, but the overall trend suggests a mature market with limited near-term expansion.
Gross Margin Compression Persists
Gross margin has declined from 26.6% in Q2 2024 to 24.4% in Q2 2026, reflecting a mix shift toward lower-margin equipment and ongoing cost inflation, as reported in quarterly financials.
The gross margin peaked at 26.6% in Q2 2024 but has since averaged around 20-21%, with Q2 2026 showing a slight recovery to 24.4%. This volatility suggests sensitivity to product mix and steel costs, which are key inputs. The current margin level is below the peer average of ~18-23%, indicating that NOV may be facing pricing pressure or a higher proportion of capital equipment sales versus aftermarket services. Investors should monitor whether the recent uptick is sustainable or a one-off.
Operating Leverage Remains Elusive
Operating income swung from $313M in Q2 2024 to just $47M in Q1 2026, with operating margin fluctuating between 2.3% and 14.1%, indicating high fixed costs and limited scalability at current revenue levels.
The wide swings in operating margin, from 14.1% in Q2 2024 to 2.3% in Q1 2026, highlight the company's high operating leverage. SG&A expenses have remained relatively stable around $300M per quarter, even as revenue has declined, compressing margins. The Q2 2026 improvement to 9.0% suggests some cost control, but the overall trend indicates that NOV cannot achieve consistent operating leverage without a meaningful revenue uptick. This is a key risk if the industry recovery stalls.
Earnings Quality Clouded by One-Time Items
Net income swung from a $78M loss in Q4 2025 to a $112M profit in Q2 2026, with EPS volatility driven by non-operating items and tax effects, as per income statement data.
The net margin has ranged from -3.4% to 10.2% over the past ten quarters, with significant fluctuations not fully explained by revenue changes. For instance, Q4 2025 saw a net loss despite positive operating income, suggesting one-time charges or tax adjustments. Conversely, Q2 2026's net income of $112M on operating income of $193M implies a tax benefit or other non-operating gains. Investors should adjust for these items to assess underlying profitability, which appears weaker than headline numbers suggest.
SG&A Discipline Offsets Revenue Decline
SG&A expenses have been held nearly flat at around $300M per quarter despite revenue declines, with Q2 2026 SG&A at $328M, indicating management's focus on cost containment, as per financial statements.
While revenue has declined by roughly 5% from its peak, SG&A has remained relatively constant, suggesting that management is controlling overhead costs. However, the slight increase in Q2 2026 to $328M may reflect investments in digital initiatives or inflation. The stability of SG&A as a percentage of revenue (around 15%) indicates that cost discipline is partially offsetting margin pressure, but further cuts may be limited without impacting operations.
Q2 2024 Marks Peak Profitability
Q2 2024 was the standout quarter with gross margin of 26.6%, operating margin of 14.1%, and net income of $226M, representing the cyclical peak before a sustained downturn, as per reported data.
The second quarter of 2024 appears to be the inflection point where NOV achieved its highest profitability in the observed period, driven by a favorable mix and possibly stronger pricing. Since then, margins have compressed and revenue has stagnated, indicating a cyclical downturn. The lasting impact is that NOV's earnings power is highly sensitive to industry conditions, and the current levels may represent the trough. A recovery to Q2 2024 levels would require a significant uptick in drilling activity and equipment orders.
Margin Recovery May Be Unsustainable
Despite Q2 2026's EPS beat, the gross margin of 24.4% is still below the 26.6% peak, and revenue growth remains negative, suggesting the improvement may be temporary and not indicative of a durable upturn.
Short-sellers could argue that the Q2 2026 margin expansion is a one-off, driven by cost cuts or favorable mix, rather than a fundamental improvement. The maintained guidance of flat to +2% revenue growth implies limited top-line momentum, and with SG&A still elevated, operating leverage remains weak. Additionally, the low ROE of 2.3% and net margin of 1.7% on a TTM basis indicate that the company is not generating adequate returns on equity, which could justify a lower valuation. If the industry recovery fails to materialize, margins could revert to the 20% level seen in recent quarters.