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Disappointing Earnings Drive DNOW Shares Down Almost 19%

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Written by Timothy Sykes Reviewed by Bryce Tuohey Fact-checked by Matt Monaco
Updated 2/23/2026, 11:33 am ET 2/23/2026, 11:33 am ET | 4 min 4 min read
Disappointing Earnings Drive DNOW Shares Down Almost 19% Thumbnail

DNOW Inc. stocks have been trading down by -9.03 percent as investor sentiment remains cautious in the current market climate.

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Live Update At 11:32:38 EST: On Monday, February 23, 2026 DNOW Inc. stock [NYSE: DNOW] is trending down by -9.03%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

DNOW delivered its fourth-quarter financial results for 2025 with some mixed reactions. The revenue came in strong at $959M, slightly below what the market had predicted. Investors saw the earnings per share take a bit of a hit, falling to $0.15 from $0.25 compared to the same time last year, leading to concerns about the company’s ability to maintain profit margins amidst tougher economic conditions.

In looking at the numbers on a broader scale, the company’s stock price performed a sort of dance. Over the past several days, stock prices showed volatility, peaking at $16.65 and dropping to just above $12. These fluctuations suggest market inefficiencies reflected by external pressures, including the visitor winds created globally by economic uncertainties.

Key financial metrics are always a window into a company’s operations. With an EBIT margin of 5.1% and a gross margin of 23.1%, it’s apparent that DNOW’s profitability—and lack thereof—is under serious scrutiny. A lower pretax profit margin and the reduction in net income signal that darker days may lie ahead unless swift corrective action is taken.

Legal Investigation Looms

A looming legal cloud now hangs over DNOW as Rosen Law Firm initiates an investigation into possible securities misrepresentations. Following abysmal Q4 results, the securities firm is getting ready to file a class-action lawsuit, alleging misleading information that misled investors.

This situation might add considerable pressure on the company. Such probes tend to hurt investor confidence, potentially leading to difficulties in securing funding or negotiating deals. Alongside financial repercussions, CEO confidence remains under the microscope. This ongoing saga is likely creating higher stakes not only for the company’s market posture but also for its overall strategic outlook.

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Conclusion

In light of the earnings miss and subsequent market response, DNOW finds itself facing significant challenges. The legal inquiries pose a compounding risk, amplifying trader anxieties about future profitability and stock performance. With Q1 results around the corner, there’s anticipation and nerves among market spectators, keeping a keen eye on how DNOW intends to turn the corner. As millionaire penny stock trader and teacher Tim Sykes says, “There is always another play around the corner; don’t chase just because you feel FOMO.” This mindset is crucial as traders assess DNOW’s trajectory amidst the tumult.

Will the firm be up to the task of navigating these rocky waters and regain market faith? As DNOW prepares to address these manifold concerns, proactive strategies and resilient leadership may well be the compass by which it charts a hopeful new course.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Tim Sykes

Head Writer at TimothySykes.com, Lead Mentor at the Trading Challenge
In his 20-plus years of trading, Tim has made $7.9 million. In his 15-plus years of teaching, Tim’s Trading Challenge has produced over 30 millionaire students. His philosophy emphasizes small gains and cutting losses quickly.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”