Dow posted Q1 2026 net sales of $9.8B (down 6% YoY), beating the $9.65B consensus estimate. GAAP loss per share was -$0.74, wider than expected, but adjusted (non-GAAP) operating EPS of -$0.14 significantly beat the -$0.39 estimate. Shares opened at $39.38 on earnings day before closing at $38.53, down 0.72% on the session.
About Dow Inc.
Dow Inc. (NYSE: DOW) is one of the world’s leading materials science companies, founded in 1897 and headquartered in Midland, Michigan. Listed on the NYSE as an independent entity since April 2019 following its separation from DowDuPont, it serves high-growth end markets including packaging, infrastructure, mobility, and consumer applications.
The company operates manufacturing sites in 29 countries and employs approximately 34,600 people globally. As of April 2026, Dow’s market cap stands at approximately $27.57 billion. Dow delivered full-year 2025 revenue of approximately $40 billion and operates through three segments: Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings.
Top Financial Highlights
- Q1 2026 net sales reached $9.794 billion, declining 6% year over year.
- GAAP net loss was -$445 million, compared to -$290 million in Q1 2025.
- GAAP EPS stood at -$0.74, versus -$0.44 in the prior-year period.
- Non-GAAP operating EPS was -$0.14, outperforming the consensus estimate of -$0.39 by approximately 64%.
- Operating EBIT totaled $154 million, declining by $76 million year over year.
- Operating EBITDA reached $873 million, down from $944 million in Q1 2025.
- Free cash flow was $621 million, improving significantly from -$581 million in the prior-year quarter.
- Cash from operating activities totaled $1.124 billion, increasing by $1.02 billion year over year.
- Cash and cash equivalents stood at $4.110 billion, reflecting a stable liquidity position.
- Cost savings from operational programs reached $193 million during the period.
- Packaging and specialty plastics revenue was $4.919 billion, declining 7% year over year.
- Industrial intermediates and infrastructure revenue reached $2.626 billion, down 8% year over year.
- Performance materials and coatings revenue was $2.080 billion, remaining broadly flat year over year.
- Q2 2026 revenue guidance is approximately $12 billion, with EBITDA expected around $2 billion.
- Shareholder returns included $252 million in dividends paid during the quarter.
Beat or Miss?
| Metric | Reported | Estimated | Difference / Analysis |
| Net Sales | $9.794B | $9.646B | Beat by ~$148M (+1.5%) |
| Non-GAAP Operating EPS | ($0.14) | ($0.39) | Beat by $0.25 (+64.1%) |
| GAAP EPS | ($0.74) | ($0.27) | Miss by -$0.47 (wider loss) |
| Operating EBITDA | $873M | N/A | Supported by $193M cost savings |
| Free Cash Flow | $621M | N/A | Strong turnaround vs. -$581M in Q1 2025 |
| Q2 2026 Revenue Guidance | ~$12B | N/A | Management flagged more upside than downside |
What Leadership Is Saying?
CEO Quote – Jim Fitterling, Chairman and CEO:
“In the first quarter, our results reflect the growing impact of Dow’s self-help actions. Additionally, the margin backdrop began to positively inflect in March following global supply constraints, as impacts from the conflict in the Middle East quickly became widespread.
The strength of Dow’s advantaged portfolio is a clear differentiator, enabling us to win in our key end markets. Our unmatched Americas manufacturing footprint, leading European feedstock flexibility and agile global supply chains allow us to continue to innovate and serve our customers safely and reliably through all cycles and macroeconomic conditions.”
CFO Quote – Jeffrey Tate, Chief Financial Officer:
“Our expectation for the second quarter are approximately $12 billion of revenue and EBITDA of $2 billion.”
Fitterling also flagged a key leadership transition: Karen Carter is set to become CEO on July 1, 2026, with Fitterling transitioning to Executive Chair.
Historical Performance
Dow YoY: Q1 2026 vs. Q1 2025
| Category | Q1 2026 | Q1 2025 | Change (%) |
| Net Revenue | $9,794M | $10,431M | -6.10% |
| GAAP Net Loss | -$445M | -$290M | -53.4% (wider loss) |
| Operating EBITDA | $873M | $944M | -7.50% |
| Operating EPS (non-GAAP) | ($0.14) | $0.02 | deterioration |
| GAAP EPS (diluted) | ($0.74) | ($0.44) | -68.2% (wider loss) |
| Cash from Operations | $1,124M | $104M | 981% |
| Free Cash Flow | $621M | -$581M | turnaround |
| Local Price Change | -7% | N/A | Pricing pressure |
| Volume Change | -2% | N/A | Volume softness |
Competitor Comparison
Q1 Performance
| Category | Dow (Q1 2026) | LyondellBasell (Q4 2025) | Huntsman (Q4 2025) |
| Revenue | $9.794B | $7.09B | ~$1.36B |
| Net Income / Loss | -$445M | Net Loss | Net Loss (-$0.37 EPS) |
| Operating EBITDA | $873M | N/A | N/A |
| EPS (reported) | -$0.74 GAAP | ($0.26) | ($0.37) |
| YoY Revenue Change | -6.10% | -9.20% | Decline |
| Key Headwind | Middle East conflict, Sadara losses | Pricing pressure, volume declines | MDI/polyurethanes pricing, Europe energy |
How the Market Reacted?
DOW shares opened at $39.38 on April 23 and briefly touched an intraday high of $40.05 before closing at $38.53, a decline of 0.72% on heavy volume of 21.76 million shares. The initial upward move reflected investor relief at the strong non-GAAP EPS beat (+64%) and robust free cash flow of $621 million, while the subsequent pullback reflected concerns over the wider GAAP loss and persistent YoY revenue erosion.
The broader market also closed lower on April 23, with the S&P 500 and Dow Jones Industrial Average each falling 0.4%, adding sector-wide pressure. Year-to-date through the earnings date, DOW shares had risen approximately 30% to 66% depending on the reference period, significantly outpacing the S&P 500’s 4.3% gain, as investors priced in a second-half 2026 recovery thesis driven by Middle East supply disruption tailwinds and Dow’s Transform to Outperform cost program.
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