2Q26 Preview: Anticipating In-Line Print as Management Focuses on Stacking Upcycle Performance Across Its Key Business Units

Research evidence excerpt

2Q26 Preview: Anticipating In-Line Print as Management Focuses on Stacking Upcycle Performance Across Its Key Business Units

J P M O R G A N North America Equity Research

30 June 2026

NOV Inc

2Q26 Preview: Anticipating In-Line Print as Neutral

Management Focuses on Stacking Upcycle NOV, NOV US

Performance Across Its Key Business Units Price (29 Jun 26):$18.43

Price Target (Dec-26):$20.00

JPM View: At our energy conference last week, CEO Bayardo struck a notably Oil & Gas Exploration & Production

ACoptimistic tone, expressing confidence in a sustained energy cycle driven by Arun Jayaram

international and offshore growth, potentially offsetting near-term Middle East (1-212) 622-8541

logistics disruptions and a softer but recovering NAM market. Notably, Bayardo arun.jayaram@jpmchase.com

characterized the current backdrop as an "abnormal cycle" in which the Energy Sowmya Vemulapalli

Equipment segment is outperforming early, contrary to NOV's historically later- (1-212) 270-4660

cycle reputation as a capital-equipment provider. Heading into 2Q26, we expect sowmya.vemulapalli@jpmchase.com

in-line results with the company's prior guide, which was built on the assumptions Jason Kim

that the ceasefire would hold, that there would be no escalation, and that the Strait (1-212) 622-1408

jason.b.kim@jpmchase.com

would remain closed with logistics in the region generally remaining constrained. J.P. Morgan Securities LLC

The two areas of the company's portfolio most affected by the conflict, including

infrastructure/construction and composite projects, alongside transactional

aftermarket spare parts, largely offset each other, leaving results broadly in line Key Changes (FYE Dec)

with expectations and bookings carrying a high backlog partly due to delayed Prev Cur Δ

deliveries.