AI Takeaway
Dow Inc. reported a deepening net loss of -$533M in Q1 2026, as revenue fell 6.1% YoY to $9.79B amid persistent cost pressures, though operating cash flow surged to $1.12B and the cash position nearly tripled to $4.11B.
Revenue
$9.79B
-6.11% YoY
EPS (Basic)
$-0.74
-68.18% YoY
Filed · Source: SEC EDGAR 10-Q filing
Total revenue fell 6.1% YoY from $10.43B to $9.79B in Q1 2026, reflecting continued weakness in end-market demand and pricing pressure across Dow's chemical segments.
Source: Source: 10-Q Financial Data, Income Statement
Net loss deepened 73.6% YoY to -$533M (EPS of -$0.74), compared to a loss of -$307M (-$0.44 EPS) in Q1 2025, indicating that cost reductions have not kept pace with revenue declines.
Source: Source: 10-Q Financial Data, Income Statement
Selling, General & Administrative expenses increased 13.9% YoY to $417M, adding to margin compression at a time when top-line revenue was contracting, suggesting limited operating leverage.
Source: Source: 10-Q Financial Data, Income Statement
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Upgrade to unlockDow has posted net losses in consecutive quarters, with Q1 2026 loss of -$533M deepening YoY. Stockholders' equity has declined 9.2% YoY to $15.25B, and continued losses risk further balance sheet deterioration and potential covenant pressures on debt obligations.
Source: Source: 10-Q Financial Data, Balance Sheet & Income Statement
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Upgrade to unlockReported EPS of $-0.14 versus the $-0.29 analyst consensus — a +51.8% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $9.79B | $10.43B | -6.11% |
Cost of Revenue | $9.15B | $9.76B | -6.21% |
Net Income | $-533M | $-307M | -73.62% |
EPS (Basic) | $-0.74 | $-0.44 | -68.18% |
EPS (Diluted) | $-0.74 | $-0.44 | -68.18% |
SG&A Expense | $417M | $366M | +13.93% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $59.78B | $57.5B | +3.97% |
Current Assets | $19.47B | $16.33B | +19.24% |
Current Liabilities | $10.54B | $10.59B | -0.47% |
Stockholders' Equity | $15.25B | $16.79B | -9.17% |
Cash & Equivalents | $4.11B | $1.47B | +180.55% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.12B | $91M | +1135.16% |
Investing Cash Flow | $-448M | $-401M | -11.72% |
Financing Cash Flow | $-320M | $-521M | +38.58% |
D&A | $719M | $714M | +0.70% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | -5.4% | — | — |
ROE | -3.5% | — | — |
ROA | -0.9% | — | — |
Current Ratio | $1.848 | — | — |
Dow reported a net loss of -$533M and EPS of -$0.74 in Q1 2026, which was significantly worse than the -$0.44 EPS loss posted in Q1 2025. Without consensus estimate data in the filing, it is not possible to confirm whether results beat or missed Wall Street expectations, but the YoY deterioration of 68.2% in EPS is a notable negative.
The headline story is a deepening net loss of -$533M on revenue that fell 6.1% to $9.79B, with SG&A costs rising 13.9% adding to margin pressure. On the positive side, operating cash flow surged to $1.12B and cash on hand nearly tripled to $4.11B, suggesting improved liquidity management even as profitability remains elusive.
Dow's net loss widened from -$307M in Q1 2025 to -$533M in Q1 2026, a 73.6% deterioration, as revenue declined 6.1% while SG&A expenses rose 13.9% to $417M. Cost of revenue remained extremely high at ~93.5% of sales, leaving insufficient gross profit to cover operating expenses and interest costs.
Dow's near-term liquidity looks solid with a current ratio of 1.85x and cash of $4.11B (up 180.5% YoY), and operating cash flow of $1.12B provides a meaningful buffer. However, the company's longer-term financial health is under pressure given consecutive net losses, declining stockholders' equity (-9.2% YoY to $15.25B), and a heavily leveraged balance sheet with implied total liabilities of ~$44.5B.
Dow's revenue declined 6.1% YoY to $9.79B in Q1 2026, down from $10.43B in Q1 2025, reflecting continued softness in chemical end-market demand and pricing pressure. This marks an ongoing top-line contraction that, combined with rising operating costs, is driving the company's widening losses.