DNOW Shares Slip as ERP Costs Offset Q1 Revenue Beat

DNOW Inc. (NYSE: DNOW) reported first-quarter 2026 revenue above Wall Street estimates, but earnings missed sharply as integration costs from its MRC Global merger and ERP system disruptions pressured margins. Revenue rose 97.5% year over year to $1.18 billion, driven by a full-quarter contribution from MRC Global. Non-GAAP earnings were $0.01 per share, 83.3% below analyst consensus. Shares traded at $13.17 after the report, down 2.4% from $13.50 before earnings. CEO David Cherechinsky said temporary stabilization costs tied to ERP issues in the U.S. business weighed on profitability. Management said those costs should moderate through 2026 as remediation progresses. DNOW expects sequential improvement in EBITDA and cash flow as integration advances, with growth targeted in midstream, gas utilities and data centers.