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Investing.com - Goldman Sachs reiterated a Sell rating and $20.00 price target on NOV Inc. (NYSE:NOV) following the company’s first-quarter 2026 pre-announcement. The stock currently trades at $18.85, near the analyst’s target and roughly in line with its Fair Value.
NOV reported expected revenue of approximately $2.05 billion versus Goldman Sachs’ estimate of $2.04 billion. The company said adjusted EBITDA is expected to reach $177 million, 13% below the firm’s previous estimate of $204 million. According to InvestingPro, five analysts have revised their earnings downwards for the upcoming period, with 10 additional ProTips available for subscribers analyzing the company’s outlook.
The company said disruptions in the Middle East resulted in a revenue impact of approximately $54 million and an adjusted EBITDA impact of approximately $32 million. Adjusted for these disruptions, NOV’s first-quarter 2026 EBITDA would have been approximately $209 million.
NOV said the challenges in the Middle East led to disruptions in quarter-end deliveries of capital equipment and products, including spare parts. Service-oriented offerings were less impacted by the disruptions.
The increased costs in the quarter are attributable to higher shipping and freight costs and reduced throughput in manufacturing facilities. Goldman Sachs said it expects NOV should be able to manage and redirect its supply chain in the region. A comprehensive Pro Research Report is available for deeper analysis.
In other recent news, NOV Inc. announced a reduction in its first-quarter 2026 guidance due to operational disruptions in the Middle East, specifically attributing a $54 million revenue impact and a $32 million EBITDA impact to the Iran War. The company now expects to report revenues of $2.05 billion, an operating profit of $47 million, and an adjusted EBITDA of $177 million for the quarter. RBC Capital responded to these developments by downgrading NOV’s stock rating from Outperform to Sector Perform, citing a less compelling risk/reward opportunity and maintaining a price target of $21.00.
In addition, NOV Inc. revealed plans to invest $200 million over the next three years to double the capacity of its subsea flexible pipe manufacturing facility in Açu, Brazil. This expansion is aimed at meeting the anticipated demand from deepwater developments and an expected replacement cycle for flexible pipe installations. The company also reported the resignation of Ben A. Guill from its board of directors, citing personal commitments as the reason for his departure. Guill’s resignation was not due to any disagreement with the company’s operations or policies.
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