The sharp operational turnaround and strong beat suggest continued momentum from pricing power and cost actions. Monitor polyethylene pricing trends and the ramp of Transform to Outperform savings for sustainability. The stock likely re-rates higher on improved earnings trajectory.
Price Chart
Executive Summary
Dow reported a massive Q2 2026 turnaround with operating EPS of $1.44 (beat consensus $1.28 by 12.5%) on net sales of $12.1B (+20% YoY), swinging from a loss to profit. Operating EBIT surged to $1.65B from -$21M a year ago, driven by higher polyethylene prices and self-help initiatives, while operating cash flow improved to $1.3B.
Key Financial Metrics
Key Facts
- Net sales $12.1B, up 20% YoY (vs $10.1B)
- GAAP EPS $0.99 vs loss of $1.18 in Q2 2025
- Operating EPS $1.44 vs loss of $0.42, beating consensus $1.28 by 12.5%
- Operating EBIT $1.65B vs loss of $21M
- Operating EBITDA $2.31B vs $703M
- Cash from operations $1.32B vs -$470M; Free cash flow $692M vs -$1.13B
- Packaging & Specialty Plastics segment EBIT $1.28B vs $71M on 27% revenue growth
- Transform to Outperform benefits expected to exceed $1.3B in 2026
Financial Impact
Revenue up $2.0B YoY; operating profit swing of $1.67B; free cash flow improvement of $1.82B
Risk Factors
- Middle East conflict could disrupt supply chains and volumes
- Polyethylene price volatility may compress margins
- Restructuring costs ($526M in Q2) could weigh on near-term GAAP earnings
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001751788-26-000144 |
| Document: dow-20260723.htm | 0001751788-26-000144 |
| Document: 0001751788-26-000144-index-headers.html | 0001751788-26-000144 |
| Document: 0001751788-26-000144-index.html | 0001751788-26-000144 |
| Document: 0001751788-26-000144.txt | 0001751788-26-000144 |
| 8-K Data (Synthetic) | 0001751788-26-000144 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 23, 2026 10w ago | 8-K | $30.90 $32.90 | ▲ +6.47% | ▲ +3.16% | $27.96 (−9.51%) |
Apr 23, 2026 23w ago | 8-K | $38.53 $36.27 | ▼ −5.87% | ▼ −10.50% | $27.96 (−27.43%) |
Apr 14, 2026 24w ago | 8-K | $39.16 $38.76 | ▼ −1.02% | ▼ −7.32% | $27.96 (−28.60%) |
Mar 18, 2026 28w ago | DEFA14A | $37.49 $35.60 | ▼ −5.04% | ▼ −12.66% | $27.96 (−25.42%) |
Mar 17, 2026 28w ago | DEFA14A | $37.69 $39.92 | ▲ +5.92% | ▼ −0.13% | $27.96 (−25.82%) |
Feb 28, 2026 30w ago | Institutional Cluster | $30.60 $41.87 | ▲ +36.83% | ▲ +44.77% | $27.96 (−8.63%) |
Feb 27, 2026 30w ago | DEFA14A | $30.60 $41.87 | ▲ +36.83% | ▲ +44.77% | $27.96 (−8.63%) |
US Market Status
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