Dow jumps on Q1 results as March margins improve; cash flow aided by NOVA payment

DOWDOW

Dow Inc. shares rose after the company reported first-quarter 2026 results and highlighted improving margins in March amid global supply constraints. Dow also posted $1.1 billion in operating cash flow, boosted by a NOVA Chemicals litigation-related payment and working-capital improvements.

1. What’s moving the stock today

Dow Inc. is trading higher after releasing first-quarter 2026 results and pointing to a more constructive margin setup late in the quarter. Management said the margin backdrop began to “positively inflect” in March as global supply constraints spread, helping shift sentiment toward a near-term earnings stabilization narrative. (prnewswire.com)

2. Key quarter numbers investors are reacting to

Dow reported a GAAP net loss of $445 million (GAAP loss per share of $0.74). On an operating basis, Dow posted an operating EPS loss of $0.14 versus operating EPS of $0.02 in the year-ago period, and operating EBIT of $154 million; net sales were $9.794 billion. (prnewswire.com)

3. Cash flow and the one-time boost

Operating cash flow from continuing operations was $1.124 billion, up sharply year over year, primarily reflecting a payment received from NOVA Chemicals tied to ongoing litigation and improved working capital. The release also noted operating EPS excluded significant items totaling $0.60 per share, including items tied to the Sadara guarantee liability and taxes associated with the NOVA payment. (prnewswire.com)

4. Segment signals: volumes, pricing, and disruption impacts

The quarter showed mixed operating signals: Packaging & Specialty Plastics benefited from higher polyethylene volumes but faced lower pricing and lower merchant olefins sales tied to prior capacity actions and maintenance. Industrial Intermediates & Infrastructure volumes declined, with the company citing impacts from the Middle East conflict, while Performance Materials & Coatings posted stronger operating EBIT helped by volume gains and lower fixed costs. (prnewswire.com)