U.S. stocks traded lower this morning, with the Dow Jones falling more than 500 points on Friday.

Dow Inc. remains a buy, despite an 18% stock decline and margin normalization, due to cost reductions and cash generation supporting the investment case. Q3 results showed strong profitability: operating EBITDA rose 79% to $1.55 billion, with margin improvement driven by price increases and cost initiatives. Management expects $1.3 billion in incremental 2027 earnings from transformation and asset actions, though demand and new capacity pose risks to sustained margin gains.

Dow Inc. (DOW) Q3 2026 Earnings Call Transcript

Dow (DOW) remains a buy as strong pricing power and supply disruptions drive robust EBITDA and free cash flow generation. Q3 results showed 13% revenue growth, 75% EBITDA increase, and segment margin expansion, especially in Packaging & Specialty Plastics. US operations benefit from cheap natural gas, enabling DOW to take market share from higher-cost international producers.

Dow's Q3 earnings rebounded on higher prices and cost savings, while sales rose 13% and strong cash flow supported its ongoing transformation efforts.

While the top- and bottom-line numbers for Dow Inc. (DOW) give a sense of how the business performed in the quarter ended September 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.

Dow Inc. (DOW) came out with quarterly earnings of $0.71 per share, beating the Zacks Consensus Estimate of $0.64 per share. This compares to a loss of $0.19 per share a year ago.

Chemicals maker Dow beats third-quarter profit estimates