Dow Inc. (DOW), headquartered in Midland, Michigan, provides various materials science solutions for packaging, infrastructure, mobility, and consumer applications. Valued at $19.7 billion by market cap, the company manufactures and supplies chemicals for liquid injection molding, architecture fabrication, leather, textiles, automobiles, rubber consumer goods, and food industries. The materials science giant is expected to announce its fiscal second-quarter earnings for 2026 before the market opens on Thursday, Jul. 23.
Ahead of the event, analysts expect DOW to report a profit of $1.31 per share on a diluted basis, up 411.9% from a loss of $0.42 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect DOW to report EPS of $3, up 419.2% from loss per share of $0.94 in fiscal 2025. However, its EPS is expected to fall 30.3% year-over-year to $2.09 in fiscal 2027.
DOW stock has underperformed the S&P 500 Index’s ($SPX) 20.7% gains over the past 52 weeks, with shares down 2.9% during this period. Similarly, it underperformed the State Street Materials Select Sector SPDR ETF’s (XLB) 13.3% gains over the same time frame.
DOW lagged due to lower pricing and weak global industrial demand. In addition, volumes slipped 2% on Middle East-driven declines in Industrial Intermediates & Infrastructure, while chemical/plastics prices and soft infrastructure and packaging demand in Europe and Asia pressured results.
Analysts’ consensus opinion on DOW stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 20 analysts covering the stock, nine advise a “Strong Buy” rating, one suggests a “Moderate Buy,” nine give a “Hold,” and one recommends a “Moderate Sell.” DOW’s average analyst price target is $41.55, indicating an ambitious potential upside of 53.8% from the current levels.
