Dow Inc (NYSE:DOW) Reports Q2 Earnings Miss, 7.3% Pre-Market Plunge Amid Dividend Cut and Macroeconomic Challenges

Dow Inc (NYSE:DOW) reported second-quarter earnings that fell short of analyst expectations, triggering a sharp pre-market selloff. The materials science company posted revenue of $10.1 billion, down 7% year-over-year and below the consensus estimate of $10.33 billion. The earnings miss was more pronounced, with reported EPS of -$0.42 compared to the estimated -$0.18.

Key Financial Results vs. Estimates

• Revenue: $10.1 billion actual vs. $10.33 billion estimated (miss)
• EPS: -$0.42 actual vs. -$0.18 estimated (wider loss than expected)
• Pre-market reaction: Shares dropped 7.3%, reflecting investor disappointment

The company attributed the weaker performance to macroeconomic challenges, including trade and tariff uncertainties, which have pressured margins across its business segments. CEO Jim Fitterling emphasized cost-cutting measures and portfolio optimization, targeting $6 billion in cash support and earnings growth levers by 2026.

Strategic Adjustments & Dividend Cut

Dow announced a reduction in its quarterly dividend to $0.35 per share, part of a broader effort to preserve capital amid ongoing industry headwinds. Management framed this as a necessary step to maintain financial flexibility while still providing shareholders with a "competitive dividend across the economic cycle."

Market Reaction & Outlook

The stock had shown modest gains in recent weeks (+0.08% over the past week, +10.3% over the past month), but the earnings miss has erased much of that optimism. Analysts remain cautious, with full-year 2025 revenue estimates standing at $42.04 billion and Q3 projections at $10.67 billion.

For more detailed earnings estimates and historical performance, review Dow’s earnings and estimates data.

Disclaimer: This article is not investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.