National Energy Services Reunited (NasdaqCM:NESR) opened 2026 with Q1 revenue of US$404.6 million and basic EPS of US$0.24, setting the tone for how investors will weigh growth against profitability. Over the past five quarters, revenue has moved from US$303.1 million in Q1 2025 to US$404.6 million in Q1 2026, while quarterly basic EPS has ranged from US$0.08 to US$0.28 across that period. This gives you a clear view of how earnings have tracked alongside top line expansion. With trailing twelve month net income of US$64.6 million and margin pressure already on the radar, this set of results puts efficiency and profitability firmly in focus.

See our full analysis for National Energy Services Reunited.

With the headline numbers on the table, the next step is to see how this earnings print lines up with the widely followed growth and valuation narratives around the stock, and where those stories might be tested by the latest margin trends.

TTM margins slip from 5.9% to 4.5%

• Over the last 12 months, NESR generated US$64.6 million of net income on US$1.4b of revenue, which works out to a 4.5% net margin compared with 5.9% a year earlier.
• Consensus narrative expects higher service intensity and sustainability projects to support margins. However, the trailing move from 5.9% to 4.5% shows earnings quality flagged as high even while:
  • TTM net income of US$64.6 million sits below the US$76.3 million level reported for the year to Q4 2024 in the data.
  • TTM revenue has risen from US$1.3b to US$1.4b, so the lower margin comes alongside a larger top line that still has to translate into stronger profitability.

EPS swings against bullish growth story

• Basic EPS in Q1 2026 was US$0.24, compared with US$0.08 in Q4 2025 and US$0.28 in Q4 2024, while TTM EPS stands at US$0.65 against US$0.80 a year earlier.
• Bulls point to forecast earnings growth of 48.7% per year and historical 23.9% annual growth. However, the current TTM EPS of US$0.65 versus US$0.80 a year ago means the latest figures both support and test that view:
  • The rebound from US$0.08 in Q4 2025 to US$0.24 in Q1 2026 aligns with the idea that recent quarters can step up toward the higher earnings levels bullish investors are watching for.
  • At the same time, the lower TTM EPS versus last year shows that the strong growth narrative still has work to do in the actual reported numbers, not just in forecasts.

On this set of figures, bulls argue NESR is in a temporary earnings lull before forecast growth kicks in, while skeptics may see more volatility in play, so it can be helpful to read the full bullish case in context 🐂 National Energy Services Reunited Bull Case.

P/E premium and DCF gap test the bearish case

• NESR trades at a P/E of 41.9x versus 35.5x for the US Energy Services industry and 47.6x for the peer group, while the supplied DCF fair value of US$65.49 sits well above the current share price of US$26.84.
• Bears highlight margin pressure and regional risk. However, the combination of a 41.9x P/E premium to the industry and a DCF fair value more than double the share price creates a different tension:
  • The higher P/E than the industry fits the bearish concern that investors are already paying up relative to many energy services stocks, even with a 4.5% net margin.
  • However, the large gap between US$26.84 and the US$65.49 DCF fair value means the valuation model in the data still points to substantial upside compared with where the stock trades today.

If you are weighing these bearish concerns against the DCF upside and earnings profile, it is worth seeing how the cautious narrative frames the same numbers 🐻 National Energy Services Reunited Bear Case.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for National Energy Services Reunited on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With sentiment split between bullish growth hopes and margin concerns, it makes sense to look at the numbers yourself and decide how convincing the story really is. To see why some investors are optimistic about the stock, review the 2 key rewards.

Explore Alternatives

NESR's weaker 4.5% net margin, softer TTM EPS of US$0.65 versus US$0.80, and premium P/E all highlight pressure on earnings quality and valuation support.

If you want stocks where pricing looks more closely aligned to current fundamentals, start comparing candidates in the 45 high quality undervalued stocks

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.