Shares of NOW Inc. (DNOW) are soaring 10.24% in pre-market trading on Wednesday following the company's release of its second-quarter 2025 financial results. The industrial distributor significantly outperformed analyst expectations on both earnings and revenue fronts.

NOW Inc. reported adjusted earnings per share of $0.27 for the quarter, handily beating the analyst consensus estimate of $0.21 by 26.76%. This represents an 8% increase from the same period last year when the company earned $0.25 per share. On the top line, NOW Inc. posted quarterly sales of $628 million, surpassing the analyst forecast of $612.6 million by 2.51%. However, it's worth noting that this revenue figure is slightly lower than the $633 million reported in the same quarter of the previous year, marking a 0.79% year-over-year decrease.

The strong earnings beat, coupled with the revenue outperformance, appears to have ignited investor enthusiasm, driving the stock's significant pre-market rally. This positive reaction suggests that market participants are encouraged by NOW Inc.'s ability to exceed expectations and maintain profitability despite a slight dip in year-over-year sales. As the market opens, investors will be watching closely to see if this pre-market momentum carries into regular trading hours.