NOW Inc. (DNOW) saw its stock price plummet 5.18% in pre-market trading on Wednesday following the release of its first-quarter 2025 financial results. Despite reporting positive figures, the company's performance appears to have fallen short of market expectations, triggering a sell-off among investors.

The oil and gas equipment distributor reported Q1 revenue of USD 599 million, with a net income of USD 22 million. The company's adjusted EBITDA came in at USD 46 million, while adjusted net income stood at USD 24 million. NOW Inc. also posted an adjusted earnings per share (EPS) of USD 0.22 for the quarter.

While these results demonstrate profitability, the sharp decline in stock price suggests that analysts and investors may have been anticipating stronger performance from NOW Inc. The company's ability to meet growth expectations and navigate challenges in the oil and gas sector could be under scrutiny. As the trading day progresses, market participants will be closely watching for any additional insights or guidance from the company's management to better understand the factors behind this significant stock movement.