Shares of NOW Inc. (NYSE: DNOW) soared 10.24% in pre-market trading on Wednesday following the release of the company's second-quarter 2025 financial results that significantly exceeded analyst expectations.

The industrial products distributor reported adjusted earnings per share of $0.27, beating the consensus estimate of $0.21 by 28.57%. This represents an 8% increase from the $0.25 per share earned in the same quarter last year. Revenue for the quarter came in at $628 million, surpassing analyst projections of $612.6 million by 2.51%. However, this figure represents a slight 0.79% decrease from the $633 million reported in the year-ago period.

The strong earnings performance, despite a marginal dip in revenue, suggests that NOW Inc. has been successful in improving its operational efficiency and profitability. Investors are reacting positively to the company's ability to exceed expectations in a challenging economic environment, driving the significant pre-market stock price increase. As the market opens, traders will be watching closely to see if this momentum continues throughout the regular trading session.