Why Cactus (WHD) Is Down 11.1% After Missing Q2 Earnings and Revenue Expectations and What's Next

• Cactus Inc recently reported its Q2 2025 earnings, with both earnings per share and revenue falling short of analyst expectations, prompting investor concern over its near-term financial outlook.
• This earnings miss has drawn renewed attention to the company's ability to manage costs and sustain growth amid ongoing industry headwinds and changing demand dynamics.
• We’ll explore how the recent Q2 earnings shortfall shapes Cactus Inc’s investment narrative and points to potential challenges ahead.

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Cactus Investment Narrative Recap

To be a shareholder in Cactus Inc, you need to believe the company can leverage its expanded pressure control offering and international growth opportunities to counteract ongoing volatility in US drilling activity and rising input costs. The recent Q2 earnings miss may weigh on sentiment, but does not fundamentally alter the importance of successful integration of the Baker Hughes Surface Pressure Control joint venture, which remains the key short-term catalyst. The principal risk remains demand softness in core US markets, which could continue to pressure revenue and margins.

Among the company’s recent announcements, the June partnership with Baker Hughes stands out as most relevant. This joint venture is designed to broaden Cactus’ reach in surface pressure control products, increasing its exposure to international energy spending cycles and enhancing its geographic diversification at a time of weaker domestic market activity.

However, with sentiment shifting, investors should be aware that if pricing pressure continues to build due to customer capital discipline, then...

Read the full narrative on Cactus (it's free!)

Cactus' outlook suggests revenues of $1.7 billion and earnings of $232.7 million by 2028. This is based on analysts' assumptions of 15.3% annual revenue growth and an increase in earnings of about $51.5 million from the current $181.2 million.

Uncover how Cactus' forecasts yield a $49.62 fair value, a 49% upside to its current price.

Exploring Other Perspectives

Three individual fair value estimates from the Simply Wall St Community range from US$49.63 to US$98.08 per share, pointing to very different signals versus today’s US$33.78 price. With recent earnings misses and demand uncertainty, it is clear that views on the company’s potential can vary widely, be sure to consider several viewpoints.

Explore 3 other fair value estimates on Cactus - why the stock might be worth over 2x more than the current price!

Build Your Own Cactus Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Cactus research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Cactus research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Cactus' overall financial health at a glance.

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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.

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