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A month has gone by since the last earnings report for Cactus, Inc. (WHD - Free Report) . Shares have added about 10.5% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Cactus due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Cactus, Inc. before we dive into how investors and analysts have reacted as of late.

WHD Q2 Earnings Beat Estimates on Pressure Control, Spoolable Growth.Cactus, Inc. reported second-quarter 2026 adjusted earnings of 93 cents per share, up 40.9% from 66 cents per share a year earlier. The bottom line topped the Zacks Consensus Estimate of 71 cents per share by 31%.

Quarterly revenues surged 64.3% to $449.53 million from $273.58 million a year ago. The top line exceeded the consensus mark of $400.62 million by 12.2%.

Strong quarterly results were driven by higher contributions from Cactus International, stronger Middle East Pressure Control shipments and growing demand for Spoolable Technologies. Backlog ended the quarter at $455.8 million.

WHD's Pressure Control Revenues SurgePressure Control revenues increased 91.4% year over year to $344 million from $179.77 million a year ago. The figure is above our estimate of $307.2 million. The sharp rise primarily reflected the addition of Cactus International, which expanded WHD’s international operations and contributed significant Middle East revenues.

The segment also benefited from stronger U.S. customer activity and solid execution of international deliveries despite conflict-related logistics challenges. Aftermarket service activity in Saudi Arabia and Norway provided additional support, as customers focused on repairing and better utilizing existing equipment.

Pressure Control operating income rose 39.7% to $59.15 million from $42.33 million recorded a year earlier. Adjusted segment earnings before interest, taxes, depreciation and amortization (EBITDA) increased 80.7% to $95.92 million from $53.08 million in the prior-year quarter. However, the adjusted (EBITDA) margin declined to 27.9% from 29.5%, reflecting the changed business mix following the Cactus International acquisition.

Cactus' Spoolable Business Maintains GrowthSpoolable Technologies revenues increased 9.7% to $105.53 million from $96.23 million in the prior-year quarter. The figure is above our estimate of $95.5 million.

Segment operating income increased 14.7% year over year to $32.17 million from $28.05 million recorded a year earlier. Adjusted segment EBITDA rose 11% to $42.14 million from $37.95 million in the prior-year quarter, while the adjusted EBITDA margin improved to 39.9% from 39.4%. The expansion reflected favorable product mix and stronger operating leverage.

WHD's Earnings Benefit From Higher ScaleTotal operating income increased 37.5% year over year to $83.58 million from $60.81 million a year earlier. The operating margin contracted to 18.6% from 22.2%, as results included acquisition-related purchase accounting expenses tied to Cactus International and FlexSteel.

These expenses included amortization associated with acquired intangible assets and the step-up in inventory values. The company recorded severance costs related primarily to efforts to resize and integrate the Cactus International organization.

Adjusted EBITDA rose 53.2% year over year to $132.78 million. The adjusted EBITDA margin was 29.5% compared with 31.7% in the prior-year quarter. Adjusted net income increased 41.1% to $75.11 million, supported by the substantial revenue contribution from Pressure Control and continued profitability in Spoolable Technologies.

Cactus' Strong Cash Flow, Maintained DividendOperating cash flow was $104.6 million in the quarter. Net capital expenditures totaled $15.6 million and dividend payments and related distributions totaled $11.2 million.

WHD Maintains Robust LiquidityWHD ended June with $365.82 million in cash and cash equivalents and no bank debt. The balance included $92.5 million retained to finalize legal restructuring activities tied to the Cactus International acquisition. The company had $223.7 million available under its revolving credit facility.

Cactus Expands Capacity for Global DemandCactus raised its 2026 net capital expenditure guidance to a range of $55-$65 million. The increase primarily reflects investments in the Baytown Spoolable Technologies facility to support growing demand from international and midstream customers.

The Baytown project is expected to cost roughly $40 million and could expand the facility’s production capacity by as much as 20%. Management is evaluating additional Spoolable Technologies manufacturing capacity in the Eastern Hemisphere to serve opportunities in the Middle East and other international markets.

The company received more than $80 million of incremental international Spoolable Technologies orders in July. Including Pressure Control, international purchase orders received after the quarter exceeded $130 million, indicating continued demand across both operating segments.

WHD’s 2026 Outlook & Dividend IncreaseFor the third quarter, management expects Pressure Control adjusted EBITDA margins to be in the range of 22-24%, excluding about $4 million of stock-based compensation. Lower international operating leverage, reduced aftermarket service contributions and fewer tariff recoveries are expected to affect profitability.

Spoolable Technologies adjusted EBITDA margins are projected at 39-41%, excluding roughly $1 million of stock-based compensation. Management expects demand to remain supported by Latin American orders, international market expansion and increased adoption among U.S. customers.

The board increased the quarterly dividend by 7% to 15 cents per share, marking the fourth consecutive year of dividend growth. Cactus expects third-quarter depreciation and amortization of about $27 million and an adjusted tax rate of approximately 27%.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a flat trend in estimates revision.

VGM ScoresAt this time, Cactus has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook Cactus has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Key Takeaways Cactus' growth is broadening as Cactus International and FlexSteel expand its earnings base.Cactus had $365.8M in cash, no bank debt and raised 2026 capital spending guidance.Cactus faces tariff exposure, backlog risks and premium valuation despite double-digit earnings growth. Cactus, Inc.(WHD - Free Report) is entering the second half of 2026 with faster earnings growth, expanding international exposure and substantial liquidity. Second-quarter results showed that the Cactus International and FlexSteel acquisitions are broadening the company’s earnings base.

The trade-off is valuation. WHD’s premium multiples, tariff exposure and uneven backlog conversion raise the execution bar even as estimates point to double-digit earnings growth.

Cactus’ Growth Engines Are BroadeningPressure Control revenues reached $344 million in the second quarter, helped by Cactus International and stronger Middle East deliveries. Spoolable Technologies generated $105.5 million in revenues and adjusted segment EBITDA of $42.1 million, with the margin improving to 39.9%.

The company also received more than $80 million of incremental international Spoolable Technologies orders in July. Including Pressure Control, international purchase orders received after the quarter exceeded $130 million. Baker Hughes Company (BKR - Free Report) , whose Surface Pressure Control operations formed the basis of Cactus International, remains a relevant reference point in global oilfield services and equipment.

WHD’s Cash Position Supports ExpansionAs of June 30, Cactus had $365.8 million in cash and no bank debt. Second-quarter operating cash flow reached $104.6 million, while net capital expenditures were $15.6 million, giving the company room to fund growth without depending on additional leverage.

Cactus raised its 2026 net capital expenditure guidance to $55-$65 million, mainly for the Baytown Spoolable Technologies facility. The roughly $40 million project could increase Baytown capacity by as much as 20%, with most spending expected in 2027.

WHD’s Premium Valuation Raises the BarWHD trades at 3.2X forward 12-month sales, above the sub-industry’s 1.8X and the broader Zacks sector’s 1.4X. It also stands modestly above the stock’s five-year median of 3.0X.

That premium leaves less room for disappointment if international orders, margins or domestic activity soften. The valuation does not negate the growth case, but it makes sustained earnings delivery more important. Image Source: Zacks Investment Research

Cactus Faces Tariff and Backlog RisksPressure Control continues to face a 75% total tariff on most goods sourced from China and a 50% tariff on goods from Vietnam. Steel and high-density polyethylene costs add another source of margin pressure.

Remaining performance obligations ended June at $455.8 million as project deliveries outpaced new awards and negotiations continued with a large Middle East customer. SLB (SLB - Free Report) , another global oilfield-services provider with active Middle East wellhead and drilling contracts, illustrates the competitive backdrop for international spending.

WHD’s Earnings Outlook Points to Faster GrowthThe Zacks Consensus Estimate calls for current-quarter earnings of 76 cents per share, up 13.4%. Next-quarter earnings are also projected at 76 cents, implying 16.9% growth.

For 2026, the consensus estimate of $3.07 per share indicates 14.1% growth from the prior year. The 2027 estimate rises to $3.54, representing another 15.4% increase and supporting the view that earnings momentum can extend beyond the current year. Image Source: Zacks Investment Research

Cactus’ Buy Signal Favors Growth and MomentumWHD’s accelerating earnings outlook, international expansion and debt-free balance sheet strengthen the growth case, while premium valuation and execution risks argue against ignoring price discipline. The stock therefore offers a favorable setup, but not one without meaningful operating and valuation risks.

WHD currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Its Growth Score of B, Momentum Score of B and VGM Score of B complement that favorable rank, while the Value Score of C is more consistent with the stock’s richer valuation. Together, those signals favor investors focused on growth and momentum, while suggesting that valuation-sensitive buyers may want to remain selective.

Key Takeaways WHD's Q2 earnings top estimates as Cactus International & stronger Pressure Control shipments boosted results.Pressure Control revenues increased 91.4%, aided by Cactus International and stronger U.S. customer activity.WHD raised 2026 capital spending to expand Spoolable capacity amid growing international and midstream demand. Cactus, Inc. (WHD - Free Report) reported second-quarter 2026 adjusted earnings of 93 cents per share, up 40.9% from 66 cents per share a year earlier. The bottom line topped the Zacks Consensus Estimate of 71 cents per share by 31%.

Quarterly revenues surged 64.3% to $449.53 million from $273.58 million a year ago. The top line exceeded the consensus mark of $400.62 million by 12.2%.

Strong quarterly results were driven by higher contributions from Cactus International, stronger Middle East Pressure Control shipments and growing demand for Spoolable Technologies. Backlog ended the quarter at $455.8 million.

WHD's Pressure Control Revenues SurgePressure Control revenues increased 91.4% year over year to $344 million from $179.77 million a year ago. The figure is above our estimate of $307.2 million. The sharp rise primarily reflected the addition of Cactus International, which expanded WHD’s international operations and contributed significant Middle East revenues.

The segment also benefited from stronger U.S. customer activity and solid execution of international deliveries despite conflict-related logistics challenges. Aftermarket service activity in Saudi Arabia and Norway provided additional support, as customers focused on repairing and better utilizing existing equipment.

Pressure Control operating income rose 39.7% to $59.15 million from $42.33 million recorded a year earlier. Adjusted segment earnings before interest, taxes, depreciation and amortization (EBITDA) increased 80.7% to $95.92 million from $53.08 million in the prior-year quarter. However, the adjusted (EBITDA) margin declined to 27.9% from 29.5%, reflecting the changed business mix following the Cactus International acquisition.

Cactus' Spoolable Business Maintains GrowthSpoolable Technologies revenues increased 9.7% to $105.53 million from $96.23 million in the prior-year quarter. The figure is above our estimate of $95.5 million.

Segment operating income increased 14.7% year over year to $32.17 million from $28.05 million recorded a year earlier. Adjusted segment EBITDA rose 11% to $42.14 million from $37.95 million in the prior-year quarter, while the adjusted EBITDA margin improved to 39.9% from 39.4%. The expansion reflected favorable product mix and stronger operating leverage.

WHD's Earnings Benefit From Higher ScaleTotal operating income increased 37.5% year over year to $83.58 million from $60.81 million a year earlier. The operating margin contracted to 18.6% from 22.2%, as results included acquisition-related purchase accounting expenses tied to Cactus International and FlexSteel.

These expenses included amortization associated with acquired intangible assets and the step-up in inventory values. The company recorded severance costs related primarily to efforts to resize and integrate the Cactus International organization.

Adjusted EBITDA rose 53.2% year over year to $132.78 million. The adjusted EBITDA margin was 29.5% compared with 31.7% in the prior-year quarter. Adjusted net income increased 41.1% to $75.11 million, supported by the substantial revenue contribution from Pressure Control and continued profitability in Spoolable Technologies.

Cactus' Strong Cash Flow, Maintained DividendOperating cash flow was $104.6 million in the quarter. Net capital expenditures totaled $15.6 million and dividend payments and related distributions totaled $11.2 million.

WHD Maintains Robust LiquidityWHD ended June with $365.82 million in cash and cash equivalents and no bank debt. The balance included $92.5 million retained to finalize legal restructuring activities tied to the Cactus International acquisition. The company had $223.7 million available under its revolving credit facility.

Cactus Expands Capacity for Global DemandCactus raised its 2026 net capital expenditure guidance to a range of $55-$65 million. The increase primarily reflects investments in the Baytown Spoolable Technologies facility to support growing demand from international and midstream customers.

The Baytown project is expected to cost roughly $40 million and could expand the facility’s production capacity by as much as 20%. Management is evaluating additional Spoolable Technologies manufacturing capacity in the Eastern Hemisphere to serve opportunities in the Middle East and other international markets.

The company received more than $80 million of incremental international Spoolable Technologies orders in July. Including Pressure Control, international purchase orders received after the quarter exceeded $130 million, indicating continued demand across both operating segments.

WHD’s 2026 Outlook & Dividend IncreaseFor the third quarter, management expects Pressure Control adjusted EBITDA margins to be in the range of 22-24%, excluding about $4 million of stock-based compensation. Lower international operating leverage, reduced aftermarket service contributions and fewer tariff recoveries are expected to affect profitability.

Spoolable Technologies adjusted EBITDA margins are projected at 39-41%, excluding roughly $1 million of stock-based compensation. Management expects demand to remain supported by Latin American orders, international market expansion and increased adoption among U.S. customers.

The board increased the quarterly dividend by 7% to 15 cents per share, marking the fourth consecutive year of dividend growth. Cactus expects third-quarter depreciation and amortization of about $27 million and an adjusted tax rate of approximately 27%.

WHD’s Zacks Rank & Other Key PicksCactus currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks from the energy sector are PBF Energy Inc. (PBF), HF Sinclair Corporation (DINO - Free Report) and Valero Energy Corporation (VLO - Free Report) . PBF sports a Zacks Rank #1 (Strong Buy), while DINO and VLO carry a Zacks Rank #2 each, at present. You can see the complete list of today’s Zacks Rank #1 stocks here.

PBF reported second-quarter 2026 adjusted earnings of $6.22 per share, which topped the Zacks Consensus Estimate of $4.05 per share.

As of June 30, 2026, PBF had total debt of $1.75 billion, and cash and cash equivalents of $894.1 million.

HF Sinclair reported second-quarter 2026 adjusted earnings of $5.31 per share, which surpassed the Zacks Consensus Estimate of $4.39 per share.

As of June 30, 2026, DINO had total debt of $2.77 billion, and cash and cash equivalents of $2.26 billion.

Valero reported second-quarter 2026 adjusted earnings of $12.54 per share, which beat the Zacks Consensus Estimate of $9.87 per share.

As of June 30, 2026, VLO had total debt of $9.10 billion, and cash and cash equivalents of $7.87 billion.

Wall Street expects a year-over-year increase in earnings on higher revenues when Cactus, Inc. (WHD - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on July 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.71 per share in its upcoming report, which represents a year-over-year change of +7.6%.

Revenues are expected to be $400.62 million, up 46.4% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.79% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Cactus?For Cactus, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +7.04%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination indicates that Cactus will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Cactus would post earnings of $0.65 per share when it actually produced earnings of $0.70, delivering a surprise of +7.69%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Cactus appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.