Why is Dow stock rallying today?

Dow Inc. stock rose 2.7% in morning trading to reach $33.49, extending a post-earnings rally that began after the materials science company delivered a better-than-expected third-quarter performance last week. The company reported operating earnings of $0.71 per share, surpassing the Wall Street consensus of $0.64, while generating $11.27 billion in revenue — a 13% increase from the same period a year earlier. Operating EBITDA exceeded $1.5 billion, boosted by pricing actions and cost-saving initiatives, and the company repurchased $300 million of debt in Q3 with plans for an additional $200 million in Q4.

Dow also guided for fourth-quarter operating EBITDA of approximately $1.5 billion, supported by about $100 million in additional cost savings and more than $100 million in lower turnaround expenses. Several analysts responded by raising their price targets: RBC Capital’s Arun Viswanathan maintained a Sector Perform rating and lifted his target from $29 to $32; Wells Fargo’s Abigail Eberts kept an Overweight rating and raised her target from $35 to $40; and Citigroup’s Patrick Cunningham maintained a Neutral stance while boosting his target from $30 to $32.

The U.S. stock market opened higher today, with stocks rising in early trading as investors looked to rebound from last week’s losses ahead of a week packed with major earnings reports and a Federal Reserve meeting. The early recovery was supported by easing crude oil prices and expectations of steady interest rates. This constructive macro backdrop provided an additional tailwind for Dow shares, which are sensitive to energy input costs and broader industrial demand trends.

Dow’s "Transform to Outperform" program continues to deliver benefits ahead of schedule, with the company on track to achieve approximately $700 million in growth and productivity improvements in 2026, while completed planned maintenance in Q3 is expected to support stronger production and earnings performance heading into Q4. Together, the earnings beat, upward analyst revisions, robust forward guidance, and a recovering broader market have combined to push Dow shares meaningfully higher in today’s session, though the stock still trades well below its 52-week high of $42.74.