The DN5 evolved directly from the 1974 Shadow DN3, with Southgate refining the aerodynamic package and revising the weight distribution to improve balance and handling. The car was powered by a Ford Cosworth DFV V8, the ubiquitous customer engine of the era. Before the 1976 season opened, Universal Oil Products — the team's long-standing title sponsor — withdrew its financial backing, forcing Shadow to seek replacement commercial support. The DN5 was updated into a 'B' specification for 1976 to address reliability issues that had hampered the earlier car.
The DN5's quick-qualifying character was evident from its debut. At the opening round in Argentina, lead driver Jean-Pierre Jarier took pole position — a notable early statement from a team that had not previously challenged for the front row. He repeated that feat in Brazil, where he led the bulk of the race and set the fastest lap before retiring on lap 32. The pattern of strong grid positions undermined by poor reliability continued throughout the year. Jarier finished only two races; his best result was fourth in Spain, awarded on half points after the race was stopped early following a serious accident.
Tom Pryce, the second driver, proved more consistent. He managed multiple sixth-place finishes and a fourth in Germany, and at the British Grand Prix at Silverstone he claimed the DN5's third pole of the season, only to retire from the lead once again. His most significant result was a third-place finish in Austria, one of two podium results the DN5 would ultimately record.
The DN5B brought improved reliability but a step back in outright pace. Jarier ran second for much of the Brazilian Grand Prix before crashing, handing Pryce an eventual third place — the team's sole podium of the season and matching the DN5's best result from 1975. Both drivers scored points finishes through the year, though further top-five results were rare. Pryce added a fourth place in Britain before switching to the new Shadow DN8 from the Dutch Grand Prix onward; Jarier continued with the DN5B for several additional rounds.
The DN5B was carried over into 1977 for new signing Renzo Zorzi, who drove it in the Argentine and Brazilian Grands Prix. After retiring in Argentina, Zorzi scored sixth in Brazil — the final points finish for the Shadow DN5 in any specification — before the team moved exclusively to the DN8.
The Shadow DN5 is remembered primarily as the car that most clearly demonstrated Tom Pryce's raw talent. His pole positions and podium results showed what the car was capable of when driven with precision, and his performances at the British Grand Prix in particular — pole position followed by a race retirement from the lead — became a recurring and frustrating narrative for the team. The DN5's strong qualifying pace contrasted with fragile race reliability, a theme that had followed Shadow since its earliest Formula One seasons, and the car never fully converted its potential into a race victory despite often having the speed to do so.