Halliburton Company (HAL) Earnings & Analysis

Latest quarter

Halliburton reported Q3 FY2026 revenue of $5.7 billion, above the $5.6 billion consensus and up from $5.6 billion a year earlier. Adjusted earnings per share were $0.60, above the $0.58 consensus. Reported diluted earnings per share rose to $0.50 from $0.02 a year earlier.

The company’s filing shows Completion and Production revenue fell 4% year over year to $3.1 billion, primarily because of lower North American stimulation activity and completion tool sales in the Middle East and Asia. Drilling and Evaluation revenue rose 10% to $2.6 billion, with the company citing improved drilling-related services in North America and Europe.

Halliburton reported North American revenue of $2.2 billion, down 9%, while international revenue rose 9% to $3.5 billion. The filing attributed the international increase largely to activity across multiple service lines in Europe, Africa, the CIS and Latin America.

Operating margin rose to 10.9% from 6.36% a year earlier, while gross margin fell to 14.7% from 15.3%. Halliburton reported $156.0 million in free cash flow, compared with $276.0 million a year earlier.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO Jeff Miller said disrupted oil supply, depleted inventories and energy security would drive demand for oilfield services over several years. His early view for Halliburton in 2027 calls for mid-single-digit revenue growth and operating margin improvement, without relying on a North American hydraulic fracturing recovery. As Miller put it, “this plan, does not depend on a North America frac recovery.”

CFO Eric Carre said Completion and Production revenue and margins fell short of the company’s third-quarter expectations, principally because fracturing activity was lower than expected in North American land and Argentina and a Saudi Arabian contract started more slowly. Drilling and Evaluation exceeded expectations on both measures, he said, helped by activity in U.S. land, the Middle East and Latin America and a more favorable revenue mix.

Asked about North America, COO Shannon Slocum described customers adding activity and said Halliburton had secured price increases during the quarter. He said the company had extended an E-Fleet contract at a higher price and added another fleet. Slocum also said Halliburton had won roughly $14 billion of work year to date and was making choices about where to deploy equipment when customers competed for it.

On costs, Carre said a third-quarter cost-right-sizing exercise would contribute to 2027 savings, alongside lower spending on the S4 system transition. He said the system was live, though some transition support would remain. When asked about cash flow, Carre said third-quarter collections were lower and inventory needs created headwinds, including project preparations and Middle East logistics concerns.

For the fourth quarter, Carre expects revenue to remain approximately flat at around $5.7 billion and earnings per share of 62 to 64 cents. He expects Completion and Production revenue to rise sequentially, while Drilling and Evaluation revenue declines.

Guidance

For 2026, COO Shannon Slocum now expects year-over-year revenue growth of about 12% in Halliburton’s international regions outside the Middle East. On the preceding quarter’s call, CEO Jeff Miller had expected the company’s international business outside the Middle East to grow at a low-double-digit rate that year.