Halliburton Company

(New York Stock Exchange)
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Bullish +65

What Halliburton (HAL) Said on Its Q3 Earnings Call - TradingView

Earnings report Financial outlook New AI features AI-generated analysis

πŸ“ˆ Halliburton reported Q3 2026 revenue of $5.7 billion and adjusted operating income of $731 million, achieving an adjusted operating margin of 12.8%.

πŸ’° The company repurchased approximately $250 million of common stock during the third quarter while maintaining a strong balance sheet.

🌍 International revenue grew 9% year over year to $3.5 billion, driven by strong performance in the Drilling and Evaluation division.

πŸ“‰ North America revenue declined 9% year over year to $2.2 billion due to a slower recovery in the hydraulic fracturing market.

πŸš€ Halliburton expects fourth-quarter revenue to remain flat at approximately $5.7 billion with operating income margin improving by about 70 basis points.

πŸ“… For 2027, the company forecasts mid-single-digit revenue growth and an operating income margin of about 15%, up from current levels.

πŸ’‘ Management expects approximately $1 billion in fourth-quarter cash flow from operations and roughly $1.6 billion in full-year free cash flow.

πŸ› οΈ The company is now live on SAP S/4 globally, with projected cost-reduction benefits of $100 million to $150 million expected in 2027.

βš™οΈ Halliburton secured a multiyear electric submersible pump rental contract in Argentina, its largest award of the quarter.

🌐 The company expects approximately $1 billion in fourth-quarter cash flow from operations and approximately $1.6 billion in full-year free cash flow.

πŸ”§ Halliburton is on track to add $3 billion in annual revenue by 2028 through growth engines including production services, drilling, unconventionals, and artificial lift.

🚒 Planned developments include the expected year-end startup of a North Sea stimulation vessel and the fourth-quarter deployment of the first ZEUS fleet in Argentina.

πŸ‡»πŸ‡ͺ Halliburton remains open for business in Venezuela with management and facilities in place, having generated third-quarter revenue across multiple product lines.

⚑ In artificial lift, the company made installations in the United Arab Emirates and offshore Congo and received its first offshore ESP order in Brazil.

πŸ“ˆ Sperry Drilling services, drill bits, and drilling fluids revenue rose 23% year over year due to demand for rotary steerable drilling technologies.

πŸ”¬ Drill-bit revenue per rig was up double digits from the first quarter, supported by longer laterals and increasingly complex wells.

πŸ“Š CFO Eric Carre expects fourth-quarter earnings per share of approximately $0.62 to $0.64 with full-year free-cash-flow margins improving in 2027.

🌍 Outside the Middle East, the company expects 2026 year-over-year growth of about 12% across its international regions.

🀝 Halliburton highlighted work awarded by BP for the Bumerangue appraisal program in Brazil and by Eni for the Cronos ultra-deepwater gas development in Cyprus.

πŸ“‰ North America frac results were affected by a slower-than-anticipated recovery, with management moving several frac crews to new customers at better pricing.

Bullish Signals
  • Halliburton reported Q3 2026 revenue of $5.7 billion and adjusted operating income of $731 million, achieving an adjusted operating margin of 12.8%.
  • The company repurchased approximately $250 million of common stock during the quarter, signaling confidence in its financial position.
  • International revenue grew 9% year over year to $3.5 billion, driven by strong performance in the Drilling and Evaluation division which improved operating income margin by 150 basis points.
  • Halliburton expects fourth-quarter operating income margin to improve by about 70 basis points while maintaining revenue flat at approximately $5.7 billion.
  • The company issued an early outlook for 2027 calling for mid-single-digit revenue growth and an operating income margin of about 15%, representing an expansion of roughly 200 basis points.
  • Management expects approximately $1 billion in fourth-quarter cash flow from operations and roughly $1.6 billion in full-year free cash flow, with improving margins in 2027.
  • The company is now live on SAP S/4 globally, with projected cost-reduction benefits of $100 million to $150 million expected in 2027 from structural and operational reductions.
  • Halliburton secured a multiyear electric submersible pump rental contract in Argentina, its largest award of the quarter, alongside installations in the UAE and offshore Congo.
  • Sperry Drilling services, drill bits, and drilling fluids revenue rose 23% year over year due to demand for rotary steerable drilling technologies including the iCruise system.
  • Drill-bit revenue per rig was up double digits from the first quarter, supported by longer laterals and increasingly complex wells in the North American land business.
Risk Factors
  • North America revenue declined 9% year over year to $2.2 billion due to a slower-than-anticipated recovery in the hydraulic fracturing market.
  • North America frac results were affected by a slower-than-anticipated recovery, with management moving several frac crews to new customers at better pricing which created more downtime than expected.
  • The moves to reposition frac crews to new customers at better pricing during the quarter weighed on regional performance and the Completion and Production division.
Full Analysis
Halliburton (HAL) reported third-quarter 2026 revenue of $5.7 billion and adjusted operating income of $731 million, resulting in an adjusted operating margin of 12.8% and adjusted net income of $0.60 per diluted share. CEO Jeff Miller noted that revenue exceeded expectations as the company took important steps to improve margins, while also repurchasing approximately $250 million of common stock during the quarter. International revenue reached $3.5 billion, up 3% sequentially and 9% year over year, driven by strong performance in the Drilling and Evaluation division which improved operating income margin by 150 basis points. Conversely, North America revenue was $2.2 billion, down 5% sequentially and 9% year over year due to a slower-than-anticipated recovery in the hydraulic fracturing market, though management operates this segment for returns rather than market share. Looking ahead, Halliburton expects fourth-quarter revenue to remain roughly flat at approximately $5.7 billion with operating income margin improving by about 70 basis points. The company issued an early outlook for 2027 calling for mid-single-digit revenue growth and an operating income margin of about 15%, representing an expansion of roughly 200 basis points, driven largely by cost savings from its SAP S/4 implementation and structural reductions. The company remains on track to add $3 billion in annual revenue by 2028 through growth engines including production services, drilling, unconventionals, and artificial lift. Key developments include the expected year-end startup of a North Sea stimulation vessel, the deployment of the first ZEUS fleet in Argentina, and securing a multiyear electric submersible pump rental contract with a major operator in Argentina.