Want to see HAL full AI Analyst Report?
EarningsQ3 2026 Earnings Report
HAL Q3 2026 EPS Results
Actual EPS$0.60
Consensus EPS$0.58
Beat/MissBeat by +$0.02
One Year Ago EPS$0.58
HAL Q3 2026 Revenue Results
Actual Revenue$5.70B
Expected Revenue$5.58B
Beat/MissBeat by +$122.16M
YoY Revenue Growth+1.84%
Earnings Announcement Details
QuarterQ3 2026
Date10/20/2026
TimeBefore Open
Conference CallTuesday, October 20, 2026
HAL Upcoming Earnings
Halliburton's next earnings date is estimated for January 26, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
HAL Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive. Halliburton reported revenue above expectations, international growth, strong technology-driven demand, a sizable contract pipeline, and a 2027 outlook for mid-single-digit revenue growth and approximately 15% operating margins. The main challenges were weaker-than-expected North America frac activity, lower C&P results, Middle East uncertainty and logistics costs, and third-quarter free cash flow below expectations. Management nevertheless expressed confidence in international growth, cost savings, margin expansion, and continued demand for oilfield services.Company Guidance
Third-Quarter Revenue and Margin Performance
Halliburton delivered third-quarter revenue of $5.7 billion, adjusted operating income of $731 million, adjusted operating margin of 12.8%, and adjusted diluted EPS of $0.60. Revenue exceeded expectations, and management said it took important steps toward improving margins.
International Revenue Growth
International revenue was $3.5 billion, up 3% sequentially and 3% year over year. Strength was led in part by the Drilling and Evaluation division, which significantly outperformed expectations on revenue and improved operating income margins by 150 basis points sequentially.
International Regional Growth Outlook
Outside the Middle East, Halliburton expects 2026 year-over-year growth of about 12% in its international regions. Management said the international business is winning work and operating in a healthy market, supported by technology, execution, and customer collaboration.
Middle East Fourth-Quarter Growth Expectations
Despite near-term uncertainty and inflationary headwinds, Middle East results improved sequentially in the third quarter. Management expects Middle East revenue to grow both sequentially and year over year in the fourth quarter, supported by a full quarter of Jafurah completions activity and expanded share across integrated and discrete services in Saudi Arabia.
North America Drilling and Fluids Growth
North America land Sperry drilling services, drill bits, and drilling fluids businesses grew 23% year over year, well ahead of the rig count. Management cited longer laterals, more complex wells, increased rotary steerable drilling, and growing adoption of high-performance fluid systems.
Drill-Bit Revenue per Rig Improvement
North America drill-bit revenue per rig was up double digits from the first quarter, supported by performance-driven technology such as HyperSteer, which is engineered to run with iCruise and deliver steerability and speed.
2027 Revenue and Margin Framework
Management's early view for 2027 is revenue growth in the mid single digits and operating income margin expansion of about 200 basis points to approximately 15%. The outlook assumes flat North America activity, Middle East activity in line with the second half of 2026, and steady growth in other regions.
Margin Expansion Drivers and Cost Savings
Management expects approximately half of the 200-basis-point 2027 margin improvement to come from cost savings, including $100 million to $150 million of cost reductions and estimated SAP savings of $120 million to $150 million. Total cost savings were described as approximately $250 million to $300 million, with the remainder coming from incremental margins on additional revenue.
S/4 Transformation Completed
Halliburton announced that it is now live on S/4, completing a major global transformation. Management said the change supports further business-process simplification, adoption of AI at scale in back-office functions, and additional cost reductions.
Growth Engines Tracking Toward 2028 Target
Production services, drilling, unconventionals, and artificial lift are tracking toward the target of $3 billion of added annual revenue by 2028. Management said the growth engines are on track and ahead of schedule, with awards moving into startup.
International Unconventional and Artificial-Lift Expansion
Halliburton expects its first ZEUS fleet in Argentina to start up in the fourth quarter as planned, and its North Sea frac vessel to begin operations at year end. The company also won a multiyear ESP rental contract in Argentina, made first artificial-lift installations in the UAE and offshore Congo, and received its first offshore ESP order in Brazil.
Venezuela Business Reopening
Halliburton is open for business in Venezuela, with management in place, facilities open, key equipment moved, and third-quarter revenue generated across multiple product lines. The company expects solid growth, plans to deliver a dozen ESPs to a major customer, and said the country was greater than a $5 billion business before Halliburton left.
Latin America Growth Opportunities
Management expects Latin America to lead Halliburton's growth, with opportunities in Argentina, Venezuela, Mexico, and Suriname. Argentina is benefiting from unconventional growth, Venezuela has begun receiving ESP deliveries, Mexico is expected to offer opportunities in the second half of 2027, and Halliburton won significant integrated work in Suriname with TotalEnergies and Petronas.
Offshore Awards and Technology Position
Halliburton has won approximately $4 billion of offshore work year to date and believes all of it is accretive. Management cited offshore awards in Suriname, EastMed, and Norway, including a Norwegian market with $10 billion of exploration and development investment, and said automation, acquisitions, and technology helped secure the work.
Strong Contract Pipeline and Pricing Improvement
Halliburton has won roughly $14 billion of work year to date. Management said pricing has continued to improve and is expected to be accretive, with market tightness and limited overbuilding creating opportunities for further pricing.
Fourth-Quarter Guidance
Halliburton expects fourth-quarter revenue to remain approximately flat with the third quarter at around $5.7 billion, while operating income margin improves by about 70 basis points. Expected fourth-quarter EPS is approximately $0.62 to $0.64. C&P revenue is expected to increase 3% to 5% with margin improvement of 75 to 125 basis points.
Share Repurchases
Halliburton repurchased approximately $250 million of its common stock during the third quarter.
Free Cash Flow Outlook
Management expects sequentially higher free cash flow in the fourth quarter. Cash flow from operations is expected to be about $1 billion in the fourth quarter, and full-year 2026 free cash flow is expected to be approximately $1.6 billion. Management also expects free cash flow and free cash flow margins to improve in 2027.
HAL Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed