Halliburton (1HAL) Q3 2026 Earnings Report

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.

For Q4, Halliburton expects total company revenue to remain approximately flat to Q3, around $5.7 billion, operating income margin to improve about 70 basis points, and earnings per share to be approximately $0.62 to $0.64; C&P revenues are expected to increase 3 to 5% with operating margins improving 75- to 125- basis points, while D&E revenue is expected to be 3 to 5% lower with operating margins flat to up 50-basis-points. Capital expenditures for the full year 2026 are expected to be about $1.1 billion, Q4 cash flow from operations is expected to be about $1 billion, and free cash flow for the year is expected to be about $1.6 billion. For 2027, Halliburton expects revenue growth in the mid single digits, operating income margins to expand about 200-basis-points or to about 15 percent, assuming flat North America, Middle East activity in line with the second half of 26, and steady growth in other regions; about $500 to $600 million in operating profit is expected from the 200-basis-point margin improvement, with about half coming from cost savings, estimated cost savings of about $250 to $300 million, and incremental margins on additional revenue in the 20 to 30% range.