10-Q · July 24, 2026
Halliburton delivered Q2 2026 revenue of $5.714 billion and GAAP diluted EPS of $0.64, representing growth versus both Q1 2026 and Q2 2025, while operating margin expanded to 14%. The filing supports a favorable…
Earnings analysis · 10-Q
HAL earnings analysis
Filed October 23, 2026 · Our reading of the company's report
The latest report
Halliburton delivered modest revenue growth and substantially higher operating income year over year, supported by strong Drilling and Evaluation performance and international growth. However, Completion and Production…
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Halliburton delivered modest revenue growth and substantially higher operating income year over year, supported by strong Drilling and Evaluation performance and international growth. However, Completion and Production and North America remained under pressure, while the approximately 10.9% operating margin declined from 13.6% in Q2 2026. Cash generation and liquidity support continued capital returns, but working-capital use, commodity volatility, geopolitical disruption, and the unresolved $640 million estimated IRS exposure remain important risks.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.5
- Operating margin
- 10.94%
What stood out
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Revenue held near record levels
Third-quarter revenue was $5.703 billion, up 2% from $5.600 billion in Q3 2025, but down approximately 0.1% from $5.71 billion in Q2 2026. GAAP EPS was $0.50, while adjusted EPS was $0.60 according to the reported quarterly results.
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Lower charges lifted operating income
Operating income rose to $624 million from $356 million in Q3 2025, a $268 million increase, as impairments and other charges declined to $107 million from $392 million. The resulting operating margin was approximately 10.9%, down from 13.6% in Q2 2026 but above 6.4% in Q3 2025.
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D&E remained the growth engine
Drilling and Evaluation revenue increased 10% to $2.614 billion, while segment operating income rose 12% to $391 million. Growth was driven by improved drilling services in North America and Europe and higher activity across multiple product lines in Latin America.
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International growth offset North America
International revenue increased 9% year over year, including 13% growth in Latin America to $1.122 billion and 23% growth in Europe/Africa/CIS to $1.016 billion. This more than offset a 9% decline in North America revenue to $2.160 billion.
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Cash generation supports capital returns
Operating cash flow was $1.5 billion for the first nine months of 2026 against $693 million of capital expenditures. Management maintained its approximately $1.1 billion full-year 2026 capital-spending expectation and targets returning at least 50% of annual free cash flow through dividends and repurchases.
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Strong liquidity and buyback capacity
Liquidity remained substantial at $1.8 billion of cash and equivalents plus $3.5 billion of available committed bank credit as of September 30, 2026. Share repurchases totaled $558 million during the first nine months, and approximately $1.5 billion remained authorized at quarter-end.
What to watch
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Completion and Production weakness
Completion and Production revenue fell 4% to $3.089 billion and operating income declined 11% to $457 million, primarily due to lower North American stimulation activity and lower completion-tool sales in Middle East/Asia.
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North America and commodity exposure
North America revenue declined 9% to $2.160 billion in the quarter, while WTI averaged approximately $87 per barrel versus $96 in Q2, a 9% sequential decrease. Lower commodity prices and customer capital discipline could pressure activity further.
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Working capital consumed cash
Working capital had a negative $517 million impact on operating cash flow during the first nine months of 2026, reflecting a material use of liquidity despite $1.5 billion of operating cash flow.
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Inflation and geopolitical disruption
Management cited ongoing inflation in logistics, chemicals, and cement and stated that inflationary pressures are expected to persist for some time. Middle East operations also face higher logistics and supply-chain costs and uncertain recovery due to geopolitical developments.
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Material unresolved IRS exposure
The IRS has proposed reclassifying approximately 95% of a $3.5 billion 2016 termination fee, and Halliburton estimates potential cash taxes of approximately $640 million plus interest if the IRS position ultimately prevails.
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Restructuring and asset charges remain
The filing states that there were no material changes to the risk factors disclosed in the 2025 Form 10-K as of September 30, 2026. Separately, the company recorded $107 million of third-quarter impairments and other charges, including severance, inventory costs and write-downs, and asset write-offs.
Management's outlook
No quantitative revenue or EPS guidance was provided in the 10-Q. Management continues to expect approximately $1.1 billion of 2026 capital spending and states that international activity growth is expected to be led by production services, drilling, unconventionals, and artificial lift.
Earlier filings 2
10-Q · April 24, 2026
Halliburton reported Q1 2026 revenue of $5,402,000,000 and EPS of $0.55, modestly beating consensus (revenue beat +2.02%, EPS beat +12.24%). Revenue was down versus the prior quarter ($5.66B in 2025Q4) by $258 million…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.