10-Q · July 22, 2026
Weatherford reported Q2 2026 revenue of $1.105 billion and diluted EPS of $0.55. Revenue was approximately 4% below Q1 2026 and 8% below Q2 2025, while EPS fell substantially from $1.49 sequentially and $1.87 a year…
Earnings analysis · 10-Q
WFRD earnings analysis
Filed October 21, 2026 · Our reading of the company's report
The latest report
Weatherford exceeded consensus with third-quarter revenue of $1,143 million and diluted EPS of $1.66, but revenue fell 7% and operating income declined 14% year over year. Margin performance was mixed: DRE and PRI…
Read full summary
Weatherford exceeded consensus with third-quarter revenue of $1,143 million and diluted EPS of $1.66, but revenue fell 7% and operating income declined 14% year over year. Margin performance was mixed: DRE and PRI expanded materially, while WCC EBITDA margin contracted to 22.2% from 26.7%. Liquidity improved through $503 million of year-to-date operating cash flow, lower capex, and reduced debt, although Middle East geopolitical disruption, WCC profitability, collection concentration, and execution risks remain significant.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
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
- $1.66
What stood out
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EPS beat despite lower revenue
Third-quarter revenue was $1,143 million, down 7% from $1,232 million, while diluted EPS increased to $1.66 from $1.12. Revenue and EPS exceeded consensus estimates of $1,133 million and $1.26, respectively.
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Gross margin expanded year over year
Gross margin was approximately 32.7%, based on $1,143 million of revenue and $769 million of product and service costs, versus approximately 31.5% in the prior-year quarter. Operating margin was 13.4%, compared with 14.4% in the prior-year quarter.
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PRI delivered strong margin growth
PRI segment adjusted EBITDA increased 24% to $73 million from $59 million, and its margin expanded to 23.2% from 18.1%, supported by cost reductions and higher-margin intervention and subsea activity.
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DRE margin improved materially
DRE segment adjusted EBITDA rose 8% to $90 million from $83 million, while margin increased 320 basis points to 27.2% from 24.0%, despite a 4% revenue decline to $331 million.
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Cash conversion strengthened
Operating cash flow increased to $503 million for the first nine months from $408 million, while capital expenditures declined to $141 million from $175 million. The resulting year-to-date cash generation after capex was approximately $362 million.
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Liquidity improved and debt declined
Cash and cash equivalents increased to $1,161 million from $987 million at December 31, 2025, while long-term debt declined to $1,216 million from $1,455 million. Management also issued notice to redeem approximately $236 million of 2030 Senior Notes using cash on hand.
What to watch
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Geopolitical disruption remains material
The Iran Conflict reduced third-quarter Middle East/North Africa/Asia revenue by $86 million year over year and could continue to affect operating results, liquidity, and cash flows through transportation disruptions, higher logistics and insurance costs, and changes in customer activity.
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WCC profitability deteriorated
WCC revenue declined 4% to $450 million, while segment adjusted EBITDA fell 20% to $100 million and margin contracted 449 basis points to 22.2% from 26.7%, primarily due to lower Middle East/North Africa/Asia activity and higher other expenses.
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Customer collection concentration
Net accounts receivable declined to $1,105 million from $1,234 million, but Mexico still represented 19% of total receivables and the largest Mexican customer represented 14%; management states that the customer has a history of late payments.
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Tariff and supply-chain exposure
The company added a tariff-specific risk factor, noting that additional tariffs or higher rates could increase supply-chain costs, dilute margins, or reduce demand. As of September 30, 2026, approximately $19 million was outstanding under its new supplier-finance program.
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Recovery timing remains uncertain
Management expects overall activity to improve through the remainder of 2026, but stated that the pace and timing of Middle East recovery remain uncertain. Third-quarter consolidated operating income fell 14% to $153 million from $178 million.
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NCS integration and execution risk
The September 1, 2026 NCS acquisition carried total consideration of $128 million, including $101 million of shares, and management cautions that anticipated acquisition benefits may not be realized within the expected period.
Management's outlook
No numerical revenue or EPS guidance was provided. Management expects overall activity to improve through the remainder of 2026, driven by North America, Latin America, and the NCS acquisition. Capital spending is projected at 3%-5% of revenue over a 12- to 18-month rolling period; 2026 capital spend is expected to remain within that framework.
Earlier filings 2
10-Q · April 22, 2026
Weatherford reported Q1 2026 revenue of $1,152.0 million and diluted EPS of $1.49. Revenue and margins were down modestly versus Q1 2025, but profitability (EPS) and cash generation remained solid with operating cash…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.