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Halliburton Q1 Earnings and Revenues Beat Estimates, Both down Y/Y
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Key Takeaways
HAL sees 4% North America revenue drop, while international business rises 3% year over year.
Halliburton beats Q1 estimates with 55-cent EPS, though profit declines from prior-year levels.
HAL sees early-stage North America recovery, focusing on capital discipline and ROI for growth.
Halliburton Company (HAL - Free Report) reported first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents due to softer activity in the North American region and the negative impact of geopolitical conflict in the Middle East, which hurt both of the company’s segments.
Meanwhile, Houston, TX-based oil and gas equipment and services company’s revenues of $5.4 billion were 0.3% lower year over year but beat the Zacks Consensus Estimate of $5.3 billion.
Halliburton Company Price, Consensus and EPS Surprise
North American revenues fell 4% year over year to $2.1 billion, due to reduced stimulation and artificial lift activity in US Land, along with lower stimulation and fluid services in the Gulf of America, but beat our projection by more than $45 million. On the other hand, revenues from Halliburton’s international operations increased 3% from the year-ago period to $3.3 billion.
The Completion and Production segment earned $439 million in operating income, lower than last year’s $531 million, due to lower stimulation activity in North America and drops in completion tool sales and pressure pumping services in the Middle East. However, the figure beat our estimate of $427 million, thanks to higher completion tool sales in the Western Hemisphere and stronger pressure pumping services in Africa.
The Drilling and Evaluation unit’s profit fell to $351 million in the first quarter of 2026 from $352 million in the same period of 2025. This decline was caused by lower activity across several product service lines in the Middle East, reduced wireline activity in the Eastern Hemisphere and a drop in fluid services in the Gulf of America. However, the result came in above our $336 million estimate, driven by higher project management activity in Latin America and a rise in drilling-related services across Europe and the Western Hemisphere.
HAL’s Balance Sheet
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, the company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6. HAL bought back $100 million worth of its stock and invested $42 million in the SAP S/4 migration during the first quarter of 2026. The company generated $273 million of cash flow from operations in the first quarter, leading to a free cash flow of $123 million.
HAL’s Management Remarks & Outlook
Management believes that Halliburton is still in the early stages of its recovery in North America. With a clear focus on return on investment and maintaining capital discipline, management is confident that this approach will drive long-term growth and value for both the company and its shareholders.
HAL's Zacks Rank & Key Picks
Halliburton carries a Zacks Rank #3 (Hold) at present.
TechnipFMC is valued at $28.29 billion. It is a global energy technology company that provides subsea, surface, and offshore and onshore project solutions to the oil and gas industry. TechnipFMC specializes in integrated engineering, procurement, construction and installation services for complex energy developments.
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Halliburton Q1 Earnings and Revenues Beat Estimates, Both down Y/Y
Key Takeaways
Halliburton Company (HAL - Free Report) reported first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents due to softer activity in the North American region and the negative impact of geopolitical conflict in the Middle East, which hurt both of the company’s segments.
Meanwhile, Houston, TX-based oil and gas equipment and services company’s revenues of $5.4 billion were 0.3% lower year over year but beat the Zacks Consensus Estimate of $5.3 billion.
Halliburton Company Price, Consensus and EPS Surprise
Halliburton Company price-consensus-eps-surprise-chart | Halliburton Company Quote
Inside Halliburton’s Regions & Segments
North American revenues fell 4% year over year to $2.1 billion, due to reduced stimulation and artificial lift activity in US Land, along with lower stimulation and fluid services in the Gulf of America, but beat our projection by more than $45 million. On the other hand, revenues from Halliburton’s international operations increased 3% from the year-ago period to $3.3 billion.
The Completion and Production segment earned $439 million in operating income, lower than last year’s $531 million, due to lower stimulation activity in North America and drops in completion tool sales and pressure pumping services in the Middle East. However, the figure beat our estimate of $427 million, thanks to higher completion tool sales in the Western Hemisphere and stronger pressure pumping services in Africa.
The Drilling and Evaluation unit’s profit fell to $351 million in the first quarter of 2026 from $352 million in the same period of 2025. This decline was caused by lower activity across several product service lines in the Middle East, reduced wireline activity in the Eastern Hemisphere and a drop in fluid services in the Gulf of America. However, the result came in above our $336 million estimate, driven by higher project management activity in Latin America and a rise in drilling-related services across Europe and the Western Hemisphere.
HAL’s Balance Sheet
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, the company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6. HAL bought back $100 million worth of its stock and invested $42 million in the SAP S/4 migration during the first quarter of 2026. The company generated $273 million of cash flow from operations in the first quarter, leading to a free cash flow of $123 million.
HAL’s Management Remarks & Outlook
Management believes that Halliburton is still in the early stages of its recovery in North America. With a clear focus on return on investment and maintaining capital discipline, management is confident that this approach will drive long-term growth and value for both the company and its shareholders.
HAL's Zacks Rank & Key Picks
Halliburton carries a Zacks Rank #3 (Hold) at present.
Investors interested in the energy sector might consider better-ranked stocks such as TechnipFMC (FTI - Free Report) , Eni (E - Free Report) and Chevron (CVX - Free Report) , each of which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
TechnipFMC is valued at $28.29 billion. It is a global energy technology company that provides subsea, surface, and offshore and onshore project solutions to the oil and gas industry. TechnipFMC specializes in integrated engineering, procurement, construction and installation services for complex energy developments.
Eni is valued at $88.2 billion. It is an Italian multinational energy company headquartered in Rome. Eni operates across the entire energy value chain, including oil and gas exploration, production, refining, marketing and growing renewable energy businesses worldwide.
Chevron is valued at $366.56 billion. It is a multinational corporation. Chevron is engaged in nearly all aspects of the energy sector, including exploration, production, refining and marketing of oil and natural gas.