A month has gone by since the last earnings report for Weatherford (WFRD Quick QuoteWFRD - Free Report) . Shares have added about 10.3% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Weatherford due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

WFRD Q1 Earnings Top Estimates on Well Construction Segment's Strength

Weatherford International delivered first-quarter 2026 earnings of $1.49 per share, reflecting a 44.7% increase from $1.03 in the year-ago period. The bottom line topped the Zacks Consensus Estimate of $1.02 by 46.1%.

Quarterly revenues were $1,152 million, down 3.4% from $1,193 million in the year-ago period. The top line beat the Zacks Consensus Estimate of $1,138.33 million by 1.2%.

The strong quarterly earnings reflected steady Well Construction and Completions performance despite operational disruptions in the Middle East.

WFRD’s Regional Trends Reflect Headwinds and Resilience

In the first quarter of 2026, North America revenues were $220 million, down 12% year over year, reflecting softer activity in U.S. land and offshore markets, partially offset by stronger Completions activity in Canada. International revenues totaled $932 million, down 1% from the prior-year quarter.

Within international markets, Latin America revenues fell 7% year over year to $223 million, largely tied to lower activity in Argentina following the sale of the Pressure Pumping business, partially offset by a rebound in activity in Mexico.

Middle East/North Africa/Asia revenues declined 5% to $476 million amid heightened geopolitical tensions, partially offset by higher Completions activity in Saudi Arabia. Europe/Sub-Sahara Africa/Russia was a bright spot, with revenues rising 17% year over year to $233 million, driven by higher Integrated Services and Projects and Tubular Running Services (“TRS”) activity in Europe.

Q1 Segment Trends

Weatherford’s Well Construction and Completions (WCC) segment generated $443 million in revenues, essentially flat compared with $441 million in the year-ago quarter. Segment adjusted EBITDA was $110 million, down 14% year over year. The decline reflected flat overall activity and weaker fall through in the Middle East/North Africa/Asia, partly offset by better TRS fall through in North America.

Drilling and Evaluation (DRE) revenues decreased 8% year over year to $321 million, with segment adjusted EBITDA of $72 million, down 3%. This can be primarily attributed to reduced activity levels in Latin America, the MENA region and North America, partially offset by stronger wireline and drilling services activity in Europe.

Production and Intervention (PRI) revenues declined 11% to $296 million, and segment adjusted EBITDA dropped 13% to $54 million, pressured by the Argentina Pressure Pumping divestiture and lower Artificial Lift activity in North America. The decrease was partially offset by higher Subsea Intervention activity.

Profitability, Balance Sheet and Cash Flows

WFRD posted first-quarter 2026 operating income of $123 million, down 13% year over year, while net income attributable to Weatherford rose 42% to $108 million. The year-over-year increase in net income was aided by lower interest and other expenses, despite revenue pressure and operational complexity tied to the Iran conflict.

Net cash provided by operating activities was $136 million, and capital expenditures were $54 million. Weatherford continued returning capital, paying $20 million in dividends and repurchasing $10 million of shares, resulting in total shareholder returns of $30 million in the reported quarter.

As of March 31, 2026, cash and cash equivalents were $1,012 million, with restricted cash of $38 million, while long-term debt stood at $1,453 million.

WFRD’s Management Commentary and Outlook

Management expects operational disruptions in the Middle East to weigh on near-term visibility, with several weeks potentially needed for activity levels to normalize. The company indicated that freight costs have risen sharply, while project delays and suspensions have affected drilling and workover activity across multiple Middle East countries due to the Iran conflict.

For the second quarter of fiscal 2026, Weatherford guided revenues to $1.017- $1.110 billion and adjusted EBITDA between $195 million and $220 million. For full-year 2026, the company expects revenues of $4.50-$4.95 billion and adjusted EBITDA in the range of $945 million to $1.075 billion, with adjusted free cash flow conversion in the mid-40% range and an effective tax rate in the low to mid-20% range.

Management quantified the Iran conflict impact as approximately $30-$50 million of profit headwind over the first half of the year, while expressing increased confidence in a stronger second-half ramp and improving visibility into 2027.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -12.86% due to these changes.

VGM Scores

Currently, Weatherford has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Weatherford has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.