A month has gone by since the last earnings report for Liberty Energy (LBRT Quick QuoteLBRT - Free Report) . Shares have added about 1.7% in that time frame, underperforming 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 Liberty Energy due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Liberty Energy Inc. before we dive into how investors and analysts have reacted as of late.

Liberty Energy Q1 Earnings & Revenues Surpass Estimates, Both Up Y/Y

Liberty Energy reported a first-quarter 2026 adjusted net profit of 6 cents per share, in contrast to the Zacks Consensus Estimate of a loss of 13 cents. The outperformance was driven by the company’s focus on technological innovation and strong operational execution. Moreover, the bottom line increased from the year-ago quarter’s profit of 4 cents.

LBRT's revenues totaled $1 billion, which beat the Zacks Consensus Estimate of $949 million. The top line also increased from the prior-year quarter’s $977 million by 4%, supported by elevated activity levels.

Liberty Energy’s adjusted EBITDA was $126 million, representing 25% decrease from the year-ago quarter’s $168 million. However, the figure beat our model estimate of $96.4 million.

Ahead of the earnings release, Liberty Energy’s board of directors approved a cash dividend of 9 cents per share on Class A common stock. The dividend will be payable on June 18, 2026, to shareholders on record as of June 4.

The company distributed $15 million in cash dividends to its shareholders this quarter.

Costs & Expenses

Liberty Energy reported total costs and expenses of $998.9 million in the first quarter, increasing 4.1% from the year-ago quarter’s level. Moreover, our estimate for the metric was pegged at $960 million.

Other Important Updates

During this quarter, the company expanded the Liberty Advanced Equipment Technologies (“LAET”) to include integrated power generation system packaging, strengthening its in-house engineering and system integration capabilities. The company also enhanced LAET with advanced testing, evaluation and optimization tools to support multiple power generation systems under changing load conditions and dynamic operations, while continuing to develop its own control systems and software for future use.

Balance Sheet & Capital Expenditure

As of March 31, Liberty Energy had approximately $699.1 million in cash and cash equivalents. The pressure pumper’s long-term debt of $1.3 billion represented a debt-to-capitalization of 39.6%. Further, the company’s total liquidity, including availability under the asset-based revolving credit facility, amounted to $1.2 billion.

In the reported quarter, the company spent $133.4 million on its capital program, down from our estimate of $246.9 million.

Management Remarks & Outlook

Regarding its power business, the company believes that grid interconnection bottlenecks, utility constraints and hyperscaler demand for AI infrastructure are driving a fundamental shift toward on-site, behind-the-meter power solutions. Consequently, the company expects its subsidiary, Liberty Power Innovations (“LPI”), to engage more directly with hyperscalers to provide fully integrated, end-to-end power solutions covering land, fuel sourcing, generation and lifecycle operations.

On financials and capital allocation, the company expects second-quarter revenues to increase by high single digits sequentially, driven by improved utilization, with normal incremental EBITDA margins. LBRT also anticipates making approximately $300 million in contract milestone payments during the second quarter or early third quarter to secure generation capacity in support of its 2029 goal of deploying 3 gigawatts of power.

The company believes its recent $1.3 billion zero-coupon convertible debt offering, coupled with capped call transactions at a 150% premium to the reference share price, provides financial flexibility while meaningfully reducing potential dilution for shareholders. Additionally, LBRT expects its effective tax rate for 2026 to be approximately 25%, with no material cash taxes payable.

The company maintains its 2026 completions capital expenditure guidance, which is expected to moderate meaningfully from prior years. Management stated that the guidance remains unchanged for now, though LBRT may revisit the outlook in July. Ongoing investments in digiFleets continue, offering structurally advantaged economics relative to competing next-generation technologies.

Looking at the broader market, LBRT thinks the North American oil and gas industry has established a cyclical floor. LBRT anticipates that recent Middle East disruptions — including the conflict in Iran, the effective closure of the Strait of Hormuz and attacks on Qatar’s Ras Laffan LNG hub — will create structural tailwinds for North American energy, as global consumers reevaluate supply chains and increase reliance on the U.S. and Canadian oil and gas.

In the completions market, LBRT thinks that years of pricing pressure and underinvestment have reduced available equipment, leading to tighter frac fleet supply than expected. As private exploration & production (E&Ps) increase activity on drilled but uncompleted wells, LBRT expects pricing to recover sooner than previously anticipated.

On power demand, the company cites the Electric Reliability Council of Texas’ projection that Texas grid demand could quadruple by 2032 and believes its unit, LPI, is well-positioned to serve large-load customers seeking to bypass traditional grid constraints. Finally, LBRT emphasizes its confidence in achieving 3 gigawatts of deployed power by 2029, with most required generation capacity already ordered or under final contractual negotiation.

Regarding international and technology development, LBRT has established an initial presence in Australia through alliances and investments. The company is also pursuing commercial deployment of its digiPrime technology — the only 100% natural gas engine with variable speed capability in the oilfield — as part of its ongoing fleet modernization efforts.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 163.16% due to these changes.

VGM Scores

At this time, Liberty Energy has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.

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 trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Liberty Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Liberty Energy is part of the Zacks Oil and Gas - Field Services industry. Over the past month, Weatherford (WFRD Quick QuoteWFRD - Free Report) , a stock from the same industry, has gained 6.9%. The company reported its results for the quarter ended March 2026 more than a month ago.

Weatherford reported revenues of $1.15 billion in the last reported quarter, representing a year-over-year change of -3.4%. EPS of $1.49 for the same period compares with $1.03 a year ago.

For the current quarter, Weatherford is expected to post earnings of $0.92 per share, indicating a change of -50.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -12.9% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Weatherford. Also, the stock has a VGM Score of B.