Halliburton (HAL) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $5.7 billion, with net income of $534 million ($0.64 per diluted share), and adjusted net income of $461 million ($0.55 per diluted share), driven by international growth, technology adoption, and major contract wins despite Middle East disruptions and a flat North America performance.

• Operating income was $778 million, with adjusted operating income of $683 million and operating margin at 14% (adjusted margin 12%).

• The company operates in over 70 countries with 46,000 employees and a broad technology portfolio across the oilfield lifecycle.

• Completed the sale of a portion of its chemical business in Q2 2026, impacting specialty chemicals revenue.

• Focused on profitable international growth, capital efficiency, digital acceleration, and advancing sustainable energy initiatives.

Financial highlights

• Q2 2026 revenue: $5.7B (+4% YoY, +6% sequentially); operating income: $778M (+7% YoY); net income: $534M (+13% YoY); adjusted operating income: $683M.

• Free cash flow for Q2 2026 was $668 million; cash flow from operations was $824 million.

• Dividend of $0.17/share paid in Q2 2026; $308M spent on share repurchases in H1 2026; $1.7B repurchase authorization remaining.

• Adjusted ROCE at 13% for Q2 2026 TTM; gross margin improved due to favorable activity mix and cost controls.

• Capital expenditures for Q2 2026 were $235 million; full-year 2026 capex expected at ~$1.1 billion.

Outlook and guidance

• Management expects continued revenue growth and margin expansion, driven by technology and strong international contract awards.

• International business (excluding Middle East) expected to grow low double digits in 2026; Q3 guidance: Completion & Production revenue flat to down 2%, margins up 125–175 bps; Drilling & Evaluation revenue down 3–5%, margins up 25–75 bps.

• At least 50% of annual free cash flow to be returned to shareholders via dividends and buybacks.

• Middle East activity assumed steady in guidance, with no recovery to pre-war levels or major new disruptions.

• Full-year 2026 capital expenditures expected to be about $1.1 billion.