Halliburton (HAL) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $5.703B, up 2% YoY and flat QoQ; reported operating income was $624M, while adjusted operating income was $731M.

• Adjusted operating margin was 12.8%, up from 12.0% in Q2; management cited initial progress on margin improvement.

• Early 2027 outlook calls for mid-single-digit revenue growth and operating margin near 15%, with no North America frac recovery assumed.

Financial highlights

• Adjusted net income was $501M, or $0.60 per diluted share; reported net income was $417M, or $0.50 per diluted share.

• Q3 operating income included $107M of impairment and other charges, versus $392M of charges in Q3 2025.

• Q3 operating cash flow was $368M and free cash flow was $156M; nine-month free cash flow was $947M.

• Nine-month revenue was $16.819B, up 2% YoY; operating income was $2.081B and net income attributable to shareholders was $1.412B.

• International revenue was $3.5B, up 9% YoY and 3% sequentially; North America revenue was $2.2B, down 9% YoY and 5% sequentially.

Outlook and guidance

• Q4 revenue is expected to be ~flat at $5.7B; operating margin is expected to improve ~70 bps, with EPS guidance of $0.62-$0.64.

• Q4 C&P revenue is expected to rise 3%-5%, with margins up 75-125 bps; D&E revenue is expected to fall 3%-5%, with margins flat to up 50 bps.

• The 2027 framework assumes North America flat YoY, Middle East activity flat to H2 2026, and steady growth elsewhere; margin is expected near 15%, ~200 bps higher.

• About half of expected 2027 margin expansion is tied to cost savings and the S/4 ramp-down; incremental margins on added revenue are assumed at 20%-30%.

• 2027 free cash flow and free cash flow margin are expected to rise with profits; FY2026 capital expenditures are forecast at ~$1.1B.