Halliburton Company (HAL) Q3 2026 Financial Results Summary
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Halliburton (HAL) Q3 2026: Mixed Results with Flat Revenue — Cautiously Optimistic
Halliburton Company (NYSE: HAL) reported its third-quarter results for 2026, revealing a net income of $417 million, or $0.50 per diluted share. This marks a decrease from the previous quarter's net income of $534 million, or $0.64 per diluted share. The company's total revenue for the quarter was $5.7 billion, which is flat compared to the second quarter of 2026.
Key Financial Metrics
- Net Income: $417 million, down from $534 million in Q2 2026 (a decrease of $117 million or -22%).
- Net Income per Diluted Share: $0.50, down from $0.64 in Q2 2026 (a decrease of $0.14 or -22%).
- Adjusted Net Income: $501 million, or $0.60 per diluted share, compared to $461 million, or $0.55 per diluted share in Q2 2026 (an increase of $40 million or +9%).
- Total Revenue: $5.7 billion, unchanged from Q2 2026.
- Operating Income: $624 million, down from $778 million in Q2 2026 (a decrease of $154 million or -20%).
- Adjusted Operating Income: $731 million, up from $683 million in Q2 2026 (an increase of $48 million or +7%).
- Free Cash Flow: $156 million, compared to $368 million in Q2 2026 (a decrease of $212 million or -58%).
- Cash Flow from Operations: $368 million, down from $1.0 billion in Q2 2026.
Analyst Opinion
This quarter presents a mixed bag for shareholders. While the adjusted net income and adjusted operating income showed improvement, the overall decline in net income and flat revenue compared to the previous quarter raises concerns. The decrease in free cash flow is particularly notable, as it indicates potential challenges in liquidity and operational efficiency. However, the company’s commitment to share repurchases, amounting to approximately $250 million, signals confidence in its long-term value.
Dividend and Share Buyback
- Dividends: Halliburton paid a dividend of $0.17 per share during the quarter.
- Share Repurchases: The company repurchased approximately $250 million of its common stock.
Forward Guidance
Looking ahead, Halliburton's CEO, Jeff Miller, expressed optimism about the future, projecting mid-single-digit revenue growth and operating margins of about 15% for 2027. This outlook assumes a flat North American market, with potential upside if hydraulic fracturing recovers. Investors should monitor the company's ability to execute on this guidance, particularly in light of the current energy market dynamics.
Key Takeaways for Investors
- Watch for Revenue Growth: Investors should keep an eye on Halliburton's ability to achieve the projected mid-single-digit revenue growth in 2027.
- Operational Efficiency: The company’s efforts to improve operating margins will be crucial in the upcoming quarters.
- Market Conditions: Changes in the demand for oil and natural gas, as well as geopolitical factors, will significantly impact Halliburton's performance.
In summary, while Halliburton's third-quarter results reflect some positive trends in adjusted metrics, the overall performance indicates a need for cautious optimism. Investors should remain vigilant regarding market conditions and the company's execution of its strategic initiatives.
Note: The following tables present financial data in millions of dollars.
| Three Months | Nine Months | |||
|---|---|---|---|---|
| September 30, 2026 | June 30, 2026 | September 30, 2026 | ||
| Revenue: | ||||
| Completion and Production | $3,089 | $3,202 | $9,307 | $9,514 |
| Drilling and Evaluation | $2,614 | $2,512 | $7,512 | $7,013 |
| Total revenue | $5,703 | $5,714 | $16,819 | $16,527 |
| Operating income: | ||||
| Completion and Production | $457 | $474 | $1,370 | $1,558 |
| Drilling and Evaluation | $391 | $338 | $1,080 | $1,012 |
| Corporate and other | -$75 | -$83 | -$227 | -$196 |
| SAP S4 upgrade expense | -$42 | -$46 | -$130 | -$112 |
| Impairments and other (charges) | -$107 | $95 | -$12 | -$748 |
| Total operating income | $624 | $778 | $2,081 | $1,514 |
| Interest expense, net | -$84 | -$83 | -$249 | -$266 |
| Other, net | -$27 | -$31 | -$86 | -$112 |
| Income before income taxes | $513 | $664 | $1,746 | $1,136 |
| Income tax provision | -$94 | -$126 | -$325 | -$433 |
| Net income | $419 | $538 | $1,421 | $703 |
| Net income attributable | -$2 | -$4 | -$9 | -$9 |
| to noncontrolling interest | $417 | $534 | $1,412 | $694 |
| Net income attributable to company | $417 | $534 | $1,412 | $694 |
| Basic and diluted net income per share | $0.50 | $0.64 | $1.69 | $0.81 |
| Basic weighted average common shares outstanding | 831 | 836 | 835 | 857 |
| Diluted weighted average common shares outstanding | 832 | 838 | 836 | 858 |
Note: The following table presents financial data in millions of dollars.
| September 30, 2026 | December 31, 2025 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and equivalents | $1,843 | $2,206 |
| Receivables, net | $5,515 | $4,942 |
| Inventories | $3,265 | $2,976 |
| Other current assets | $1,517 | $1,274 |
| Total current assets | $12,140 | $11,398 |
| Property, plant, and equipment, net | $5,152 | $5,261 |
| Goodwill | $3,021 | $2,938 |
| Deferred income taxes | $2,377 | $2,298 |
| Operating lease right-of-use assets | $1,018 | $938 |
| Other assets | $2,365 | $2,177 |
| Total assets | $26,073 | $25,010 |
| Liabilities and Shareholders' Equity | ||
| Current liabilities: | ||
| Accounts payable | $3,535 | $3,133 |
| Accrued employee compensation and benefits | $788 | $767 |
| Current portion of operating lease liabilities | $276 | $263 |
| Current maturities of long-term debt | $90 | — |
| Other current liabilities | $1,323 | $1,425 |
| Total current liabilities | $6,012 | $5,588 |
| Long-term debt | $7,072 | $7,158 |
| Operating lease liabilities | $760 | $712 |
| Employee compensation and benefits | $431 | $428 |
| Other liabilities | $637 | $619 |
| Total liabilities | $14,912 | $14,505 |
| Company shareholders’ equity | $11,118 | $10,461 |
| Noncontrolling interest in consolidated subsidiaries | $43 | $44 |
| Total shareholders’ equity | $11,161 | $10,505 |
| Total liabilities and shareholders’ equity | $26,073 | $25,010 |
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