Halliburton Company

Halliburton reported Q2 2026 revenue of $5.7 billion, up 6% sequentially, with adjusted operating income of $683 million and adjusted operating margin of 12%. Reported net income per diluted share was $0.64, and adjusted net income per diluted share was $0.55. Cash flow from operations was $824 million, free cash flow was $668 million, and the company repurchased approximately $200 million of common stock. By segment, Completion and Production revenue was $3.2 billion, up 6% sequentially, with operating income of $474 million and a 15% margin; Drilling and Evaluation revenue was $2.5 billion, up 5% sequentially, with operating income of $338 million and a 13% margin. For Q3, management expects C&P revenue flat to down 2% with margins up 125 to 175 basis points, and D&E revenue down 3% to 5% with margins up 25 to 75 basis points. Full-year 2026 capital expenditures are expected to be about $1.1 billion.

Jeffrey Allen Miller struck an upbeat tone, saying the global outlook is strong and should support revenue growth and margin expansion. He emphasized energy security, long-cycle investment, and Halliburton’s differentiated technology as the basis for future growth. He also highlighted that the company is actively managing its fleet and capital toward the highest-return opportunities, including moving equipment internationally when that improves margins.

Eric Carre focused on the quarter’s financial delivery and the near-term guide. He cited Q2 reported EPS of $0.64, adjusted EPS of $0.55, revenue of $5.7 billion, adjusted operating income of $683 million, cash flow from operations of $824 million, free cash flow of $668 million, and about $200 million of buybacks. He also gave Q3 expectations for corporate expense of about $80 million, SAP expense of about $45 million, net interest expense up about $5 million, other net expense about $35 million, a tax rate of approximately 19%, and capex of about $1.1 billion for full-year 2026. On margins, he said Q3 improvement should be driven by mix, North America land frac, lift, Gulf of Mexico completion tools, and a Middle East recovery.

Analysts focused on North America pricing, Middle East disruption, offshore timing, and the profitability of new international awards. Management said North America is seeing white space fill, rig adds, and price increases, and that they are willing to move equipment abroad if returns are better. On the Middle East, they said activity remains highly fluid, guidance assumes steady conditions from here, and they have not built in either a recovery to pre-war levels or major additional disruption. They also said offshore inflection is more likely a 2027 event than Q4 2026, while international unconventionals and digital/software remain key growth engines.