HAL US S&P 500Russell 1000 Earnings call · transcribed from the recording
Halliburton (HAL) · Q3 2026 results and valuation
Share price: $32.93 · 2026-11-11
Halliburton provides products and services to the energy industry, including drilling, completion, and production solutions. The company serves major, national, and independent oil and natural gas producers in more than 70 countries. Source: 10-K annual report (2026-02-06)
Results Q3 2026 vs Q2 2026 · previous quarter · published 20 Oct 2026 and 21 Jul 2026
Management sounded about as positive as a typical company call, in its script and in answers to analysts.
1 · Numbers
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No financial figures for this pair
Outlook given
2 · How management spoke
Typical
More upbeat than 56% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Halliburton expects operating income margins to expand by approximately 200 basis points to reach 15% due to core business improvements, new work, cost reductions, and the ramp down of S4.
Valuation
Is Halliburton undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 3.0% growth a year (3-year revenue growth), the model's fair value is $22.32 a share — the stock trades 48% above it. Today's price assumes 7.3% growth a year.
Current price
$32.93
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+7.3% for 10 yrs
Fair value / share
$22.32
Buy below
$16.74
Price vs fair value
Overvalued 48%
Price vs buy-below price
Overvalued 97%
Management expects
Operating income +15% · from the Q3 2026 report: “Operating income margins are expected to expand by about 200 basis points to reach 15% due to core business improvements, new work, cost reductions, and the…”
A guidance figure for operating income, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Guidance
Operating income margins are expected to expand by about 200 basis points to reach 15% due to core business improvements, new work, cost reductions, and the ramp down of S4.
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Guidance
HAL expects Q4 revenue to remain approximately flat at $5.7 billion while the operating income margin is projected to improve by about 70 basis points.
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Guidance
HAL expects capital expenditures to be about $1.1 billion for the full year 2026.
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Figure
HAL estimates that cost reductions will be between $100 and $150 million next year.
Source quote
“But we estimate overall that the cost reduction will be between $100 and $150 million for next year.”
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Figure
HAL repurchased approximately $250 million of its common stock during the third quarter.
Source quote
“During the third quarter, we repurchased approximately $250 million of our common stock.”
4 more
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Key theme
Management expects Middle East revenue to grow both sequentially and year-over-year in the fourth quarter.
Source quote
“In the fourth quarter, I expect Middle East revenue to grow both sequentially and year-over-year.”
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Figure
Sperry drilling services, drill bits, and drilling fluids in North America land grew 23% year-over-year, which was well ahead of the rig count.
Source quote
“In North America land, our Sperry drilling services, drill bits, and drilling fluids businesses grew 23% year-over-year, well ahead of the rig count.”
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Key theme
The company expects Latin America to lead growth for the firm this quarter.
Source quote
“We believe Latin America will lead the charge for growth for us.”
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Figure
The company integrated its cost assumptions into 2027 projections, assuming these costs will continue to remain consistent.
Source quote
“We have built all of that cost assumptions into 2027, assuming that will continue.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Much of the strength this quarter came from growth in our D &E division, which significantly outperformed our expectations on the top line and improved operating income margins 150 basis...”
“But what's important to understand is that Halliburton's path to growth and improved profitability that I just described does not require any recovery in North America frack.”
“My confidence is rooted in their strong execution, and I am excited about the pipeline of opportunities in 2027 and beyond.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q3 2026not yet filed | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | — | 5.71B | 5.60B | ||
| Operating income | — | 778.0M | 356.0M | ||
| Net income | — | 534.0M | 18.0M | ||
| EPS | — | 0.64 | 0.02 | ||
| P/E | — | 12-mo loss | — | 12-mo loss | — |
Topics
Most discussed now
- North America revenue was $2.2 billion, a decrease of 9% year over year.
- Operational costs sometimes tend to address imbalances in terms of product lines or geographic revenue growth mix, so these might...
- If Halliburton starts with the cost reduction, which I say was about half of the improvement in margin in 27,...
- Offsetting that also, Halliburton is not assuming meaningful pricing increase, and it is seeing pricing firm up.
- It's obviously highly fluid right now, but Halliburton sees a good market moving forward.
Faded since Q2 2026
- Fading These results were primarily driven by increased stimulation activity in the Western Hemisphere and improved well intervention services in…
- Fading Just talk to what you are doing there and maybe the opportunities over the next few years.
- Dropped Strategically, AI open architecture and then deep science, deep data management.
- Fading As far as the war right now, it is still impacted, as far as it is not close to prewar...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations; Regulation FD disclosure · SEC 8-K
Halliburton reported revenue of $5.7 billion and net income of $0.50 per diluted share for the third quarter of 2026, with revenue remaining flat compared to the second quarter of 2026.
- Director or officer change; Regulation FD disclosure · SEC 8-K
Halliburton appointed David Hernandez to its board of directors on October 15, 2026, to fill a vacancy while the board size remains at 12 members.
- Other events · SEC 8-K
Halliburton Company appointed Maurice S. Smith as Lead Independent Director on September 15, 2026, with an additional annual retainer of $40,000 for this role.
- Results of operations; Regulation FD disclosure · SEC 8-K
Halliburton reported revenue of $5.7 billion and net income of $0.64 per diluted share for the second quarter of 2026, compared to $5.4 billion in revenue in the first quarter of 2026.
- Other events · SEC 8-K
Halliburton Company announced the death of board member Abdulaziz F. Al Khayyal on June 24, 2026, who had served on the board since 2014.
- Shareholder vote results · SEC 8-K · routine
- Results of operations; Regulation FD disclosure · SEC 8-K
Halliburton reported revenue of $5.4 billion, flat compared to the first quarter of 2025, and net income of $0.55 per diluted share, up from $0.24 in the same period last year.
- Results of operations; Regulation FD disclosure · SEC 8-K
Halliburton reported revenue of $5.7 billion and net income of $0.70 per diluted share for the fourth quarter of 2025, with full-year 2025 revenue of $22.2 billion compared to $22.9 billion in 2024.
Balance sheet & ownership
From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-28.
Cash & runway
Cash & equivalents
$1.84B
2026-09-30
Implied runway
—
operating cash flow positive over the TTM window
Dilution
weighted-average basic shares, per quarter. Change: -2.1% YoY, -0.6% QoQ.
| Quarter | Shares |
|---|---|
| Q1 2025 | 866.0M |
| Q2 2025 | 857.0M |
| Q3 2025 | 849.0M |
| Q1 2026 | 837.0M |
| Q2 2026 | 836.0M |
| Q3 2026 | 831.0M |
Shares outstanding: 827.1M (2026-10-16)
Insider transactions
Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 75 filings; 50 filings parsed.
Sold by insiders
1.0M shares
$38.1M · 21 transactions
Bought by insiders
0 shares
0 transactions
Net direction
net selling
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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2027
revenue growth in the mid-single digits and operating income margins to expand about 200 basis points or to about 15%
Source quote
“Turning to our outlook for the business, our early view of 2027 for Halliburton is revenue growth in the mid-single digits and operating income margins to expand about 200 basis points or to about 15%.”
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fourth quarter
Middle East revenue to grow both sequentially and year-over-year
Source quote
“In the fourth quarter, I expect Middle East revenue to grow both sequentially and year-over-year.”
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2026 year-over-year
growth in international regions outside of Middle East to be about 12%
Source quote
“We expect 2026 year-over-year growth in these regions to be about 12%.”
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by 2028
target of $3 billion of added annual revenue from growth engines
Source quote
“We are tracking to our target of $3 billion of added annual revenue by 2028.”
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year-end
North Sea frack vessel to begin operations
Source quote
“In production services, we expect our North Sea frack vessel to begin operations at year-end.”