HAL

Liberty Energy Inc. LBRT reported third-quarter 2026 adjusted earnings of 6 cents per share, missing the Zacks Consensus Estimate of 8 cents by 25%. However, the bottom line improved from the year-ago quarter's adjusted loss of 6 cents. Strong operational execution and modest pricing gains were partially offset by drilling-related delays and cost inflation. LBRT's revenues totaled $1.2 billion, beating the Zacks Consensus Estimate of $1.17 billion by approximately 1.9%. The top line increased 26.3% from $947.4 million a year ago, supported by strong fleet utilization and improved pricing. Liberty Energy Inc. price-consensus-eps-surprise-chart | Liberty Energy Inc. Quote Liberty Energy's adjusted EBITDA was $141.6 million, increasing 10.9% from $127.7 million in the year-ago quarter. However, the figure declined 6.3% sequentially from $151.1 million. Liberty Energy reported total operating costs and expenses of $1.18 billion in the third quarter, increasing 23.9% from $949.8 million in the year-ago period. Cost of services increased 29.3% year over year to $995 million, reflecting inflationary pressures on operations. General and administrative expenses rose to $69.5 million from $58.3 million a year ago. Meanwhile, depreciation, depletion and amortization expenses decreased 7.5% to $113.7 million. Operating income totaled $19.3 million, compared with an operating loss of $2.4 million in the prior-year quarter. During the reported quarter, Liberty Energy continued strengthening its completions business through improved fleet utilization, advanced technologies and modest pricing gains. However, drilling-related delays partially offset the benefits as customers worked to replenish well inventories following accelerated completion activity in the second quarter. The company achieved record natural gas substitution, with natural gas accounting for more than 60% of the total fuel consumed by its fracturing fleets. This translated into annualized fuel savings exceeding $1 billion for customers, supported by continued investments in natural gas-powered equipment and digital optimization technologies. Liberty Power Innovations entered into a strategic development agreement with a leading frontier AI laboratory and a dedicated infrastructure platform to provide 1.2 gigawatts of integrated power services for data center campuses. The agreement includes significant capacity fee prepayments and targets execution of an initial energy service agreement covering approximately 500 megawatts by December 2026. The project envisages phased energization from the fourth quarter of 2027 through the first quarter of 2029. Management indicated that the capacity fee prepayments would amount to hundreds of millions of dollars, supporting the development of large-scale power infrastructure. Liberty Energy also completed advanced grid integration testing in collaboration with the National Laboratory of the Rockies. The testing validated the company's power generation technologies and control systems under simulated real-world grid conditions, strengthening its ability to support complex data center power requirements. As of Sept. 30, 2026, Liberty Energy had approximately $119 million in cash and cash equivalents. Total debt stood at approximately $1.3 billion, primarily comprising senior convertible notes issued during the first quarter. Total liquidity, including availability under its revolving credit facility, amounted to $669 million. The company incurred net capital expenditures of $621.9 million during the reported quarter, compared with $113 million a year ago. Spending included approximately $450 million in power generation deposits and other investments in power generation, alongside digiFleet equipment, capitalized maintenance and related projects. The Zacks Rank #4 (Sell) company distributed approximately $15 million through cash dividends during the quarter. Subsequently, its board approved an 11% increase in the quarterly dividend to 10 cents per share, payable Dec. 18, 2026, to shareholders of record as of Dec. 4. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Management highlighted improving North American completion market fundamentals, supported by stronger producer economics, tightening fracturing capacity and sustained demand for next-generation equipment. Fleet attrition and industry underinvestment have constrained available capacity, creating opportunities for further pricing improvements. Looking ahead, Liberty Energy expects fourth-quarter weather-related and holiday seasonality to be partially offset by continued demand strength and activity deferred from the third quarter. Management also anticipates additional pricing opportunities heading into 2027, although labor inflation and other operating cost pressures remain challenges. In its distributed power business, the company expects accelerating artificial intelligence infrastructure development to drive demand for integrated power solutions. Management is also advancing nonrecourse project-level financing arrangements, with financing activity expected to begin in early 2027 as projects progress. While we have discussed LBRT's third-quarter results in detail, let us take a look at three other key reports in this space. Halliburton Company HAL reported third-quarter 2026 adjusted earnings of 60 cents per share, surpassing both the Zacks Consensus Estimate and the year-ago adjusted earnings of 58 cents. The improvement was supported by stronger drilling activity and international operations. Revenues of $5.7 billion rose 1.8% year over year and surpassed the Zacks Consensus Estimate by 2%. The top-line improvement was driven by Drilling and Evaluation growth, while lower North American stimulation activity remained a headwind. As of Sept. 30, 2026, the company held $1.84 billion in cash and equivalents and $7.1 billion in long-term debt. Total shareholders' equity stood at $11.16 billion. Kinder Morgan, Inc. KMI reported third-quarter 2026 adjusted earnings of 35 cents per share, beating the Zacks Consensus Estimate of 33 cents by 6.1%. Earnings increased 20.7% from 29 cents in the year-ago quarter. Revenues increased 9.3% year over year to $4.53 billion from $4.15 billion. Revenues surpassed the consensus estimate of $4.38 billion by 3.4%. Strong quarterly results benefited from higher natural gas transportation and gathering volumes, alongside improved contributions from the Terminals and CO2 businesses. As of Sept. 30, 2026, cash and cash equivalents totaled $918 million, compared with $63 million at 2025-end. Net debt stood at $32.23 billion. Valero Energy Corporation VLO reported third-quarter 2026 adjusted earnings of $23.90 per share, up 553% from $3.66 a year ago. Reported earnings were $23.89 per share compared with $3.53 in the prior-year quarter. Revenues climbed 43.3% year over year to $46.10 billion from $32.17 billion, while also surpassing the Zacks Consensus Estimate by 23.29%. The results benefited from substantially stronger refining margins and improved profitability across the Renewable Diesel and Ethanol segments. Refining throughput averaged 2.97 million barrels per day, down from 3.09 million barrels per day a year earlier. Valero ended September with $9.84 billion in cash and cash equivalents. Total debt stood at $8.58 billion, while finance lease obligations totaled $2.42 billion. The debt-to-capitalization ratio, net of cash, was 4% at the end of the third quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Liberty Energy Inc. (LBRT) : Free Stock Analysis Report Halliburton Company (HAL) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For the quarter ended September 2026, Halliburton (HAL) reported revenue of $5.7 billion, up 1.8% over the same period last year. EPS came in at $0.60, compared to $0.58 in the year-ago quarter. The reported revenue represents a surprise of +1.98% over the Zacks Consensus Estimate of $5.59 billion. With the consensus EPS estimate being $0.58, the EPS surprise was +3.45%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Halliburton performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: - Revenue- Latin America: $1.12 billion versus $1.06 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +12.7% change. - Revenue- Europe/Africa/CIS: $1.02 billion versus the three-analyst average estimate of $924.3 million. The reported number represents a year-over-year change of +22.7%. - Revenue- North America: $2.16 billion versus the three-analyst average estimate of $2.29 billion. The reported number represents a year-over-year change of -8.6%. - Revenue- Middle East/Asia: $1.41 billion versus $1.3 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -0.5% change. - Revenue- Drilling and Evaluation: $2.61 billion compared to the $2.41 billion average estimate based on five analysts. The reported number represents a change of +10% year over year. - Revenue- Completion and Production: $3.09 billion compared to the $3.16 billion average estimate based on five analysts. The reported number represents a change of -4.2% year over year. - Operating income- Completion and Production: $457 million versus the five-analyst average estimate of $515.8 million. - Operating income- Drilling and Evaluation: $391 million compared to the $338.22 million average estimate based on five analysts. - Operating income- Corporate and other: $-75 million versus $-102.5 million estimated by two analysts on average. View all Key Company Metrics for Halliburton here>>> Shares of Halliburton have returned +1.3% over the past month versus the Zacks S&P 500 composite's -1.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Halliburton Company (HAL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SLB (NYSE:SLB) is scheduled to report its earnings on Friday, October 23, 2026. The company has a market value of about $76.1 billion. Over the last twelve months it generated $36.4 billion in revenue and $5.0 billion in operating profit, with net income of $3.1 billion. How the stock moves after the release will depend on how the results and outlook compare with expectations. What history can offer is the base rate: how often, and how far, the stock has moved after past reports. See the earnings reaction history of all stocks SLB's Historical Odds Of A Positive Post-Earnings Return Some observations on one-day (1D) post-earnings returns, measured from the last close before each release: - There are 19 earnings releases in the last five years, with 8 positive and 11 negative one-day (1D) returns. Positive 1D returns were seen 42% of the time. - Over the last three years that share rises to 45%, across 11 releases. - The median of the 8 positive 1D returns is 3.4%, and the median of the 11 negative ones is -2.1%. - The largest one-day reactions were 11.0% and -4.7%. The table below shows the 1D, 5-day (5D) and 21-day (21D) returns after each release, followed by summary statistics. Earnings Date | 1D | 5D | 21D 7/24/2026 | 11.0% | 3.6% | 14.1% 4/24/2026 | 2.6% | 3.9% | 4.6% 1/23/2026 | -0.3% | -1.8% | 4.5% 10/17/2025 | -0.9% | 9.4% | 12.2% 7/18/2025 | -3.9% | 1.6% | -4.8% 4/25/2025 | -1.2% | -3.4% | -3.6% 1/17/2025 | 6.1% | 2.8% | 4.5% 10/18/2024 | -4.7% | -6.2% | -1.8% 7/19/2024 | 1.9% | -1.0% | -8.1% 4/19/2024 | -2.1% | -2.9% | -4.6% 1/19/2024 | 2.2% | 8.1% | 0.6% 10/20/2023 | -2.9% | -6.8% | -11.9% 7/21/2023 | -2.2% | -0.4% | 1.3% 4/21/2023 | -4.2% | -7.7% | -12.9% 1/20/2023 | -0.1% | 0.2% | -6.6% 10/21/2022 | 10.3% | 13.1% | 17.0% 7/22/2022 | 4.3% | 6.2% | 10.4% 4/22/2022 | 2.5% | -1.3% | 1.2% 1/21/2022 | -1.9% | 4.9% | 8.9% Statistic | 1D | 5D | 21D # Positive | 8 | 10 | 11 # Negative | 11 | 9 | 8 Median Positive | 3.4% | 4.4% | 4.6% Median Negative | -2.1% | -2.9% | -5.7% Max Positive | 11.0% | 13.1% | 17.0% Max Negative | -4.7% | -7.7% | -12.9% Correlation Between 1D, 5D, And 21D Post-Earnings Returns Another approach is to wait for the initial reaction and see whether it continues. The table below shows the correlation between the 1D return and the return over the following 5 and 21 trading days, and between the 5D return and the following 21 trading days. A value near 1 means the first move has tended to continue; near -1, to reverse; near 0, no consistent pattern. None of the five-year correlations are strong enough to trade on: all are below 0.40 in absolute terms. Over three years, the 1D vs next 5D figure is -0.48, a modest tendency to reverse, but that rests on only 11 releases. So the early post-earnings move has not reliably predicted what followed. History | 1D vs next 5D | 1D vs next 21D | 5D vs next 21D 5 Years | -0.26 | 0.19 | 0.05 3 Years | -0.48 | -0.09 | -0.12 An earnings release can move one stock sharply in either direction. A diversified portfolio spreads that risk. The Trefis High Quality (HQ) Portfolio holds about 30 quality businesses, re-balanced with rules, and has a track record of outperforming a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000.

Halliburton stock slipped about 2.6% to US$33.10 in Thursday trading, even though the fresh Q3 2026 report landed with solid, if unspectacular, numbers. Adjusted earnings per share came in at US$0.60 on US$5.7b of revenue, and the oilfield services giant again leaned on its international and offshore engine to do the heavy lifting. In the short term, the market is marking the shares down. Looking over a multi year period, the focus is on whether that improving margin profile and an undemanding 14.2x P/E against richer peers will change how today's reaction is viewed. Like the international strength at Halliburton but worried the current reaction could trap you in a value story that never re-rates? Check out our list of solid operators on compelling multiples in the 33 high quality undervalued stocks - Revenue (Q3 2026 vs. Q3 2025): US$5,703m vs. US$5,600m (up 1.8%) - Net Income, excl. extra items (Q3 2026 vs. Q3 2025): US$417m vs. US$18m (very large increase, around 23x higher) - Basic EPS (Q3 2026 vs. Q3 2025): US$0.50 vs. US$0.02 (very large increase, around 23x higher) - Adjusted Operating Margin (Q3 2026 vs. Q2 2026): 12.8% vs. prior quarter level not specified (management highlighted Q3 margin as a key profitability marker) Ask Charlie what Halliburton's 2027 margin plan really assumes. Supporters argue Halliburton can turn international contracts, offshore work and digital tools into a stronger, more cash generative business. "The main thing that has to go right is that Halliburton converts its ahead of schedule international growth engines, higher margin software and automation work, and capital disciplined North American cash generation into sustained free cash flow that supports ongoing buybacks." Q3 starts to back that up. International revenue reached about US$3.5b with Drilling & Evaluation margins improving, while offshore wins with Eni and bp show the higher complexity pipeline is real. Free cash flow was softer this quarter, yet Halliburton still repurchased roughly US$250m of stock and is guiding to about US$1.6b for 2026, which points to cash generation moving in the right direction for this thesis. One Narrative has put a figure on that disagreement. → See the Narrative with its higher Fair Value, assumptions and all. The harsher Halliburton story says geopolitics and cost inflation could chew through international upside and squeeze cash returns. "While management is shifting frac fleets and other equipment from North America into higher margin international markets, the concentration of this redeployed capacity in regions affected by geopolitical risk raises the possibility that conflict related disruptions and cost inflation absorb much of the expected return uplift and weigh on operating margins." Q3 margins at 12.8% and solid Middle East activity do not show that squeeze yet. Free cash flow was softer and Halliburton still bought back about US$250m of stock, so the feared trade off between growth spending and repurchases has not appeared but remains unproven over a longer stretch. Halliburton shows how a decent quarter and an active buyback can still leave the stock under pressure. The real opportunity is spotting companies that could be undervalued before sentiment catches up. - Company 1 - 40% below our estimate - targets utility scale solar projects while integrating tracker, software and storage platforms for future builds. - Company 2 - 41% below our estimate - expands protective film manufacturing and develops OEM and dealership channels for recurring installation work. - Company 3 - 28% below our estimate - builds specialized chips and software that process, connect and secure increasing volumes of data traffic. Those are three of them. See all 33 potentially undervalued companies → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include HAL. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Investing.com - U.S. stock index futures were mixed on Tuesday, with technology stocks under pressure again as concerns about the artificial intelligence trade weighed on sentiment. Investors also braced for a fresh batch of corporate earnings to gauge the health of businesses and the outlook for the broader market. Still guessing which stocks will beat the market? Our AI portfolio updates monthly and is outperforming the S&P 500 by 118%. See this month's list » By 07:07 ET (11:07 GMT), S&P 500 futures had slipped 0.15%, while Nasdaq 100 futures fell 139 points, or 0.5%. Dow futures, meanwhile, gained 105 points, or 0.2%. Here are some of the biggest premarket U.S. stock movers today: Halliburton shares rose 3.4% in premarket trading after the oilfield services company reported third-quarter 2026 results that beat analyst expectations for both earnings and revenue. Adjusted earnings came in at $0.60 per diluted share, $0.02 above consensus estimates, while revenue reached $5.7 billion, topping forecasts of $5.58 billion. Rapport Therapeutics surged 31.1% before the opening bell after the biotechnology company said its Phase 2 trial of RAP-219 in adults with acute bipolar mania met both its primary and secondary endpoints. The randomized, double-blind, placebo-controlled study enrolled 253 adults with bipolar I disorder experiencing acute manic episodes in the United States. Participants received either 0.75 mg of RAP-219 once daily or a placebo over three weeks in an inpatient setting. The results provide clinical proof-of-concept for the drug's mechanism of action. NuScale Power fell 6.5% after Barclays downgraded the small modular reactor developer to Underweight from Equal Weight and cut its price target to $5 from $11. The downgrade added to recent bearish analyst sentiment, with the stock already trading near its 52-week low of $5.44. Akamai Technologies gained 2.2% after Raymond James upgraded the stock to Strong Buy from Outperform and set a $170 price target, compared with the previous close of $87.25. The firm said the recent selloff in AI-related equities had created an attractive entry point, citing the company's AI infrastructure contract. Unsure what to buy ahead of earnings? Our AI's recent pre-earnings calls delivered gains of +77% to +118% after results dropped. See this month's earnings picks » General Motors shares dropped 6.3% after the automaker's third-quarter results failed to deliver the guidance increase investors had anticipated. GM reported revenue of $50.0 billion, net income attributable to stockholders of $3.3 billion and adjusted EBIT of $4.1 billion. The company narrowed its full-year 2026 adjusted EBIT outlook to $14.5 billion-$15.5 billion from $14.0 billion-$16.0 billion, reducing the upper end of its forecast and disappointing investors hoping for another increase. Alvotech rose 7% after the U.S. Food and Drug Administration approved Process 2.0, a new manufacturing process for SIMLANDI (adalimumab-ryvk), the company's biosimilar to AbbVie's Humira. The approval allows Alvotech to implement the process at its DSM2 facility in Reykjavik, Iceland. According to the company, the enhanced process can more than double drug substance output per batch without changing the upstream manufacturing scale. 3M gained more than 1% after announcing an expansion of its commercial relationship with Amazon. The industrial conglomerate said on Monday that it had issued a warrant to an Amazon subsidiary, giving it the right to purchase more than $521 million worth of 3M common stock. RTX Corporation rose 2.2% after the aerospace and defense company reported third-quarter results that exceeded analyst expectations and raised its full-year outlook. Adjusted earnings per share came in at $2.26, beating consensus estimates of $1.78, while revenue reached $25.0 billion, above forecasts of $24.09 billion and up 11% from $22.5 billion a year earlier. RTX cited double-digit organic sales growth across its commercial aerospace and defense businesses, as well as a $0.25-per-share contribution from IEEPA cost recovery. The company raised its full-year 2026 adjusted EPS guidance to $7.65-$7.75 from its previous outlook and increased its revenue forecast to $97.0 billion-$97.5 billion, above the prior estimate of $96.2 billion. Genuine Parts Company slumped 8.2% after the automotive and industrial parts distributor reported third-quarter results that narrowly beat estimates but narrowed its full-year earnings outlook. Adjusted earnings per share were $2.07, above the consensus estimate of $2.04, while revenue of $6.52 billion topped forecasts of $6.49 billion and rose 4.2% year over year. However, Genuine Parts narrowed its 2026 adjusted EPS guidance to $7.50-$7.75 from $7.50-$8.00. The new midpoint of $7.625 was below analyst expectations of $7.74, weighing on the shares despite the quarterly beat. MSCI shares gained 2.8% after the index and analytics provider reported third-quarter adjusted earnings per share of $5.11, ahead of the $5.02 analyst consensus. Revenue rose 12.4% year over year to $892.0 million, also exceeding expectations of $887.82 million. Adjusted EPS increased 14.3% from $4.47 a year earlier, while operating income climbed 12.2% to $502.1 million. The operating margin was 56.3%, compared with 56.4% in the year-ago quarter. GE Aerospace slipped 1.4% in premarket trading despite reporting stronger-than-expected third-quarter results and raising its full-year 2026 outlook across all metrics. Adjusted EPS was $2.25, beating estimates of $2.00, while adjusted revenue reached $13.29 billion against expectations of $12.85 billion, an 18% increase from a year earlier. Growth was supported by a 21% increase in the Commercial Engines & Services segment. Total orders surged 49% to $19.0 billion, while commercial services orders rose 23%. Original Article Premarket movers: RTX rises, GE slips following quarterly results ServiceNow gets Street-high $266 price target as AI adoption boosts growth outlook Citi sees Europe as positioning winner as bearish bets on U.S. stocks mount

Halliburton Company (NYSE:HAL) reported third-quarter adjusted earnings and revenue above analyst expectations on Tuesday, supported by international operations, while its adjusted operating margin declined compared with the same period last year. The oilfield services company posted adjusted earnings of $0.60 per share, exceeding the analyst consensus estimate of $0.58. Revenue reached $5.7 billion, compared with market expectations of $5.58 billion, representing a 2% increase from $5.6 billion in the third quarter of 2025. Halliburton shares advanced 0.64% in premarket trading following the earnings announcement. The company's adjusted operating margin was 12.8% during the quarter, compared with 13.4% in the prior-year period. Halliburton generated free cash flow of $156 million and returned $250 million to shareholders through share repurchases. The company also paid dividends of $0.17 per share. Chairman, President and Chief Executive Officer Jeff Miller commented on the quarterly results. "I am pleased with Halliburton's third quarter results. Our revenue exceeded our expectations, and we took important steps towards improving our margins," said Jeff Miller, Chairman, President and CEO. The Completion and Production segment reported revenue of $3.1 billion, representing a 4% decline from the previous quarter, alongside operating income of $457 million. The sequential revenue decrease primarily reflected reduced stimulation activity in the Western Hemisphere, partially offset by increased activity in the Middle East. Meanwhile, the Drilling and Evaluation segment generated revenue of $2.6 billion, up 4% sequentially. Operating income increased 16% from the previous quarter to $391 million. Geographically, North American revenue declined 5% quarter over quarter to $2.2 billion, mainly reflecting lower pressure pumping activity in the US onshore market. International revenue increased 3% sequentially to $3.5 billion, including an 8% rise in Middle East and Asia revenue to $1.4 billion. Looking ahead to 2027, Miller outlined preliminary expectations for revenue growth in the mid-single-digit percentage range and operating margins of approximately 15%. The margin target would represent an improvement of around 200 basis points. According to management, the outlook assumes broadly unchanged market conditions in North America and does not depend on a recovery in hydraulic fracturing activity in the region. Halliburton's third-quarter results showed higher year-over-year revenue and adjusted earnings above consensus estimates, alongside a lower adjusted operating margin. The company's preliminary 2027 outlook anticipates revenue growth and margin expansion under its stated market assumptions. Halliburton stock price

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Management attributes the 3% year-over-year international revenue growth to a deliberate strategy of investing in high-margin technology and collaborative value propositions outside of North America. - The North America revenue decline of 9% year-over-year was driven by a softer-than-anticipated hydraulic fracturing market and intentional downtime as the company moved crews to higher-priced contracts. - Performance in the Drilling and Evaluation (D&E) division exceeded expectations due to a favorable revenue mix and strong demand for complex well technologies like iCruise and high-performance fluids. - The Middle East remains a core growth driver despite geopolitical uncertainty, with performance bolstered by expanded market share in Saudi Arabia and integrated service wins in Iraq. - Management emphasizes that their path to improved profitability is decoupled from a North America frac recovery, which they now view as purely incremental upside. - The successful global implementation of the SAP S/4 system is cited as a critical milestone for simplifying business processes and enabling AI-driven back-office efficiencies. - Management projects 2027 revenue growth in the mid-single digits and operating margin expansion of approximately 200 basis points to reach about 15%. - The 2027 framework assumes a flat North America market and Middle East activity levels consistent with the second half of 2026, positioning these as conservative baselines. - Margin expansion is expected to be driven roughly 50% by structural cost savings, including $120 million to $150 million from the SAP S/4 transition and $100 million to $150 million from operational rightsizing. - The company is tracking toward a target of $3 billion in added annual revenue by 2028 from its four international growth engines: production services, drilling, unconventionals, and artificial lift. - Venezuela is identified as a significant growth opportunity, with management noting that facilities are open and equipment is already generating revenue in multiple product lines. - Inflationary headwinds in the Middle East, particularly regarding logistics and material transport through the Strait, are expected to persist and are factored into the 2027 guidance. - The company repurchased approximately $250 million of common stock in Q3, reflecting a commitment to shareholder returns alongside capital investments. - Working capital headwinds in Q3 were attributed to inventory builds for major international projects and temporary collection delays during the SAP transition. - Management flagged that the North America frac market remains tight with limited capacity, which they believe will eventually force pricing higher as operators finalize 2027 budgets. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Approximately $250 million to $300 million of the improvement will come from structural cost savings and the ramp-down of SAP implementation costs. - The remainder is based on incremental margins of 20% to 30% on an expected $1 billion plus in additional revenue. - The guidance does not assume meaningful pricing increases, providing a buffer if market conditions tighten further. - Management confirmed they are 'open for business' with a full team in place and are currently delivering over a dozen ESPs to a major customer. - While growth will not happen overnight, they noted the market was historically a $5 billion business for Halliburton and expect it to become a sizable contributor again. - Management noted that while 40 rigs were added recently, the completion market remains measured as customers navigate budget cycles. - They reported anecdotes of extreme market tightness, including a recent tender where only one service company bid, suggesting a looming supply-demand imbalance. - The project is described as a 5-to-8-year full-field development that will begin with subsurface and landmark studies in the first half of 2027. - Management expects this contract to be structurally impactful for their Iraq business, which has historically been a challenged market.

Image source: The Motley Fool. Tuesday, Oct. 20, 2026 - Senior Director, Investor Relations - David Coleman - Chairman, President and Chief Executive Officer - Jeffrey Allen Miller - Executive Vice President and Chief Operating Officer - Shannon Slocum - Executive Vice President and Chief Financial Officer - Eric J. Carre Operator: Good day, ladies and gentlemen. And thank you for standing by. Welcome to the Halliburton Company's Third Quarter 26 Earnings Conference Call. At this time, participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. To ask a question, you will need to press *11 on your telephone keypad. At this time, I would like to turn the conference over to Mr. David Coleman, senior director, investment relations. Sir, please begin. David Coleman: Hello, and thank you for joining the Halliburton third quarter 2026 conference call. We will make the recording of today's webcast available for 7 days on Halliburton's website after this call. Joining me today are Jeffrey Allen Miller, Chairman, President and CEO; Shannon Slocum, executive vice president and COO and Eric J. Carre, executive vice president and CFO. Some of today's comments may include forward looking statements that reflect Halliburton's views about future events. These matters involve risks and uncertainties, that could cause our actual results to materially differ from our forward looking statements. These risks are discussed in Halliburton's Form 10-K for the year ended 12/31/2025, quarterly reports on Form 10-Q, current reports on Form 8-K, and other Securities and Exchange Commission filings. We undertake no obligation to revise or update publicly any forward looking statements for any reason, except as required by law. Our comments today also include non GAAP financial measures. Additional details and reconciliation to the most directly comparable GAAP financial measures are included in our third quarter earnings release and in the quarterly results and Presentation section of our website. Now, I will turn the call over to Jeffrey. Jeffrey Allen Miller: Thank you, David, and good morning, everyone. I am pleased with Halliburton's third quarter results. Our revenue exceeded our expectations, and we took important steps towards improving our margins. Here are a few highlights from the third quarter. We delivered total company revenue of $5.7 billion and adjusted operating margin of 12.8 percent. International revenue was $3.5 billion an increase of 3% year over year. North America revenue was $2.2 billion a decrease of 9 percent year over year. During the third quarter, we repurchased approximately $250 million of our common stock. Before Shannon covers our operations, let me share my thoughts on the market and early view of the year ahead and Halliburton's business today. Let's start with the market. We are another 3 months into 1 of the largest energy disruptions in history. Commodity prices remain elevated, and geopolitical uncertainty is high. The world has lost an enormous amount of oil supply, and the shortfall continues to grow. Current estimates are that nearly 3 billion barrels of supply have been lost since the conflict began. And that about 1 billion barrels have been drawn from global inventories. I expect the work to restore production rebuild inventories, and strengthen energy security will drive multiyear demand growth for oilfield services. 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 percent. Let me share with you what underpins my view and how Halliburton's business today makes me confident we will achieve those results. First, as a result of years of deliberate strategy and investment, our international business, in fact, all of our businesses outside of North America hydraulic fracturing, are the strongest they have been in many years. These businesses are growing, profitable, and winning on technology and our collaborative value proposition. My confidence is rooted in their strong execution, and I am excited about the pipeline of opportunities in 2027 and beyond. Second, I want to put North America hydraulic fracturing in the proper context for 2027. I could tell you anecdotes about pricing adjustments and list the reasons I think the North America frac market should improve. But what is 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 frac. To us, it is purely upside. Shannon is going to take you through the operational details of this quarter but I will leave you with this. I see growing multiyear demand for oilfield services. I see Halliburton delivering growth and margin improvement and I see any North America frac business recovery as upside. With that, let me turn the call over to Shannon. Jeffrey Shannon Slocum: Thanks, Jeffrey. Let me start with international. The third quarter revenue was $3.5 billion up 3% sequentially. 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 of 150 basis points sequentially. Let's get into the details. I will start with Middle East. The conflict clearly creates near term uncertainty. But I am pleased with our third quarter performance. Middle East results improved sequentially despite inflationary headwinds, which we expect to persist for some time. In the fourth quarter, I expect Middle East revenue to grow both sequentially and year over year. Of the many things driving those expectations, I will highlight 2: A full quarter of Jafurah completions activity, and an expanded share across integrated and discrete services in Saudi Arabia. Outside of Middle East, Halliburton's international business is winning work and we are delivering on our growth engines in a healthy market. We expect 2026 year over year growth in these regions to be about 12 percent. Let me say a word on why we win. Our value proposition is simple. But powerful We collaborate with our customers, and we engineer solutions that maximize the value of their assets. We differentiate on technology, and we deliver on execution. When customers award work on technical merit and total cost of ownership, Halliburton wins. I will give you 2 examples from this quarter: The boomerang appraisal program for BP in Brazil and the Cronos Ultra Deepwater Gas development for ENI and Cyprus. In each case, customers chose Halliburton for our technology. In drilling, automation, formation evaluation, fluids, cementing, and completions, and importantly, our ability to collaborate with our customers early in the development cycle. Next, let me give you a brief update on our growth engines. Production services, drilling, unconventionals, and artificial lift. Each is a market we believe will grow faster than the industry as a whole. We are tracking to our target of $3 billion of added annual revenue by 2028. This is a global target. But we see concrete evidence of it materializing as awards move to start up. In production services, we expect our North Sea frac vessel to begin operations at year end, And in unconventionals, we expect our first ZEUS fleet in Argentina to start up in the fourth quarter as planned. I want to take a moment to highlight artificial lift. In Argentina, we won a multiyear ESP rental contract with a major our largest award of the quarter. And with another customer, we delivered our first unconventional installation. This quarter, we also made our first installations in UAE, and offshore Congo and we received our first order for an offshore ESP in Brazil. I am excited about the accelerating growth of our international footprint. 1 more market I want to mention is Venezuela. Where we are open for business Our management team is in place, Our facilities are open. Key equipment has moved, and we generated revenue in Q3 in multiple product lines. Venezuela is a market we know well. And based on customer conversations, I expect to see solid growth moving forward. To conclude on international, our value proposition is winning. Our growth engines are delivering, and I am excited about the year ahead. Turn to North America. Third quarter revenue was $2.2 billion down 5% sequentially. The frac market did not recover as strongly as anticipated, and our results reflect this. We run North America frac for returns, not share. And in the third quarter, we moved several crews to new customers at better pricing. These moves created more downtime than we anticipated and weighed on our performance in the region and our C&P division. North America land, our Sperry drilling services, drill bits, and drilling fluids businesses grew 23% year over year. Well ahead of the rig count. Let me tell you what that looks like at each business. In drilling services, the trend is clear. Longer laterals, more complex wells, more rotary steerable drilling. ICruise delivers on all 3, and we see strong demand in all sales channels. In drilling fluids, Bayward also wins among laterals where wellbore stability can decide how fast a well gets drilled. We see growing adoption of our high performance fluid systems, I expect to see this growth continue as well as get more complex and customers demand greater efficiency. In drill bits, our performance driven technology is paying off. 1 example of this is HyperSteer, a bit engineered to run with iCruise and deliver steerability and speed. Our North America drill bit revenue per rig is up double digits from the first quarter. Bottom line, North America production requires progressively more complex wells and more complex wells means more growth for Halliburton. Let me close on North America with how I think about this business as a whole. It generates solid cash flow. And over the last several years, we have made deliberate choices to reduce our exposure to commoditized activity and differentiate through technology. Today, both our drilling and completion businesses are more differentiated than ever before. Before I turn the call over, I wanna thank our employees in more than 70 countries for their focus on our customers safety, and execution. With that, I will turn the call over to Eric to provide more details on our financial results. Eric J. Carre: Thank you, Shannon, and good morning. Our Q3 adjusted net income per diluted share was $0.60. Q3 revenue was $5.7 billion adjusted operating income was $731 million and adjusted operating income margin was 12.8%. Let me share what we saw in Q3 relative to our expectations. First, in our C&P division, revenue and operating margins were both below our expectations. This was primarily due to lower than expected activity in hydraulic fracturing in North America land and Argentina and a slower start up of a new contract in Saudi Arabia. Turning to D&E, we delivered better than expected revenue and operating margins led by US land, Middle East, and Latin America. As expected, we saw a more favorable revenue mix during Q3, and higher incremental margins, resulting in stronger overall margins than anticipated. Turning to other financial items in the quarter. Consistent with our expectations, free cash flow in Q3 was down from Q2 level, but we expect sequentially higher free cash flow in Q4. Capital expenditure for Q3, were $266 million For the full year 2026, we expect capital expenditures to be about $1.1 billion Moving on to our forward looking expectations. Starting with an early view of 2027. We expect Halliburton to deliver revenue growth in the mid single digits. This assumes a flat North America, Middle East activity in line with the second half of 26, and steady growth in other regions. We expect operating income margins to expand about 200 basis points or to about 15 percent. Driven by margins firming up in our core business, the startup of new work, our cost reduction program, and the ramp down of S4. On this last point, I am pleased to announce that we are now live on S4. Completing a major global transformation. I expect this is the beginning of further simplifying our business process adopting AI at scale in our back office functions, and driving further cost reductions. I want to thank the teams around the world who made this possible. Turning to Q4, we expect total company revenue to remain approximately flat to Q3. Around $5.7 billion and operating income margin to improve about 70 basis points. As a result, we expect Q4 earnings per share to be approximately $0.62 to $0.64. Let me provide some color on the guidance. In our C&P division, we expect Q4 revenues to increase 3 to 5% and operating margins to improve 75- to 125- basis points. The main drivers are stronger performance in Latin America, and The Middle East, higher seasonal completion tool sales, and steady frac activity in North America land. In our D&E division, after a strong Q3, we expect Q4 revenue to be 3 to 5% lower and operating margins to be flat to up 50-basis points. We expect margin improvement across several product lines and a more favorable product mix. I will now turn the call back to Jeffrey. Jeffrey Allen Miller: Thanks, Eric. Here are the important takeaways from today's call. Halliburton delivered a solid third quarter. Revenue exceeded expectations, and we took important steps towards improving our margins. Based on our early view of 2027, we expect mid single digit top line growth and operating margins of about 15%. I am confident we will deliver revenue growth margin expansion, and leading returns for our shareholders. Let's open it up for questions. Operator: Ladies and gentlemen, if you have a question or comment. If your question has been answered or you wish to remove yourself from the queue, simply press *11 again. Again, if you have a question or comment, please press *11 on your telephone keypad. Our first question or comment comes from the line of David Anderson from Barclays. Mr. Anderson, your line is open. David Anderson: Thank you, and good morning, gentlemen. So within your 2027 framework that you provided, can you talk a little bit about The Middle East in terms of how you see that trending? You are having it is increasing this quarter and in the fourth quarter, which seems to be kind of going against trend. So how does that sort of play out in your mind? Over the next couple of quarters? And also within that guidance, that 200-basis-point margin improvement I am curious how much international unconventionals are impacting that. Is that starting to be a driver for margins yet? Eric J. Carre: Yeah. Hi, David. Eric. Let me kind of provide some high level view on the margin improvement first. And then I will hand it over to Shannon to discuss the Middle East part of your question. So again, important to understand that the view on 2027 is an early view. It is based on 2 major assumptions. 1, which is our business in North America is flat and our business in The Middle East is flat to H2 of 2026. So if we walk through the numbers from a very, very high level perspective, So we should finish 2026 at about $22.5 billion The growth we indicated for 2027 means about $1 billion and change additional revenue. 200 basis points in margin, means about $500 to $600 million in operating profit. So about half of it is going to come from cost savings, operating cost savings, structural cost savings and the ramp down of the SAP S/4 program. So what remains is basically incremental margins on the additional revenue of about 20 to 30% range. So we think that is a very reasonable assumption. So that is, at this stage, how we get to the 200-basis-point improvement in margins. Jeffrey Shannon Slocum: Yes, David, good morning. What we see in Middle East, I will start with there, then I will move to the unconventional question. Is that region has been incredibly resilient. it is obviously highly fluid right now. But we see a good market moving forward. As Eric said, H2, flat to H2 of next year, But if you look at really the things that we have won over the last year or so, restarting in Jafurah. Unconventionals, the reentry work that we have won. Integrated offshore work, our IRAC We have seen Iraq starting to get busier, and we went some work there, as you know, with IFMS. And also the expansion of artificial lift throughout the region, both Saudi Kuwait, Oman, and Iraq. And all of that work we see as accretive to our business. So we are really pleased with the direction of travel for our business and believe that is an important market to the operators there. But also important market to the world. So we see that staying busy, throughout next year. And as it relates to just unconventional, as far as next year, we are really excited the direction we are going. We are now operating in 6 Over 6 countries around the world. Plus, actually. Argentina, Algeria, UAE, Kuwait, Australia, Saudi, and adding a few more. But I think what is important is the work we are winning in unconventionals. it is not about the horsepower. it is about the technology and some deliberate decisions we made in those investments and that is part of the reason you see that growth in unconventionals for us. David Anderson: Appreciate the color. Both Shannon and Eric. Follow-up here sort of related to that would be on Latin America. It looks particularly interesting for 2027. I was wondering if you could talk about some of the specific opportunities that you are seeing over the next few years Argentina, as you just mentioned. But we also have Mexico, which seems to be doing better. And Venezuela being talked about quite a bit. Could you sort of address some of the upside that potentially there for Latin America, not just in 2027 but beyond? Jeffrey Shannon Slocum: Yeah, David. I say interesting, but exciting. We believe Latin America will lead the charge for growth for us. Certainly in Argentina with the unconventional growth we have seen, As I mentioned in prepared remarks, Venezuela, we are open for business. teams are open. We will be delivering a dozen plus ESPs to a major customer in Venezuela. Mexico, probably not an H1 recovery. It will stay fairly flat, but opportunities in H2 But I do not wanna forget about Suriname in this conversation. We have won some significant work between Total Energies and Petronas in an integrated way. But I think if I look at Latin America, a lot of the work they are winning is really centered around our value proposition. it is how we engage with our customers, and also their confidence in our ability to execute. David Anderson: Appreciate. Thank you very much. Operator: Thank you. Next question or comment comes from the line of Arun Jayaram from JPMorgan. Your line is open, sir. Arun Jayaram: Yeah. Good morning, team. Jeffrey, fairly unusual for how to provide kinda outlook comments at this time of the year, particularly prior to budgeting season from the big oils integrated and E and Ps. So I guess my first question is what gave you and the team confidence to provide you know, this revenue and margin guidance kind of this early in the season? And maybe just give us a sense of how confident you are to deliver call it, that mid single digit growth and the 200-plus-basis points of margin expansion. Jeffrey Allen Miller: Thank you, Arun. Look, wanted to help you see what I see. That is the primary driver here. I do not like where margins are today. And we have made specific choices around cost structure, and I believe I am confident that the direction of travel for margins is up. And wanted to make sure that I shared that with you sooner rather than later. And also make clear that this outlook, this plan does not depend on a North America frac recovery. From a confidence perspective, look, Halliburton's international depth is meaningful. And you heard Shannon allude to a lot of and we have seen the growth. The adoption of technology that we have worked on for a number of years is meaningful. We are seeing solid steady drumbeat of technology adoption. Around the world. We have got confidence in the cost structure in terms of we have taken and also SAP being implemented. Got a lot of confidence in our core business and the kind of technology that is being adopted. And then finally, it is the pipeline of new work. And I. We see it. it is moving from contract award to start up and then to execution. that is happening. And I suppose, finally, the energy security is a real thing. And I know we are heading into an upcycle, and so that all gives me a lot of confidence around 2027. And as I said, wanted to make sure I shared that with you sooner rather than later. Arun Jayaram: Great. And just my follow-up is on North America. We have observed a pretty nice rebound in the rig count yet completion activity has been quite measured. We do know a lot of the rigs being picked up are by private E and Ps and not the publics. Jeffrey and Shannon, can you talk a little bit about the disconnect and when do you see this translating into incremental demand for frac and understanding that you have outlined some pretty conservative expectations of kind of a. Called a muddled along scenario to. Today. Jeffrey Shannon Slocum: Yeah, Shannon here. Yeah, we see roughly 40 rigs being added in North America. So we have seen a an uptick, as I have mentioned in prepared remarks around Sperry bits and mud in the 23 percent growth we have seen just in Q3 alone. And we have seen province adding and increasing their activity on the unconventional frac side of things. And our customers right now are in the middle of their budget cycle, but we are seeing some really good, anecdotes that are that is playing out right here in front of us. For example, we just had a big customer go to tender and only 1 service company showed up. We had another customer give us. Call us back and extended our e fleet with price and then added another fleet on top of that. And we had several increases of prices throughout the quarter. So we are seeing those indicators and we do know it is a very tight market and there is not a whole lot of capacity out there. And so when we think about 2027. Again, early days, as far as looking at 2027, but we see there is a real opportunity for growth in frac in North America next year. Arun Jayaram: Great. Thank you. Operator: Thank you. Our next question or comment comes from the line of Steve Richardson from Evercore. Mister Richardson, your line is now open. Stephen Richardson: Thank you. I was wondering if you just follow-up on that last question. A little bit, Shannon, if we could on North American frac. Like, do we need to see your big customers pick up activity, to be a little bit more pointed, or are you seeing enough momentum in the market with broader activity that, that pricing comes through? And can you talk about how anomalous was Q3 from these moves? And repricing that was going on? Jeffrey Shannon Slocum: Yeah. Steve, Q3, there was whitespace that we saw and that was a good indicator that whitespace was not dead time. It was us actually making deliberate choices to move crews around at a higher price. that is first. We are seeing Q4, you know, you will have some level of seasonality, but we are seeing that tight as well as far as whitespace. I believe the bigger customers, the bigger operators, we have actually here over the last week or so seen indications of some of them going and looking at their frac schedule next year and actually have gotten phone calls. So all it takes is really 1 or 2 of these guys to put together a spud-to-spud program and that changes things for Halliburton and will benefit in a big way. Stephen Richardson: Got it. Thank you. And then perhaps another follow-up on the Middle East. Appreciate you are guiding flat activity with the second half of this year of what we have observed. Can you talk a little bit about the incremental cost that the business is absorbing right now? And if there is a cessation of hostilities and things start to normalize, Or is there some upside in international margins there just from those costs rolling off? Jeffrey Shannon Slocum: Yes. I would say there is certainly an increased cost with just logistics and getting materials to location. With everything going on within the Strait. We have built all of that cost assumptions into 2027 and assuming that will continue. I see the upside really in you know, if you look at H2, it is you know, times, you know, times 2 really. That. that is up year over year. We see growth there. But more importantly, the growth we see is from our core business, some of the awards I have mentioned Stephen Richardson: Thanks very much. Operator: Thank you. Our next question or comment comes from the line of Saurabh Pant from Bank of America. Mister Pant, your line is open. Saurabh Pant: Hi. Thank you. Good morning, Jeffrey, Shannon, and Eric. Morning, sir. Hey. Eric, I think I heard on 2027 margin improvement, the 200-basis-point, I think. Derek calling out half of that is from cost improvement, just the SAP roll off. Maybe can you dig into that a little bit for us Eric? How much of that is S/4 rolloff versus cost cutting? And then just in general, when we think about 2027 margin, I think there are several crosscurrents. These cost savings initiatives, but, there are also some pricing headwinds. In a pretty inflationary environment, and yet you are able to deliver these kind of margin improvements. Maybe just unpack that a little bit for us, Eric. Eric J. Carre: Yes. So if I. If we start with the cost reduction, which I said was about half of the improvement in margin in 2027. So some of it comes from the cost rightsizing we did in Q3. Which you can look at being partially operational costs and partially structural costs. So the structural cost will remain until we decide. Otherwise, operational costs sometime tend to address imbalances in terms of product lines or geographic revenue growth mix. So these might come back up over time. But we estimate overall that the cost will be between 100 million and $150 million for next year. In terms of SAP, we have been spending about a little bit over a $150 million a year It will not go away in 1 go. Because we have to maintain some level of support as we transition to the new system and make sure everything works fine. But overall, the savings are estimated to be anywhere in between $120 million and $150 million. So give or take, will be around, you know, $250 to $300 million coming from cost savings. And the rest of it is as I mentioned earlier, very reasonable assumptions on incremental margins from our core business. So yes, they are inflationary pressures. Some of them are already built in our Q3 numbers and our Q4 numbers. So we do not necessarily expect to have a lot more inflation from there. But, offsetting that also, we are not assuming meaningful pricing. and we are seeing pricing firm up. So all in, we believe that our view of 2027 is a very balanced view with what we know today. Saurabh Pant: No. that is very helpful, Eric. Thank you. It does seem very balanced. I agree with that. And then the second 1, maybe Jeffrey or Shannon, if you want to answer this. You did have some comments in your prepared remarks about Venezuela, I think you were talking about expecting solid growth going forward. We know you signed a couple of MOUs recently with a couple of customers in the country. Just maybe talk to that a little bit. How big could Venezuela be? How fast could this move? And how should we think about this opportunity for Halliburton? Jeffrey Shannon Slocum: Yeah. Good morning, Saurabh. Shannon here. Yeah. As I said, we are open for business. Team is in place. Facilities open and equipment has moved. And we are getting multiple inbounds and you. You have probably read all the reports that I have. You know, a lot of major operators, ENI Total, Chevron, Repsol, all looking at have either entered or will enter. The work that we started with has been primarily interventions as we expected. But just in the quarter here, we will have a dozen ESPs being delivered. And as far as size, before we left Venezuela, it was greater than a $5 billion business. We see that tracking to being a sizable country for us in the future. That will not happen overnight, but we do like our start to the year. And it is trending that direction. Saurabh Pant: Okay. Okay. No. That makes sense. And the fact that your portfolio is fuller, has a lot more production in it. Right? I think that should be helping as well. But that is that is very helpful, Shannon. I will I will turn it back. Thank you. Operator: Thank you. Our next question or comment comes from the line of James West from Melius Research. Mister West, your line is open. James West: Hey. Good morning, guys. Lots of good color already on the call. I wanted to dig in on 2 points. 1 is on the Middle East. Your guidance assumes flat lining from second half, which is obviously better than Q2, but no growth. If we were to see you know, some type of resolution here you know, what could that growth look like? Or maybe another way to think about it is what was the level of activity or where you are relative to where you were, preconflict? Jeffrey Allen Miller: Yeah, James. Thank you. Look. We have taken a view that we have got a great line of sight of what we know is resilient and that is how we think about 2027. But you know, if things were to resolve immediately somehow dare to dream would be my comment. I mean, I think you would see solid growth. I do not know how to even forecast that under the conditions we are under today other than what we have line of sight to. But, obviously, a good business where we have done a lot of really good work. We have won some important contracts, and I think that you know, if that were to somehow go away, know, the core business, sort of the ongoing core business would pull up pretty quickly. James West: Okay. Okay. And then maybe on a North America, the. or U.S. frac, I guess, more to the point. You know, you have moved equipment out. Because you did not like the returns and the pricing sounds like from Jeffrey, your comments and the. Arun's comments and Shannon's comments that you are starting to see some movement on price. Could you maybe characterize, is this widespread yet? Is it kind of 1-off? Like, where are we? Are we in the early days of that pricing cycle? Are we getting to that pricing cycle? Kinda I mean, you guys you guys dominate the market. So kinda. Where do you where do you think we are in that cycle? Jeffrey Shannon Slocum: Yeah. Hey. What we have seen really starting in late Q2 is a steady progression of conversations on starting at the privates, on more activity. And being opportunistic of really where the strip was at that time and some operators that have hedges and saying, I can I can create some value here? Right. We. The sense that we see right. What we see right now is more foundational kind of contracts being looked at and believing that commodity pricing is sticky. And that is driving another level. And I have mentioned those anecdotes that we have been seeing, and those are real. And we have seen them kind of a steady drumbeat of more of those, and that right there alone has really created some tightness. And like I said, you know, we are the largest in North America and we are assuming that is flat for 2027. But we are really excited about the conversations we are having. Jeffrey Allen Miller: Yeah. Let me just clarify or just add to that a little bit just to say that as we described 2027, that is an assumption that we have made. That is not our view for North America. We are actually quite excited about North America. We run great frac business, but we do run it differently. Because, you know, our return expectations are different maybe than what the markets are. And, and so we run it for absolute returns, and we will raise price or we lose share. And Shannon said we are early in the process but the anecdotes and the activity dialogue absolutely points in the right direction for recovery. James West: Right. Got it. Thanks, Jeffrey. Thanks, Shannon. Operator: Thank you. Our next question or comment comes from the line of Derek Podhaizer from Piper Sandler. Mr. Podhaizer, your line is now open. Derek Podhaizer: Hey. Good morning. I just wanted to revisit the international growth engines you mentioned in the prepared remarks. Last quarter, you said you were ahead of schedule. Originally, you talked about 2.5 billion to $3 billion by 2028. Just wanted to hear about your confidence as you look over the next couple of years. And now you are actually talking towards the high end of that range. So what type of visibility do you have into the different product lines, the regions? Split it out onshore, offshore that is driving this expected growth trying to think about these growth engines as we move into 2027. Jeffrey Shannon Slocum: Yep. Good morning, Derek. Yep. Yeah. Hey. The growth engines first, they are. They are growing, and we have a lot of visibility to those. On track and actually ahead of schedule as far as our target. You know, you start with drilling, really love our business. We have mentioned 2 pretty significant awards here in the quarter. Both in Brazil and EastMed. Those are good examples of drilling moving the right direction. Look at unconventionals, I mentioned, know, a dozen-plus countries around the world We have just, within the last 2 months, we have added 2 spreads. 1 in Argentina and now have Jafora up and running. And have a good runway of over 30 thousand stages that will need to fracked in Kingdom next year. Production services. The STEM vessel starts up at the end of the, of this quarter here and then lift. What a fantastic story that been for Halliburton going from a single country when we acquired it now we are in 21 countries and added 2 countries just in the last year. So all of those things are good baselines to the growth and the target I would mentioned and they are multi year. But I think what is important in this whole conversation, these have been deliberate choices we have made on strategy and choices we made on technology investment that is paying off. Derek Podhaizer: Got it. Great. that is super helpful. Know there is been a lot of discussion around in The Middle East, more about looking next year, but maybe if you can help us understand some of the more recent disruptions that we saw which turned into rig suspensions, both onshore and offshore conventional, unconventional. Maybe you can just help us with the state of the market right now, specifically around Saudi. Then maybe how we should think about as we trend towards the end of the year into next year? Jeffrey Shannon Slocum: Yeah. Derek, hey. The recent over the last couple weeks, yeah, it is been it is been fluid. There has been some disruptions. Well, I would say that the events you have read about have not had a real material impact on operations. We see the rig count holding steady both offshore You mentioned Saudi, there is a little bit of a dip in rig count in the unconventionables. that is not related to the crisis. We see those building back see a real runway of activity moving forward. it is it is obviously very fluid. We keep a real close eye on that. But right now, like I said, the last couple weeks have not had any impact on operations. Derek Podhaizer: Great. Thanks for all the comments, Shannon. I will turn it back. Operator: Thank you. Our next question or comment comes from the line of Josh Silverstein. From UBS. Mister Silverstein, your line is now open. Josh Silverstein: Hey. Thanks. Good morning, guys. Last quarter, 1 of the big awards discussed was in Iraq over there. And you guys kinda labeled it as transformational for you guys. Can you just discuss a little bit more details on kind of the timing of the ramp, you know, and just talk a bit about the margin profile for Iraq relative to maybe rest of the Middle East? Jeffrey Shannon Slocum: Yeah. Good morning, Josh. Hey. that is. That project, I have missed project, that is a multiyear project. You know, it. it is a it is a bit of a wind up for a project of that size, but it is real significant work. The start of that project will begin sometime probably H1 of next year, and it will start with more subsurface, landmark studies, those sort of things. You know, this is a full-field development. So it is. Think of us as going in there and studying the field, understanding where to drill, where to put the pads, and all the infrastructure around it. it is a 5- to 8-year project. So it will, build over time. And as far as Iraq, it has been a very challenged market for us. And we see that win and also some activity that is coming that is gonna be impactful for us, structurally and help improve that market. The wins you have seen and the work we are gonna be doing is not only good for Iraq, but it is good for Halliburton. So just a little bit of a wind up on the IFMS work, but, excited about it. Josh Silverstein: Got it. And then maybe just on the offshore front, you know, you have highlighted, you know, Logix and some closed-loop drilling opportunities as key differentiators for you guys. Are these, you know, primarily helping you win market share, or are you able to win market share and gain margin with it as well? Thanks. Jeffrey Shannon Slocum: Yeah. Hey. We really like our position offshore. Just over the. Just year to date, we have won about close to $4 billion of work, and we believe all of that is accretive. The acquisition that we have made at Secall has been additive to that automation that you mentioned. And you look at the offshore wins we have had I mentioned the Suriname work with Total Energies and Block 52 with PETRONAS. The EastMed work We are gonna see robust activity in Norway with $10 billion of investments going exploration and development, and that is a big market for us. So you know, that automation and some of the acquisitions and really the deliberate focus on technology has helped us pull through a lot of these offshore winds I mentioned. So really love our position globally with offshore. Jeffrey Allen Miller: Hello? Still online? I will -- we will pull him. We will go on to the next question. He can come back if he has a follow-up. Operator: Our next question or comment is Mr. Scott Gruber from Citigroup. Mister Gruber, your line is now open. Scott Gruber: Yes. Good morning, everybody. So as I listened to the call here, a lot of bullish data points, you know, across the international markets. You know, really from Venezuela to Argentina, deepwater, and even your Middle East revenues are growing, which I think is a is a surprise to everybody. You know, as I as I think about pricing abroad, you mentioned that the prices are starting to stabilize. But what do you think would need to manifest from here for you and your peers to start to see you know, more broad based pricing gains you know, is it. If we just see the Middle East activity normalize, would that be you know, a sufficient you know, consumption of capacity, you know, across tools and people to, complement the absorption that is going on in other markets to start to see some pricing gains? Or what else do you think needs to happen? Jeffrey Shannon Slocum: I would say pricing has continued to get better. it is been it is going to be accretive. We see a strong pipeline This year, we have won roughly about $14 billion of work year to date. And our view is this, is nobody's really overbuilt in this market, so it is tight. And what that tightness is really has us in a place where we are making deliberate choices of where we go and or, you know, we had us. Just here in the last month, we had Sperry tools that were 3 different customers need them. We had to make a choice of where to go. So I think the general macro outlook for us, we expect more tightening. With tightening, we think that creates an opportunity for more price. So, yeah, we see that as being accretive. Scott Gruber: Got it. No. It sounds good. And just turning to free cash flow, you guys have been carrying some extra working capital, you know, through the SAP implementation phase. What does that mean for free cash in Q4? And what is your early read on potential free cash conversion you know, next year as margins improve and your cost base comes down? Eric J. Carre: Yes, Scott. it is it is it is Eric. So in terms of free cash flow, we were a little below what we were expecting in Q3. Some of it was due to collections that were a bit lower that has started to fix itself, this month. And some headwinds in inventory related to S4, related to the buildup of inventory for a lot of the projects that Shannon mentioned, as well as some concerns around Middle East logistics at large. If we look at Q4 and the overall year, So for Q4, we think cash flow from operations will be about $1 billion If you take out CapEx net of sales of about $300 million, so, that lands you at about $1.6 billion of free cash flow for the year. As we look at 2027, we believe that goes up with the improved profits generated in the business. We think as well that free cash flow margins will improve in 2027. Scott Gruber: Okay. I appreciate it, Eric. I will turn it back. Operator: Thank you. Thank you. Thank you. Our next question or comment comes from the line of Keith MacKey from RBC Capital Markets. Mr. MacKey, your line is now open. Keith MacKey: Hey. Good morning, and thanks. The release called out Mexico for having improved performance quarter over quarter within multiple product and service lines. Can you just maybe give us a bit more color on what drove that and generally what you are seeing in the market in Mexico? Jeffrey Shannon Slocum: Yeah. Hey. The Mexico business, we have continued to see it improve. I think the macro environment we are seeing in 2027 should be, you know, should be supporting even further, activity 2028 is probably, as I have said, more of an H2 event, but what has driven really the quarter has been software sales. That really has what is been the impact there. Keith MacKey: Got it. Appreciate that. And just secondly, on the 2027 outlook, appreciate the comments you have given so far. Just curious if you could maybe walk us through a little bit about how you might think the results of the U. S. Mid elections might impact your guide either positively or negatively? You know, potentially? Or do you think that there could be any impact depending on how the results go, or is it something that will just have to monitor at this point? Jeffrey Allen Miller: Look. I. You know, politics change all the time. I am quite confident in our business. Under any political outcome. So that is not factored into our outlook. I think that you know, macroeconomics and the requirement for energy has never been more acute than it is right now. And I think that, a lot of quality of life is built around the availability and affordability of oil and gas, which sets up this industry, oilfield services, for a really strong few years. Keith MacKey: Okay. Thanks very much. Yeah. Operator: Thank you. Thank you. Our next question or comment comes from the line of Sebastian Erskine from Rothschild. Mr. Erskine, your line is now open. Sebastian Erskine: Yes, morning. Thanks for taking my questions. I appreciate all the color on the call. Just in terms of the guidance, you are trying to back out. So obviously, roughly flat North America sort of implies that international growth of about, call it, 7 to 10% year over year. I mean maybe could you give a view how much of that you already have a view on in terms of kind of the contracted work that you have kind of secured over through this year versus how much would be new wins and something of the around the Middle East? Just trying to get a sense of the building blocks around, call it, 7% to 10% growth year over year in 2027, assuming based on that assumption. Jeffrey Shannon Slocum: Yes. Hey, I would say I heard North America and Middle East there, I believe. Hey, the Middle East business is contracted. We have real good line of visibility to that. In North America, I would say, hey, everything our frac spreads are all working and busy. And again, we are not making any believe that will be modeling right now. it is just flat for us in 2027. But. Yeah. Really, North America, we think is gonna be higher than what we. We have talked about. Sebastian Erskine: Super. Appreciate it. And then just very quickly, kind of just on the guide, just a clarification. I appreciate, Eric, you gave that number in terms of the 2027. But in terms of the North America base, obviously, you have got this sort of unseasonal kind of the step up on the fourth quarter. So just in terms of is that based off the 2026 average or the Q4 exit rate in terms of flat North America? Jeffrey Shannon Slocum: Is your question around 2027 or is it around Q4? Sebastian Erskine: Yeah. it is just in terms of the North American, they got the flat North America into 2027. Is that based off the average of the 2026 or exit rate for 4Q? Jeffrey Shannon Slocum: Total year. Total year to total year. Sebastian Erskine: Super. Appreciate it. Thanks very much. Operator: Thank you. I am afraid that concludes our Q&A session. At this time, I would like to turn conference back over to management for any closing remarks. Jeffrey Allen Miller: Yes. Thank you, Operator. And before we wrap up, today's call, let me just close with this. I see growing multiyear demand for oilfield services and I am confident that in 2027, Halliburton will deliver revenue growth margin expansion, and leading returns for shareholders. I look forward to speaking with you next quarter. Let's close out the call. Operator: Ladies and gentlemen, thank you for participating in today's conference. This concludes the program. You may now disconnect. Everyone, have a wonderful day. Speakers, stand by. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Halliburton (HAL) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. - Total Revenue: $5.7 billion in Q3 2026, exceeding expectations. - Adjusted Operating Income: $731 million. - Adjusted Operating Margin: 12.8%. - Adjusted Net Income Per Diluted Share: $0.60. - International Revenue: $3.5 billion, up 9% year-over-year and 3% sequentially. - North America Revenue: $2.2 billion, down 9% year-over-year and 5% sequentially. - D&E Division: Better-than-expected revenue and operating margins; operating income margins improved 150 basis points sequentially. - C&P Division: Revenue and operating margins below expectations, driven by lower North America land and Argentina frac activity and slower Saudi Arabia contract startup. - North America Land Drilling Businesses: Sperry Drilling, drill bits, and drilling fluids grew 23% year-over-year; drill bit revenue per rig up double digits from Q1. - Free Cash Flow: Down from Q2 level; expected sequentially higher in Q4. - Capital Expenditures: $266 million in Q3; ~$1.1 billion expected for full-year 2026. - Share Repurchases: ~$250 million of common stock repurchased in Q3. - Q4 2026 Guidance: Revenue ~flat at ~$5.7 billion; operating income margin up ~70 basis points; EPS ~$0.62$0.64. - Q4 C&P Guidance: Revenue up 3%5%; operating margins up 75125 basis points. - Q4 D&E Guidance: Revenue down 3%5%; operating margins flat to up 50 basis points. - 2027 Outlook: Mid-single-digit revenue growth; operating income margins to expand ~200 basis points to ~15%. - Warning! GuruFocus has detected 4 Warning Signs with MMM. - Is HAL fairly valued? Test your thesis with our free DCF calculator. Release Date: October 20, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - International revenue grew 9% year-over-year to $3.5 billion, with all businesses outside North America hydraulic fracturing the strongest in years. - Halliburton Co (NYSE:HAL) expects 2027 revenue growth in the mid-single digits and operating margins to expand about 200 basis points to ~15%, driven by cost savings and new contract startups. - The company is on track to add $3 billion of annual revenue by 2028 from growth engines like production services, drilling, unconventionals, and artificial lift. - North America drilling services, drill bits, and drilling fluids grew 23% year-over-year, well ahead of the rig count, showcasing technology differentiation. - Halliburton Co (NYSE:HAL) repurchased ~$250 million of common stock in Q3 and expects sequentially higher free cash flow in Q4, supporting shareholder returns. - North America revenue declined 9% year-over-year to $2.2 billion, and the frac market did not recover as anticipated, weighing on results. - C&P division revenue and operating margins were below expectations due to lower hydraulic fracturing activity in North America land and Argentina, and a slower contract startup in Saudi Arabia. - Middle East operations face inflationary headwinds and increased logistics costs, which are expected to persist and are built into 2027 assumptions. - Free cash flow in Q3 was down from Q2 and below expectations, impacted by lower collections and inventory buildup related to SAP S4 implementation. - The 2027 outlook assumes flat North America and Middle East activity, with no recovery in North America frac, limiting near-term upside potential. Q: Arun Jayaram (JPMorgan) asked what gave Halliburton confidence to issue an early 2027 outlook mid-single-digit revenue growth and ~200 basis points of margin expansion before big oil budgeting season, and how confident the team is in delivering it. A: CEO Jeffrey Miller said he "wanted to help you see what I see," noting he doesn't like where margins are today and that specific cost-structure choices give him confidence the direction of travel for margins is up. He stressed the plan does not depend on a North America frac recovery, citing international depth, years of technology adoption, cost actions, the S4 (SAP) implementation, a pipeline of new work moving from award to startup, and energy security heading into an upcycle. Q: Saurabh Pant (Bank of America) asked Eric Carre to break down the ~200 basis points of 2027 margin improvement between the SAP roll-off and cost cutting, and how Halliburton offsets inflation and pricing headwinds. A: CFO Eric Carre said about half the improvement comes from cost savings: $100 million$150 million from the Q3 cost-rightsizing exercise (part operational, part structural) and $120 million$150 million from S4, for roughly $250 million$300 million combined. The remainder comes from reasonable 20%30% incremental margins on about $1 billion of added revenue. Inflation is largely baked into Q3/Q4 numbers, no meaningful pricing increase is assumed, and pricing is firming making the view "very balanced." Q: J. David Anderson (Barclays) asked how Middle East trends play out over the next few quarters given revenue is rising against the trend, and how much international unconventionals are driving the 200 basis point margin improvement. A: Carre said the 2027 view assumes flat North America and Middle East activity in line with H2 2026; from ~$22.5 billion in 2026 revenue, growth adds about $1 billion-plus, with half the margin gain from cost savings and the rest from 20%30% incremental margins. COO Shannon Slocum said the Middle East has been "incredibly resilient," citing a full quarter of Jafurah activity, reentry and integrated offshore work, a busier Iraq (IFMS), and artificial lift expansion across Saudi, Kuwait, Oman and Iraq. Unconventionals now operate in six-plus countries, differentiated by technology rather than horsepower. Q: James West (Melius Research) asked what Middle East growth could look like if the conflict resolved, and where North America frac pricing sits in the cycle. A: Miller said guidance reflects only what Halliburton has line of sight to; an immediate resolution would bring "solid growth" "dare to dream" with the core business building up quickly. On North America, Slocum described a steady progression of pricing conversations since late Q2, starting with privates and extending to operators with hedges, with more foundational contracts being renegotiated as commodity prices look sticky. Miller added that flat North America is an assumption, not the company's view Halliburton runs frac for absolute returns and will "raise price or lose share." Q: Scott Gruber (Citi) asked what would need to happen for broad-based international pricing gains, and about free cash flow in Q4 and 2027 given elevated working capital during the SAP implementation. A: Slocum said pricing continues to improve and will be accretive, citing roughly $14 billion of work won year-to-date, a tight market with no overbuilding, and deliberate choices on where to deploy scarce tools (e.g., Sperry tools needed by three customers in one month). Carre said Q3 free cash flow was below expectations on lower collections (now recovering) and S4/Middle East logistics inventory build; Q4 operating cash flow should be about $1 billion, less ~$300 million net CapEx, for ~$1.6 billion of full-year free cash flow, with free cash flow margins improving in 2027. Q: J. David Anderson (Barclays) asked about Latin America opportunities for 2027 and beyond, including Argentina, Mexico and Venezuela. A: Slocum said Latin America should "lead the charge" for growth, led by Argentina unconventionals. Venezuela is "open for business" with bases open and a dozen-plus ESPs being delivered to a major customer; Mexico will likely stay flat in H1 with opportunities in H2; and Halliburton has won significant integrated work with TotalEnergies and Petronas in Suriname. He attributed the wins to the collaborative value proposition and customer confidence in execution. Q: Saurabh Pant (Bank of America) asked how big and how fast the Venezuela opportunity could become, following recent MOUs. A: Slocum said the team is in place, facilities are open and equipment has moved, with multiple inbounds and major operators (Eni, Total, Chevron, Repsol) entering or planning to enter. Work so far is primarily interventions, with 12 ESPs to be delivered in the quarter. Before exiting Venezuela it was a business greater than $0.5 billion, and he sees it tracking to being a sizable country again not overnight, but trending that way. Q: Derek Podhaizer (Piper Sandler) asked about confidence in the international growth engines originally $2.5 billion$3 billion of added annual revenue by 2028 and the visibility by product line and region. A: Slocum said the growth engines are on track and ahead of schedule, tracking toward the $3 billion target. Drilling is winning significant awards in Brazil and the East Med; unconventionals operate in a dozen-plus countries, with two spreads added in two months (Argentina, Jafurah) and a runway of over 30,000 stages to be fracked in-Kingdom next year; the stimulation vessel starts up at year-end; and artificial lift has grown from one country at acquisition to 21, adding two in the past year. He credited deliberate strategy and technology investment. Q: Josh Silverstein (UBS) asked for details on the timing and margin profile of the transformational Iraq IFMS award, and whether offshore differentiators like LOGIX and closed-loop drilling win share and margin. A: Slocum said IFMS is a five- to eight-year full-field development starting in H1 2027 with subsurface and Landmark studies, building over time; it For the complete transcript of the earnings call, please refer to the full earnings call transcript.

- Interested in Halliburton Company? Here are five stocks we like better. - Halliburton exceeded expectations in Q3 2026, reporting $5.7 billion in revenue, a 12.8% adjusted operating margin and adjusted EPS of $0.60. The company also repurchased approximately $250 million of common stock. - International operations drove performance, with revenue up 3% sequentially and 9% year over year, led by Drilling and Evaluation. North American revenue fell 5% sequentially as hydraulic fracturing recovery lagged expectations. - Halliburton expects roughly flat fourth-quarter revenue of $5.7 billion but improved margins and EPS of $0.62–$0.64; its early 2027 outlook calls for mid-single-digit revenue growth and approximately 15% operating margins, supported by cost savings and international growth. - Halliburton Gains Traction: Multiyear Upcycle Ahead Halliburton (NYSE:HAL) reported third-quarter 2026 revenue of $5.7 billion and adjusted operating income of $731 million, producing an adjusted operating margin of 12.8%. Adjusted net income was $0.60 per diluted share. Chairman, President and CEO Jeff Miller said revenue exceeded the company's expectations and that management took "important steps" toward improving margins. The company repurchased approximately $250 million of common stock during the quarter. → The AI Sell-Off Continues—These 3 Stocks Keep Raising Guidance Anyway - Venezuela's Oil Revival Is Gaining Momentum—3 Energy Stocks Positioned to Benefit International revenue reached $3.5 billion, up 3% sequentially and 9% year over year, while North America revenue was $2.2 billion, down 5% sequentially and 9% from a year earlier. Miller said Halliburton expects multiyear demand growth for oilfield services as the industry works to restore production, rebuild inventories and strengthen energy security. Executive Vice President and COO Shannon Slocum said international results benefited from strong performance in the company's Drilling and Evaluation, or D&E, division. D&E exceeded the company's expectations for revenue and improved operating income margin by 150 basis points sequentially. → Tesla's Roadster Reveal Hints at 2 Much Bigger Moves - Striking Oil: How the U.S. Play for Venezuela Fuels Supermajors In the Middle East, Halliburton reported sequential improvement despite inflationary pressures. Slocum said fourth-quarter Middle East revenue is expected to rise both sequentially and year over year, supported by a full quarter of Jafurah completions activity and expanded share across integrated and discrete services in Saudi Arabia. Outside the Middle East, the company expects 2026 year-over-year growth of about 12% across its international regions. Slocum highlighted work awarded by BP for the Bumerangue appraisal program in Brazil and by Eni for the Cronos ultra-deepwater gas development in Cyprus, citing Halliburton's drilling, automation, formation evaluation, fluids, cementing and completions technologies. → Luxury's Middle Market Is Cracking—These 3 Stocks Could Win The company also said it remains on track toward its target of adding $3 billion in annual revenue by 2028 from growth engines including production services, drilling, unconventionals and artificial lift. Planned developments include the expected year-end startup of a North Sea stimulation vessel and the fourth-quarter deployment of Halliburton's first ZEUS fleet in Argentina. In artificial lift, Halliburton secured a multiyear electric submersible pump rental contract with a major operator in Argentina, its largest award of the quarter. It also made installations in the United Arab Emirates and offshore Congo and received its first offshore ESP order in Brazil. Slocum said Halliburton is open for business in Venezuela, where it has management and facilities in place, moved equipment into the country and generated third-quarter revenue across multiple product lines. He said the company expects solid growth over time, though noted it would not occur overnight. North America results were affected by a slower-than-anticipated recovery in the hydraulic fracturing market. Slocum said Halliburton moved several frac crews to new customers at better pricing during the quarter, but the moves created more downtime than expected and weighed on regional performance and the Completion and Production, or C&P, division. Management said the company operates its North American hydraulic fracturing business for returns rather than market share. While Halliburton's 2027 framework assumes flat North American activity, Miller characterized any recovery in North American frac as upside to the company's outlook. Other North American land businesses showed growth. Sperry Drilling services, drill bits and drilling fluids revenue rose 23% year over year, according to Slocum. He attributed the growth to longer laterals, increasingly complex wells and demand for rotary steerable drilling, including the company's iCruise system. Drill-bit revenue per rig was up double digits from the first quarter, he said. Chief Financial Officer Eric Carre said fourth-quarter company revenue is expected to remain roughly flat with the third quarter at approximately $5.7 billion, while operating income margin is expected to improve by about 70 basis points. Halliburton expects fourth-quarter earnings per share of approximately $0.62 to $0.64. - C&P revenue is expected to increase 3% to 5% in the fourth quarter, with operating margin improving 75 to 125 basis points. - D&E revenue is expected to decline 3% to 5% after a strong third quarter, while operating margin is expected to be flat to up 50 basis points. - Full-year 2026 capital expenditures are expected to be about $1.1 billion, including $266 million in the third quarter. For 2027, Halliburton issued an early outlook calling for mid-single-digit revenue growth and operating income margin of about 15%, representing expansion of roughly 200 basis points. The framework assumes North America remains flat year over year, Middle East activity stays in line with the second half of 2026, and other regions continue to grow. Carre said about half of the projected margin improvement is expected to come from cost savings, including structural and operational cost reductions and the wind-down of spending associated with the company's SAP S/4 implementation. Halliburton said it is now live on S/4 globally, completing what Carre described as a major business transformation. The company expects approximately $100 million to $150 million in cost-reduction benefits in 2027 and $120 million to $150 million of savings from the declining S/4 program spend. The remainder of projected margin expansion is expected to come from incremental margins on revenue growth. Carre said Halliburton expects about $1 billion in fourth-quarter cash flow from operations and approximately $1.6 billion in full-year free cash flow. He added that the company expects free-cash-flow margins to improve in 2027 as profits increase. Halliburton Company (NYSE: HAL) is a global provider of products and services for the energy industry. The company supports the exploration, development, and production of oil and natural gas through technologies and services used throughout the life cycle of a well. Halliburton operates through two primary business segments: Completion and Production, and Drilling and Evaluation. Its offerings include cementing, stimulation, well completion, production enhancement, drilling services, drilling fluids, well testing, wireline and perforating services, formation evaluation, and project management. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "What Halliburton (HAL) Said on Its Q3 Earnings Call" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.