Halliburton (HAL) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $5.4 billion, flat year-over-year, with operating income rising to $679 million, reflecting the absence of prior-year impairments and charges.

• Net income was $461 million ($0.55 per diluted share), up from $204 million ($0.24 per share) in Q1 2025; cash flow from operations was $273 million, and free cash flow was $123 million.

• International revenue grew 3% to $3.3 billion, while North America revenue declined 4% to $2.1 billion year-over-year.

• Middle East disruptions negatively impacted both segments, reducing diluted EPS by $0.02–$0.03.

• $100 million of common stock was repurchased in Q1, with buybacks expected to increase in subsequent quarters.

Financial highlights

• Completion and Production division revenue was $3.0 billion (down 3% YoY); operating income fell 17% to $439 million.

• Drilling and Evaluation division revenue rose 4% to $2.4 billion; operating income was flat at $351 million.

• Europe/Africa revenue increased 11% to $858 million; Latin America revenue surged 22% to $1.1 billion; Middle East/Asia revenue dropped 13% to $1.3 billion.

• Adjusted ROCE for Q1 2026 (TTM) was 13%; free cash flow for Q1 2026 (TTM) was $1.86 billion.

• Dividend of $0.17 per share declared for Q1 2026.

Outlook and guidance

• International revenue (excluding Middle East) expected to grow mid- to high-single digits for 2026, led by Latin America and offshore markets.

• Q2 2026 guidance includes a $0.07-$0.09 per share impact from Middle East disruptions.

• Over 50% of annual free cash flow targeted for shareholder returns; CapEx for 2026 expected at ~$1.1 billion.

• North America shows early signs of recovery, with increased drilling activity anticipated.

• Continued focus on capital efficiency, digital automation, and sustainable energy solutions.