Halliburton Company (NYSE:HAL) shares traded lower Tuesday after the oilfield services company reported second-quarter 2026 results that beat analyst expectations for adjusted earnings and revenue.
Adjusted EPS of 55 cents beat the 54-cent estimate. Revenue rose 3.7% year over year to $5.714 billion, topping the $5.486 billion estimate.
Net income increased to $534 million, or 64 cents per diluted share, from $472 million, or 55 cents per share, a year earlier.
Operating income rose to $778 million from $727 million. Adjusted operating income was $683 million, with a 12% adjusted margin.
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Segment Performance
Completion and Production revenue rose 6% sequentially to $3.202 billion, while operating income increased 8% to $474 million. Growth reflected stronger stimulation activity in the Western Hemisphere and improved well intervention services in Asia.
Drilling and Evaluation revenue increased 5% sequentially to $2.512 billion. Operating income fell 4% to $338 million due to lower seasonal software sales.
Regional Pressure
North America revenue rose 7% sequentially to $2.276 billion. International revenue increased 5% to $3.438 billion, led by a 19% gain in Europe/Africa.
Middle East/Asia revenue fell 10.7% year over year and 2% sequentially to $1.298 billion. Halliburton cited lower activity in Kuwait, Iraq, and Qatar due to the ongoing geopolitical conflict.
Halliburton generated $824 million in operating cash flow and $668 million in free cash flow. Cash totaled $2.048 billion, while total debt was $7.161 billion.
Conference Call
In the company conference call, Halliburton said its international strategy focuses on technology and execution, with significant wins in offshore and unconventional markets.
In North America, the company aims to maximize value through technology and pricing, while maintaining a balanced portfolio across regions.
Halliburton expects international business growth in the low double digits this year, with continued progress in North America through pricing improvements and technology deployment.
Capital And Contracts
The company repurchased about $200 million of stock, paid a 17-cent dividend and spent $46 million on its SAP S4 migration.
Results included a $95 million pretax credit, partly offset by a $17 million loss on the sale of part of its chemicals business.
Halliburton also secured major contracts from Aramco, TotalEnergies and Basra Oil Company.
"I am pleased with Halliburton’s performance this quarter, and believe the global outlook for Halliburton is strong. I expect our differentiated technology and value proposition set the stage for revenue growth and margin expansion," CEO Jeff Miller said.
HAL Price Action: Halliburton shares were down 5.97% at $33.01 at the time of publication on Tuesday, according to Benzinga Pro data.
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