Halliburton Company

HAL · NYSE · USD

Analysis

Last 4 earnings calls · through Q2 FY2026

Halliburton is trading near-term U.S. weakness and Middle East disruption for a bigger, technology-led business overseas, built on long contracts won from Argentina to Iraq. Whether that work pays before the recovery arrives decides the next year. How much Middle East revenue is still shut in today?

  • International is now the growth engine, not North America.

    International had its best second quarter in over a decade, but the growth now rests on a few large, long contracts — YPF in Argentina, Aramco's Jafurah gas field — rather than on U.S. rig counts. How much revenue does the Iraq field management award add at scale?

  • Management is cutting capital and stacking unprofitable fleets.

    Cost actions taken late last year are worth about $100 million a quarter, and the 2026 capital budget was nudged to $1.1 billion only because equipment deliveries slipped. Fleets that do not earn their keep get stacked or shipped overseas. How much will Halliburton invest in the VoltaGrid power projects?

  • The Middle East conflict is now the biggest swing factor.

    Management pegs the Middle East disruption at $0.07 to $0.09 a share in Q2 and guided Q3 assuming no change. Wells in Iraq, Kuwait and Qatar are delayed, not lost, so the cost is timing — but payback on already-shipped equipment slips.

Bullish
  • The large international awards start billing on schedule. Sales from work already won arrive late this year and next, so moving crews and equipment stops eating into profit.
  • North America keeps firming the way management expects. Higher prices on fleets already running lift profit without new spending, and that cash pays for the overseas build.
  • Middle East activity comes back faster than the cautious plan. Shut-in wells need work to restart, and Halliburton leads the region in exactly that kind of service.
Bearish
  • Middle East activity stays shut in for longer. Guidance assumes no recovery at all, so each extra month pushes already-won revenue further into the future.
  • The new overseas contracts ramp slower than planned. Crews and equipment cost money from the day they ship, so profit falls before the first invoice goes out.
  • U.S. oil and gas spending stays below maintenance levels. North America is still the biggest part of the business, so it needs more drilling and fracking to lift results.
PoliticiansInstitutionsInsiders
PoliticianTransactionAmountTradedFiled
Donald Trump
Republican · Executive
Sale≥$15KJul 23Sep 22
Gilbert Ray Cisneros, Jr.
Democratic · House · CA-31
Sale≥$1KJan 9Feb 13
Gilbert Ray Cisneros, Jr.
Democratic · House · CA-31
Sale≥$1KDec 19Jan 12
Gilbert Ray Cisneros, Jr.
Democratic · House · CA-31
Purchase≥$1KNov 12Dec 15
Gilbert Ray Cisneros, Jr.
Democratic · House · CA-31
Purchase≥$1KSep 5Oct 10

Congressional trading data provided by QuiverQuant

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Product segmentsGeography
FY2025 · USD

How Halliburton Company turned $22.2B of revenue into $2.3B of operating income.

Revenue
Completion And Production$12.8B▼ 3.54% YoY
Drilling And Evaluation$9.4B▼ 3.00% YoY
Total revenue$22.2B
Gross profit$3.5B15.7%
Operating income$2.3B10.2%
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