Full Breakdown
Halliburton Posts Q3 FY2026 Revenue Beat and Margin Gains
By Drooid · · How we work
Core Event: Q3 FY2026 Financial Results
Halliburton Company reported third-quarter fiscal 2026 revenue of $5.7 billion, surpassing the analyst consensus estimate of $5.58 billion. Adjusted earnings per share (EPS) were $0.60, beating the consensus of $0.58. Adjusted EBITDA reached $1.0 billion, up from $948 million in the prior quarter, while the operating margin improved to 10.9% (adjusted operating margin 12.8%). Net income attributable to Halliburton was $417 million ($0.50 per diluted share).
Background & Context
Halliburton provides drilling, completion, and production services to oil- and-gas producers worldwide. The sector is highly cyclical, with recent years showing modest revenue growth—approximately 2.9% annualized over the past decade. The Q3 results arrive after a period of mixed performance, including previous misses of Wall Street revenue estimates.
Data & Statistics
- Revenue: $5.7 billion (1.8% YoY increase)
- Adjusted EPS: $0.60 (3.45% beat)
- Adjusted EBITDA: $1.0 billion (17.5% margin)
- Operating margin: 10.9% (up from 6.4% YoY)
- Free cash flow: $156 million (2.7% margin)
- Dividends: $0.17 per share paid
- Stock repurchase: ~$250 million of common stock repurchased
- Segment performance:
- *Completion & Production* – revenue $3.1 billion (-4% sequential), operating income $457 million (-$17 million YoY)
- *Drilling & Evaluation* – revenue $2.6 billion (+4% sequential), operating income $391 million (+$53 million YoY)
- Geographic trends: International revenue rose 3% to $3.5 billion; North America revenue fell 5% to $2.2 billion; Middle East/Asia revenue up 8% to $1.4 billion.
Official Statements & Responses
Jeff Miller, Halliburton’s chairman, president and chief executive officer, said the company “exceeded its revenue expectations” and highlighted steps taken to improve margins. hydraulic fracturing would be “purely upside.”
Verbatim Quotes
- “I am pleased with Halliburton’s third quarter results. Our revenue exceeded our expectations, and we took important steps towards improving our margins,” — Jeff Miller, CEO
Why It Matters / Impact
The margin expansion in the Drilling & Evaluation segment offset pressure in Completion & Production, allowing Halliburton to improve profitability despite a sequential revenue dip in North America. Stronger activity in the Middle East, Saudi Arabia and Kuwait contributed to international revenue growth, supporting the company’s outlook that global demand will sustain earnings even if the U.S. market remains flat. The combination of a modest dividend, sizable share repurchase, and positive cash flow provides flexibility for future capital allocation.
What’s Next
Halliburton’s guidance for fiscal 2027 calls for mid-single-digit revenue growth and operating margins near 15%, contingent on a flat North American market and continued international demand. The company’s outlook does not rely on a rebound in U.S. hydraulic fracturing, which Miller described as an upside scenario.