Halliburton Flags 2027 Margin Lift Without U.S. Fracking

The Tip Desk · October 22, 2026 · 3 min read

The oilfield-services company said it expects mid-single-digit revenue growth and operating margins of about 15% in 2027 on a flat North America market.

Halliburton Company (HAL) reported third-quarter 2026 revenue of $5.7 billion, unchanged from the second quarter, as Completion and Production reversed a sequential gain and North America activity cooled.

Net income attributable to the company was $417 million, or $0.50 a share, down from $534 million, or $0.64 a share, in the prior quarter. Adjusted net income, excluding impairments and other charges and tax adjustments, was $501 million, or $0.60 a share.

Operating income fell to $624 million from $778 million, and the operating margin compressed to 10.9% from 13.6%. Adjusted operating income rose to $731 million from $683 million, and the adjusted operating margin was 12.8%. Adjusted EBITDA was $1.0 billion, with a 17.5% margin.

The company recognized a $107 million pre-tax charge, primarily $107 million of severance costs associated with the rationalization of global headcount, plus $25 million of inventory costs and write-downs, partially offset by a $36 million gain on the sale of a portion of shares in an equity investment.

Completion and Production revenue was $3.1 billion, a $113 million, or 4%, sequential decrease that reversed a 6% sequential increase in the second quarter. Operating income in the segment was $457 million. Halliburton said the decreases were primarily driven by lower stimulation activity in the Western Hemisphere, partially offset by increased activity across multiple product service lines in the Middle East.

Drilling and Evaluation revenue was $2.6 billion, up $102 million, or 4%, sequentially. Operating income in the segment was $391 million, up from $338 million after a 4% sequential operating-income decline in the second quarter. The company said the increases were primarily driven by improved activity across multiple product service lines in the Middle East and Latin America, and increased drilling-related services in the Western Hemisphere, partially offset by lower testing services internationally.

North America revenue was $2.2 billion, a 5% sequential decrease that reversed a 7% sequential increase in the second quarter, primarily from lower pressure pumping services in U.S. Land. International revenue was $3.5 billion. Middle East/Asia revenue was $1.4 billion, up 8% sequentially on higher activity in Saudi Arabia and Kuwait. Latin America was $1.1 billion and Europe/Africa $1.0 billion, both flat sequentially.

Cash flow from operations was $368 million and free cash flow $156 million, down from $824 million and $668 million in the second quarter. Halliburton repurchased approximately $250 million of common stock and paid dividends of $0.17 a share. Cash and equivalents were $1.84 billion at September 30.

Chairman, President and CEO Jeff Miller said revenue exceeded expectations and that the company took steps toward improving margins. He said the company is three months into one of the largest energy disruptions in history and that work to restore production, rebuild inventories and strengthen energy security will drive multi-year demand growth for oilfield services.

Based on an early outlook for 2027, Miller said he expects mid-single-digit revenue growth and operating margins of about 15%, an approximately 200 basis point improvement. The outlook assumes a flat North America market and does not require any recovery in North America hydraulic fracturing, which he said is purely upside.

Halliburton also disclosed an integrated well construction and completions contract from Eni for the Cronos ultra-deepwater development in Cyprus, an integrated appraisal-campaign contract from bp in the Bumerangue field offshore Brazil, memorandums of understanding with Eneva and WESCA on Venezuela energy development, a multiyear digital-transformation agreement with Pampa Energía in Vaca Muerta, and a multiyear agreement with Kuwait Oil Company for the Ahmadi Innovation Valley research and development center.