Halliburton is up about 2 percent today, its first real gain after a slow and steady slide that began in mid-July. We think this is mostly about rising oil prices, which often lift oil-service stocks, after news broke of potential shipping disruptions in the Middle East.
Our view
While management's warning about a softer market is a real headwind for profits this year, the company continues to win massive, multi-year contracts in places like Saudi Arabia and Iraq. If you already own it, there is nothing to do here but sit tight and let those long-term projects play out.
Oil prices climbed after Iranian state news shared a plan to set new conditions for ships moving through the Strait of Hormuz, a critical narrow waterway for global energy supplies. As an oilfield services company, Halliburton generally benefits when higher oil prices encourage energy producers to spend more on drilling and well construction. While the tension adds risk to regional operations, the resulting price support for crude is a tailwind for the company's broader service business.
Partnership for gas and AI data centers in Australia
The company reached a non-binding agreement to support a gas project in Australia's Northern Territory that will link energy production directly to AI data centers. This move aligns with the company's focus on digital services and finding new ways to use natural gas. While the deal is early and not yet a firm contract, it shows how the company is positioning its engineering expertise to serve the growing power needs of the AI industry.
Analysts at Argus Research lowered their price target to $40 following the company's recent quarterly update. The move reflects a slightly more cautious outlook on the near-term market for oilfield services, even as the firm maintains its positive long-term view. The new target still sits about 23 percent above the current stock price.
Kuwait Oil Company selects Halliburton for R&D center
Kuwait Oil Company awarded the firm a contract to help develop a new research and development center focused on solving complex drilling challenges. The center will work on both new and existing oil fields, including unconventional projects that require more advanced technology. This deal helps secure the company's role as a key technology partner in the Middle East as the region looks to modernize its energy production.
Analysts at Freedom Broker upgraded the stock after seeing the company's second-quarter performance. While the firm is not yet recommending a buy, the move away from a sell rating suggests they see less risk in the stock at its current price. The upgrade comes as the company continues to return cash to shareholders through buybacks despite a shifting market.
Halliburton analyst price targets
Analysts adjusted their expectations following the company's second-quarter earnings report in late July. Most analysts remain bullish, with 47 of 64 rating the stock a buy and an average price target of $43, suggesting 32% upside.
Average target$42.78+32%vs $32.51 today
TodayAvg price
Low $37High $53
Strong Buy64 analysts
2Bearish
15Neutral
47Bullish
FirmRatingPrice TargetDate
UBS
Neutral
$39
7/27/2026
Argus Research
Buy
$45→$40
7/23/2026
BMO Capital
Market Perform
$37
7/22/2026
Evercore ISI
Outperform
$46→$43
7/22/2026
Barclays
Overweight
$55→$53
7/22/2026
Morgan Stanley
Overweight
$42→$41
7/15/2026
Piper Sandler
Overweight
$43
7/14/2026
Susquehanna
Positive
$45→$42
7/8/2026
UBS
Neutral
$39→$40
7/2/2026
Barclays
Overweight
$55
5/7/2026
Jefferies
—
$39→$47
4/26/2026
Morgan Stanley
Overweight
$35→$40
4/15/2026
Halliburton earnings
Management has a very consistent habit of clearing the bar, beating analyst profit targets in each of the last four quarters even as market conditions shifted.
Earnings history
EstimateBeatMiss
Halliburton past earnings results
Expected
Actual
Surprise
EPS
$0.54
$0.55
+2.2%
Revenue
$5.50B
$5.71B
+4.0%
Key highlights
International revenue growth: International revenue grew 4% to $3.4 billion compared to a year ago, led by a 19% sequential jump in Europe and Africa as drilling work picked up in the North Sea and Namibia. This steady demand from global markets helps offset fluctuations in the North American oil and gas industry.
Drilling segment margins tighten: Operating income for the drilling and evaluation division fell 4% sequentially to $338 million even as its revenue rose. Management attributed the dip to the seasonal end of software sales, which typically carry higher profits than physical drilling services.
North American recovery: Revenue in North America climbed 7% sequentially to $2.3 billion, driven by more active oil well stimulation and construction in the United States. This recovery is vital because it shows the domestic market is rebounding after the company sold a portion of its chemicals business earlier this year.
Cash flow and buybacks: The company generated $668 million in free cash flow, which is the cash left over after paying for operations and equipment, and used $200 million of it to buy back shares. Consistent cash generation allows the company to continue its plan of returning value to shareholders through both buybacks and a $0.17 per share dividend.
Efficiency project costs: Spending on a major upgrade to the company's business software, known as the SAP S4 migration, reached $46 million this quarter. This is an increase from the $32 million spent a year ago and represents a necessary cost to modernize the company's internal technology and operations.
Optimistic full year outlook: Management expects incremental improvements in North American activity through the end of the year and anticipates further margin expansion. This outlook signals that the company believes its new technology and contract awards will drive more profit from every dollar of sales as the year progresses.
Our take: This was a strong quarter that showed Halliburton can thrive even as its business mix shifts. Gains in international markets and a recovery in U.S. drilling activity more than made up for seasonal software dips, keeping profits ahead of expectations. These results reinforce the long term case for a more efficient and globally balanced service provider.
Halliburton’s next earnings date
Q3 2026
OCT
20
Expectation
EPS
$0.59
Revenue
$5.59B
Metrics we are tracking
Metric
Expectations
Status
International Revenue Growth
Sustaining above 5% year-over-year growth
4% YoY in Q2 2026
Completion and Production Margins
Maintaining operating margins above 18%
14.8% in Q2 2026
Free Cash Flow Conversion
Converting at least 70% of net income into free cash flow
