Halliburton earns $417 million, beats estimates on Saudi Arabia and Kuwait strength
Key Facts
Halliburton reported net income attributable to the company of $417 million in the third quarter of 2026, with adjusted earnings per share beating market expectations. Adjusted earnings per share were $0.60, compared with a FactSet estimate of $0.58, according to MT Newswires' coverage of the results. Revenue totaled $5.7 billion for the period, unchanged from the previous quarter, according to the company's official statement. Overall sales held steady as international growth offset a sequential decline in North American revenue. Activity in Saudi Arabia and Kuwait drove revenue growth in the Middle East and Asia, the company said, leaving the results marked by an earnings beat and diverging performance across its main markets.
On a year-over-year basis, reported net income rose from $18 million in the third quarter of 2025, according to Halliburton's statement covering the comparative period. That quarter's results included total impairment charges and other charges and items of $540 million, which weighed on reported profit at the time. Excluding impairments, charges and other items, adjusted net income in the comparative period was $496 million, according to the prior year's earnings statement. In the third quarter of 2026, Halliburton recorded pretax impairment and other charges of $107 million. Adjusted operating income for the current period was $731 million, according to the earnings statement, while the adjusted operating margin was 12.8%. The reported operating margin was 10.9%, as results combined an operating profit with charges that affected reported figures.
By geography, revenue in the Middle East and Asia rose 8% from the previous quarter, according to Halliburton's statement, as its business outside North America improved. Total international revenue grew 3% over the same period, a slower pace than in the Middle East and Asia. In contrast, North American revenue fell 5% sequentially, with results continuing to show a divergence between North America and international markets. The company identified "Saudi Arabia and Kuwait" as the main drivers of regional growth in its third-quarter earnings statement. By business segment, Completion and Production revenue totaled $3.1 billion during the quarter, out of the company's reported sales for the period.
On liquidity, Halliburton generated operating cash flow of $368 million in the third quarter of 2026, according to the company's statement. Free cash flow was $156 million in the same period, among the cash figures released alongside revenue and earnings. The company continued returning capital to shareholders, repurchasing about $250 million in shares during the quarter, according to its official statement. Share repurchases exceeded free cash flow for the period but remained below cash generated from operations. Halliburton also paid cash dividends of $0.17 per share, with shareholder returns during the quarter comprising both dividends and share buybacks.
The improvement in Gulf activity followed a quarter in which Halliburton's business was affected by conflict-related disruptions, according to its second-quarter 2026 earnings statement. The company said at the time that the conflict had reduced activity across multiple service lines in Kuwait, Iraq and Qatar, weighing on its operations in those markets. Activity in Saudi Arabia and the United Arab Emirates provided a partial offset during that period, according to the company's account of regional operating developments. Kuwait, among the markets affected in the previous quarter, joined Saudi Arabia in leading regional growth in the third quarter. Saudi Arabia thus remained a source of support for the Gulf business in both periods, while contributions from other markets shifted between the previous quarter and the latest results.
As background to its Iraqi operations, Halliburton won a contract from Basra Oil Company to develop the Bin Omar and Sindbad fields, according to the company's announcement of the agreement. The contract covers development of both fields, with Basra Oil Company retaining ownership, operations and decision-making authority over the assets, according to the announcement's terms. Halliburton said the Iraqi company "will retain ownership, operations and decision-making authority over the assets," defining the Iraqi party's role in the project. Attention now turns to Halliburton's conference call scheduled for October 20, 2026, which the company said would discuss its third-quarter financial performance. The call is scheduled to begin at 9:00 a.m. Eastern Time, according to the company's scheduling announcement.