Halliburton (HAL) Q1 2026 EPS jumps to $0.55 on stronger margins

Rhea-AI Filing Summary

Halliburton Company reported Q1 2026 revenue of $5.4 billion, roughly flat year over year, but profitability improved sharply. Operating income rose to $679 million from $431 million, aided by the absence of prior-year impairments. Net income attributable to the company more than doubled to $461 million, with basic and diluted earnings of $0.55 per share versus $0.24 a year ago.

Completion and Production revenue fell 3% to $3.0 billion and operating income declined 17%, reflecting weaker stimulation and pressure pumping, including conflict‑related disruptions in the Middle East. Drilling and Evaluation revenue grew 4% to $2.4 billion with flat operating income as stronger Latin America and Europe/Africa/CIS activity offset Middle East softness.

Cash flow from operations was $273 million, with $192 million of capital expenditures. Halliburton returned cash through $142 million of dividends and $100 million of share repurchases, ending the quarter with $2.0 billion of cash and equivalents and a $3.5 billion undrawn credit facility. The company continues to incur SAP S4 migration expenses and highlights an ongoing IRS dispute over the 2016 Baker Hughes termination fee that could result in approximately $640 million of additional cash taxes if resolved adversely.

Positive

• Profitability improved sharply: Q1 2026 operating income rose to $679 million from $431 million, and net income attributable to the company more than doubled to $461 million, with EPS increasing from $0.24 to $0.55 despite flat revenue.
• Healthy balance sheet and capital returns: Halliburton ended Q1 2026 with $2.0 billion in cash and equivalents and a $3.5 billion undrawn credit facility, while funding $192 million of capex and returning $242 million to shareholders through dividends and buybacks.

Negative

• IRS proposed tax adjustment: The IRS has issued a Notice of Proposed Adjustment seeking to reclassify most of a $3.5 billion 2016 termination fee as a capital loss, which Halliburton estimates could lead to about $640 million of additional cash taxes plus interest if ultimately resolved adversely.
• Geopolitical and regional pressures: Conflict in the Middle East reduced diluted EPS by an estimated $0.02-$0.03 and drove a 13% revenue decline in Middle East/Asia, while global inflation and new U.S. “global tariffs” add cost and supply‑chain uncertainty.

Insights

Energy sector equity analyst

Q1 2026 shows much stronger profitability despite flat revenue.

Halliburton delivered Q1 2026 revenue of $5.4 billion, essentially unchanged year over year, but operating income surged to $679 million from $431 million. Net income attributable to the company climbed to $461 million, with EPS more than doubling to $0.55.

Margin expansion reflects the absence of prior‑year impairments and stable segment performance, even as Completion and Production revenue declined 3% and operating income fell 17%. Drilling and Evaluation grew revenue 4% with flat operating income, showing resilience amid Middle East disruptions that reduced diluted EPS by $0.02-$0.03.

Cash generation was modest at $273 million from operations against $192 million of capital expenditures and $242 million returned via dividends and buybacks. Investors will focus on execution of the planned $1.1 billion 2026 capex program, ongoing SAP S4 costs of roughly $45 million per quarter, and the IRS NOPA, which could translate into about $640 million of cash taxes if ultimately resolved against the company.

Key Figures

Total revenue: $5.402B Operating income: $679M Net income attributable to company: $461M +5 more

8 metrics

Total revenue $5.402B Three months ended March 31, 2026

Operating income $679M Q1 2026 vs $431M in Q1 2025

Net income attributable to company $461M Q1 2026 vs $204M in Q1 2025

Earnings per share $0.55 Basic and diluted EPS, Q1 2026

Cash from operations $273M Three months ended March 31, 2026

Capital expenditures $192M Three months ended March 31, 2026

Dividends paid $142M Quarterly dividend $0.17 per share, Q1 2026

Potential IRS cash taxes $640M Estimated if NOPA on 2016 termination fee is resolved adversely

Key Terms

credit default swaps, valuation allowance, Pillar Two, Notice of Proposed Adjustment, +2 more

6 terms

credit default swaps financial

"We have entered into credit default swaps (CDSs) with third-party financial institutions that had an aggregate notional amount outstanding..."

A credit default swap is a contract where one party pays a regular fee to another in exchange for a payout if a borrower (like a company or government) fails to repay its debt—think of it as an insurance policy on a loan. Investors use these contracts to protect against losses, to express views on a borrower’s financial health, or to speculate, and heavy buying or selling of this protection can change bond prices and signal rising or falling credit risk.

valuation allowance financial

"The effective tax rate for this period was primarily impacted by the release of a valuation allowance in the amount of $32 million..."

A valuation allowance is a reserve set aside to reduce the value of certain assets on a company's financial records when there is uncertainty about whether they will generate the expected benefits. It acts like a caution sign, indicating that some assets might not be fully recoverable or worth their recorded amount. This matters to investors because it provides a more realistic picture of a company's financial health and potential risks.

Pillar Two regulatory

"The Organization for Economic Co-operation and Development enacted model rules for a new global minimum tax framework, also known as Pillar Two..."

Pillar Two is an international tax framework that sets a global minimum tax rate for large multinational companies and requires extra payments when profits booked in low-tax locations fall below that floor. For investors, it matters because it raises the likely tax bill, reduces after-tax earnings and cash available for dividends or reinvestment, and can change company valuations—think of it as a tax “price floor” that limits how much a firm can lower its effective tax rate.

Notice of Proposed Adjustment regulatory

"we received a Notice of Proposed Adjustment (NOPA) from the IRS on September 28, 2023."

Rule 10b5-1 trading arrangement financial

"officers of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement”..."

SAP S4 migration technical

"During 2023, we began our migration to SAP S4 which we expect to complete in the fourth quarter of 2026."

Earnings Snapshot

Revenue: $5.402B

Q1 2026

Revenue $5.402B flat vs Q1 2025

Operating income $679M +58% vs Q1 2025

Net income attributable to company $461M up from $204M in Q1 2025

EPS (basic and diluted) $0.55 up from $0.24 in Q1 2025

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FAQ

How did Halliburton (HAL) perform financially in Q1 2026?

Halliburton generated Q1 2026 revenue of $5.4 billion, roughly flat year over year, but significantly increased profitability. Operating income rose to $679 million from $431 million, and net income attributable to the company climbed to $461 million, with EPS of $0.55.

How did Halliburton’s business segments perform in Q1 2026?

Completion and Production revenue was $3.0 billion, down 3%, with operating income of $439 million down 17%. Drilling and Evaluation revenue increased 4% to $2.4 billion, while operating income was essentially flat at $351 million compared with Q1 2025.

What cash flow and capital spending did Halliburton report for Q1 2026?

Halliburton reported Q1 2026 cash flows from operations of $273 million and capital expenditures of $192 million. The company continues to target about $1.1 billion of capital spending for 2026, focused on core technologies and international expansion in key product lines.

How much cash and debt capacity does Halliburton (HAL) have?

As of March 31, 2026, Halliburton held $2.0 billion of cash and equivalents and had $3.5 billion available under its committed revolving credit facility. Total debt had a fair value around $7.0 billion, with the next maturity of about $90 million due in February 2027.

What is the status of Halliburton’s IRS tax dispute mentioned in the Q1 2026 10-Q?

The IRS issued a Notice of Proposed Adjustment for Halliburton’s 2016 U.S. tax return, challenging treatment of a $3.5 billion termination fee. If the IRS position ultimately prevails, Halliburton estimates additional cash taxes of roughly $640 million plus interest, though no payment is currently required.

How are geopolitical events affecting Halliburton’s Q1 2026 results?

Ongoing conflict in the Middle East has caused work cancellations, reduced offshore activity, and higher logistics costs. Halliburton estimates this reduced diluted net income per share by about $0.02-$0.03 in Q1 2026 and contributed to a 13% revenue decline in Middle East/Asia.

What shareholder returns did Halliburton provide in Q1 2026?

In Q1 2026, Halliburton paid $142 million in dividends, reflecting a quarterly rate of $0.17 per share, and repurchased 2.8 million shares for $100 million. About $1.9 billion remained authorized under the share repurchase program at quarter‑end.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______to_______

Commission File Number 001-03492

HALLIBURTON COMPANY

(Exact name of registrant as specified in its charter)

Delaware	75-2677995
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

3000 North Sam Houston Parkway East,	Houston,	Texas	77032
(Address of principal executive offices)			(Zip Code)

(281) 871-2699

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $2.50 per share	HAL	New York Stock Exchange
		NYSE Texas

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities

Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),

and (2) has been subject to such filing requirements for the past 90 days.☒ Yes  ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted

pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the

registrant was required to submit such files).☒ Yes  ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller

reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller

reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

	Large Accelerated Filer	☒	Accelerated Filer	☐
	Non-accelerated Filer	☐	Smaller Reporting Company	☐
			Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for

complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐ Yes  ☒ No

As of April 17, 2026, there were 835,397,735 shares of Halliburton Company common stock, $2.50 par value per share, outstanding.

i

HALLIBURTON COMPANY

Index

		Page No.
PART I.	FINANCIAL INFORMATION	1
Item 1.	Financial Statements	1
	Condensed Consolidated Statements of Operations	1
	Condensed Consolidated Statements of Comprehensive Income	2
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Cash Flows	4
	Notes to Condensed Consolidated Financial Statements	5
	Note 1. Basis of Presentation	5
	Note 2. Impairments and Other Charges	5
	Note 3. Business Segment Information	6
	Note 4. Revenue	8
	Note 5. Inventories	9
	Note 6. Accounts Payable	9
	Note 7. Income Taxes	10
	Note 8. Shareholders' Equity	11
	Note 9. Commitments and Contingencies	12
	Note 10. Income per Share	12
	Note 11. Fair Value of Financial Instruments	12
	Note 12. New Accounting Pronouncements	13
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	14
	Executive Overview	14
	Liquidity and Capital Resources	17
	Business Environment and Results of Operations	19
	Results of Operations in 2026 Compared to 2025	21
	Forward-Looking Information	24
	New Accounting Standards Not Yet Adopted	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	24
Item 4.	Controls and Procedures	24
PART II.	OTHER INFORMATION	25
Item 1.	Legal Proceedings	25
Item 1(a).	Risk Factors	25
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	25
Item 3.	Defaults Upon Senior Securities	25
Item 4.	Mine Safety Disclosures	25
Item 5.	Other Information	25
Item 6.	Exhibits	26
SIGNATURES		27

HAL Q1 2026 FORM 10-Q | 1

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

HALLIBURTON COMPANY

Condensed Consolidated Statements of Operations

(Unaudited)

	Three Months Ended
	March 31,
Millions of dollars and shares except per share data	2026	2025
Revenue:
Services	$3,823	$3,809
Product sales	1,579	1,608
Total revenue	5,402	5,417
Operating costs and expenses:
Cost of services	3,366	3,286
Cost of sales	1,253	1,252
Impairments and other charges	—	356
General and administrative	62	62
SAP S4 upgrade expense	42	30
Total operating costs and expenses	4,723	4,986
Operating income	679	431
Interest expense, net of interest income of $22 and $25	(82)	(86)
Other, net	(28)	(39)
Income before income taxes	569	306
Income tax provision	(105)	(103)
Net income	$464	$203
Net (income) loss attributable to noncontrolling interest	(3)	1
Net income attributable to company	$461	$204
Basic and diluted net income per share	$0.55	$0.24
Basic weighted average common shares outstanding	837	866
Diluted weighted average common shares outstanding	839	866

See Notes to Condensed Consolidated Financial Statements.

HAL Q1 2026 FORM 10-Q | 2

Table of Contents

HALLIBURTON COMPANY

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

	Three Months Ended
	March 31,
Millions of dollars	2026	2025
Net income	$464	$203
Other comprehensive income (loss), net of income taxes	20	(6)
Comprehensive income	$484	$197
Comprehensive (income) loss attributable to noncontrolling interest	(3)	1
Comprehensive income attributable to company shareholders	$481	$198

See Notes to Condensed Consolidated Financial Statements.

HAL Q1 2026 FORM 10-Q | 3

Table of Contents

HALLIBURTON COMPANY

Condensed Consolidated Balance Sheets

(Unaudited)

Millions of dollars and shares except per share data	March 31, 2026	December 31, 2025
Assets
Current assets:
Cash and equivalents	$2,003	$2,206
Receivables (net of allowances for credit losses of $782 and $805)	5,197	4,942
Inventories	3,019	2,976
Other current assets	1,316	1,274
Total current assets	11,535	11,398
Property, plant, and equipment (net of accumulated depreciation of $12,753 and $12,616)	5,182	5,261
Goodwill	2,992	2,938
Deferred income taxes	2,339	2,298
Operating lease right-of-use assets	895	938
Other assets	2,199	2,177
Total assets	$25,142	$25,010
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable	$3,211	$3,133
Accrued employee compensation and benefits	622	767
Income taxes payable	384	375
Taxes other than income	250	291
Current portion of operating lease liabilities	243	263
Current maturities of long-term debt	90	—
Other current liabilities	737	759
Total current liabilities	5,537	5,588
Long-term debt	7,070	7,158
Operating lease liabilities	678	712
Employee compensation and benefits	395	428
Other liabilities	637	619
Total liabilities	14,317	14,505
Shareholders' equity:
Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,063 and 1,064 shares)	2,659	2,659
Paid-in capital in excess of par value	93	112
Accumulated other comprehensive loss	(343)	(363)
Retained earnings	15,355	15,036
Treasury stock, at cost (228 and 229 shares)	(6,984)	(6,983)
Company shareholders' equity	10,780	10,461
Noncontrolling interest in consolidated subsidiaries	45	44
Total shareholders' equity	10,825	10,505
Total liabilities and shareholders' equity	$25,142	$25,010

See Notes to Condensed Consolidated Financial Statements.

HAL Q1 2026 FORM 10-Q | 4

Table of Contents

HALLIBURTON COMPANY

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Three Months Ended March 31,
Millions of dollars	2026	2025
Cash flows from operating activities:
Net income	$464	$203
Adjustments to reconcile net income to cash flows from operating activities:
Depreciation, depletion, and amortization	295	277
Impairments and other charges	—	356
Changes in assets and liabilities:
Receivables	(293)	(86)
Inventories	(41)	(4)
Accounts payable	82	(64)
Other operating activities	(234)	(305)
Total cash flows provided by operating activities	273	377
Cash flows from investing activities:
Capital expenditures	(192)	(302)
Payments to acquire businesses, net of cash acquired	(97)	(116)
Purchase of investment securities	(2)	(96)
Proceeds from sales of property, plant, and equipment	42	49
Sales of investment securities	27	41
Purchase of an equity investment	—	(345)
Other investing activities	(21)	(15)
Total cash flows used in investing activities	(243)	(784)
Cash flows from financing activities:
Dividends to shareholders	(142)	(147)
Stock repurchase program	(100)	(250)
Other financing activities	5	(9)
Total cash flows used in financing activities	(237)	(406)
Effect of exchange rate changes on cash	4	(1)
Decrease in cash and cash equivalents	(203)	(814)
Cash and equivalents at beginning of period	2,206	2,618
Cash and equivalents at end of period	$2,003	$1,804
Supplemental disclosure of cash flow information:
Cash payments during the period for:
Interest	$114	$116
Income taxes	$102	$165

See Notes to Condensed Consolidated Financial Statements.

HAL Q1 2026 FORM 10-Q | 5

Table of Contents Part I. Item 1 | Notes to Condensed Consolidated Financial Statements

HALLIBURTON COMPANY

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Note 1. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements were prepared using United States

generally accepted accounting principles (U.S. GAAP) for interim financial information and the instructions to Form 10-Q and

Regulation S-X. Accordingly, these financial statements do not include all information or notes required by U.S. GAAP for

annual financial statements and should be read together with our 2025 Annual Report on Form 10-K.

Our accounting policies are in accordance with U.S. GAAP. The preparation of financial statements in conformity with

these accounting principles requires us to make estimates and assumptions that affect:

•the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the

financial statements; and

•the reported amounts of revenue and expenses during the reporting period.

Ultimate results could differ from our estimates.

In our opinion, the condensed consolidated financial statements included herein contain all adjustments necessary to

present fairly our financial position as of March 31, 2026, the results of our operations for the three months ended March 31,

2026 and 2025, and our cash flows for the three months ended March 31, 2026 and 2025. Such adjustments are of a normal

recurring nature. In addition, certain reclassifications of prior period balances have been made to conform to the current period

presentation.

The results of our operations for the three months ended March 31, 2026 may not be indicative of results for the full

year.

Note 2. Impairments and Other Charges

During the three months ended March 31, 2026, there were no amounts recorded in impairments and other charges.

During the three months ended March 31, 2025, we recorded a pre-tax charge of $356 million primarily related to

$107 million in severance expense as we rationalized global headcount to align with activity levels and $104 million of

additional impairment associated with a strategic decision to market for sale a portion of our chemical business. Additionally,

we recognized a $53 million impairment related to facility closures and lease terminations. Other charges of $92 million were

primarily related to legacy environmental remediation cost estimate increases.

HAL Q1 2026 FORM 10-Q | 6

Table of Contents Part I. Item 1 | Notes to Condensed Consolidated Financial Statements

Note 3. Business Segment Information

We operate under two divisions, which form the basis for the two operating segments we report: the Completion and

Production segment and the Drilling and Evaluation segment. Our equity in earnings and losses of unconsolidated affiliates that

are accounted for using the equity method of accounting are included within cost of services and cost of sales on our statements

of operations, which is part of operating income of the applicable segment.

Our company’s chief operating decision maker (CODM) is Jeffrey Miller, Chairman of the Board, President and Chief

Executive Officer. Throughout the year, our CODM assesses the performance of the two segments based on segment revenue

and operating income, in comparison with forecast and plan and overall results, to make capital and resource allocation

decisions.

The following table presents information on our business segments.

	Three Months Ended
	March 31,
Millions of dollars	2026	2025
Revenue:
Completion and Production	$3,016	$3,120
Drilling and Evaluation	2,386	2,297
Total revenue	$5,402	$5,417
Operating income:
Completion and Production	$439	$531
Drilling and Evaluation	351	352
Total operations	790	883
Corporate and other (a)	(69)	(66)
SAP S4 upgrade expense	(42)	(30)
Impairments and other charges (b)	—	(356)
Total operating income	$679	$431
Interest expense, net of interest income	$(82)	$(86)
Other, net	(28)	(39)
Income before income taxes	$569	$306
Capital expenditures:
Completion and Production	$109	$178
Drilling and Evaluation	83	124
Total capital expenditures	$192	$302
Depreciation, depletion, and amortization:
Completion and Production	$163	$152
Drilling and Evaluation	126	121
Corporate and other	6	4
Total depreciation, depletion, and amortization	$295	$277

(a)	Includes certain expenses not attributable to a business segment, such as costs related to support functions, corporate executives, and operating lease assets, and includes amortization expense associated with intangible assets recorded as a result of acquisitions.
(b)	For the three months ended March 31, 2025, the amount includes a $201 million charge attributable to Completion and Production, an $85 million charge attributable to Drilling and Evaluation, and a $70 million charge attributable to Corporate and other. See Notes to Condensed Consolidated Financial Statements, Note 2 for further discussion on impairments and other charges.

HAL Q1 2026 FORM 10-Q | 7

Table of Contents Part I. Item 1 | Notes to Condensed Consolidated Financial Statements

The following table presents significant segment expenses, which represent the difference between segment revenue

and segment operating income and are regularly reviewed by our CODM.

	Three Months Ended
	March 31,
	2026
Millions of dollars	Completion and Production	Drilling and Evaluation
Segment operating expenses:
Cost of products, materials, and supplies	$1,271	$913
Compensation	479	487
Depreciation, depletion, and amortization	163	126
Other	664	509
Total segment operating expenses	$2,577	$2,035

	Three Months Ended
	March 31,
	2025
Millions of dollars	Completion and Production	Drilling and Evaluation
Segment operating expenses:
Cost of products, materials, and supplies	$1,300	$882
Compensation	474	467
Depreciation, depletion, and amortization	152	121
Other	663	475
Total segment operating expenses	$2,589	$1,945

Other segment operating expenses primarily consist of maintenance, overhead allocations, facilities cost, and other

miscellaneous costs.

The following table presents total assets by segment.

Millions of dollars	March 31, 2026	December 31, 2025
Total assets:
Completion and Production (a)	$10,621	$10,492
Drilling and Evaluation (a)	8,087	7,870
Corporate and other (b)	6,434	6,648
Total assets	$25,142	$25,010

(a)	Assets associated with specific segments primarily include receivables, inventories, property, plant, and equipment, operating lease right-of- use assets, equity in and advances to related companies, and goodwill.
(b)	Includes primarily cash and equivalents and deferred tax assets.

HAL Q1 2026 FORM 10-Q | 8

Table of Contents Part I. Item 1 | Notes to Condensed Consolidated Financial Statements

Note 4. Revenue

Revenue is recognized based on the transfer of control or our customers’ ability to benefit from our services and

products in an amount that reflects the consideration we expect to receive in exchange for those services and products. Most of

our service and product contracts are short-term in nature. In recognizing revenue for our services and products, we determine

the transaction price of purchase orders or contracts with our customers, which may consist of fixed and variable consideration.

We also assess our customers’ ability and intention to pay, which is based on a variety of factors, including our historical

payment experience with, and the financial condition of, our customers. Payment terms and conditions vary by contract type,

although terms generally include a requirement of payment within 20 to 60 days. Other judgments involved in recognizing

revenue include an assessment of progress towards completion of performance obligations for certain long-term contracts,

which involve estimating total costs to determine our progress towards contract completion and calculating the corresponding

amount of revenue to recognize.

Disaggregation of revenue

We disaggregate revenue from contracts with customers into types of services or products, consistent with our two

reportable segments, in addition to geographical area. Based on the location of services provided and products sold, 37% and

39% of our consolidated revenue was from the United States for the three months ended March 31, 2026 and 2025,

respectively. No other country accounted for more than 10% of our revenue for those periods.

The following table presents information on our disaggregated revenue.

	Three Months Ended
	March 31,
Millions of dollars	2026	2025
Revenue by segment:
Completion and Production	$3,016	$3,120
Drilling and Evaluation	2,386	2,297
Total revenue	$5,402	$5,417
Revenue by geographic region:
North America	$2,136	$2,236
Latin America	1,090	896
Europe/Africa/CIS	858	775
Middle East/Asia	1,318	1,510
Total revenue	$5,402	$5,417

Contract balances

We perform our obligations under contracts with our customers by transferring services and products in exchange for

consideration. The timing of our performance often differs from the timing of our customers’ payment, which results in the

recognition of receivables and deferred revenue. Deferred revenue represents advance consideration received from customers

for contracts where revenue is recognized on future performance of service. Deferred revenue, as well as revenue recognized

during the period relating to amounts included as deferred revenue at the beginning of the period, was not material to our

condensed consolidated financial statements.

Transaction price allocated to remaining performance obligations

Remaining performance obligations represent firm contracts for which work has not been performed and future

revenue recognition is expected. We have elected the practical expedient permitting the exclusion of disclosing remaining

performance obligations for contracts that have an original expected duration of one year or less. We have some long-term

contracts related to software and integrated project management services such as lump sum turnkey contracts. For software

contracts, revenue is generally recognized over the duration of the contract period when the software is considered to be a right

to access our intellectual property. For lump sum turnkey projects, we recognize revenue over time using an input method,

which requires us to exercise judgment. Revenue allocated to remaining performance obligations for these long-term contracts

is not material.

HAL Q1 2026 FORM 10-Q | 9

Table of Contents Part I. Item 1 | Notes to Condensed Consolidated Financial Statements

Receivables

As of March 31, 2026, 32% of our net trade receivables were from customers in the United States. As of December 31,

2025, 31% of our net trade receivables were from customers in the United States. Receivables from our primary customer in

Mexico accounted for approximately 7% of our total receivables as of both March 31, 2026 and December 31, 2025. While we

have experienced payment delays from our primary customer in Mexico, the amounts are not in dispute and we have not

historically had, and we do not expect, any material write-offs due to collectability of receivables from this customer.

Furthermore, we have entered into credit default swaps (CDSs) with third-party financial institutions that have an aggregate

notional amount outstanding as of March 31, 2026 of $374 million, compared to an aggregate notional amount outstanding as

of December 31, 2025 of $592 million, related to borrowings provided by the financial institutions to one of our primary

customers in Mexico, of which portions of the proceeds were utilized by this customer to pay certain of our outstanding

receivables. See Notes to Condensed Consolidated Financial Statements, Note 11 for further information on these CDSs. No

countries other than the United States, and no single customer, accounted for more than 10% of our net trade receivables at

those dates.

We have risk of delayed customer payments and payment defaults associated with customer liquidity issues. We

routinely monitor the financial stability of our customers and employ an extensive process to evaluate the collectability of

outstanding receivables. This process, which involves judgment and estimates, includes analysis of our customers’ historical

time to pay, financial condition and various financial metrics, debt structure, credit ratings, and production profile, as well as

political and economic factors in countries of operations and other customer-specific factors.

Note 5. Inventories

Inventories consisted of the following:

	March 31,	December 31,
Millions of dollars	2026	2025
Finished products and parts	$2,012	$1,968
Raw materials and supplies	871	884
Work in process	136	124
Total inventories	$3,019	$2,976

Note 6. Accounts Payable

We have an agreement with a third party that allows our participating suppliers to finance payment obligations from us

with a designated third-party financial institution who acts as our paying agent. We have generally extended our payment terms

with suppliers to 90 days. A participating supplier may request the participating financial institution to finance one or more of

our payment obligations to such supplier prior to the scheduled due date thereof at a discounted price. We are not required to

provide collateral to the financial institution.

Our obligations to participating suppliers, including amounts due and scheduled payment dates, are not impacted by

the suppliers’ decisions to finance amounts due under these financing arrangements. Our outstanding payment obligations under

this agreement was $267 million as of March 31, 2026, and $280 million as of December 31, 2025, and are included in

“Accounts payable” on the Condensed Consolidated Balance Sheets.

HAL Q1 2026 FORM 10-Q | 10

Table of Contents Part I. Item 1 | Notes to Condensed Consolidated Financial Statements

Note 7. Income Taxes

During the three months ended March 31, 2026, we recorded a total income tax provision of $105 million on a pre-tax

income of $569 million, resulting in an effective tax rate of 18.5% for the quarter. The effective tax rate for this period was

primarily impacted by the release of a valuation allowance in the amount of $32 million related to changes in deferred tax asset

realizability. During the three months ended March 31, 2025, we recorded a total income tax provision of $103 million on a

pre-tax income of $306 million, resulting in an effective tax rate of 33.7% for the quarter. The effective tax rate for this period

was primarily impacted by the additional valuation allowance recognized on our deferred tax assets, which resulted from the

pre-tax $356 million of impairments and other charges.

Our tax returns are subject to review by the taxing authorities in the jurisdictions where we file tax returns. In most

cases we are no longer subject to examination by tax authorities for years before 2014. The only significant operating

jurisdiction that has tax filings under review or subject to examination by the tax authorities is the United States. As of

March 31, 2026, the United States federal income tax filings for tax years 2016 through 2024 are currently under review or

remain open for review by the Internal Revenue Service (the IRS).

As of March 31, 2026, the primary unresolved issue for the IRS audit for 2016 relates to the classification of the

$3.5 billion ordinary deduction that we claimed for the termination fee we paid to Baker Hughes in the second quarter of 2016

for which we received a Notice of Proposed Adjustment (NOPA) from the IRS on September 28, 2023. We regularly assess the

likelihood of adverse outcomes resulting from tax examinations to determine the adequacy of our tax reserves, and we believe

our income tax reserves are appropriately provided for all open tax years. We do not expect a final resolution of this issue in the

next twelve months.

Based on the information currently available, we do not anticipate a significant increase or decrease to our tax

contingencies within the next twelve months.

HAL Q1 2026 FORM 10-Q | 11

Table of Contents Part I. Item 1 | Notes to Condensed Consolidated Financial Statements

Note 8. Shareholders' Equity

The following tables summarize our shareholders’ equity activity for the three months ended March 31, 2026 and

March 31, 2025, respectively:

Millions of dollars	Common Stock	Paid-in Capital in Excess of Par Value	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interest in Consolidated Subsidiaries	Total
Balance at December 31, 2025	$2,659	$112	$(6,983)	$15,036	$(363)	$44	$10,505
Comprehensive income (loss):
Net income	—	—	—	461	—	3	464
Other comprehensive income (loss)	—	—	—	—	20	—	20
Cash dividends ($0.17 per share)	—	—	—	(142)	—	—	(142)
Stock repurchase program	—	—	(100)	—	—	—	(100)
Stock plans (a)	—	(19)	99	—	—	—	80
Other	—	—	—	—	—	(2)	(2)
Balance at March 31, 2026	$2,659	$93	$(6,984)	$15,355	$(343)	$45	$10,825

(a) In the first quarter of 2026, we issued common stock from treasury shares for stock options exercised, restricted stock grants, performance shares under our performance unit program, and purchases under our employee stock purchase plan.

Millions of dollars	Common Stock	Paid-in Capital in Excess of Par Value	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interest in Consolidated Subsidiaries	Total
Balance at December 31, 2024	$2,662	$79	$(6,214)	$14,332	$(353)	$42	$10,548
Comprehensive income (loss):
Net income	—	—	—	204	—	(1)	203
Other comprehensive income (loss)	—	—	—	—	(6)	—	(6)
Cash dividends ($0.17 per share)	—	—	—	(147)	—	—	(147)
Stock repurchase program	—	—	(252)	—	—	—	(252)
Stock plans (a)	(1)	(24)	83	—	—	—	58
Other	—	4	—	—	—	1	5
Balance at March 31, 2025	$2,661	$59	$(6,383)	$14,389	$(359)	$42	$10,409

(a) In the first quarter of 2025, we issued common stock from treasury shares for stock options exercised, restricted stock grants, performance shares under our performance unit program, and purchases under our employee stock purchase plan.

Our Board of Directors has authorized a program to repurchase our common stock from time to time. We repurchased

2.8 million shares of our common stock under the program during the three months ended March 31, 2026 for $100 million.

Approximately $1.9 billion remained authorized for repurchases under the program as of March 31, 2026. From the inception

of this program in February of 2006 through March 31, 2026, we repurchased 329 million shares of our common stock for a

total cost of approximately $12.2 billion. We repurchased 9.6 million shares of our common stock under the program during the

three months ended March 31, 2025 for approximately $252 million.

Accumulated other comprehensive loss consisted of the following:

	March 31,	December 31,
Millions of dollars	2026	2025
Cumulative translation adjustments	$(81)	$(81)
Defined benefit and other postretirement liability adjustments	(225)	(245)
Other	(37)	(37)
Total accumulated other comprehensive loss	$(343)	$(363)

HAL Q1 2026 FORM 10-Q | 12

Table of Contents Part I. Item 1 | Notes to Condensed Consolidated Financial Statements

Note 9. Commitments and Contingencies

The Company is subject to various legal or governmental proceedings, claims or investigations, including personal

injury, property damage, environmental, intellectual property, commercial, tax, and other matters arising in the ordinary course

of business, the resolution of which, in the opinion of management, will not have a material adverse effect on our consolidated

results of operations or consolidated financial position. There is inherent risk in any legal or governmental proceeding, claim or

investigation, and no assurance can be given as to the outcome of these proceedings.

Guarantee arrangements

In the normal course of business, we have in place agreements with financial institutions under which approximately

$3.2 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of March 31, 2026. Some of the

outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization. None of these off-

balance sheet arrangements either has, or is likely to have, a material effect on our consolidated financial statements.

Note 10. Income per Share

Basic income or loss per share is based on the weighted average number of common shares outstanding during the

period. Diluted income per share includes additional common shares that would have been outstanding if potential common

shares with a dilutive effect had been issued. Antidilutive securities represent potentially dilutive securities which are excluded

from the computation of diluted income or loss per share as their impact was antidilutive.

A reconciliation of the number of shares used for the basic and diluted income per share computations is as follows:

	Three Months Ended March 31,
Millions of shares	2026	2025
Basic weighted average common shares outstanding	837	866
Dilutive effect of awards granted under our stock incentive plans	2	—
Diluted weighted average common shares outstanding	839	866
Antidilutive shares:
Weighted average options with exercise price greater than the average market price	5	9
Total antidilutive shares	5	9

Note 11. Fair Value of Financial Instruments

The carrying amount of cash and equivalents, receivables, and accounts payable, as reflected in the Condensed

Consolidated Balance Sheets, approximates fair value due to the short maturities of these instruments.

The carrying amount and fair value of our total debt is as follows:

	March 31, 2026					December 31, 2025
Millions of dollars	Level 1	Level 2	Total fair value	Carrying value		Level 1	Level 2	Total fair value	Carrying value
Total debt	$6,916	$98	$7,014	$7,160		$6,722	$357	$7,079	$7,158

The total fair value of our debt decreased during the first quarter of 2026, primarily as a result of higher yields.

Our debt categorized within level 1 on the fair value hierarchy is calculated using quoted prices in active markets for

identical liabilities with transactions occurring on the last two days of period-end. Our debt categorized within level 2 on the

fair value hierarchy is calculated using significant observable inputs for similar liabilities where estimated values are

determined from observable data points on our other bonds and on other similarly rated corporate debt or from observable data

points of transactions occurring prior to two days from period-end and adjusting for changes in market conditions. Differences

between the periods presented in our level 1 and level 2 classification of our long-term debt relate to the timing of when third-

party market transactions on our debt are executed. We have no debt categorized within level 3 on the fair value hierarchy.

HAL Q1 2026 FORM 10-Q | 13

Table of Contents Part I. Item 1 | Notes to Condensed Consolidated Financial Statements

Credit risk

We have entered into CDSs with third-party financial institutions that had an aggregate notional amount outstanding as

of March 31, 2026 of $374 million, compared to an aggregate notional amount outstanding as of December 31, 2025 of $592

million, related to borrowings provided by the financial institutions to one of our primary customers in Mexico, of which a

portion of the proceeds were then utilized by this customer to pay certain of our outstanding receivables. Approximately $331

million of the outstanding amount of the CDSs reduces monthly over its remaining 6-month term and $43 million reduces

monthly over its remaining 3-month term.

The fair value of the derivative liabilities was not material to our financial condition as of March 31, 2026.

Note 12. New Accounting Pronouncements

In November 2024, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2024-03

(Subtopic 220-40), “Disaggregation of Income Statement Expenses”, which requires additional disclosure of certain expense

captions presented on the face of the Company’s income statement as well as disclosures about selling expenses. ASU 2024-03

is effective for the Company’s annual reporting periods beginning after December 15, 2026, and interim reporting periods

beginning after December 15, 2027, and should be applied on a prospective or retrospective basis, with early adoption

permitted. We continue to evaluate the effect that adoption of ASU 2024-03 will have on our disclosures.

HAL Q1 2026 FORM 10-Q | 14

Table of Contents Part I. Item 2 | Executive Overview

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in

conjunction with the condensed consolidated financial statements included in Item 1. Financial Statements contained herein.

EXECUTIVE OVERVIEW

Organization

We are one of the world’s largest providers of products and services to the energy industry. We help our customers

maximize asset value throughout the lifecycle of the reservoir from locating hydrocarbons and managing geological data, to

drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the asset.

Activity levels within our operations are significantly impacted by spending on upstream exploration, development, and

production programs by major, national, and independent oil and natural gas companies. We report our results under two

segments, the Completion and Production segment and the Drilling and Evaluation segment.

•Completion and Production delivers cementing, stimulation, specialty chemicals, intervention, pressure control,

artificial lift, and completion products and services. The segment consists of Artificial Lift, Cementing, Completion

Tools, Multi-Chem, Pipeline and Process Services, Production Enhancement, and Production Solutions. During the

third quarter of 2024, we made a strategic decision to market for sale a portion of our chemical business. We expect

the sale to be completed in the second quarter of 2026.

•Drilling and Evaluation provides field and reservoir modeling, drilling, fluids, evaluation, and precise wellbore

placement solutions that enable customers to model, measure, drill, and optimize their well construction activities.

The segment consists of Baroid, Drill Bits and Services, Halliburton Project Management, Landmark Software and

Services, Sperry Drilling, Testing and Subsea, and Wireline and Perforating.

The business operations of our segments are organized around four primary geographic regions: North America, Latin

America, Europe/Africa/CIS, and Middle East/Asia. We have manufacturing operations in various locations, the most

significant of which are in the United States, Malaysia, Singapore, and the United Kingdom. With over 46,000 employees, we

operate in more than 70 countries around the world, and our corporate headquarters is in Houston, Texas.

Our value proposition is to collaborate and engineer solutions to maximize asset value for our customers. We strive to

achieve strong cash flows and returns for our shareholders by delivering technology and services that improve efficiency,

increase recovery, and maximize production for our customers. Our strategic priorities are to:

- International: Consistently increase international growth in our directional drilling, unconventionals, well

intervention, and artificial lift businesses. Develop our strategic collaboration with VoltaGrid around behind-the-

meter power generation.

- North America: Maximize value by, among other things, utilizing our Zeus IQ electric fracturing platform, our

iCruise rotary steerable systems and LOGIX automation.

- Digital: Continue to drive differentiation and efficiencies through the deployment of digital and automation

technologies, both internally and for our customers.

- Capital efficiency: Maintain our capital expenditures at about $1.1 billion, while leveraging technology and targeted

process improvements to enhance utilization of existing capital.

- Shareholder returns: Return over 50% of annual free cash flow to shareholders through dividends and share

repurchases.

- Advance a Sustainable Energy Future: Continue to develop technologies and solutions to help lower our customers’

and our emissions intensity, grow our low carbon energy business, and support Halliburton Labs early-stage

company participants.

HAL Q1 2026 FORM 10-Q | 15

Table of Contents Part I. Item 2 | Executive Overview

The following charts depict the revenue split between our two operating segments and our four primary geographic

regions for the three months ended March 31, 2026.

Market conditions

During the first quarter of 2026, the ongoing geopolitical conflict has impacted activity in the Middle East resulting in

an impact of $0.02 to $0.03 of diluted net income per share across both of our segments. Oilfield activity reflected continued

customer focus on capital discipline and returns, with spending concentrated on projects and programs that improve near-term

production and operating efficiency. Customer activity levels and spending plans remained sensitive to oil and natural gas price

volatility and changes in global supply-and-demand fundamentals and were impacted by geopolitical developments, including

regional conflicts, sanctions, and trade or regulatory actions.

Trade tensions and tariffs continue to influence the global demand outlook, with varying impacts across end markets.

Following a U.S. Supreme Court ruling that invalidated tariffs imposed in 2025 by the Trump Administration on goods from all

countries, President Trump implemented a 150-day “global tariff” of 10% effective February 24, 2026, using presidential

powers under Section 122 of the Trade Act of 1974, and indicated a desire to increase such “global tariff” to 15%. Although the

Section 122 tariffs are due to expire in July, the Trump Administration has initiated processes that could result in new tariffs

being imposed under other statutes. We continue to monitor and evaluate the effects on goods imported into the United States.

Oil prices increased in the first quarter of 2026 compared to the fourth quarter of 2025. The West Texas Intermediate

(WTI) crude oil price averaged approximately $72 per barrel during the first quarter of 2026, compared to approximately $60

per barrel during the fourth quarter of 2025, or a 20% increase. The Brent crude oil price averaged approximately $80 per barrel

during the first quarter of 2026, compared to approximately $64 per barrel during the fourth quarter, or a 25% increase.

Globally, we continue to be impacted by inflationary cost increases, primarily related to logistics, chemicals, and

cement, we manage these pressures through global procurement strategies, technology modifications, and sourcing efficiencies.

As a standard practice, we generally seek to pass a portion of these cost increases on to our customers and believe we have

effective solutions in place to minimize their operational impact.

HAL Q1 2026 FORM 10-Q | 16

Table of Contents Part I. Item 2 | Executive Overview

Financial results

The following graph illustrates our revenue and operating margins for each operating segment for the first quarter of

2025 and 2026.

During the first quarter of 2026, we generated total company revenue of $5.4 billion, relatively flat as compared to the

first quarter of 2025. We reported operating income of $679 million, in the first quarter of 2026, as compared to operating

income of $431 million in the first quarter of 2025, including impairments and other charges of $356 million.

Our Completion and Production segment revenue decreased 3% in the first quarter of 2026, as compared to the first

quarter of 2025. These results were primarily driven by lower stimulation activity in North America, and lower completion tool

sales and decreased pressure pumping services in the Middle East. Partially offsetting these decreases were higher completion

tool sales in the Western Hemisphere, and improved pressure pumping services in Africa.

Our Drilling and Evaluation segment revenue increased 4% in the first quarter of 2026 as compared to the first quarter

of 2025. These results were primarily driven by higher project management activity in Latin America and increased drilling-

related services in Europe and the Western Hemisphere. Partially offsetting these increases were lower activity across multiple

product service lines in the Middle East, lower wireline activity in the Eastern Hemisphere, and decreased fluid services in the

Gulf of America.

Both divisional results were negatively impacted by the geopolitical conflict in the Middle East.

Our North America revenue decreased 4% in the first quarter of 2026 as compared to the first quarter of 2025. This

decline was primarily driven by lower stimulation activity and decreased artificial lift activity in US Land, and lower

stimulation activity and decreased fluid services in the Gulf of America. Partially offsetting these decreases were increased

drilling-related services in US Land and higher completion tool sales in the region.

Internationally, revenue increased 3% in the first quarter of 2026 as compared to the first quarter of 2025, largely

driven by improved activity across multiple product service lines in Ecuador, the Caribbean, and Brazil, higher stimulation

activity in Mexico and Argentina, increased drilling-related services and higher completion tool sales in Norway, and improved

pressure pumping services in Angola. Offsetting these increases were lower activity across multiple product service lines in the

Middle East and decreased drilling-related services in Namibia.

Our operating performance and liquidity are described in more detail in “Liquidity and Capital Resources” and

“Business Environment and Results of Operations.”

HAL Q1 2026 FORM 10-Q | 17

Table of Contents Part I. Item 2 | Liquidity and Capital Resources

LIQUIDITY AND CAPITAL RESOURCES

As of March 31, 2026, we had $2.0 billion of cash and equivalents, compared to $2.2 billion of cash and equivalents at

December 31, 2025.

Significant sources and uses of cash during the first three months of 2026

Sources of cash:

•Cash flows from operating activities were $273 million. Working capital, which consists of receivables,

inventories, and accounts payable, collectively had a negative impact of $252 million.

Uses of cash:

•Capital expenditures were $192 million.

•We repurchased 2.8 million shares of our common stock for $100 million.

•We paid $142 million of dividends to our shareholders.

Future sources and uses of cash

We manufacture most of our own equipment, which provides us with some flexibility to increase or decrease our

capital expenditures based on market conditions. We currently expect capital spending for 2026 to be approximately $1.1

billion. We believe this level of spending will enable continued investment in our core strategic technologies and businesses,

including the international expansion of our artificial lift, well intervention, unconventionals, and drilling technologies. We will

continue to maintain capital discipline and monitor the rapidly changing market dynamics, and we may adjust our capital

spending accordingly.

While we maintain focus on liquidity and debt reduction, we are also focused on providing cash returns to our

shareholders. Our quarterly dividend rate is $0.17 per common share, or approximately $142 million. In 2023, our Board

approved a capital return framework with a goal of returning at least 50% of our annual free cash flow to shareholders through

dividends and share repurchases and we expect our returns to shareholders will be in line with our capital return framework for

2026.

We may utilize share repurchases as part of our capital return framework. Our Board of Directors has authorized a

program to repurchase our common stock from time to time. We repurchased 2.8 million shares of common stock during the

first quarter of 2026 under this program. Approximately $1.9 billion remained authorized for repurchases as of March 31, 2026

and may be used for open market and other share purchases.

During 2023, we began our migration to SAP S4 which we expect to complete in the fourth quarter of 2026. During

the three months ended March 31, 2026, we incurred $42 million in expense on our SAP S4 migration and expect the estimated

cost to be approximately $45 million per quarter going forward. We believe the new system will provide important efficiency

benefits, cost savings, enhanced visibility to our operations, and advanced analytics that will benefit us and our customers.

We may, from time to time, redeem, repurchase, or otherwise acquire our outstanding debt through privately

negotiated transactions, open market purchases, redemptions, tender offers or otherwise, but we are under no obligation to do

so.

Other factors affecting liquidity

Financial condition in current market. As of March 31, 2026, we had $2.0 billion of cash and equivalents and $3.5

billion of available committed bank credit under our revolving credit facility, with an expiration date of August 16, 2030. We

believe we have a manageable debt maturity profile, with approximately $90 million due February 2027. Furthermore, we have

no financial covenants or material adverse change provisions in our bank agreements, and our debt maturities extend over a

long period of time. We believe our cash on hand, cash flows generated from operations, and our available credit facility will

provide sufficient liquidity to address expected global cash needs, including capital expenditures, working capital investments,

shareholder returns, if any, debt repurchases, if any, and scheduled interest and principal payments, in the short term and long

term.

Guarantee agreements. In the normal course of business, we have agreements with financial institutions under which

approximately $3.2 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of March 31, 2026. Some

of the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization; however,

none of these triggering events have occurred. As of March 31, 2026, we had no material off-balance sheet liabilities and were

not required to make any material cash distributions to our unconsolidated subsidiaries.

HAL Q1 2026 FORM 10-Q | 18

Table of Contents Part I. Item 2 | Liquidity and Capital Resources

We have entered into credit default swaps (CDSs) with third-party financial institutions that have an aggregate

notional amount outstanding as of March 31, 2026 of $374 million, compared to an aggregate notional amount outstanding as

of December 31, 2025 of $592 million, related to borrowings provided by the financial institutions to one of our primary

customers in Mexico, of which portions of the proceeds were utilized by this customer to pay certain of our outstanding

receivables. Approximately $331 million of the outstanding amount of the CDSs reduces monthly over its remaining 6-month

term and $43 million reduces monthly over its remaining 3-month term.

Credit ratings. Our credit ratings with Standard & Poor’s remain BBB+ for our long-term debt and A-2 for our short-

term debt, with a stable outlook. Our credit ratings with Moody's Investors Service remain A3 for our long-term debt and P-2

for our short-term debt, with a stable outlook.

Customer receivables. In line with industry practice, we bill our customers for our services in arrears and are,

therefore, subject to our customers delaying or failing to pay our invoices. In weak economic environments, we may experience

increased delays and failures to pay our invoices due to, among other reasons, a reduction in our customers’ cash flow from

operations and their access to the credit markets, as well as unsettled political conditions.

Receivables from our primary customer in Mexico accounted for approximately 7% of our total receivables as of both

March 31, 2026 and December 31, 2025. While we have experienced payment delays from our primary customer in Mexico,

the amounts are not in dispute and we have not historically had, and we do not expect, any material write-offs due to

collectability of receivables from this customer.

HAL Q1 2026 FORM 10-Q | 19

Table of Contents Part I. Item 2 | Business Environment and Results of Operations

BUSINESS ENVIRONMENT AND RESULTS OF OPERATIONS

We operate in more than 70 countries throughout the world to provide a comprehensive range of services and products

to the energy industry. Our revenue is generated from the sale of services and products to major, national, and independent oil

and natural gas companies worldwide. The industry we serve is highly competitive with many substantial competitors in each

segment of our business. Based on the location of the services provided and products sold, 37% and 39% of our consolidated

revenue was from the United States for the three months ended March 31, 2026 and 2025, respectively. No other country

accounted for more than 10% of our revenue for those periods.

Activity within our business segments is significantly impacted by spending on upstream exploration, development,

and production programs by our customers. Also impacting our activity is the status of the global economy, which impacts oil

and natural gas consumption.

Some of the more significant determinants of current and future spending levels of our customers are oil and natural

gas prices, our customers’ expectations about future prices, global oil supply and demand, the impact on natural gas supply and

demand in North America of electrification and data centers power requirements, completions intensity, the world economy, the

availability of capital, government regulation, and global stability, which together drive worldwide drilling and completions

activity. Lower oil and natural gas prices usually translate into lower exploration and production budgets and lower rig count,

while the opposite is usually true for higher oil and natural gas prices. Our financial performance is therefore significantly

affected by oil and natural gas prices and worldwide rig activity, which are summarized in the tables below.

The table below shows the average prices for West Texas Intermediate (WTI) crude oil, United Kingdom Brent crude

oil, and Henry Hub natural gas.

	Three Months Ended		Year Ended
	March 31,		December 31,
	2026	2025	2025
Oil Price - WTI (1)	$71.98	$71.84	$65.46
Oil Price - Brent (1)	80.21	75.81	69.10
Natural Gas Price - Henry Hub (2)	4.79	4.15	3.53

(1)	Oil prices measured in dollars per barrel.
(2)	Natural gas price measured in dollars per million British thermal units (Btu), or MMBtu.

              The historical average rig counts based on the weekly Baker Hughes rig count data were as follows: 

	Three Months Ended		Year Ended
	March 31,		December 31,
	2026	2025	2025
US Land	532	573	546
US Offshore	16	15	15
Canada	209	216	175
North America	757	804	736
International (1)	1,083	1,097	1,080
Worldwide Total	1,840	1,901	1,816

(1) For the three months ended March 31, 2025, historical average rig counts shown are based on data provided by Baker Hughes, which included retroactive adjustments to international rig counts previously reported as a result of a methodology change.

HAL Q1 2026 FORM 10-Q | 20

Table of Contents Part I. Item 2 | Business Environment and Results of Operations

Business outlook

We expect oilfield services activity to be supported by continued customer focus on capital discipline, production

optimization, and efficiency‑driven investment across both international and North America markets. While we continue to

experience operational disruptions in the Middle East, including work cancellations, force‑majeure declarations, reduced

offshore activity, and higher logistics costs, the majority of our operations remain active.

Outside the Middle East, our outlook remains positive. International activity is expected to grow in the mid‑to‑high

single digits for the full year 2026, led by strong customer engagement and investment in Latin America and continued

momentum in offshore markets.

In North America, we see early signs of a services‑market recovery as customers accelerate development within

existing budgets and reduce calendar white‑space. Depleted drilled‑but‑uncompleted well inventories are expected to support

additional drilling activity, and demand for differentiated technologies, including electric fracturing and automated

well‑construction solutions, continues to increase.

We expect broader market fundamentals to remain supportive, although customer spending and activity levels may be

influenced by volatility in oil and natural gas prices, changes in global supply‑and‑demand dynamics, inflationary cost

pressures, and geopolitical developments. These factors, including regional conflicts, sanctions, and regulatory or trade

changes, may affect project timing, supply chains, and access to certain markets.

HAL Q1 2026 FORM 10-Q | 21

Table of Contents Part I. Item 2 | Results of Operations in 2026 Compared to 2025 (QTD)

RESULTS OF OPERATIONS IN 2026 COMPARED TO 2025

Three Months Ended March 31, 2026 Compared with Three Months Ended March 31, 2025

	Three Months Ended
	March 31,		Favorable	Percentage
Millions of dollars	2026	2025	(Unfavorable)	Change
Revenue:
By operating segment:
Completion and Production	$3,016	$3,120	$(104)	(3)%
Drilling and Evaluation	2,386	2,297	89	4
Total revenue	$5,402	$5,417	$(15)	—%
By geographic region:
North America	$2,136	$2,236	$(100)	(4)%
Latin America	1,090	896	194	22
Europe/Africa/CIS	858	775	83	11
Middle East/Asia	1,318	1,510	(192)	(13)
Total revenue	$5,402	$5,417	$(15)	—%
Operating income:
By operating segment:
Completion and Production	$439	$531	$(92)	(17)%
Drilling and Evaluation	351	352	(1)	—
Total operations	790	883	(93)	(11)
Corporate and other	(69)	(66)	(3)	(5)
SAP S4 upgrade expense	(42)	(30)	(12)	(40)
Impairments and other charges	—	(356)	356	n/m
Total operating income	$679	$431	$248	58%
n/m = not meaningful

Operating Segments

Completion and Production

Completion and Production revenue in the first quarter of 2026 was $3.0 billion, a decrease of $104 million, or 3%,

when compared to the first quarter of 2025. Operating income in the first quarter of 2026 was $439 million, a decrease of $92

million, or 17%, when compared to the first quarter of 2025. These results were primarily driven by lower stimulation activity

in North America, and lower completion tool sales and decreased pressure pumping services in the Middle East. Partially

offsetting these decreases were higher completion tool sales in the Western Hemisphere, and improved pressure pumping

services in Africa.

Drilling and Evaluation

Drilling and Evaluation revenue in the first quarter of 2026 was $2.4 billion, an increase of $89 million, or 4%, when

compared to the first quarter of 2025. Operating income in the first quarter of 2026 was $351 million, flat when compared to the

first quarter of 2025. These results were primarily driven by higher project management activity in Latin America and increased

drilling-related services in Europe and the Western Hemisphere. Partially offsetting these increases were lower activity across

multiple product service lines in the Middle East, lower wireline activity in the Eastern Hemisphere, and decreased fluid

services in the Gulf of America.

In the first quarter of 2026, the geopolitical conflict in the Middle East affected both of our operating segments, with

an impact of $0.02 to $0.03 of diluted net income per share.

HAL Q1 2026 FORM 10-Q | 22

Table of Contents Part I. Item 2 | Results of Operations in 2026 Compared to 2025 (QTD)

Geographic Regions

North America

North America revenue in the first quarter of 2026 was $2.1 billion, a 4% decrease, as compared to the first quarter of

2025. This decline was primarily driven by lower stimulation activity and decreased artificial lift activity in US Land, and lower

stimulation activity and decreased fluid services in the Gulf of America. Partially offsetting these decreases were increased

drilling-related services in US Land and higher completion tool sales in the region.

Latin America

Latin America revenue in the first quarter of 2026 was $1.1 billion, a 22% increase compared to the first quarter of

2025. This increase was primarily driven by higher activity across multiple product service lines in Ecuador, the Caribbean, and

Brazil, and improved stimulation activity in Mexico and Argentina. Partially offsetting these increases were lower project

management activity and decreased drilling-related services in Mexico.

Europe/Africa/CIS

Europe/Africa/CIS revenue in the first quarter of 2026 was $858 million, an 11% increase compared to the first quarter

of 2025. This increase was primarily driven by increased drilling-related services and higher completion tool sales in Norway,

and improved pressure pumping services in Angola. Partially offsetting these increases were lower completion tool sales in the

Caspian Area and decreased drilling-related services in Namibia.

Middle East/Asia

Middle East/Asia revenue in the first quarter of 2026 was $1.3 billion, a 13% decrease compared to the first quarter of

2025. This decrease was primarily driven by conflict-related disruptions that resulted in lower activity across multiple product

service lines in Saudi Arabia and decreased drilling-related services in Qatar. Partially offsetting these decreases were higher

completion tool sales and improved fluid services in Asia.

Other Operating Items

SAP S4 Upgrade Expense. As previously mentioned, during 2023, we began our migration to SAP S4, which we

expect to complete in the fourth quarter of 2026. During the first quarter of 2026, we recognized $42 million of expense on our

SAP S4 migration. During the first quarter of 2025, we recognized $30 million of expense on our SAP S4 migration.

Impairments and Other Charges. During the three months ended March 31, 2026, there were no amounts recorded in

impairments and other charges. During the three months ended March 31, 2025, we took a pre-tax charge of $356 million

primarily related to severance costs, an impairment of assets held for sale, an impairment of facility closures and lease

terminations, and other items. See Notes to Condensed Consolidated Financial Statements, Note 2 for further discussion of

these charges.

Nonoperating Items

Pension Settlement Charges from Plan Terminations. During the three months ended March 31, 2026, the Company

entered into agreements to transfer certain defined benefit pension obligations to third-party insurers in connection with plan

terminations. As a result, the Company recognized approximately $23 million of non-cash pension settlement charges,

primarily related to the acceleration of actuarial losses previously recorded in accumulated other comprehensive income. This is

included in “Other, net” on the Condensed Consolidated Statements of Operations.

Income Tax Provision. During the three months ended March 31, 2026, we recorded a total income tax provision of

$105 million on a pre-tax income of $569 million, resulting in an effective tax rate of 18.5% for the quarter. The effective tax

rate for this period was primarily impacted by the release of a valuation allowance in the amount of $32 million related to

changes in deferred tax asset realizability. During the three months ended March 31, 2025, we recorded a total income tax

provision of $103 million on a pre-tax income of $306 million, resulting in an effective tax rate of 33.7% for the quarter. The

effective tax rate for this period was primarily impacted by the additional valuation allowance recognized on our deferred tax

assets, which resulted from the pre-tax $356 million of impairments and other charges.

Pillar Two. The Organization for Economic Co-operation and Development enacted model rules for a new global

minimum tax framework, also known as Pillar Two, and certain governments globally have enacted, or are in the process of

enacting, legislation considering these model rules. These rules did not have a material impact on our taxes for the three months

ended March 31, 2026 and 2025.

HAL Q1 2026 FORM 10-Q | 23

Table of Contents Part I. Item 2 | Results of Operations in 2026 Compared to 2025 (QTD)

Internal Revenue Service Notice of Proposed Adjustment. We are subject to taxes in the United States and in numerous

jurisdictions where we operate or where our subsidiaries are organized. Our tax returns are routinely subject to examination by

the taxing authorities in the jurisdictions where we file tax returns. In most cases we are no longer subject to examination by tax

authorities for years before 2014. The only significant operating jurisdiction that has tax filings under review or subject to

examination by the tax authorities is the United States. Our United States federal income tax filings for tax years 2016 through

2024, including carry back of 2016 net operating losses to 2014, are currently under review or remain open for review by the

IRS.

On September 28, 2023, we received a NOPA from the IRS covering our 2016 U.S. tax return. The NOPA proposed

an adjustment to reclassify approximately 95% of the $3.5 billion termination fee paid to Baker Hughes in 2016 from an

ordinary expense deduction to a capital loss. The termination fee was paid to Baker Hughes under the merger agreement after

antitrust regulators in multiple jurisdictions failed to approve our proposed merger. It is common commercial practice to include

a termination fee in a merger agreement to compensate the target for damages incurred when the acquisition does not go

forward. The IRS’s long-understood position at the time of payment had been to treat such payments as an ordinary and

necessary business expense. We strongly disagree with the proposed adjustment on both a factual and legal basis, and we plan

to vigorously contest it.

We expect that resolving this dispute will take substantial time. In 2023, we initiated the IRS administrative appeals

process, which is ongoing. Failing a resolution through that process, the matter would ultimately be resolved by the United

States federal courts.

We regularly assess the likelihood of adverse outcomes resulting from tax examinations to determine the adequacy of

our tax reserves, and we believe our income tax reserves are appropriately provided for all open tax years. We cannot assure

you that the matter will be determined in our favor or against us, and if the matter is ultimately determined unfavorably to us, it

could have a material adverse impact on our results of operations and cash flows. Based on tax attributes currently available, we

estimate that, should the IRS's position prevail through the appellate process and subsequent litigation, the proposed adjustment

could result in cash taxes due of approximately $640 million (plus interest thereon in the case of amounts due for previous tax

years). Our estimates are calculated under current tax law and on the basis of our assumptions regarding taxable income and

loss and other tax attributes over the relevant period, which law could change and which assumptions could and likely will

differ materially from actual results. In any event, no payment of any additional tax is currently required, nor do we anticipate

that the proposed adjustment would materially and adversely impact our ability to meet our expected uses of cash, including

future capital expenditures, working capital investments, and scheduled debt repayments, or our ability to return cash to

shareholders, even if a final determination of the matter is reached that is adverse to us.

HAL Q1 2026 FORM 10-Q | 24

Table of Contents Part I. Item 2 | Forward-Looking Information

FORWARD-LOOKING INFORMATION

The Private Securities Litigation Reform Act of 1995 provides safe harbor provisions for forward-looking information.

Forward-looking information is based on projections and estimates, not historical information. Some statements in this Form

10-Q, including those in Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations –

Business Environment and Results of Operations – Business Outlook, are forward-looking and use words like “may,” “may

not,” “believe,” “do not believe,” “plan,” “estimate,” “intend,” “expect,” “do not expect,” “anticipate,” “do not anticipate,”

“should,” “likely,” and other expressions. We may also provide oral or written forward-looking information in our statements

and other materials we release to the public. Forward-looking information involves risks and uncertainties and reflects our best

judgment based on current information. Our results of operations can be affected by inaccurate assumptions we make or by

known or unknown risks and uncertainties. In addition, other factors may affect the accuracy of our forward-looking

information. As a result, no forward-looking information can be guaranteed. Actual events and the results of our operations may

vary materially.

We do not assume any responsibility to publicly update any of our forward-looking statements regardless of whether

factors change as a result of new information, future events, or for any other reason, except as required by law. You should

review any additional disclosures we make in our press releases and Forms 10-K, 10-Q, and 8-K filed with or furnished to the

Securities and Exchange Commission. We also suggest that you listen to our quarterly earnings release conference calls with

financial analysts.

NEW ACCOUNTING STANDARDS NOT YET ADOPTED

See Notes to Condensed Consolidated Financial Statements, Note 12 for further discussion of accounting standards

adopted during the quarter and to be adopted in future periods.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

For quantitative and qualitative disclosures about market risk, see Part II, Item 7(a), “Quantitative and Qualitative

Disclosures About Market Risk,” in our 2025 Annual Report on Form 10-K. Our exposure to market risk has not changed

materially since December 31, 2025.

Item 4. Controls and Procedures.

In accordance with the Securities Exchange Act of 1934 Rules 13a-15 and 15d-15, we carried out an evaluation, under

the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, of

the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on that

evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were

effective as of March 31, 2026 to provide reasonable assurance that information required to be disclosed in our reports filed or

submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the

Securities and Exchange Commission’s rules and forms. Our disclosure controls and procedures include controls and

procedures designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is

accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as

appropriate, to allow timely decisions regarding required disclosure.

There has been no change in our internal control over financial reporting that occurred during the quarter ended

March 31, 2026 that has materially affected, or is reasonably likely to materially affect, our internal control over financial

reporting.

HAL Q1 2026 FORM 10-Q | 25

Table of Contents Part II. Item 1 | Legal Proceedings

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

See Notes to Condensed Consolidated Financial Statements, Note 9 for further information regarding legal

proceedings.

Item 1(a). Risk Factors.

The statements in this section describe the known material risks to our business and should be considered carefully. As

of March 31, 2026, there have been no material changes in risk factors previously disclosed in our Annual Report on Form 10-

K for the fiscal year ended December 31, 2025.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Following is a summary of our repurchases of our common stock during the three months ended March 31, 2026.

Period	Total Number of Shares Purchased (a)	Average Price Paid per Share	Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (b)	Maximum Number (or Approximate Dollar Value) of Shares that may yet be Purchased Under the Program (b)
January 1 - 31	289,276	$29.67	—	$2,049,168,144
February 1 - 28	991,682	$35.20	969,000	$2,015,004,883
March 1 - 31	2,036,724	$35.18	1,873,433	$1,949,168,163
Total	3,317,682	$34.71	2,842,433

(a)

Of the 3,317,682 shares purchased during the three-month period ended March 31, 2026, 475,249 were acquired from employees in connection with the settlement of income tax and related benefit withholding obligations arising from vesting in restricted stock grants. These shares were not part of a publicly announced program to repurchase common stock.

(b)

Our Board of Directors has authorized a program to repurchase a specified dollar amount of our common stock from time to time. On July 21, 2014, our Board of Directors announced that it had approved an increase in the total available outstanding authorization for repurchases to $6.0 billion. Approximately $1.9 billion remained authorized for repurchases as of March 31, 2026. From the inception of this program in February of 2006 through March 31, 2026, we repurchased approximately 329 million shares of our common stock for a total cost of approximately $12.2 billion. The program may be terminated or suspended at any time and does not have a specified expiration date.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Our barite and bentonite mining operations, in support of our fluid services business, are subject to regulation by the

U.S. Mine Safety and Health Administration under the Federal Mine Safety and Health Act of 1977. Information concerning

mine safety violations or other regulatory matters required by section 1503(a) of the Dodd-Frank Wall Street Reform and

Consumer Protection Act and Item 104 of Regulation S-K (17 CFR 229.104) is included in Exhibit 95 to this quarterly report.

Item 5. Other Information.

During the quarter ended March 31, 2026, the following officers of the Company adopted or terminated a “Rule

10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K,

and no trading arrangements were adopted or terminated by directors of the Company.

Reporting Officer	Title	Reporting Action	Plan Adoption Date	Plan End Date	Aggregated Shares Covered	Intended to Satisfy Rule 10b5-1?
M. Casey Maxwell	President, Western Hemisphere	Plan Adoption	2/3/2026	8/14/2026	20,348	Yes
Eric J. Carre	Executive Vice President and Chief Financial Officer	Plan Adoption	3/18/2026	8/14/2026	188,957	Yes

HAL Q1 2026 FORM 10-Q | 26

Table of Contents Part II. Item 6 | Exhibits

Item 6. Exhibits.

†	10.1	Executive Agreement (effective February 1, 2026) (M. Casey Maxwell) (incorporated by reference to Exhibit 10.1 of Halliburton’s Form 8-K filed on January 14, 2026, File No. 001-03492).
*	31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
*	31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
**	32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
**	32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
*	95	Mine Safety Disclosures.
*	101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
*	101.SCH	XBRL Taxonomy Extension Schema Document
*	101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
*	101.LAB	XBRL Taxonomy Extension Label Linkbase Document
*	101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
*	101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
*	104	Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
	*	Filed with this Form 10-Q.
	**	Furnished with this Form 10-Q.
	†	Management contracts or compensatory plans or arrangements.

HAL Q1 2026 FORM 10-Q | 27

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be

signed on its behalf by the undersigned thereunto duly authorized.

HALLIBURTON COMPANY

/s/ Eric J. Carre	/s/ Stephanie S. Holzhauser
Eric J. Carre	Stephanie S. Holzhauser
Executive Vice President and	Senior Vice President and
Chief Financial Officer	Chief Accounting Officer

Date: April 24, 2026