Halliburton (NYSE: HAL) Q1 2026 profit surges as margins strengthen
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Halliburton Company reported sharply higher profits on flat revenue in the first quarter of 2026. Net income rose to $461 million, or $0.55 per diluted share, compared with $204 million, or $0.24 per share, in the first quarter of 2025. Revenue was $5.4 billion, essentially unchanged year over year, while operating income increased to $679 million from $431 million, supported by a 13% operating margin.
Free cash flow was $123 million and cash flow from operations totaled $273 million. The company repurchased about $100 million of common stock and paid a quarterly dividend of $0.17 per share. Completion and Production revenue declined 3% and operating income fell 17%, mainly on lower stimulation and pressure pumping activity in North America and the Middle East. Drilling and Evaluation revenue grew 4% with flat operating income, helped by stronger project management and drilling-related services in Latin America and Europe. Management noted the Middle East conflict reduced net income by approximately $0.02 to $0.03 per diluted share.
Positive
- Profitability surged year over year, with net income rising to $461 million ($0.55 per diluted share) from $204 million ($0.24 per share) and operating income increasing to $679 million, supporting a 13% operating margin despite flat $5.4 billion revenue.
- Capital returns remained meaningful, as Halliburton generated $123 million of free cash flow, repurchased approximately $100 million of common stock, and paid a $0.17 per-share dividend during the first quarter of 2026.
Negative
- North America and Middle East softness weighed on key segments, with Completion and Production revenue down 3% and operating income down 17% year over year, and Middle East/Asia regional revenue declining 13%, partly linked to geopolitical conflict.
- Cash flow from operations declined versus the prior year, falling to $273 million in the first quarter of 2026 from $377 million in the first quarter of 2025, even as reported net income more than doubled.
Insights
Profit more than doubled on flat revenue as margins expanded and cash returns continued.
Halliburton delivered net income of $461 million in Q1 2026, up from $204 million a year earlier, while revenue held around $5.4 billion. Operating income rose to $679 million, implying a solid 13% operating margin, reflecting better pricing, mix, and cost control.
Segment results were mixed. Completion and Production revenue fell 3% and operating income dropped 17%, pressured by weaker stimulation and pressure pumping in North America and the Middle East. Drilling and Evaluation revenue grew 4%, though operating income was flat, as Latin America and Europe offset Middle East softness.
Cash generation was modest relative to earnings, with cash flow from operations of $273 million and free cash flow of $123 million. Even so, the company returned capital through $100 million of share repurchases and a $0.17 per-share dividend in Q1 2026. Management cited an estimated $0.02–$0.03 per-share earnings impact from the Middle East conflict, highlighting ongoing geopolitical sensitivity.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Revenue: $5.402 billion
Net income: $461 million
Diluted EPS: $0.55 per share
+5 more
8 metrics
Revenue
$5.402 billion
Total revenue for the quarter ended March 31, 2026
Net income
$461 million
Net income attributable to company, Q1 2026 vs $204 million in Q1 2025
Diluted EPS
$0.55 per share
Basic and diluted net income per share for Q1 2026
Operating income
$679 million
Total operating income for Q1 2026, up from $431 million in Q1 2025
Free cash flow
$123 million
Free cash flow for Q1 2026 from reconciliation in Footnote Table 3
Share repurchases
$100 million
Approximate common stock repurchases during the first quarter of 2026
Dividend per share
$0.17 per share
Dividends paid to shareholders in the first quarter of 2026
Cash and equivalents
$2.003 billion
Cash and equivalents at March 31, 2026 on the balance sheet
Key Terms
non-GAAP financial measures, free cash flow, adjusted operating income, FDII deduction, +2 more
6 terms
non-GAAP financial measures financial
"contain certain non-GAAP financial measures (as defined under the Securities and Exchange Commission’s Regulation G)"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
free cash flow financial
"Cash flow from operations of $273 million and free cash flow1 of $123 million"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
adjusted operating income financial
"Adjusted operating income3, excluding impairments and other charges, of $787 million in the first quarter of 2025"
Adjusted operating income is a company's profit from its main activities, excluding certain one-time or unusual costs and gains. It helps investors see how well the business is performing in its normal operations, without distractions from rare events or expenses. This way, they get a clearer picture of the company’s true profitability.
FDII deduction financial
"includes an $86 million discrete tax benefit from the Foreign-Derived Intangible Income (FDII) deduction attributable to a royalty prepayment"
FDII deduction is a U.S. tax break that lets eligible domestic corporations pay a lower tax rate on certain income earned from selling goods, services or intellectual property to foreign customers. For investors it matters because this reduces a company’s effective tax rate and boosts after-tax profit and cash flow—similar to getting a discounted bill for sales made overseas—which can affect earnings, dividends and company valuation.
operating margin financial
"Revenue of $5.4 billion and operating margin of 13%"
Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.
SAP S4 migration technical
"Spent $42 million on SAP S4 migration"
Earnings Snapshot
Revenue: $5.402 billion
Q1 2026
Revenue
$5.402 billion
flat vs $5.417 billion in Q1 2025
Net income
$461 million
up from $204 million in Q1 2025
Diluted EPS
$0.55
up from $0.24 in Q1 2025
Operating income
$679 million
up from $431 million in Q1 2025
Free cash flow
$123 million
vs $124 million in Q1 2025
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 21, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
Registrant’s telephone number, including area code: (281 ) 871-2699
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
| NYSE Texas | ||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| 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. ☐
Item 2.02. Results of Operations and Financial Condition
On April 21, 2026, Halliburton Company (the “Company”) issued a press release announcing its financial results for the quarter ended March 31, 2026 and providing access information for an investor conference call to discuss those results. The scheduled conference call was previously announced on March 20, 2026. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is hereby incorporated by reference into this Item 2.02. The press release will be published on the Company’s website at www.halliburton.com.
The Company’s press release announcing its results for the quarter ended March 31, 2026 and information to be discussed on the conference call contain certain non-GAAP financial measures (as defined under the Securities and Exchange Commission’s Regulation G). Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles, or GAAP. The Company has provided reconciliations within the press release and in the Quarterly Results and Presentations section of our website of the non-GAAP measures to the most directly comparable GAAP financial measure.
In accordance with General Instruction B.2 of Form 8-K, the information included in this Current Report under Item 2.02 and in the press release as Exhibit 99.1 is deemed to be “furnished” and shall not be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (Exchange Act), or incorporated by reference in any filing under the Securities Act of 1933, as amended (Securities Act), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 7.01. Regulation FD Disclosure
On April 21, 2026, the Company issued a press release announcing its results for the quarter ended March 31, 2026. A copy of the press release is set forth in Exhibit 99.1 and is incorporated herein by reference.
In accordance with General Instruction B.2 of Form 8-K, the information included in this Current Report under Item 7.01 and in the press release as Exhibit 99.1 is deemed to be “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits
In accordance with General Instruction B.2 of Form 8-K, the information set forth in the attached Exhibit 99.1 is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act.
(d) Exhibits
99.1 Press Release of Halliburton Company, dated April 21, 2026.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
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 hereunto duly authorized.
| HALLIBURTON COMPANY | |||||||||||
| Date: | April 21, 2026 | By: | /s/ Stephanie S. Holzhauser | ||||||||
| Stephanie S. Holzhauser | |||||||||||
| Senior Vice President and Chief | |||||||||||
| Accounting Officer | |||||||||||
FAQ
How did Halliburton (HAL) perform financially in Q1 2026?
Halliburton posted strong Q1 2026 results, with net income of $461 million, or $0.55 per diluted share. Revenue was $5.4 billion, flat year over year, while operating income rose to $679 million, reflecting a 13% operating margin and significantly higher profitability than Q1 2025.
What were Halliburton (HAL) segment results for Completion and Production in Q1 2026?
Completion and Production revenue was $3.0 billion in Q1 2026, down 3% from Q1 2025, with operating income of $439 million, down 17%. Lower stimulation activity in North America and weaker completion tool sales and pressure pumping in the Middle East were only partly offset by strength in Africa and the Western Hemisphere.
How did Halliburton’s (HAL) Drilling and Evaluation segment perform in Q1 2026?
Drilling and Evaluation revenue reached $2.4 billion in Q1 2026, a 4% increase compared with Q1 2025, while operating income was $351 million, essentially flat. Growth was driven by higher project management in Latin America and increased drilling-related services in Europe and the Western Hemisphere, offset by Middle East and Eastern Hemisphere softness.
What were Halliburton’s (HAL) regional revenue trends in Q1 2026?
North America revenue was $2.1 billion, down 4% year over year, while international revenue was $3.3 billion, up 3%. Latin America grew 22% to $1.1 billion, Europe/Africa/CIS rose 11% to $858 million, and Middle East/Asia declined 13% to $1.3 billion due to reduced activity in Saudi Arabia and Qatar.
How much cash flow and free cash flow did Halliburton (HAL) generate in Q1 2026?
Halliburton generated cash flow from operating activities of $273 million in Q1 2026, compared with $377 million a year earlier. After $192 million of capital expenditures and $42 million of asset sale proceeds, free cash flow was $123 million, roughly in line with the prior year’s $124 million.
What capital return actions did Halliburton (HAL) take in Q1 2026?
In Q1 2026, Halliburton repurchased approximately $100 million of its common stock under its share repurchase program. The company also paid dividends of $0.17 per share, continuing its shareholder return framework alongside investments in SAP S4 migration and other strategic initiatives.
How did geopolitical conflict affect Halliburton’s (HAL) Q1 2026 earnings?
Halliburton disclosed that the geopolitical conflict in the Middle East affected both major divisions in Q1 2026. Management estimated an impact of approximately 2 to 3 cents of net income per diluted share, reflecting disruptions to activity in the region while international revenue still grew modestly overall.