AI Takeaway
Halliburton (HAL) reported Q2 FY2026 revenue of $5.7B, up 4% year over year, and net income of $534M, up 13%, while operating income benefited from a $95M pre-tax credit and Middle East disruptions continued to pressure activity.
EPS (Basic)
$0.64
++16.36% YoY
Operating Income
$778M
++7.02% YoY
Filed · Source: SEC EDGAR 10-Q filing
The company posted net income of $534M, up 13.1% from a year earlier, with diluted EPS of $0.64.
Q2 FY2026 total revenue was $5.7B, up 4% year over year. Drilling and Evaluation revenue rose 7% to $2.5B, while Completion and Production revenue was broadly flat at $3.2B. By geography, Latin America revenue grew 15% to $1.1B and Europe/Africa/CIS grew 24% to $1.0B, partly offset by an 11% decline in Middle East/Asia revenue to $1.3B.
Source: 10-Q Item 2 MD&A, pp.17, 21-22
Operating income increased 7% year over year to $778M in Q2 FY2026, including $95M of impairments and other credits. Management said the credit primarily reflected gains on equity investments and a government refund recovery, partly offset by a loss on the sale of a portion of the chemical business.
Source: 10-Q Item 2 MD&A, pp.17, 22
Completion and Production operating income fell 8% year over year to $474M even as revenue increased 1% to $3.2B. Management attributed the lower profit partly to activity mix and reduced stimulation-services pricing in U.S. Land and Latin America.
Source: 10-Q Item 2 MD&A, p.21
At June 30, 2026, Halliburton had $2.0B of cash and equivalents and $3.5B of available committed revolving-credit capacity. First-half operating cash flow was $1.1B, with working capital reducing cash flow by $187M; the company spent $427M on capital expenditures, repurchased $308M of stock, and paid $285M of dividends.
Source: 10-Q Item 2 MD&A, pp.18-19
Management expects approximately $1.1B of capital spending in 2026 and intends to return at least 50% of annual free cash flow to shareholders through dividends and share repurchases. The company also expects to complete its SAP S4 migration in the fourth quarter of 2026 after recording $88M of related expense in the first six months of 2026.
Source: 10-Q Item 2 MD&A, p.18
Operating cash flow for the first six months of Q2 FY2026 was $1.1B, down 13.8% from $1.3B in the comparable prior-year period. A sustained reduction in operating cash generation could reduce flexibility for capital expenditures, dividends, repurchases, or debt reduction.
Source: 10-Q Cash Flow Statement (XBRL)
Long-term debt was $7.1B at the end of Q2 FY2026, compared with stockholders' equity of $11.0B. The reported debt-to-equity ratio was 1.34, indicating that leverage remains a relevant consideration despite long-term debt declining 1.3% year over year.
Source: 10-Q Balance Sheet (XBRL)
Cash and equivalents were $2.0B at the end of Q2 FY2026, versus $2.2B at December 31, 2025, while current liabilities rose 0.7% year over year to $5.9B. The reported current ratio of 2.02 indicates adequate near-term asset coverage, but lower cash and higher short-term obligations warrant monitoring.
Source: 10-Q Balance Sheet (XBRL)
Reported EPS of $0.55 versus the $0.54 analyst consensus — a +1.5% beat for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Income | $778M | $727M | +7.02% |
Net Income | $534M | $472M | +13.14% |
EPS (Basic) | $0.64 | $0.55 | +16.36% |
EPS (Diluted) | $0.64 | $0.55 | +16.36% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $25.83B | $25.38B | +1.78% |
Current Assets | $11.88B | $11.67B | +1.81% |
Total Liabilities | $14.78B | $14.83B | -0.36% |
Current Liabilities | $5.89B | $5.84B | +0.74% |
Stockholders' Equity | $11.01B | $10.51B | +4.81% |
Cash & Equivalents | $2.05B | — | — |
Long-Term Debt | $7.07B | $7.16B | -1.28% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $1.1B | $1.27B | -13.83% |
Investing Cash FlowYTD | $-626M | $-1.04B | +39.81% |
Financing Cash FlowYTD | $-619M | $-811M | +23.67% |
Share BuybacksYTD | $308M | $507M | -39.25% |
D&A | $296M | $284M | +4.23% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
ROE | 4.9% | — | — |
ROA | 2.1% | — | — |
Current Ratio | $2.018 | — | — |
Debt to Equity | $1.342 | — | — |
Expected release date, analyst estimates & what to watch
Halliburton delivered a strong Q1 2026 with net income surging 126% YoY to $461M and EPS doubling to $0.55, though operating cash flow declined 27.6% to $273M.
Halliburton's FY2025 10-K reveals a significant earnings decline, with net income falling 48.7% to $1.28B and operating income dropping 40.9% to $2.26B, reflecting a challenging oilfield services environment, though the company maintained solid cash generation and a healthy balance sheet.
Other companies in Oil & Gas Equipment & Services
Halliburton generated $5.7B of revenue, up 4% year over year, and $534M of net income, up 13.1%. Drilling and Evaluation revenue rose 7%, but Middle East/Asia revenue declined 11% amid conflict-related operational disruptions. Source: 10-Q Item 2 MD&A, pp.17, 21-22; 10-Q Income Statement (XBRL).
Total revenue increased $204M to $5.7B, a 4% year-over-year increase. Latin America revenue increased 15% to $1.1B and Europe/Africa/CIS increased 24% to $1.0B, while Middle East/Asia fell 11% to $1.3B. Source: 10-Q Item 2 MD&A, p.21.
Operating income rose 7% to $778M, but the result included a $95M pre-tax credit in impairments and other credits. The credit primarily reflected gains on equity investments and a government refund recovery, partly offset by a loss on the sale of part of the chemical business. Source: 10-Q Item 2 MD&A, pp.21-22.
Halliburton ended Q2 FY2026 with $2.0B of cash, a 2.02 current ratio, and $3.5B of available revolving-credit capacity. Long-term debt was $7.1B, while first-half operating cash flow was $1.1B, down 13.8% year over year. Source: 10-Q Item 2 MD&A, p.18; 10-Q Balance Sheet and Cash Flow Statement (XBRL).
Management said it is contesting an IRS proposed adjustment related to the 2016 Baker Hughes termination fee. If the IRS position ultimately prevails through appeals and litigation, Halliburton estimates potential cash taxes of about $640M plus interest, though no additional payment is currently required. Source: 10-Q Item 2 MD&A, p.23.