Halliburton Q3 2026: Middle East lifts results past estimates, 2027 margin target impresses
As seen on the 24/7 Wall St. homepage on October 20, 2026.
Middle East work in Saudi Arabia and Kuwait carried the quarter, offsetting softer U.S. land pressure pumping and beating on both lines. CEO Jeff Miller guided early 2027 to mid-single digit revenue growth and roughly 15% operating margins, about 200 basis points better, assuming no North America fracking recovery at all.
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Halliburton posted adjusted earnings of $0.60 per share in Q3 2026, missing nothing and topping EPS consensus for a fourth consecutive quarter on revenue of $5.70 billion.
Middle East revenue rose 8% sequentially to $1.40 billion on stronger activity in Saudi Arabia and Kuwait, more than offsetting a 5% sequential drop in North America tied to weaker U.S. land pressure pumping. International work is increasingly where Halliburton's growth is being generated.
Adjusted operating income climbed to $731 million from $683 million in Q2, while GAAP earnings of $0.50 per share reflected $107 million in severance charges from a global headcount rationalization. The company is absorbing that cost now to run leaner going forward.
CEO Jeff Miller guided 2027 for mid-single digit revenue growth and operating margins of approximately 15%, about 200 basis points above current levels, assuming no recovery whatsoever in North America hydraulic fracturing. Any North America rebound is upside to that base case.
Miller characterized the current environment as one of the largest energy disruptions in history, arguing that restoring production, rebuilding inventories, and strengthening energy security will drive multi-year demand growth for oilfield services. The company repurchased approximately $250 million of common stock during the quarter, returning capital even while absorbing restructuring costs.
Mentioned: HAL