Halliburton adjusted profit rises to $0.60 a share as North America revenue slides

Halliburton Company reported third-quarter 2026 net income attributable to the company of $417 million, or $0.50 per diluted share, on revenue of $5.7 billion, and put adjusted net income at $501 million, or $0.60 a share. Revenue was flat against the second quarter, while the adjusted operating margin narrowed to 12.8% from 13.4% a year earlier.

North America slips as the Middle East and Latin America grow

Completion and Production revenue fell $113 million, or 4% sequentially, to $3.1 billion. Halliburton attributed the decline primarily to lower stimulation activity in the Western Hemisphere, partly offset by increased activity across multiple product lines in the Middle East. Drilling and Evaluation moved the other way: revenue rose $102 million, or 4% sequentially, to $2.6 billion, and segment operating income rose $53 million, or 16%.

The regional split explains the mix. North America revenue was $2.2 billion, down 5% sequentially, as pressure pumping in U.S. land slowed. International revenue was $3.5 billion, up 3% sequentially, with Middle East/Asia at $1.4 billion, up 8% on higher activity in Saudi Arabia and Kuwait. Latin America revenue was $1.1 billion, flat sequentially, and Europe/Africa revenue was $1.0 billion, also flat.

A smaller charge leaves the adjusted margin thinner

Operating income was $624 million, a 10.9% margin, against $778 million in the second quarter, which included a $95 million pre-tax credit. Adjusted operating income, which excludes impairments and other charges, was $731 million and the adjusted operating margin 12.8%, down from 13.4% a year earlier and up from 12.0% sequentially. Adjusted EBITDA rose to $1.0 billion from $948 million in the second quarter.

The quarter carried a $107 million pre-tax charge, including $107 million of severance costs tied to a global headcount reduction and $25 million of inventory costs and write-downs, partly offset by a $36 million gain on the sale of part of an equity investment. A year earlier the charge was $392 million, and the tax line included a $125 million valuation allowance against U.S. foreign tax credits, which is why reported net income rose to $417 million and diluted earnings to $0.50 a share from $0.02.

A 2027 outlook that assumes no fracking recovery

Miller said the quarter's revenue beat internal expectations: "Our revenue exceeded our expectations, and we took important steps towards improving our margins". He also described the backdrop as "another three months into one of the largest energy disruptions in history", and said repair work should support services demand: "I expect the work to restore production, rebuild inventories and strengthen energy security will drive multi-year demand growth for oilfield services".

For 2027, the early outlook is for "mid-single digit revenue growth and operating margins of about 15%, an approximately 200 basis point improvement". Miller added that the plan "assumes a flat North America market and does not require any recovery in North America hydraulic fracturing". For the first nine months of 2026, Halliburton reported an adjusted operating margin of 12.4%. The release gives no fourth-quarter revenue or margin guidance and no 2027 capital spending number.

Cash flow, buybacks and the gaps in the filing

Cash from operations was $368 million and free cash flow $156 million. Halliburton repurchased about $250 million of common stock and paid dividends of $0.17 a share.

The release does not break out pricing, contract terms or backlog, and it lists the $42 million spent on the SAP S4 migration without further detail. Halliburton scheduled its results call for 8:00 a.m. CT on October 20; the filing contains no transcript, so management's question-and-answer commentary is not reflected here.