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Halliburton sees 2027 growth without a U.S. fracking rebound: what Q3 showed
Revenue reached $5.7 billion and adjusted EPS was $0.60, while international growth offset weaker North America activity and shaped a 15% margin outlook.
Halliburton reported third-quarter 2026 revenue of $5.7 billion, adjusted earnings of $0.60 per diluted share and a 12.8% adjusted operating margin. The result was less about broad strength than a geographic split: international revenue rose while North America activity weakened.
The company now expects mid-single-digit revenue growth and an operating margin of about 15% in 2027. That outlook explicitly assumes flat North America and no U.S. hydraulic-fracturing recovery, putting international contract starts and Middle East rebuilding demand at the center of the forecast.
The quarter beat expectations, but the mix mattered
Halliburton reported $5.7 billion of revenue and adjusted earnings of $0.60 per diluted share. Reuters said both were above analyst estimates. The company reported a 10.9% operating margin and a 12.8% adjusted operating margin, while net income attributable to Halliburton was $417 million.
International work offset weaker North America activity
International revenue increased 3% sequentially to $3.5 billion, while North America revenue fell 5% sequentially to $2.2 billion. Reuters measured the year-on-year split more sharply: Latin America rose 12.6% and Europe/Africa 22.7%, while North America fell 9% amid weaker U.S. pressure-pumping activity.
Drilling and Evaluation carried the segment growth
Drilling and Evaluation revenue rose 4% sequentially to $2.6 billion and operating income rose 16% to $391 million. Completion and Production revenue fell 4% to $3.1 billion, mainly because of lower stimulation activity in the Western Hemisphere, partly offset by more activity in the Middle East.
The 2027 outlook does not assume a U.S. fracking recovery
Management expects mid-single-digit revenue growth and an operating margin of about 15% in 2027, roughly 200 basis points above the early outlook baseline. The forecast assumes flat North American activity and no recovery in U.S. hydraulic fracturing, making international contract starts and Middle East rebuilding demand central to the case.
Cash flow and shareholder returns were positive but modest
Operating cash flow was $368 million and free cash flow, a company-defined non-GAAP measure, was $156 million. Halliburton repurchased about $250 million of stock and paid a dividend of $0.17 per share during the quarter. These figures are historical actions, not a prediction of future returns.
