Halliburton Q2 Earnings Call Highlights

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Halliburton (NYSE:HAL) reported sequential revenue growth in the second quarter of 2026, with management pointing to strength in international markets, a recovering North America business and a growing pipeline of technology-driven contract awards.

Chairman, President and CEO Jeff Miller said Halliburton delivered total company revenue of $5.7 billion and adjusted operating margin of 12% in the quarter. International revenue was $3.4 billion, up 6% year over year and the company’s highest second-quarter international revenue in more than a decade, despite disruptions in the Middle East. North America revenue was $2.3 billion, flat from the year-earlier period but up sequentially.

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“Our international business delivered its highest second quarter revenue in more than a decade, despite the disruption in the Middle East,” Miller said. “Our North America business delivered sequential improvement, and my outlook for our business is positive.”

Chief Financial Officer Eric Carre said reported net income per diluted share was $0.64, while adjusted net income per diluted share was $0.55. Cash flow from operations was $824 million, free cash flow was $668 million and the company repurchased about $200 million of its common stock during the quarter.

International Markets Drive Growth Despite Middle East Disruption

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Management emphasized that international customer engagement remains high, with Miller saying he sees growing demand for Halliburton’s services and technology across regions. He said energy security and reliable, affordable energy remain central issues for producing and consuming nations, and that rebuilding inventories, expanding strategic reserves and diversifying supply could take “years, not quarters.”

Chief Operating Officer Shannon Slocum said international opportunities are “the strongest I’ve seen in many years.” He said Middle East activity is recovering from conflict-related lows, though the pace remains dependent on day-to-day events in the region. Land well construction activity was largely steady during the quarter, except for pockets of disruption in Iraq and Bahrain, while offshore activity improved through the quarter but remained below pre-conflict levels.

Slocum highlighted Iraq as a key opportunity after Halliburton announced a significant Integrated Field Management service award. He described the project as foundational and said it would put Halliburton’s digital and technology offerings to work at scale. He also cited recent wins in onshore well construction, integrated offshore projects and the resumption of unconventional fracturing operations in Jafurah as reasons for optimism in the Middle East.

Outside the Middle East, Halliburton expects international growth in the low double digits this year. Slocum pointed to production services, drilling, unconventionals and artificial lift as key growth engines. Recent developments included commissioning of a new North Sea stimulation vessel, integration of Sekal with Halliburton’s LOGIX automation platform and unconventional project wins in Algeria and Argentina.

North America Shows Sequential Improvement

In North America, second-quarter revenue rose 7% sequentially to $2.3 billion. Carre said the improvement was driven by higher stimulation and well construction activity in U.S. land and higher fluids activity in the Gulf of Mexico.

Slocum said North America activity built on first-quarter momentum, with stronger activity, modest pricing gains and further technology adoption. Drilling activity was strong, and Halliburton’s Drilling and Evaluation division grew 9% year over year in North America, he said.

In completions, Slocum said Halliburton remains focused on returns rather than market share, adding that the company’s ability to redeploy equipment to international markets creates a high bar for North America fleet reactivation. The company also deployed the latest version of ZEUS IQ during the quarter, which Slocum said expands subsurface measurements and gives customers well-by-well treatment control in simul-frac operations.

During the question-and-answer session, Miller said Halliburton is seeing “positive margin trajectory” in North America as white space fills and pricing improves. He said the company is focused on improving pricing across the fleet and may move equipment overseas when international opportunities offer better margins.

Segment Results and Regional Performance

Completion and Production revenue was $3.2 billion, up 6% sequentially, while operating income rose 8% to $474 million. Segment operating margin was 15%. Carre said the increase was primarily driven by higher stimulation activity in the Western Hemisphere and improved well intervention services in Asia, partly offset by lower North America specialty chemicals activity tied to the sale of Halliburton’s chemical business, lower cementing activity in Latin America and reduced activity across multiple product lines in the Middle East.

Drilling and Evaluation revenue was $2.5 billion, up 5% sequentially, while operating income fell 4% to $338 million. Segment operating margin was 13%. Carre attributed the revenue increase to higher drilling-related services and land activity in North America and Europe/Africa, while the operating income decline reflected the seasonal roll-off of software sales.

By region, Europe/Africa revenue increased 19% sequentially to $1 billion, supported by stronger activity in the North Sea, well construction in Namibia and Egypt, completion tool sales in the East Mediterranean and project management activity in Angola. Middle East/Asia revenue fell 2% sequentially to $1.3 billion due to lower activity in Kuwait, Iraq and Qatar related to the Middle East conflict. Latin America revenue rose 3% to $1.1 billion on higher stimulation activity in Argentina and Mexico and improved completion tool sales in Mexico.

Guidance Points to Margin Improvement

For the third quarter, Carre said Halliburton expects Completion and Production revenue to be flat to down 2% sequentially, with margins improving 125 to 175 basis points. Drilling and Evaluation revenue is expected to decline 3% to 5%, with margins improving 25 to 75 basis points.

Carre said Halliburton’s third-quarter outlook assumes Middle East activity remains steady at current levels, with no recovery to pre-conflict levels and no major additional disruption. He said the expected revenue decline in Drilling and Evaluation is tied mainly to lower drilling fluids and testing activity, while margin improvement should benefit from a more favorable mix, including higher-margin software sales. In Completion and Production, the sale of the chemical business will reduce revenue, but margins are expected to benefit from North America land fracturing, lift, Gulf of Mexico completion tool deliveries and Middle East recovery.

Halliburton expects corporate expenses of about $80 million in the third quarter, SAP S/4 migration expenses of about $45 million, net interest expense up about $5 million from the second quarter and an effective tax rate of approximately 19%. Full-year 2026 capital expenditures are expected to be about $1.1 billion.

Management Emphasizes Technology and Capital Discipline

Throughout the call, management framed Halliburton’s growth strategy around technology, automation and disciplined capital deployment. Miller said recent wins are tied to the company’s value proposition and advances such as closed-loop geosteering, LOGIX, ZEUS IQ and the Sekal acquisition.

Asked about digital and software, Miller said Halliburton’s focus includes open architecture, artificial intelligence, deep science and data management. He said automation products are contributing to contract wins and are “a differentiator.”

On shareholder returns, Carre said Halliburton has not changed its buyback philosophy and expects repurchases to pick up from earlier in the year, while continuing on a regular basis rather than making large opportunistic moves.

Miller closed the call by reiterating that Halliburton’s global outlook is strong and that the company’s technology and value proposition support future revenue growth and margin expansion.

About Halliburton (NYSE:HAL)

Halliburton is one of the world's largest providers of products and services to the energy industry, offering a broad portfolio that supports the lifecycle of oil and gas reservoirs from exploration and drilling through production and abandonment. Founded in 1919 by Erle P. Halliburton as an oil-well cementing company, the firm is headquartered in Houston, Texas and has developed into an integrated oilfield services company serving upstream operators globally.

The company's activities encompass drilling and evaluation, well construction and completion, production enhancement and well intervention.

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