Outlook Signals Stronger Global Momentum
Halliburton's outlook improved during Q2 as management pointed to recovering North American activity alongside a robust international project pipeline. Higher stimulation activity in U.S. land drove the North American rebound, while international demand remained healthy despite continued weakness across parts of the Middle East.
The quarter was highlighted by several major contract awards. Halliburton secured multi-year integrated contracts with Aramco covering approximately 285 wells and additional unconventional gas work in Saudi Arabia. It also won integrated well construction work for TotalEnergies' GranMorgu development in Suriname and an integrated field management contract in Iraq. Together with new digital technologies and the acquisition of InformatiQ, the projects reinforce Halliburton's strategy of expanding integrated services and digital capabilities.
Segment Performance Improved
Completion & Production revenue increased 6% sequentially, while operating income rose 8%. This was driven by stronger stimulation activity in the Western Hemisphere and improved well intervention services in Asia. Lower Middle East activity and the sale of part of the chemicals business partially offset these gains.
Drilling & Evaluation revenue increased 5%, although operating income declined 4%. The fall was due to the seasonal roll-off of software sales despite stronger drilling activity across North America, Europe/Africa, and Asia. Europe/Africa was the strongest geographic region, with revenue increasing 19% sequentially.
Strong Cash Flow and Capital Returns
Halliburton generated more than $1 billion of operating cash flow and $668 million of FCF in 6M 2026, supported by improved earnings and disciplined capital spending. The company repurchased ~$200 million of shares while maintaining its dividend, reinforcing its capital return strategy. With ~$2.0 billion of cash on the balance sheet, Halliburton remains well positioned to fund technology investments, international growth, and continued shareholder returns.
Thanks for reading the HAL Take Three, designed to give you three critical takeaways from HAL’s earnings report. Soon, we will present a second update on HAL earnings highlighting its current strategy, news, and notes we extracted from our deeper dive.
