Halliburton Q3 EPS $0.60 Beats Estimates as Drilling Lifts Revenue

Halliburton beat Wall Street expectations for the third quarter on Tuesday, Oct. 20, 2026, as strong drilling work in the Middle East and Latin America offset softer fracking activity in North America.

The oilfield services company reported adjusted earnings of $0.60 per share, ahead of the Zacks consensus estimate of $0.58 and up from $0.58 a year ago. Revenue reached $5.7 billion, or $5.703 billion in full, up 1.8 percent from $5.6 billion a year earlier and about 2 percent above consensus.

Net income was $417 million, or $0.50 per diluted share. Adjusted net income was $501 million. Adjusted EBITDA was $1.0 billion, up from $948 million in the second quarter.

Drilling carries the quarter

Drilling and Evaluation was the stronger division. Revenue rose 10 percent to $2.6 billion, and operating income rose 12.4 percent to $391 million. Halliburton credited activity in the Middle East and Latin America for the gain.

Completion and Production moved the other way. Revenue fell 4.2 percent to $3.1 billion, and operating income fell 11.1 percent to $457 million. Weaker stimulation activity in the Western Hemisphere weighed on results, partly offset by work in the Middle East.

The split tells the wider story of the quarter. International revenue was $3.5 billion, up 3 percent from the second quarter. North America revenue was $2.2 billion, down 5 percent from the second quarter. Growth came from outside the United States, while the home market stayed soft.

Cash flow from operations was $368 million, and free cash flow was $156 million. The company bought back about $250 million of its own shares during the quarter.

Chief executive Jeff Miller said he was pleased with the results and that revenue beat expectations. He said work to restore production, rebuild inventories and strengthen energy security after one of the largest energy disruptions in history should drive multi-year demand for oilfield services.

Why it matters

Halliburton is one of the largest providers of drilling, completion and production services to oil and gas producers. When its international business grows while North America slips, it signals where producers are spending money and where they are holding back.

Market reporting on Tuesday put crude near $110 earlier in the day. High oil prices support drilling demand because producers earn more from each barrel and can justify new wells and maintenance work. That backdrop helps explain why international projects kept moving even as North American fracking stayed weak.

What happens next

Halliburton gave a clear outlook for 2027. The company expects mid-single-digit revenue growth and operating margins near 15 percent, about 200 basis points better than current levels. That forecast assumes a flat North America market and does not require a recovery in fracking.

The message to investors is direct. Halliburton says it can grow next year on international strength alone, without help from a United States rebound. If North America does recover, the numbers could improve further. If international activity slows, the outlook will be harder to meet.