01—Abstract
Summary
Summary of the 10-Q filed April 24, 2026. Cited figures are marked; the original filing is the authoritative source.
Halliburton Company's Form 10-Q for the first quarter ended March 31, 2026 shows total revenue of $5.4 billiona, roughly flat versus $5.4 billion in the first quarter of 2025.
Operating income rose to $679 millionb from $431 million, though the prior-year period included $356 million of impairments and other charges, and net income attributable to the company was $461 million, or $0.55 per diluted share, versus $204 million, or $0.24 per share, a year earlier. Completion and Production revenue fell 3% to $3.0 billion and segment operating income fell 17% to $439 million, while Drilling and Evaluation revenue rose 4% to $2.4 billion with flat operating income of $351 million. The company cited the Middle East geopolitical conflict as reducing diluted net income per share by $0.02 to $0.03.
Cash flow from operations was $273 millionc, down from $377 million, with working capital having a negative $252 million impact. Cash and equivalents ended the quarter at $2.0 billion, versus $2.2 billion at year-end 2025. The company repurchased $100 million of stock and paid $142 million in dividends, and it expects 2026 capital expenditures of about $1.1 billion and shareholder returns in line with its framework of returning at least 50% of annual free cash flow.
A key ongoing item is the IRS dispute over the classification of a $3.5 billiond 2016 termination fee paid to Baker Hughes. The company states that if the IRS position prevails through appeals and litigation, cash taxes of approximately $640 million (plus interest for prior years) could be due, but it says no payment is currently required and it does not expect this to materially impair its ability to meet expected cash uses or shareholder returns.
02—Key points
Key Highlights
- Total revenue of $5.4 billion, essentially flat versus $5.4 billion in Q1 2025; North America revenue down 4% while Latin America rose 22%.
- Operating income of $679 million versus $431 million, with the prior-year quarter including $356 million of impairments and other charges; no such charges were recorded in Q1 2026.
- Net income attributable to the company of $461 million, or $0.55 per diluted share, compared with $204 million, or $0.24 per share, in Q1 2025.
- Completion and Production operating income declined 17% to $439 million, while Drilling and Evaluation operating income was flat at $351 million.
- Operating cash flow of $273 million, down from $377 million, and cash and equivalents of $2.0 billion at March 31, 2026, versus $2.2 billion at December 31, 2025.
- Capital expenditures are expected to be about $1.1 billion for 2026; the company repurchased $100 million of shares and paid $142 million in dividends in the quarter.
- Potential IRS adjustment on the 2016 Baker Hughes termination fee could mean approximately $640 million in cash taxes plus interest if the IRS prevails; the company says no payment is currently required.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 24, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $5.40B$5.42B | −0.3% |
| Operating Expenses | $4.72B$4.99B | −5.3% |
| Operating Income | $679.00M$431.00M | +57.5% |
| Net Income | $464.00M$203.00M | +128.6% |
| EPS (Basic) | $0.55$0.24 | +129.2% |
| EPS (Diluted) | $0.55$0.24 | +129.2% |
| Shares Outstanding (Basic) | 837.00M866.00M | −3.3% |
| Shares Outstanding (Diluted) | 839.00M866.00M | −3.1% |
05—Questions
Frequently Asked Questions
How did Halliburton perform in the first quarter of 2026?
Revenue was $5.4 billion, roughly flat year over year. Operating income increased to $679 million from $431 million, though the prior-year quarter carried $356 million of impairments and other charges. Diluted net income per share was $0.55 versus $0.24.
What drove the difference between the two segments?
Completion and Production revenue fell 3% to $3.0 billion on lower North American stimulation activity and weaker Middle East completion tool and pressure pumping sales, with operating income down 17% to $439 million. Drilling and Evaluation revenue rose 4% to $2.4 billion on higher Latin American project management and drilling-related services, with operating income flat at $351 million.
What is the status of the IRS dispute mentioned in the filing?
The IRS proposed reclassifying about 95% of the $3.5 billion 2016 termination fee paid to Baker Hughes from an ordinary deduction to a capital loss. The company strongly disagrees, is contesting it through IRS appeals, and says resolution will take substantial time. If the IRS prevails through litigation, cash taxes could be approximately $640 million plus interest, but no payment is currently required.
How is Halliburton returning cash to shareholders and what are its 2026 spending plans?
In the quarter, the company paid $142 million in dividends at $0.17 per share and repurchased $100 million of stock, with about $1.9 billion remaining under its authorization. It expects 2026 capital expenditures of about $1.1 billion and shareholder returns in line with a framework of returning at least 50% of annual free cash flow.
What is the Middle East conflict's effect on results?
The filing states that the ongoing geopolitical conflict reduced diluted net income per share by $0.02 to $0.03 across both segments in the first quarter. The company reports work cancellations, force-majeure declarations, and reduced offshore activity in the region, though most operations remain active.
06—Continue