01—Abstract
Summary
Summary of the 10-Q filed October 23, 2026. Cited figures are marked; the original filing is the authoritative source.
Halliburton Company (HAL) reported third-quarter 2026 total revenue of $5.7 billiona, up 2% from $5.6 billion in the third quarter of 2025, with operating income of $624 million versus $356 million a year earlier.
Operating income included a $107 millionb pre-tax charge for impairments and other charges, primarily severance costs, compared with $392 million of such charges in the prior-year quarter. Net income attributable to the company was $417 million, or $0.50 per diluted share, compared with $18 million, or $0.02 per share, in the third quarter of 2025. For the nine months, revenue was $16.8 billion, up 2%, and net income attributable to the company was $1.41 billion, or $1.69 per share.
By segment, Completion and Production revenue fell 4% to $3.1 billionc in the quarter on lower stimulation activity in North America and lower completion tool sales in Middle East/Asia, while Drilling and Evaluation revenue rose 10% to $2.6 billion on stronger drilling services in North America and Europe and higher activity in Latin America. Management describes results as reflecting continued recovery from Middle East geopolitical disruptions, with ongoing inflationary cost pressures. Cash and equivalents were $1.8 billion at September 30, 2026, and the company repurchased 7.3 million shares for $252 million in the quarter.
Management expects 2026 capital expenditures of about $1.1 billiond and states that it expects shareholder returns to be in line with its framework of returning at least 50% of annual free cash flow. The filing also discloses a pending IRS Notice of Proposed Adjustment covering the 2016 U.S. tax return, which relates to a $3.5 billion termination fee paid to Baker Hughes in 2016.
The IRS proposal could result in cash taxes of approximately $640 million plus interest if the IRS position prevails, which the company says it plans to contest vigorously. The company also states that its debt-related credit default swaps matured in the third quarter, leaving no outstanding notional amount compared with $592 million at year-end 2025.
02—Key points
Key Highlights
- Third-quarter 2026 revenue of $5.7 billion, up 2% from $5.6 billion in the third quarter of 2025.
- Operating income rose to $624 million from $356 million, with impairments and other charges falling to $107 million from $392 million.
- Net income attributable to the company was $417 million, or $0.50 per diluted share, versus $18 million, or $0.02 per share, a year earlier.
- Drilling and Evaluation revenue increased 10% to $2.6 billion, while Completion and Production revenue decreased 4% to $3.1 billion.
- Cash and equivalents totaled $1.8 billion at September 30, 2026, with $3.5 billion of available committed bank credit under the revolving credit facility.
- The company repurchased 7.3 million shares for $252 million in the quarter and expects 2026 capital expenditures of about $1.1 billion.
- An IRS proposed adjustment on the 2016 U.S. tax return could result in cash taxes of approximately $640 million plus interest, which the company plans to contest.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 23, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $5.70B$5.60B | +1.8% |
| Operating Expenses | $5.08B$5.24B | −3.1% |
| Operating Income | $624.00M$356.00M | +75.3% |
| Net Income | $419.00M$20.00M | +1995.0% |
| EPS (Basic) | $0.50$0.02 | +2400.0% |
| EPS (Diluted) | $0.50$0.02 | +2400.0% |
| Shares Outstanding (Basic) | 831.00M849.00M | −2.1% |
| Shares Outstanding (Diluted) | 832.00M850.00M | −2.1% |
05—Questions
Frequently Asked Questions
How did Halliburton perform in the third quarter of 2026 compared with the same quarter last year?
Total revenue was $5.7 billion, up from $5.6 billion, and operating income was $624 million, up from $356 million. Net income attributable to the company was $417 million, or $0.50 per diluted share, compared with $18 million, or $0.02 per share, in the third quarter of 2025.
What drove the change in segment results?
Drilling and Evaluation revenue rose 10% to $2.6 billion, driven by higher activity in Latin America and improved drilling-related services in North America and Europe. Completion and Production revenue fell 4% to $3.1 billion, mainly due to decreased stimulation activity in North America and lower completion tool sales in Middle East/Asia.
How strong is the company's liquidity position?
As of September 30, 2026, the company had $1.8 billion of cash and equivalents and $3.5 billion of available committed bank credit under its revolving credit facility, which expires August 16, 2030. The filing notes no financial covenants or material adverse change provisions in its bank agreements, and about $90 million of debt matures in February 2027.
What is the status of the IRS dispute mentioned in the filing?
The IRS issued a Notice of Proposed Adjustment in 2023 that would reclassify about 95% of a $3.5 billion termination fee paid to Baker Hughes in 2016 from an ordinary deduction to a capital loss. The company is contesting the adjustment through the IRS administrative appeals process, and if the IRS position prevails, cash taxes could be approximately $640 million plus interest. The company states that no payment is currently required.
What are the company's capital return and spending plans?
The company expects 2026 capital expenditures of about $1.1 billion. Its quarterly dividend is $0.17 per share, or approximately $141 million. It repurchased 7.3 million shares for $252 million in the third quarter and had about $1.5 billion remaining under its repurchase authorization, and it expects shareholder returns to be in line with its framework of returning at least 50% of annual free cash flow.
06—Continue