HAL · Q2 2026 Earnings

Bullish

Halliburton

Reported July 21, 2026

30-second summary

Halliburton printed $5.71B revenue (+3.7% YoY, +5.8% QoQ) and $0.55 non-GAAP EPS, with operating margin at 13.6% (adjusted 12.0%) and free cash flow of $668M — a materially cleaner quarter than the setup implied. C&P delivered +6.2% sequential revenue growth with operating margin rebuilding to ~14.8%, and Middle East/Asia stopped compounding lower (-1.5% QoQ, -10.7% YoY). Management's forward language escalated from "early innings of a recovery" (Q1) to explicit confidence in "revenue growth and margin expansion" alongside "demand growth in every region we serve" — the tone shift is now backed by an in-print result rather than just prospective guides.

Headline numbers

EPS

Q2 FY2026

$0.55

+1.9% vs est.

Revenue

Q2 FY2026

$5.71B

+3.7% YoY

+3.9% vs est.

Free cash flow

Q2 FY2026

$0.67B

Operating margin

Q2 FY2026

13.6%

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
Revenue	$5.71B	$5.51B	+3.7%	$5.40B	+5.8%
EPS	$0.55	$0.55	+0.0%	$0.55	+0.0%
Operating margin	13.6%	13.2%	+40bps	12.6%	+100bps
Free cash flow	$0.67B	$0.58B	+14.8%	$0.12B	+443.1%

Guidance

No quantitative guidance provided in either prior or current quarter; comparison limited to qualitative tone shifts.

Segment KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Completion and Production	$3.202B	$3.171B	+1.0%
Drilling and Evaluation	$2.512B	$2.339B	+7.4%
Completion and Production Operating Income	$474 million	—	—
Drilling and Evaluation Operating Income	$338 million	—	—

Other KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
North America	$2.276B	$2.259B	+0.8%
Latin America	$1.123B	$0.977B	+14.9%
Europe/Africa/CIS	$1.017B	$0.82B	+24.0%
Middle East/Asia	$1.298B	$1.454B	-10.7%
Adjusted Operating Margin	12.0%	13.2%	—
Share Repurchases	$200 million	$250 million	—
Dividend Per Share	$0.17	—	—

Management tone

Q1 FY2026 "early innings of a recovery" → Q2 FY2026 "revenue growth and margin expansion" and "encouraged by the recovery we saw this quarter."

The North America recovery framing has hardened from prospective to confirmed. Last quarter Miller called NA "early innings of a recovery." This quarter NA delivered +6.6% QoQ revenue growth, and Miller's verbatim framing shifted to "encouraged by the recovery we saw this quarter and I expect incremental improvements through the year." The tonal arc is now complete on this axis: recovery is measurable, not just prospective. The remaining question is durability, not existence.

International commentary has moved from defensive framing to proactive pipeline language. In Q1 FY2026 the international ex-Middle East narrative was "outpacing disruptions" — a defensive posture against the Middle East drag. This quarter Miller's framing is "excited about Halliburton's contract awards and pipeline of future opportunities," and the disclosed Aramco, TotalEnergies, and Basra awards give the language substance. The Europe/Africa/CIS +24% YoY print validates the tonal shift with data.

Middle East framing has quietly de-escalated. The Q2 press release attributes Middle East/Asia weakness to "the ongoing geopolitical conflict in the Middle East" but pairs it with offsetting growth in Saudi Arabia, UAE, and Asia, and does not escalate the concern. The sequential improvement (-1.5% QoQ) suggests the drag is plateauing rather than compounding.

Capital returns conviction is being signaled through action. Q2 buybacks stepped up to ~$200M from $100M in Q1 while the dividend held at $0.17. The doubling QoQ is the cleanest read on management's confidence in the print.

Answers to last quarter's watch list

C&P Q2 FY2026 execution — Revenue landed at $3.202B, +6.2% QoQ, with operating income $474M (~14.8% margin, up ~20bps QoQ from ~14.6%). Strong sequential revenue rebuild; margin flow-through more modest. Status: Resolved positively on revenue; margin flow-through worth monitoring

Middle East/Asia trajectory — Middle East/Asia revenue fell only -1.5% QoQ (vs. -10.7% YoY), and EPS held flat QoQ at $0.55. The drag stopped compounding sequentially. Status: Resolved positively

Buyback step-up — Q2 FY2026 buybacks came in at ~$200M vs. Q1 FY2026's $100M, doubling QoQ. Strongest single signal of management confidence in the print. Status: Resolved positively

YPF Argentina ramp evidence — Latin America grew +14.9% YoY and +3.0% QoQ, with stimulation strength cited in Argentina and Mexico. The press release does not break out Zeus/Argentina-specific revenue contribution; on a QoQ basis LATAM growth is modest, so the anticipated Zeus acceleration is not clearly visible in the top line. Status: Continue monitoring

D&E Q2 FY2026 landing point — D&E delivered +5.3% QoQ revenue ($2.512B) with operating income of $338M (~13.5% margin, down ~120bps QoQ). Management attributed the margin decrease to seasonal roll-off of software sales while revenue was carried by drilling-related services and wireline in NA, EAF, and Asia. Status: Resolved positively on revenue

Venezuela conversion — The press release does not disclose a concrete Venezuela contract, scope, or timing announcement. Status: Continue monitoring

Effective tax rate sustainability — The GAAP-vs-non-GAAP delta this quarter IS disclosed: a $95M pre-tax credit ($73M net of tax) driven by a $54M gain on ownership-interest changes in an equity investment, a $10M remeasurement gain, and $48M of other credits (primarily a government refund recovery), partly offset by a $17M loss on the chemical business sale. The Q1 print also included a $32M valuation allowance release tax benefit that was disclosed. The underlying effective tax rate trajectory ex-discretes remains worth watching. Status: Continue monitoring

What to watch into next quarter

C&P margin flow-through — revenue rebuilt strongly in Q2 but margin expansion was modest (~20bps QoQ). Watch whether Q3 shows accelerating margin flow-through as the recovery matures.

Middle East/Asia YoY trajectory — the -10.7% YoY / -1.5% QoQ print says the drag has stopped worsening. Q3 needs YoY compression narrowing to confirm the region has bottomed; a re-widening would reopen the international bear case.

Buyback cadence in Q3 FY2026 — the $100M → $200M step-up is the cleanest confidence signal. Watch whether Q3 holds at $200M+ or steps back down.

Europe/Africa/CIS sustainability — +24% YoY / +18.5% QoQ is a very large sequential move. Watch whether Q3 holds double-digit YoY growth or whether the Q2 print reflects lumpy project timing (Norway, Namibia, Angola) that reverses.

Venezuela contract conversion — without a Q3 FY2026 announcement of operator/scope/timing, the credibility of the multi-quarter build-up starts eroding.

North America durability — +6.6% QoQ is the first meaningful positive NA sequential print of the recovery cycle. Watch whether Q3 holds or extends the pace.

Aramco award execution ramp — the disclosed ~285-well onshore turnkey program and unconventional gas award are large. Watch Middle East/Asia sequential trajectory in Q3-Q4 for the first evidence of revenue contribution.

Sources

Halliburton Q2 FY2026 press release, SEC EDGAR — https://www.sec.gov/Archives/edgar/data/45012/000004501226000057/livemastererdocument.htm
Halliburton Q1 FY2026 press release and earnings call (Tapebrief prior brief) for prior qualitative statements

Get the next brief, free.

We publish analyst-grade earnings briefs the same day or morning after every call — headline numbers, segment KPIs, Q&A highlights, and tone analysis. Free during beta.

This is not investment advice.