Halliburton (HAL) Up 6% Since Last Earnings Report: Can It Continue?

It has been about a month since the last earnings report for Halliburton (HAL). Shares have added about 6% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Halliburton due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.

Halliburton Q2 Earnings & Revenues Beat Estimates, Sales Up Y/Y

Halliburton reported second-quarter 2026 adjusted net income per share of 55 cents, marginally beating the Zacks Consensus Estimate of 54 cents. The outperformance was backed by year-over-year revenue growth. However, the bottom line was flat compared with the prior-year level.

Meanwhile, the Houston, TX-based oil and gas equipment and services company’s second-quarter revenues of $5.7 billion were up 3.7% year over year and beat the Zacks Consensus Estimate of $5.5 billion. The outperformance was driven by higher revenues in both segments of the company — the Completion and Production segment and the Drilling and Evaluation segment.

Inside Halliburton’s Regions & Segments

North America revenues increased by $17 million year over year to $2.3 billion, driven by higher stimulation activity and increased well construction activity in the United States and higher fluids activity in the Gulf of America, also beating our projection by around $29 million. On the other hand, revenues from Halliburton’s international operations increased 5.7% from the year-ago period to $3.4 billion.

The Completion and Production segment earned $474 million in operating income, lower than last year’s $513 million. The figure also missed our estimate of $480 million. The underperformance of the segment was due to lower specialty chemicals activity in North America resulting from the sale of a portion of the chemical business, decreased cementing activity in Latin America and lower activity across multiple product service lines in the Middle East.

The Drilling and Evaluation unit’s profit increased to $338 million in the second quarter of 2026 from $312 million in the same period of 2025. The figure also beat our estimate of $322 million. This rise was backed by increased drilling-related services and higher wireline activity in North America and Europe/Africa and increased drilling-related services in Asia.

Q2 Balance Sheet

Halliburton reported second-quarter capital expenditure of $235 million. As of June 30, 2026, the company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization of 39%. HAL bought back $200 million worth of its stock and invested $46 million in the SAP S/4 migration during the second quarter of 2026. The company generated $824 million of cash flow from operations in the second quarter, leading to a free cash flow of $668 million.

Management Remarks & Outlook

Halliburton's management remains optimistic about the company's growth prospects, supported by its differentiated technology portfolio and strong value proposition. Management expects these strengths to drive revenue growth and margin expansion over the coming quarters. Internationally, the company is encouraged by recent contract wins and a robust pipeline of future opportunities, with demand for its services and technologies increasing across all regions. In North America, management noted a recovery during the quarter and anticipates further gradual improvement through the remainder of the year. Halliburton also reaffirmed its commitment to capital discipline and delivering strong shareholder returns, viewing these priorities as key drivers of its long-term success.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

VGM Scores

At this time, Halliburton has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock has a score of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Halliburton has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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This article originally published on Zacks Investment Research (zacks.com).

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