Halliburton Company HAL is set to release second-quarter results on July 21. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a profit of 54 cents per share on revenues of $5.5 billion.
Let’s delve into the factors that might have influenced the oilfield service firm’s performance in the June quarter. But it’s worth taking a look at HAL’s previous-quarter performance first.
Highlights of Q1 Earnings & Surprise History
In the last reported quarter, this Houston, TX-based provider of technical products and services to drillers of oil and gas wells beat the consensus mark, reflecting successful cost reduction initiatives. Halliburton reported net income per share of 55 cents, outperforming the Zacks Consensus Estimate of 49 cents. Revenues of $5.4 billion beat the Zacks Consensus Estimate by 2.4%.
HAL beat the Zacks Consensus Estimate thrice in the last four quarters and matched it in the other. This is depicted in the graph below:
Halliburton Company Price, Consensus and EPS Surprise
Halliburton Company price-consensus-eps-surprise-chart | Halliburton Company Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the second-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 1.8% decline year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 0.5% decrease from the year-ago period.
Factors to Consider
North American completion activity could have supported Halliburton in the second quarter. Management had pointed out that gaps in the fracturing schedule have largely disappeared, more customers are requesting short-notice work, and premium equipment is becoming tighter. These signs suggest stronger demand for the Completion & Production segment, which provides hydraulic fracturing and related well-completion services. Consequently, the Zacks Consensus Estimate for the company’s second-quarter operating income from the segment is pegged at $479 million, up from $439 million in the first quarter of 2026.
International drilling momentum could have provided another earnings tailwind. Halliburton expects growth outside the Middle East to be led by Latin America, while offshore work in Guyana, Suriname, Brazil and Norway remains active. This is expected to have supported the Drilling & Evaluation segment, which helps customers locate reservoirs, drill wells and assess underground formations. Recent contract wins, automated drilling technology and stronger project-management work could have improved activity levels, partly offset by declining seasonal software sales.
On a bearish note, Middle East disruptions are the main risk to second-quarter earnings and could affect both major segments. Reduced offshore and land activity may have lowered demand for drilling, evaluation, completion tools and pressure-pumping services, while alternative transport routes, fuel inflation and higher material costs could squeeze profitability. Halliburton estimates a 7-9-cent-per-share quarterly impact, assuming some offshore work restarts midway through the period. A slower restart could create additional headwinds, making the timing and pace of regional recovery particularly important.
What Does Our Model Say?
The proven Zacks model does not conclusively show that Halliburton is likely to beat estimates in the second quarter of 2026. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: HAL has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 54 cents per share each.
Zacks Rank: Halliburton currently carries a Zacks Rank #2, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult this earnings season.
Stocks to Consider
While an earnings beat looks uncertain for Halliburton, here are some energy firms that you may want to consider on the basis of our model:
Liberty Energy LBRT: It has an Earnings ESP of +61.54% and a Zacks Rank #2. Liberty Energy is scheduled to release earnings on July 22.
You can see the complete list of today’s Zacks #1 Rank stocks here.
For 2026, LBRT has a projected earnings growth rate of 80%. Valued at around $4.1 billion, it has gained 116.7% in a year.
HF Sinclair DINO: It has an Earnings ESP of +11.69% and a Zacks Rank #2. HF Sinclair is scheduled to release earnings on July 28.
For 2026, HF Sinclair has a projected earnings growth rate of 103%. Valued at around $15 billion, DINO has gained 92% in a year.
Patterson-UTI Energy PTEN: It has an Earnings ESP of +12.50% and a Zacks Rank #2. Patterson-UTI Energy is scheduled to release earnings on July 29.
Patterson-UTI Energy beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other, with the average being 28%. Valued at around $3.7 billion, PTEN has gone up 63.2% in a year.
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Halliburton Company (HAL): Free Stock Analysis Report
Patterson-UTI Energy, Inc. (PTEN): Free Stock Analysis Report
Liberty Energy Inc. (LBRT): Free Stock Analysis Report
HF Sinclair Corporation (DINO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).