Halliburton (HAL) Up 0.6% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Halliburton (HAL). Shares have added about 0.6% 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 Beats on Q3 Earnings, Trims 2026 Capex Plan

Halliburton reported third-quarter 2025 adjusted net income per share of 58 cents, beating the Zacks Consensus Estimate of 50 cents. The outperformance primarily reflects successful cost reduction initiatives.

However, the bottom line fell from the year-ago adjusted profit of 73 cents due to softer activity in the North American region.

Revenues of $5.6 billion declined 1.7% year over year but beat the Zacks Consensus Estimate by 4%.

Inside Halliburton’s Regions & Segments

North American revenues edged down 0.9% year over year to $2.4 billion but beat our projection by more than $246 million. Revenues from Halliburton’s international operations decreased 2.3% from the year-ago period to $3.2 billion and fell short of our estimate of $3.3 billion.

The Completion and Production segment earned $514 million in operating income, lower than last year’s $669 million but topped our estimate of $449.5 million. The year-over-year decline was due to weaker completion tool demand overseas, reduced well intervention work in the Middle East and Asia, and lower cementing activity in North America. Additionally, fewer active rigs in Saudi Arabia weighed on operating income. However, stronger completion tool sales and higher artificial lift activity in North America, along with improved cementing work in Africa and Latin America, helped the segment beat our estimate.

The Drilling and Evaluation unit's profit fell to $348 million in the third quarter of 2025 from $406 million in the same period in 2024, though the figure outperformed our estimate of $339 million. The downtick was caused by reduced activity across several service lines in the Middle East and lower fluid services in North America and Europe/Africa. This was partly offset by stronger project management and wireline activity in Latin America, higher drilling demand in North America and Europe/Africa, and better software sales in Europe/Africa.

Balance Sheet

Halliburton reported third-quarter capital expenditure of $261 million, well below our projection of $323.8 million. As of Sept. 30, 2025, the company had approximately $2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 41.1. HAL bought back $250 million worth of its stock during the July-September period. The company generated $488 million of cash flow from operations in the third quarter, leading to a free cash flow of $276 million.

Management Remarks & Outlook

During the recently reported quarter, Halliburton implemented measures expected to generate about $100 million in quarterly savings, lowered its 2026 capital budget by around 30% to $1 billion and idled underperforming equipment. Management noted that international operations continue to perform strongly, with Halliburton’s value proposition resonating with customers and driving both onshore and offshore growth. In North America, the company is focusing on maximizing value through disciplined returns, advanced technologies and partnerships with top operators. Halliburton remains committed to returning cash to shareholders, maintaining strict cost and capital discipline, and investing in technologies aimed at sustaining long-term growth.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates revision.

The consensus estimate has shifted 16.71% due to these changes.

VGM Scores

Currently, Halliburton has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock has a grade of A on the value side, putting it in the top 20% for value investors.

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

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Halliburton has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Halliburton is part of the Zacks Oil and Gas - Field Services industry. Over the past month, Liberty Oilfield Services (LBRT), a stock from the same industry, has gained 11%. The company reported its results for the quarter ended September 2025 more than a month ago.

Liberty Oilfield Services reported revenues of $947.4 million in the last reported quarter, representing a year-over-year change of -16.8%. EPS of -$0.06 for the same period compares with $0.45 a year ago.

Liberty Oilfield Services is expected to post a loss of $0.21 per share for the current quarter, representing a year-over-year change of -310%. Over the last 30 days, the Zacks Consensus Estimate has changed -21.2%.

Liberty Oilfield Services has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

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

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