Helmerich & Payne to Post Q1 Earnings: Here's What to Expect

Helmerich & Payne, Inc. HP is set to release fiscal first-quarter 2026 earnings after the closing bell on Feb. 4. The Zacks Consensus Estimate for earnings is pegged at 12 cents per share on revenues of $986.41 million.

Let us delve into the factors that might have influenced HP’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.

Highlights of HP’s Q4 Earnings & Surprise History

In the last reported quarter, the Tulsa, OK-based oil and gas drilling company reported adjusted net loss of 1 cent per share, in contrast to the Zacks Consensus Estimate of adjusted net income of 26 cents. This was attributed to weakness in the company's International Solutions segment, coupled with the effect of one-time non-recurring charges amounting to $56 million. Operating revenues of $1 billion surpassed the Zacks Consensus Estimate of $976 million, with sales from Drilling Services exceeding the consensus by 3.2%.

HP’s earnings missed the Zacks Consensus Estimate in two of the four quarters and beat the same in the remaining two, delivering an average negative surprise of 46.97%.

This is depicted in the graph below: 

Helmerich & Payne, Inc. Price and EPS Surprise

Helmerich & Payne, Inc. price-eps-surprise | Helmerich & Payne, Inc. Quote

Trend in Estimate Revision for HP Stock

The Zacks Consensus Estimate for fiscal first-quarter 2026 earnings has seen no upward or downward revisions over the past seven days. The estimated figure indicates an 83.1% year-over-year decrease. However, the Zacks Consensus Estimate for revenues indicates an increase of 45.64% from the year-ago period.

Factors to Consider Ahead of HP’s Q1 Release

Helmerich & Payne generates revenues primarily by providing contract drilling services for oil and gas exploration and production companies. It earns money through long-term drilling contracts, performance-based fees and the deployment of its advanced drilling rigs and related technologies.

HP's revenues are likely to have improved positively in the quarter to be reported. The Zacks Consensus Estimate for fiscal first-quarter revenues is up from the year-ago quarter’s $677 million. Based on our model estimates, revenues from the International Solutions, Offshore Solutions and Other segments are expected to increase year over year by 390.4%, 441.7% and 190.3%, respectively, in the current quarter compared with the year-ago period.

HP is expected to have seen continued growth this quarter, fueled by its expanded market share in the Permian, strong demand from new E&P customers, superior revenue visibility through term and performance-based contracts, and ongoing innovation in advanced drilling automation and technology adoption.

On a bearish note, the increase in HP's costs is likely to have negatively impacted its bottom line. The company's total expenses are expected to reach $933.6 million in the fiscal first quarter, a 59.2% increase from the year-ago level. Notably, drilling services and other operating expenses are projected to rise from $412.1 million to $665.2 million. Similarly, depreciation and amortization costs are expected to increase from $99.1 million to $171.1 million. Selling, general and administrative expenses are also expected to grow from $63.1 million to $66.8 million over the same period.

What Does Our Model Say About HP?

Our proven model predicts an earnings beat for Helmerich & Payne this season. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

HP has an Earnings ESP of +22.11% and a Zacks Rank #2.

Other Stocks With the Favorable Combination

Here are some other firms from the energy space that you may want to consider, as these, too, have the right combination of elements to post an earnings beat this reporting cycle.

BP plc BP is scheduled to release earnings on Feb. 10. The firm has an Earnings ESP of +2.47% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

BP is a global integrated energy company engaged in the exploration, production, refining and distribution of oil and natural gas, as well as renewable energy solutions. Its earnings missed the Zacks Consensus Estimate in two of the trailing four quarters and beat the same in the remaining two, delivering an average surprise of 5.91%.

Antero Resources Corporation AR has an Earnings ESP of +7.04% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb. 11.

Antero Resources is an independent exploration and production company focused on the development of natural gas, NGLs and oil resources primarily in the Appalachian Basin. AR’s earnings missed the Zacks Consensus Estimate in three of the trailing four quarters and beat the same in the remaining one, delivering an average surprise of 3.72%.

Energy Transfer (ET) has an Earnings ESP of +1.97% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb. 17. The company’s earnings missed the Zacks Consensus Estimate in two of the trailing four quarters and beat the same in the remaining two, delivering an average negative surprise of 6.38%.

Energy Transfer is a leading U.S. energy company that owns and operates one of the largest networks of pipelines and energy infrastructure. It transports and stores natural gas, crude oil, natural gas liquids and refined products across key production and consumption regions.

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

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