FY2026 EPS Estimates for Transocean Raised by Zacks Research

Key Points

• Zacks Research raised Transocean’s FY2026 EPS estimate to $0.08 from $0.06, although it remains below the broader consensus estimate of $0.17 per share.
• Transocean reported quarterly EPS of $0.03, beating estimates of $0.01, while revenue of $966 million exceeded expectations; however, revenue declined 2.2% year over year and the company remains unprofitable.
• Analyst sentiment is mixed, with the stock carrying a consensus “Hold” rating and an average price target of $6.68; shares recently opened at $5.80, while institutional investors own 67.73% of the company.

Transocean Ltd. (NYSE:RIG - Free Report) - Investment analysts at Zacks Research raised their FY2026 earnings estimates for Transocean in a research report issued to clients and investors on Wednesday, August 26th. Zacks Research analyst Team now expects that the offshore drilling services provider will earn $0.08 per share for the year, up from their prior estimate of $0.06. The consensus estimate for Transocean's current full-year earnings is $0.17 per share. Zacks Research also issued estimates for Transocean's Q4 2027 earnings at $0.06 EPS.

Other analysts have also recently issued reports about the company. Fearnley Fonds upgraded Transocean from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 7th. Barclays lowered their price objective on Transocean from $8.00 to $7.00 and set an "overweight" rating for the company in a research note on Wednesday, August 12th. Susquehanna cut their target price on Transocean from $8.00 to $7.00 and set a "positive" rating on the stock in a research note on Wednesday, July 8th. TD Cowen boosted their price target on shares of Transocean from $5.50 to $6.00 and gave the company a "hold" rating in a report on Wednesday, May 6th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Transocean in a report on Friday, July 17th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, four have given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $6.68.

Transocean Stock Performance

Shares of RIG stock opened at $5.80 on Monday. The company has a quick ratio of 1.27, a current ratio of 1.59 and a debt-to-equity ratio of 0.56. The business has a 50 day moving average of $5.35 and a two-hundred day moving average of $6.00. Transocean has a 52 week low of $2.93 and a 52 week high of $7.66. The company has a market cap of $6.48 billion, a P/E ratio of -3.09, a PEG ratio of 4.54 and a beta of 1.32.

Transocean (NYSE:RIG - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The offshore drilling services provider reported $0.03 earnings per share for the quarter, beating analysts' consensus estimates of $0.01 by $0.02. The business had revenue of $966.00 million during the quarter, compared to the consensus estimate of $956.64 million. Transocean had a negative net margin of 40.24% and a positive return on equity of 2.60%. The company's revenue for the quarter was down 2.2% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($1.06) EPS.

Institutional Trading of Transocean

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Josh Arnold Investment Consultant LLC bought a new position in shares of Transocean in the second quarter valued at approximately $26,000. Elevation Point Wealth Partners LLC bought a new stake in Transocean during the third quarter worth approximately $31,000. Larson Financial Group LLC lifted its position in Transocean by 203.8% in the third quarter. Larson Financial Group LLC now owns 11,030 shares of the offshore drilling services provider's stock worth $34,000 after purchasing an additional 7,399 shares during the period. EP Wealth Advisors LLC bought a new position in Transocean during the 2nd quarter valued at $34,000. Finally, Banco BTG Pactual S.A. bought a new position in Transocean during the 3rd quarter valued at $38,000. 67.73% of the stock is currently owned by institutional investors.

Insider Activity at Transocean

In related news, Director Chad C. Deaton acquired 35,000 shares of the business's stock in a transaction that occurred on Thursday, July 2nd. The shares were acquired at an average cost of $4.95 per share, for a total transaction of $173,250.00. Following the completion of the purchase, the director directly owned 237,421 shares in the company, valued at $1,175,233.95. This trade represents a 17.29% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Company insiders own 9.70% of the company's stock.

Transocean News Summary

Here are the key news stories impacting Transocean this week:

• Positive Sentiment: Higher earnings forecasts support the outlook. Zacks Research raised its FY2027 EPS estimate to $0.24 from $0.22, increased FY2028 EPS to $0.08 from $0.06, and lifted its Q2 2027 estimate to $0.05 from $0.03. The firm also raised its Q3 2027 forecast to $0.08 from $0.07 and Q2 2028 to $0.03 from $0.02. These revisions indicate expectations for gradual earnings improvement. MarketBeat Transocean analyst estimates
• Positive Sentiment: Cash-flow and balance-sheet progress are key bullish factors. Recent analysis highlighted improving cash flow, declining debt and a strong contract backlog, which could provide better financial flexibility and support future revenue visibility. Is RIG Worth Buying as Cash Flow Improves but Leverage Stays High?
• Neutral Sentiment: The investment case remains balanced. Analysts see upside from operating improvements, but the stock’s valuation and financial risk make the reward profile less compelling than the operational progress alone might suggest. Zacks analysis of Transocean
• Negative Sentiment: Leverage and interest expense remain risks. High debt-related costs could limit the benefit of stronger cash generation and keep pressure on profitability, especially if offshore drilling conditions weaken.
• Negative Sentiment: Near-term earnings expectations slipped. Zacks cut its Q3 2026 EPS forecast to $0.02 from $0.03, partially offsetting the higher estimates for later periods.

About Transocean

Transocean Ltd. is a leading international provider of offshore contract drilling services for the oil and gas industry. The company specializes in the operation of mobile drilling units, including ultra-deepwater drillships, semisubmersible rigs and high-specification jackup rigs. Transocean's fleet is designed to meet complex drilling requirements, from ultra-deepwater well construction to shelf exploration and development projects.

The company's core services encompass the full spectrum of offshore drilling operations, including project and engineering management, marine operations, drilling supervision, and maintenance support.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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