Zacks Research Raises Earnings Estimates for Transocean

Key Points

• Zacks Research raised its Transocean EPS forecast for FY2026 to $0.09 from $0.08 and maintained a “Strong-Buy” rating. It also projected FY2027 EPS of $0.25, while the broader analyst consensus remains “Hold” with an average price target of $6.68.
• Transocean’s latest quarterly results exceeded expectations, with EPS of $0.03 versus the $0.01 consensus and revenue of $966 million. However, revenue declined 2.2% year over year and the company posted a negative net margin of 40.24%.
• Shares opened at $6.41, compared with a 12-month range of $3.68 to $7.66, while institutional investors own 67.73% of the stock. Analyst views remain mixed, ranging from “Strong Buy” to “Sell,” with several firms recently lowering their price targets to $7.

Transocean Ltd. (NYSE:RIG - Free Report) - Equities researchers at Zacks Research raised their FY2026 earnings per share (EPS) estimates for Transocean in a research report issued to clients and investors on Friday, October 23rd. Zacks Research analyst Team now anticipates that the offshore drilling services provider will post earnings of $0.09 per share for the year, up from their prior forecast of $0.08. Zacks Research currently has a "Strong-Buy" rating on the stock. The consensus estimate for Transocean's current full-year earnings is $0.18 per share. Zacks Research also issued estimates for Transocean's Q4 2026 earnings at $0.06 EPS, Q1 2027 earnings at $0.04 EPS, Q2 2027 earnings at $0.06 EPS, FY2027 earnings at $0.25 EPS, Q2 2028 earnings at $0.04 EPS, Q3 2028 earnings at $0.04 EPS and FY2028 earnings at $0.09 EPS.

Several other brokerages have also weighed in on RIG. Barclays cut their price objective on shares of Transocean from $8.00 to $7.00 and set an "overweight" rating on the stock in a report on Wednesday, August 12th. Weiss Ratings reissued a "sell (d-)" rating on shares of Transocean in a research report on Thursday, October 15th. Susquehanna lowered their target price on shares of Transocean from $8.00 to $7.00 and set a "positive" rating for the company in a report on Wednesday, July 8th. Finally, Fearnley Fonds raised shares of Transocean from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 7th. Two research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, four have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $6.68.

Transocean Stock Up 0.1%

RIG opened at $6.41 on Monday. Transocean has a 12 month low of $3.68 and a 12 month high of $7.66. The business has a 50-day moving average of $5.68 and a two-hundred day moving average of $5.80. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.59 and a quick ratio of 1.27. The stock has a market capitalization of $7.16 billion, a price-to-earnings ratio of -3.41, a price-to-earnings-growth ratio of 4.69 and a beta of 1.41.

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

Institutional Investors Weigh In On Transocean

Several institutional investors have recently bought and sold shares of the business. Royal Palms Capital LLC acquired a new position in shares of Transocean during the 3rd quarter valued at $141,000. Total Wealth Planning & Management Inc. purchased a new stake in Transocean during the 3rd quarter worth $467,000. Revolve Wealth Partners LLC purchased a new stake in Transocean during the 3rd quarter worth $64,000. Signaturefd LLC acquired a new stake in Transocean in the 3rd quarter valued at $208,000. Finally, Citizens Financial Group Inc. RI acquired a new stake in Transocean in the 3rd quarter valued at $81,000. 67.73% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Transocean

Here are the key news stories impacting Transocean this week:

• Positive Sentiment: Zacks Research raised several earnings estimates, including forecasts for FY2026 EPS to $0.09 from $0.08, FY2027 EPS to $0.25 from $0.24, Q4 2026 EPS to $0.06 from $0.05, and FY2028 EPS to $0.09 from $0.08. Zacks retained its “Strong-Buy” rating, reinforcing a more constructive outlook for the offshore drilling services provider. Zacks Research earnings estimate revisions
• Positive Sentiment: Zacks also lifted its Q2 2027 EPS estimate to $0.06 from $0.05 and its Q2 2028 estimate to $0.04 from $0.03. Although these revisions concern future periods, they suggest improving expectations for Transocean’s earnings trajectory. Zacks Research quarterly earnings estimates
• Positive Sentiment: Transocean has scheduled a November 26 Bermuda court hearing related to its Valaris acquisition. The announcement marks another step toward completing the transaction, which could expand the company’s offshore drilling fleet and market presence if approved. Transocean Valaris acquisition court hearing
• Neutral Sentiment: Analysts tracked by American Banking News report a consensus price target of $6.68 for RIG. The target implies only modest potential upside relative to the stock’s recent trading level, suggesting that much of the near-term optimism may already be reflected in the price. Transocean consensus price target
• Negative Sentiment: Not all revisions were favorable: Zacks lowered its Q1 2027 EPS estimate to $0.04 from $0.05. This modest reduction highlights continuing uncertainty around the timing and pace of offshore drilling earnings improvement. Zacks Research Q1 2027 estimate revision

Transocean Company Profile

Transocean Ltd. is an offshore drilling contractor that provides drilling services to international oil and gas companies. The company specializes in ultra-deepwater and harsh-environment drilling, helping customers explore for and develop offshore energy resources.

Transocean owns and operates a fleet of mobile offshore drilling units, including ultra-deepwater drillships and semisubmersible rigs. Its services generally include contract drilling, rig operations, well-construction support, and related offshore drilling management.

With roots tracing back to the 1920s, Transocean serves customers in major offshore energy regions around the world.

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