Halliburton (HAL) Financials

Halliburton’s latest results show a meaningful recovery from the weakness seen in 2025, although revenue and gross margins remain below their 2024 peak. In Q2 2026, revenue increased to $5.71 billion, up 5.8% from Q1 2026 and approximately 3.7% from the restated Q2 2025 figure. Gross profit was $804 million, producing a 14.1% gross margin compared with 14.9% a year earlier. Operating income rose to $778 million from $679 million in Q1, while net income attributable to common shareholders reached $534 million, or $0.64 per diluted share, versus $461 million and $0.55 per share in Q1.

Profitability has improved considerably from the restructuring-affected quarters of 2025. Halliburton reported restructuring charges of $356 million in Q1 2025 and $392 million in Q3 2025. The latest quarter included a negative $95 million restructuring charge, which appears to represent a benefit rather than an expense in the standardized data. Investors should therefore distinguish between underlying operating performance and the effect of these unusual restructuring entries. Even with that data caveat, Q2 2026 operating income was substantially above the $356 million reported in Q3 2025.

Cash generation also improved sequentially. Operating cash flow climbed to $824 million in Q2 2026 from $273 million in Q1, and capital expenditures were $235 million, implying approximate free cash flow of $589 million. Halliburton continued returning capital through $208 million of share repurchases and $143 million of dividends. However, operating cash flow was still below the $896 million generated in Q2 2025 and well below the unusually strong $1.17 billion recorded in Q4 2025.

The balance sheet remains stable but leveraged. Cash and equivalents increased to $2.05 billion from $2.00 billion in Q1, while total debt was approximately $7.16 billion, essentially unchanged sequentially and below the roughly $7.93 billion reported at the end of 2022. Total equity increased to $11.05 billion from $7.98 billion at the end of 2022. Halliburton’s current ratio was approximately 2.0, supported by $11.88 billion of current assets against $5.89 billion of current liabilities.

• Revenue momentum returned: Q2 2026 revenue rose to $5.71 billion, increasing both sequentially and year over year.
• Net income and EPS improved: Net income attributable to common shareholders increased to $534 million, while diluted EPS rose to $0.64 from $0.55 in Q1 2026.
• Operating profitability recovered: Operating income reached $778 million, well above the restructuring-affected results reported during much of 2025.
• Strong quarterly free cash flow: Operating cash flow of $824 million exceeded capital spending by approximately $589 million.
• Shareholder returns remain substantial: The company repurchased $208 million of stock and paid $143 million in dividends during Q2 2026.
• Long-term balance-sheet progress: Total debt declined from approximately $7.93 billion at the end of 2022 to about $7.16 billion in Q2 2026, while equity increased.
• Working-capital movements are volatile: Changes in operating assets and liabilities contributed $65 million of cash in Q2 2026, reversing the $252 million use of cash in Q1.
• Restructuring accounting complicates comparisons: Large charges in 2025 and a reported negative charge in Q2 2026 make reported operating expenses and margins less representative of recurring performance.
• Gross-margin pressure persists: Q2 2026 gross margin was approximately 14.1%, below the 20%-plus levels reported in several 2023 and 2024 quarters.
• Interest expense remains a drag: Net interest and other expense reduced Q2 2026 pretax income by $114 million, highlighting the ongoing cost of Halliburton’s debt load.