Halliburton posted better earnings for the first quarter of 2026, with net income rising to $461 million, or $0.55 per share, compared to $204 million a year earlier, as efficiencies and international operations drove expansion.
Revenue remained broadly unchanged at $5.4 billion, reflecting a mixed operating environment as international growth slowed in North America. Operating income rose to $679 million from $431 million last year, underscoring improved profitability even in a flat environment.
The company’s performance highlights the growing divide between regions. North American revenue fell 4% year-over-year to $2.1 billion, weighed down by lower renewals and increased transaction activity, particularly in US operations. This reflects a broader decline in shale activity as producers maintain financial control amid fluctuating oil prices.
In contrast, international revenue rose 3% to $3.3 billion, with particularly strong gains in Latin America and Europe/Africa. Latin America revenue increased 22%, driven by increased activity in Brazil, Ecuador, and Argentina, while Europe/Africa posted an 11% increase in strong drilling and decommissioning activity.
However, the Middle East and Asia region was down 13%, reflecting reduced activity in key markets such as Saudi Arabia and Qatar. The company noted that political tensions in the Middle East shaved about $0.02–$0.03 per share on earnings during the quarter.
At the segment level, Breakthrough and Production revenue fell 3% to $3.0 billion, as low-pressure pumping and completion work in North America and the Middle East weighed on results. Meanwhile, Drilling and Evaluation revenue increased 4% to $2.4 billion, supported by strong project management activity in Latin America and increased drilling services in Europe.
CEO Jeff Miller pointed to early signs of recovery in North America, suggesting the downturn may be over. At the same time, he emphasized the stability of the company internationally, where growth has exceeded the disruptions related to the political instability of the world.
Halliburton’s results come amid a changing landscape for global oilfield services. After years of US-led shale-driven growth, international markets are increasingly becoming the main engine of expansion, supported by national oil companies ramping up investment.
At the same time, financial discipline among US producers continues to reduce employment levels, limiting demand for high-quality services such as hydraulic fracturing. This trend has pressured North American service providers while favoring companies with strong foreign exposure.
Geopolitical risks, especially in the Middle East, remain an important variable. While Halliburton was able to address the disruption this quarter, continued volatility could continue to impact operations and margins in the region.
The company also continues to invest in technology and adjacent energy sectors, including carbon capture and geothermal services, reflecting an industry-wide push toward diversification and energy transition opportunities.
By Charles Kennedy of Oilprice.com
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