Halliburton (HAL)
NYSEEnergyOil & Gas Equipment & ServicesSnapshot 2026-09-04
$37.07-0.59%
Close 2026-09-04 · 1-day change
NYSEEnergyOil & Gas Equipment & ServicesSnapshot 2026-09-04
Intact: The reason to own it still holds.
Halliburton is one of the largest oilfield service companies with global reach. It beat earnings estimates recently with EPS of $0.6 in Q1 2026 and $0.69 in Q4 2025. The company guides revenue above $5.4 billion and operating margin at least 13% next quarter. Free cash flow is expected to rise to $1.857 billion in 2026, showing strong cash generation.
The stock is selling off with a 21% drop from its high, reflecting market concerns. Revenue growth is modest at about 4.3% expected by analysts. The sector faces headwinds and the company’s capital discipline and share repurchase progress is mixed. If demand weakens, margins and cash flow could fall.
The price is about 6% below our fair value near $36, which is 11% below the Street median target of $40. The market expects about 4% revenue growth. Our view is aligned with moderate growth but cautious on margin and capital execution risks.
Breaks if: Share repurchases fall below $100M per quarter
Breaks if: Free cash flow falls below $1.857B in FY26
Breaks if: Operating margin falls below 13% next quarter
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on capital discipline and returns. The current thesis state is stable, supported by strong recent financial performance and ongoing management priorities.
The market appears to price Halliburton as fairly valued compared to peers, with a slight premium. There is a low expectations gap, suggesting that investors are not overly optimistic or pessimistic about future performance.
Management's focus on returns and capital discipline is likely to continue driving financial performance. Recent results show strong operating income growth, but the earnings quality is fragile, which could pose risks in the near term.
The key factors for Halliburton's future include the potential for inflation to reaccelerate and the performance of sector bellwethers. Additionally, any cuts to guidance could negatively impact investor sentiment.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports this improvement. Halliburton secured a significant contract in Brazil, enhancing its growth potential. This contract expands international opportunities and integrated delivery. There are no new threats to the thesis at this time.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: Revenue falls below $5.4B next quarter
Overall, Halliburton's fundamentals and management execution suggest a stable outlook for the next few years. Not investment advice.