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Key Takeaways International contract wins across Kuwait, Iraq and Suriname strengthen Halliburton's long-term growth.Technology-led drilling and automation solutions improve efficiency, margins and customer value globally.Middle East risks, softer service activity and uneven guidance keep near-term earnings visibility limited. Halliburton Company (HAL - Free Report) enters the second half of 2026 with a stronger international growth case and a still-uneven operating backdrop. The stock’s appeal rests on contract momentum, technology adoption and exposure to long-cycle energy investment.

The caution is equally clear. Middle East activity, mobilization costs and service-line variability keep earnings visibility from fully matching the stronger backlog story.

Halliburton Is Leaning on International DemandInternational demand is the backbone of HAL’s current thesis. The company delivered $3.4 billion of international revenues in the second quarter, its highest second-quarter international level in more than a decade, despite disruptions in the Middle East.

Image Source: Halliburton Company

Management sees demand for Halliburton’s services and technology across every major region. Offshore, unconventional and intervention markets are carrying the international opportunity, and outside the Middle East, Halliburton expects low double-digit international growth in 2026.

HAL's Wins Are Expanding the Multiyear BacklogRecent awards are broadening Halliburton’s opportunity set. The company secured a multi-year Kuwait Oil Company agreement tied to Ahmadi Innovation Valley, an integrated field management and engineering contract in Iraq, unconventional drilling work in Algeria and long-term projects in Saudi Arabia’s Jafurah field.

Offshore work adds another layer to the backlog. Halliburton won integrated well construction contracts for TotalEnergies’ GranMorgu deepwater development offshore Suriname, supporting a more diversified revenue base across national oil companies and global operators.

SLB (SLB - Free Report) remains a key global technology competitor in energy services, while Baker Hughes Company (BKR - Free Report) gives investors another reference point for oilfield services and equipment exposure. Against that peer backdrop, Halliburton’s wins matter because they extend relationships in multiple geographies rather than depending on one market cycle.

Halliburton's Technology Is Driving Better MixTechnology is central to the margin story. Halliburton is using ZEUS IQ, LOGIX automation, OCTIV automated pumping controls and Sekal’s closed-loop drilling capabilities to improve well placement, drilling precision, recovery and operating efficiency.

This matters because the company is competing on performance, not only price. In Norway, the closed-loop drilling solution helped deliver back-to-back record wells, while the newest ZEUS IQ release gives customers better treatment control in simul-frac operations.

HAL Still Faces Near-Term Execution RisksThe improved long-term setup does not eliminate near-term risk. Middle East operations in Iraq, Kuwait, Bahrain and other markets remain tied to shifting geopolitical conditions, and management’s guidance assumes current activity rather than a return to pre-conflict levels.

Third-quarter guidance also points to uneven revenue trends. Completion and Production revenues are expected to be flat to down 2% sequentially, while Drilling and Evaluation revenues are expected to decline 3-5%.

Profit visibility is still affected by moving equipment into new international projects. Lower software sales, weaker project management activity in Latin America, lower specialty chemicals activity and Middle East service-line weakness show that recovery is not evenly distributed.

What HAL’s Ratings Signal NowThe bottom line is that HAL has a better international growth base, but the stock still reflects a balance between improving momentum and incomplete earnings visibility. Contract wins, technology deployment and cash generation support the long-term case, while guidance and geopolitical risk argue for discipline.

The stock currently carries a Zacks Rank #3 (Hold). That rank indicates a more balanced near-term earnings revision profile than a clear buy signal, which fits a company with credible drivers but not yet clean acceleration.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

HAL has a VGM Score of B, Value Score of B, Growth Score of C and Momentum Score of A. The Style Scores suggest solid value and very favorable momentum characteristics, while the Growth Score of C points to a less convincing growth profile than the headline award momentum alone might imply.

HOUSTON--(BUSINESS WIRE)--Kuwait Oil Company (KOC) awarded Halliburton (NYSE: HAL) a multi-year agreement to support the development of the Ahmadi Innovation Valley (AIV), a flagship initiative that advances Kuwait’s energy sector transformation.

The research and development (R&D) center will support KOC to deliver solutions in brownfield, greenfield, and unconventional fields, address higher operational complexity, and build technology designed for Kuwait’s upstream challenges. The center embeds applied research as a permanent capability from concept through prototyping, piloting, and commercialization.

This award builds on the established presence of Halliburton in Kuwait. Halliburton will deploy key technologies to execute a tailored program of projects and engineered solutions. Digital capabilities are central to the program, through the application of data, scientific analysis, and artificial intelligence for the full field lifecycle.

This approach will help KOC make faster decisions with confidence, improve asset performance, and align teams. The projects support KOC asset needs and build in-country capability for long-term growth.

“This award reflects the depth of the long-term collaboration with KOC and the shared focus on advancing technology development in Kuwait’s energy sector,” said Jeff Miller, Halliburton chairman, president, and CEO. “We collaborate and engineer solutions to maximize asset value for our customers. The upstream R&D center demonstrates this approach in action. We combine global expertise, digital capabilities, and in-country presence to address Kuwait’s unique upstream challenges.”

The AIV program represents a strategic national asset and marks a shift from traditional field services to the co-creation of technology and innovation. It further demonstrates KOC’s vision to make innovation a permanent foundation of Kuwait’s energy sector and positions the center as a platform for applied research and upstream technology development.

About Halliburton

Halliburton is one of the world's leading providers of products and services to the energy industry. Founded in 1919, we create innovative technologies, products, and services that help our customers maximize their value throughout the life cycle of an asset and advance a sustainable energy future. Visit us at www.halliburton.com; connect with us on LinkedIn, YouTube, Instagram, and Facebook.

The company logo of Halliburton oilfield services corporate offices is seen in Houston, Texas April 6, 2012. REUTERS/Richard Carson (UNITED STATES - Tags: BUSINESS LOGO ENERGY) Purchase Licensing Rights, opens new tab

July 21 (Reuters) - Halliburton (HAL.N), opens new tab posted a rise in second-quarter profit on Tuesday, ​as steady demand for its equipment in ‌Latin America, Europe and Africa offset declining activity in the Middle East due to the Iran ​war.

The Middle East conflict has dominated ​energy markets this year as repeated flare-ups keep ⁠a crucial oil-producing region on edge, even ​though crude oil prices have not skyrocketed as ​feared at the start of the war in February.

The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.

Now in its fifth month, the conflict has taken a ​hit on industry bellwethers SLB (SLB.N), opens new tab, Halliburton ​and Baker Hughes (BKR.O), opens new tab, which reported the sharpest quarterly decline ‌in ⁠Middle East revenue in over a year in the first quarter.

But an increase in activity in regions such as Latin America helped ​weather weakness ​in the ⁠Middle East.

During the second quarter, Halliburton's total revenue was $5.71 billion, compared ​with $5.51 billion a year earlier.

The U.S. ​oilfield ⁠services provider said its net income came in at $534 million, or 64 cents per share, ⁠for ​the three months ended June ​30, compared with $472 million, or 55 cents per share, ​a year earlier.

Reporting by Vallari Srivastava in Bengaluru

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Key Takeaways Halliburton is expected to report Q2 EPS of 54 cents on revenues of $5.5 billion.North American completion demand and tighter premium equipment could support segment income.Middle East disruptions may reduce quarterly EPS by 7-9 cents and weigh on profitability. Halliburton Company (HAL - Free Report) is set to release second-quarter results on July 21. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a profit of 54 cents per share on revenues of $5.5 billion.

Let’s delve into the factors that might have influenced the oilfield service firm’s performance in the June quarter. But it’s worth taking a look at HAL’s previous-quarter performance first.

Highlights of Q1 Earnings & Surprise HistoryIn the last reported quarter, this Houston, TX-based provider of technical products and services to drillers of oil and gas wells beat the consensus mark, reflecting successful cost reduction initiatives. Halliburton reported net income per share of 55 cents, outperforming the Zacks Consensus Estimate of 49 cents. Revenues of $5.4 billion beat the Zacks Consensus Estimate by 2.4%.

HAL beat the Zacks Consensus Estimate thrice in the last four quarters and matched it in the other. This is depicted in the graph below:

Trend in Estimate RevisionThe Zacks Consensus Estimate for the second-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 1.8% decline year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 0.5% decrease from the year-ago period.

Factors to ConsiderNorth American completion activity could have supported Halliburton in the second quarter. Management had pointed out that gaps in the fracturing schedule have largely disappeared, more customers are requesting short-notice work, and premium equipment is becoming tighter. These signs suggest stronger demand for the Completion & Production segment, which provides hydraulic fracturing and related well-completion services. Consequently, the Zacks Consensus Estimate for the company’s second-quarter operating income from the segment is pegged at $479 million, up from $439 million in the first quarter of 2026.

International drilling momentum could have provided another earnings tailwind. Halliburton expects growth outside the Middle East to be led by Latin America, while offshore work in Guyana, Suriname, Brazil and Norway remains active. This is expected to have supported the Drilling & Evaluation segment, which helps customers locate reservoirs, drill wells and assess underground formations. Recent contract wins, automated drilling technology and stronger project-management work could have improved activity levels, partly offset by declining seasonal software sales.

On a bearish note, Middle East disruptions are the main risk to second-quarter earnings and could affect both major segments. Reduced offshore and land activity may have lowered demand for drilling, evaluation, completion tools and pressure-pumping services, while alternative transport routes, fuel inflation and higher material costs could squeeze profitability. Halliburton estimates a 7-9-cent-per-share quarterly impact, assuming some offshore work restarts midway through the period. A slower restart could create additional headwinds, making the timing and pace of regional recovery particularly important.

What Does Our Model Say?The proven Zacks model does not conclusively show that Halliburton is likely to beat estimates in the second quarter of 2026. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: HAL has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 54 cents per share each.

Zacks Rank: Halliburton currently carries a Zacks Rank #2, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult this earnings season.

Stocks to ConsiderWhile an earnings beat looks uncertain for Halliburton, here are some energy firms that you may want to consider on the basis of our model:

Liberty Energy (LBRT - Free Report) : It has an Earnings ESP of +61.54% and a Zacks Rank #2. Liberty Energy is scheduled to release earnings on July 22.

You can see the complete list of today’s Zacks #1 Rank stocks here.

For 2026, LBRT has a projected earnings growth rate of 80%. Valued at around $4.1 billion, it has gained 116.7% in a year.

HF Sinclair (DINO - Free Report) : It has an Earnings ESP of +11.69% and a Zacks Rank #2. HF Sinclair is scheduled to release earnings on July 28.

For 2026, HF Sinclair has a projected earnings growth rate of 103%. Valued at around $15 billion, DINO has gained 92% in a year.

Patterson-UTI Energy (PTEN - Free Report) : It has an Earnings ESP of +12.50% and a Zacks Rank #2. Patterson-UTI Energy is scheduled to release earnings on July 29.

Patterson-UTI Energy beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other, with the average being 28%. Valued at around $3.7 billion, PTEN has gone up 63.2% in a year.

Halliburton (NYSE: HAL) wins major integrated well construction contracts for the GranMorgu deepwater development offshore Suriname, operated by TotalEnergies. The agreement includes drilling and completions services for a long-term program. Halliburton will deploy a fully integrated, digital and automation execution model that unites planning, engineering, and operations to improve performance, accelerate learning, and reduce total cost of ownership throughout well construction.

“This award reflects the value of integrated execution, collaboration, and digital technology in complex deepwater developments,” said Franco Delano, vice president, Caribbean, Halliburton. “The GranMorgu project demonstrates how aligned teams and advanced well construction capabilities support safe, efficient delivery and maximize asset value for our customers.”

Halliburton will apply integrated digital workflows, real time data and remote operations control for drilling and completions to improve well placement accuracy, and delivery assurance. These capabilities connect surface operations with subsurface execution to enhance recovery while lowering total cost of ownership for TotalEnergies.

The project supports local capability development through major infrastructure investment and collaboration with local suppliers. As part of the project scope, Halliburton worked with local suppliers to upgrade its liquid mud and cement plant. The company also supported the construction of Suriname’s first state-of-the-art completions and drilling workshop, featuring advanced maintenance and repair capabilities.

Halliburton will prioritize local talent acquisition and suppliers to support national economic growth. The project supports the expansion of Suriname’s offshore energy industry and establishes a benchmark through the first global alliance between Halliburton, TotalEnergies, and Noble.

About Halliburton

Halliburton is one of the world’s leading providers of products and services to the energy industry. Founded in 1919, we create innovative technologies, products, and services that help our customers maximize their value throughout the life cycle of an asset and advance a sustainable energy future. Visit us at www.halliburton.com; connect with us on LinkedIn, YouTube, Instagram, and Facebook.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260713936982/en/

Key Takeaways HAL partnered with Shape Digital to integrate Digital Field Solver with AI platforms for asset management.HAL's integrated platform connects reservoir, production, equipment and operational data in real time.Halliburton says the solution supports production planning, energy efficiency, safety and reliability. Halliburton (HAL - Free Report) has entered into a strategic collaboration with Shape Digital, a technology company spun out of MODEC, to accelerate the next generation of digital asset performance management, according to Offshore Energy. By combining advanced subsurface intelligence with surface operational data, the partnership aims to provide energy operators with a unified view of their assets, enabling smarter production planning, stronger operational efficiency, enhanced equipment reliability and improved safety throughout the entire asset lifecycle.

The collaboration brings together Halliburton Landmark's Digital Field Solver (“DFS”) with Shape Digital's artificial intelligence portfolio, including Lighthouse, Aura and Reef. This integrated approach allows operators to move beyond isolated decision-making by connecting reservoir models, production systems, equipment health and operational performance into a single intelligent platform.

Unified Digital Ecosystem for Better Production DecisionsModern energy production requires continuous coordination between reservoirs, wells, processing facilities, production networks and critical equipment. Traditionally, these systems have often been managed separately, creating information gaps that can delay decision-making and reduce operational efficiency.

Through this partnership, Halliburton and Shape Digital are addressing these challenges by creating a unified digital ecosystem that integrates both subsurface and surface intelligence. The combined solution allows production teams to evaluate reservoir behavior alongside equipment performance, facility constraints and operational conditions in real time.

This comprehensive visibility enables organizations to make informed decisions faster while maintaining alignment between production targets and operational capabilities.

HAL’s Landmark DFS Strengthens Production OptimizationAt the center of the collaboration is HAL's DFS, a decision support platform designed to integrate reservoir simulations, well performance analysis and production network optimization.

DFS creates a dynamic representation of the complete production environment, allowing engineers and operators to evaluate how changes in one part of the system affect the entire asset. Rather than focusing solely on reservoir output or equipment status, DFS provides a holistic understanding of production performance.

When combined with Shape Digital's AI-powered operational intelligence, the platform becomes even more powerful by incorporating live operational data into production planning.

AI Enhances Equipment Reliability and Operational VisibilityShape Digital contributes advanced artificial intelligence (“AI”) capabilities through its Lighthouse, Aura and Reef platforms. These solutions continuously analyze both historical and real-time equipment data to identify performance trends, predict potential failures and detect operational anomalies before they develop into larger issues.

The AI systems evaluate equipment behavior while Halliburton's production models provide the broader operational context needed to understand how equipment conditions influence flow rates, production constraints and overall field performance.

This integration enables maintenance teams and production engineers to proactively manage operations instead of reacting to unexpected equipment failures.

Integrated Production Planning Improves Operational EfficiencyOne of the primary advantages of the collaboration is its ability to improve integrated production planning.

Reservoir conditions, well performance, facility limitations and equipment reliability constantly evolve throughout the production lifecycle. Managing these variables independently often leads to inconsistent production strategies and operational inefficiencies.

By combining engineering models with operational intelligence, Halliburton and Shape Digital provide a connected view that helps operators evaluate changing conditions across the entire production system. This integrated planning process supports more accurate production forecasts while ensuring operational decisions remain aligned with current asset performance.

The result is greater production consistency and improved resource utilization across upstream operations.

Balancing Energy Efficiency With Production TargetsEnergy efficiency has become an increasingly important objective for oil and gas operators seeking to reduce operating costs while lowering emissions.

The integrated platform enables organizations to evaluate production objectives alongside energy consumption, allowing engineers to identify opportunities for improved efficiency without sacrificing output.

Instead of treating energy management as an isolated initiative, operators can optimize both production performance and energy utilization simultaneously through data-driven decision-making.

This capability supports long-term sustainability objectives while maintaining operational profitability.

Strengthening Safety and Asset Integrity Across Production FacilitiesSafety remains one of the most critical priorities in oil and gas operations. The combined technology platform helps improve safety by providing continuous visibility into equipment condition, operational risks and production system performance.

AI continuously monitors operational behavior, identifying early indicators of equipment degradation or abnormal operating conditions. When integrated with Halliburton's production models, these insights help operators understand how technical issues may impact the wider production system.

This proactive approach allows organizations to address potential risks before they escalate, supporting stronger asset integrity and reducing operational disruptions.

Real-Time Operational Intelligence Supports Faster Decision-MakingProduction environments are constantly changing due to fluctuating reservoir conditions, equipment performance, market demands and operational constraints.

Halliburton and Shape Digital's integrated solution enables continuous monitoring of these variables, allowing production teams to respond rapidly to changing operating conditions.

Rather than relying solely on scheduled reporting or historical analysis, operators gain access to real-time intelligence that supports faster, more consistent operational decisions.

This increased responsiveness improves production stability while minimizing downtime and operational uncertainty.

MODEC Expands Its Digital Transformation StrategyAs the parent organization behind Shape Digital, MODEC continues to invest heavily in digital innovation across its global operations.

The company has developed decades of expertise in floating production, storage and offloading engineering, procurement, construction, installation, leasing and operations. Shape Digital serves as the vehicle for extending that operational knowledge into the broader energy industry through advanced digital technologies.

Its growing portfolio includes predictive maintenance systems, AI-enabled digital twins, greenhouse gas reduction technologies and digital barrier management solutions designed to improve operational efficiency and safety.

MODEC also continues expanding its internal Digital & Analytics capabilities, transforming operational data into actionable intelligence that supports safer, more reliable and cost-effective production.

Digital Asset Performance Management: A Competitive AdvantageAs oil and gas assets become increasingly interconnected, operators require solutions capable of integrating engineering expertise, operational intelligence and artificial intelligence into one comprehensive decision framework.

The collaboration between HAL and Shape Digital reflects a broader industry shift toward intelligent production systems where every operational decision is supported by real-time data, predictive analytics and system-wide visibility.

Rather than managing reservoirs, wells, facilities and equipment independently, operators can now evaluate the complete production environment as a connected asset. This unified perspective enables more accurate forecasting, earlier identification of production constraints, stronger maintenance planning, enhanced operational resilience and improved business performance.

ConclusionThe partnership enhances digital asset performance management by combining Halliburton Landmark's DFS with Shape Digital's AI-driven operational intelligence. This integrated platform improves production planning, equipment reliability, energy efficiency, safety and operational decision-making, helping energy operators maximize asset performance while supporting long-term efficiency and reliability.

HAL's Zacks Rank & Key PicksCurrently, HAL has a Zacks Rank #3 (Hold).

Investors interested in the energy sector might look at some better-ranked stocks like Delek US Holdings (DK - Free Report) and Crescent Energy Company (CRGY - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) and Phillips 66 (PSX - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Delek US is valued at $2.93 billion. It is a U.S.-based downstream energy company that focuses on refining crude oil and distributing petroleum products. Headquartered in Brentwood, TN, Delek US operates through two main segments: refining and logistics.

Crescent Energy is valued at $3.34 billion. It is an independent U.S. energy company engaged in the acquisition, exploration, development and production of crude oil, natural gas, and natural gas liquids. Crescent Energy operates primarily in the Eagle Ford, Permian and Uinta basins.

Phillips 66 is valued at $68.82 billion. It is a diversified energy company that refines crude oil, markets petroleum products, and operates midstream, chemicals, and renewable fuels businesses. Phillips 66 operates across the United States and internationally.