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Helmerich & Payne is at a critical inflection point following its $1.97B KCA Deutag acquisition and subsequent operational recovery. HP's Q3 FY2026 showed accelerating North America margins, narrowing international losses, and strong free cash flow, despite adjusted EPS remaining negative. The stock is testing $42.60, a technical ceiling since 2022; a close above this, coupled with international profitability or improved credit metrics, is key for confirmation.

Deutsche Bank AG purchased a new position in shares of Helmerich & Payne, Inc. (NYSE:HP – Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 182,346 shares of the oil and gas company’s stock, valued at approximately $5,970,000. Deutsche Bank AG owned 0.18% of Helmerich & Payne as of its most recent SEC filing.

A number of other institutional investors have also modified their holdings of the company. EverSource Wealth Advisors LLC lifted its stake in Helmerich & Payne by 2,433.8% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,647 shares of the oil and gas company’s stock worth $25,000 after acquiring an additional 1,582 shares in the last quarter. Leonteq Securities AG acquired a new position in Helmerich & Payne in the 4th quarter valued at about $26,000. Parallel Advisors LLC increased its stake in Helmerich & Payne by 407.1% during the third quarter. Parallel Advisors LLC now owns 2,226 shares of the oil and gas company’s stock worth $49,000 after purchasing an additional 1,787 shares during the period. Hantz Financial Services Inc. lifted its position in shares of Helmerich & Payne by 24.3% during the fourth quarter. Hantz Financial Services Inc. now owns 2,276 shares of the oil and gas company’s stock worth $65,000 after purchasing an additional 445 shares in the last quarter. Finally, Strs Ohio acquired a new stake in shares of Helmerich & Payne during the first quarter worth about $101,000. 96.05% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades Several research firms have recently commented on HP. Susquehanna raised their price objective on shares of Helmerich & Payne from $40.00 to $44.00 and gave the company a “positive” rating in a research note on Friday, August 7th. Citigroup reduced their target price on shares of Helmerich & Payne from $38.00 to $36.00 and set a “neutral” rating on the stock in a report on Monday, June 29th. Morgan Stanley raised their price target on shares of Helmerich & Payne from $36.00 to $41.00 and gave the company an “underweight” rating in a research report on Thursday. Royal Bank Of Canada boosted their price target on shares of Helmerich & Payne from $38.00 to $40.00 and gave the stock a “sector perform” rating in a research note on Friday, May 8th. Finally, Wall Street Zen raised Helmerich & Payne from a “sell” rating to a “hold” rating in a research report on Saturday, August 15th. Five investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and an average price target of $41.00.

Read Our Latest Research Report on Helmerich & Payne Insider Buying and Selling at Helmerich & Payne In other Helmerich & Payne news, SVP Cara M. Hair sold 11,149 shares of the firm’s stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $44.27, for a total transaction of $493,566.23. Following the transaction, the senior vice president owned 136,095 shares of the company’s stock, valued at approximately $6,024,925.65. This trade represents a 7.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Hans Helmerich sold 94,470 shares of the firm’s stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $43.90, for a total value of $4,147,233.00. Following the transaction, the director directly owned 20,000 shares in the company, valued at approximately $878,000. The trade was a 82.53% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 110,673 shares of company stock worth $4,864,590 over the last 90 days. Corporate insiders own 4.40% of the company’s stock.

Helmerich & Payne Stock Down 2.5% HP stock opened at $42.45 on Tuesday. The company has a current ratio of 1.96, a quick ratio of 1.55 and a debt-to-equity ratio of 0.69. Helmerich & Payne, Inc. has a twelve month low of $18.48 and a twelve month high of $45.00. The company’s 50 day moving average is $35.98 and its two-hundred day moving average is $36.42. The stock has a market cap of $4.24 billion, a P/E ratio of -30.11 and a beta of 0.61.

Helmerich & Payne (NYSE:HP – Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The oil and gas company reported ($0.11) earnings per share for the quarter, missing the consensus estimate of $0.09 by ($0.20). The company had revenue of $1.03 billion for the quarter, compared to analysts’ expectations of $987.70 million. Helmerich & Payne had a negative return on equity of 2.35% and a negative net margin of 3.43%.The firm’s quarterly revenue was down .6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.22 EPS. Research analysts expect that Helmerich & Payne, Inc. will post -0.15 earnings per share for the current fiscal year.

Helmerich & Payne Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Tuesday, August 18th will be given a $0.25 dividend. The ex-dividend date of this dividend is Tuesday, August 18th. This represents a $1.00 dividend on an annualized basis and a yield of 2.4%. Helmerich & Payne’s payout ratio is -70.92%.

(Free Report)

Helmerich & Payne, Inc is a leading provider of contract drilling services to the oil and gas industry, specializing primarily in onshore drilling operations. The company designs, engineers and operates a fleet of advanced drilling rigs, including its proprietary FlexRigs, which are engineered for high efficiency, safety and rapid mobilization. Alongside core drilling services, Helmerich & Payne offers well intervention, workover and coiled tubing services, positioning itself as a comprehensive drilling solutions partner for exploration and production companies worldwide.

Founded in 1920 and headquartered in Tulsa, Oklahoma, Helmerich & Payne has grown through innovation and strategic expansion to serve diverse hydrocarbon basins.

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Key Takeaways Helmerich & Payne trades below key sales benchmarks, but persistent losses limit the valuation appeal.HP targets $40M in annualized cost cuts and over $160M in asset sales to support cash generation.HP sees growth in Argentina and offshore work, while Middle East uncertainty adds execution risk. Helmerich & Payne, Inc.(HP - Free Report) trades at a discount to several sales-based valuation benchmarks after a sharp recovery in operating activity. The discount, though, comes with an earnings profile that remains weak.

Cost reductions, asset sales and debt repayment could improve cash generation, while Argentina and offshore work add growth avenues. Persistent losses, Middle East uncertainty and execution demands keep the risk-reward balance from looking decisively bullish.

HP Trades Below Key Sales Valuation BenchmarksHP trades at 1.05X forward 12-month sales, below the Zacks sub-industry at 3.09X and the Zacks Oils-Energy sector at 1.4X. It also sits below its five-year median of 1.26X, which points to a meaningful relative discount.

Image Source: Zacks Investment Research

That valuation gap is not enough by itself to make the shares attractive. The company still carries a weaker earnings outlook, so investors must weigh the lower sales multiple against the possibility that profitability takes longer to recover.

HP's Earnings Outlook Remains the Main ConstraintFiscal third-quarter 2026 adjusted loss was 11 cents per share, versus the Zacks Consensus Estimate for earnings of 11 cents. Revenues exceeded $1 billion, but the earnings miss showed that better activity has not yet translated into consistent bottom-line strength.

Image Source: Helmerich & Payne

The consensus outlook remains difficult. Fiscal 2026 earnings are projected at a loss of $1.32 per share, followed by a loss of $2.56 in fiscal 2027, even as sales are expected to rise from about $3.99 billion to $4.26 billion.

HP's Cost Cuts and Deleveraging Could Lift Cash FlowManagement expects enterprise optimization efforts to reduce annualized corporate costs by $40 million by the end of fiscal 2027 and targets more than $160 million of asset-sale proceeds. Fiscal third-quarter free cash flow reached $98 million.

HP has already repaid its $400 million term loan ahead of schedule and is focused on retiring the $350 million bond due at the end of 2027. Lower debt and a leaner cost base could expand financial flexibility if operating conditions remain supportive.

HP's Growth Case Still Depends on ExecutionArgentina is a key growth market, with multiyear contracts expected to lift HP's FlexRig count there to 15 by around fiscal third-quarter 2027. Offshore visibility is another support, with backlog reaching $3.6 billion after a four-year Norway renewal, while a second FlexRobotics package was operating in the Permian.

Peer activity shows that these markets remain competitive. Patterson-UTI Energy, Inc. (PTEN - Free Report) , a drilling and completion services provider, signed a multiyear agreement to lease two rigs for Argentina's Vaca Muerta. Nabors Industries Ltd. (NBR - Free Report) operates a global land-drilling platform and also emphasizes drilling automation and software.

Execution risk remains material. Middle East disruptions widened fiscal fourth-quarter international direct-margin guidance to $25 million-$45 million, while fiscal 2026 gross capital expenditures are projected at $270 million-$310 million and cash taxes at $150 million-$180 million. FlexRobotics returns are still not fully disclosed.

HP's Hold Signal Fits the Valuation Trade-OffThe valuation discount gives HP some appeal, but the earnings outlook and execution risks argue against treating the shares as a straightforward bargain. The current setup looks better suited to investors willing to wait for clearer evidence of sustained profitability and cash-flow improvement.

HP carries a Zacks Rank #3 (Hold), along with a Value Score of C, Growth Score of C, Momentum Score of F and VGM Score of D. The C scores suggest middling value and growth characteristics, while the F Momentum Score and D VGM Score indicate a weaker overall style profile. Those signals support a more selective stance rather than an aggressive bullish call.

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

The Zacks Oil and Gas - Drilling industry faces a mixed near-term outlook. Demand for advanced rigs remains healthy, with tight super-spec supply supporting utilization, day rates and longer contracts. Still, commodity-price swings could quickly curb drilling budgets, particularly among smaller producers, while geopolitical tensions and policy changes threaten international projects. These concerns are reflected in the industry’s discouraging Zacks Industry Rank, alongside a sharp decline in 2026 earnings estimates. Valuation is another concern, with the group trading at a premium to both the broader energy sector and the S&P 500. Yet, performance has been strong, with the industry gaining 68.9% over the past year. Amid these crosscurrents, select names look better positioned. Patterson-UTI Energy (PTEN - Free Report) , Nabors Industries (NBR - Free Report) and Helmerich & Payne (HP - Free Report) stand out through advanced assets, international opportunities, technology investments and improving earnings prospects.

Industry Overview
The Zacks Oil and Gas - Drilling industry consists of companies that provide rigs (or specialized vehicles) on a contractual basis to explore and develop oil and natural gas. These operators offer drilling rigs (both land-based/onshore and offshore), equipment, services and workforce to exploration and production companies worldwide. Drilling for hydrocarbons is costly and technically difficult, and its future primarily depends on contracting activity and the total number of available rigs at a given time rather than the price of oil or gas. Within the energy industry, it's interesting to note that the volatility associated with offshore drilling companies is much higher than that of their onshore counterparts, and their share prices are more correlated to the price of oil. Overall, drilling stocks are among the most volatile in the entire equity market.

3 Trends Defining the Oil and Gas - Drilling Industry's Future
Tight Supply of Advanced Rigs Strengthens Industry Pricing: Modern drilling programs increasingly involve deeper wells and longer horizontal sections, requiring larger, more capable rigs with better automation and digital technology. Yet, the supply of this high-end equipment is limited. In some U.S. regions, quality rigs are already effectively sold out, while super-spec utilization across the market is very high. This imbalance can give drilling contractors greater pricing power as activity rises. Importantly, operators also appear willing to sign longer-term contracts for upgraded equipment because more efficient rigs can lower drilling costs. Rising utilization, stronger day rates and longer contracts could therefore improve industry margins even without a dramatic increase in the overall rig count.

Commodity Volatility Could Quickly Cool Drilling Spending: The industry's improving outlook still depends heavily on supportive oil and gas prices. Recent geopolitical developments have caused sharp swings in crude prices, making future pricing and customer activity harder to predict. Smaller private producers, which have driven much of the recent U.S. rig recovery, are generally more sensitive to commodity prices. Meanwhile, larger producers continue to follow disciplined spending plans rather than immediately increasing drilling whenever oil rises. A sustained decline in crude prices could therefore weaken producer confidence, slow new rig additions and delay planned projects. Lower utilization would also reduce contractors' ability to raise day rates, putting pressure on industry revenue and margins.

Geopolitical and Policy Risks Can Disrupt International Growth: International markets offer meaningful drilling opportunities, but they also expose the industry to risks that contractors cannot easily control. The Middle East conflict has already disrupted logistics, strained supply chains and slowed some rig reactivations, even where underlying demand remains healthy. Political changes can create another problem. Shifts in government policy may reduce the attractiveness of oil and gas investment, causing drilling activity to fall and making expensive equipment upgrades harder to justify. These risks can delay projects, raise operating costs and leave rigs idle. As drilling contractors expand internationally, regional instability and changing energy policies could therefore offset some of the benefits from stronger global demand.

Zacks Industry Rank Indicates Bearish Outlook
The Zacks Oil and Gas - Drilling industry is a 10-stock group within the broader Zacks Oil - Energy sector. It currently carries a Zacks Industry Rank #185, which places it in the bottom 25% of 247 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates fairly challenging near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.

The industry’s position in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are becoming pessimistic about this group’s earnings growth potential. As a matter of fact, the industry’s earnings estimates for 2026 have gone down 56% in the past year.

Despite the dim near-term prospects of the industry, we will present a few stocks that you may want to consider for your portfolio. But it’s worth taking a look at the industry’s shareholder returns and current valuation first.

Industry Outperforms Sector & S&P 500
The Zacks Oil and Gas - Drilling industry has fared better than the broader Zacks Oil – Energy sector as well as the Zacks S&P 500 composite over the past year.

The industry has gone up 68.9% over this period compared with the broader sector’s increase of 33.6% and the S&P 500’s gain of 22%.

One-Year Price Performance

Industry's Current Valuation
Since oil and gas drilling companies are debt-laden, it makes sense to value them based on the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) ratio. This is because the valuation metric takes into account not only equity but also the level of debt. For capital-intensive companies, EV/EBITDA is a better valuation metric because it is not influenced by changing capital structures and ignores the effect of non-cash expenses.

On the basis of the trailing 12-month enterprise value-to-EBITDA (EV/EBITDA), the industry is currently trading at 23.47X, higher than the S&P 500’s 18.03X. It is also significantly above the sector’s trailing 12-month EV/EBITDA of 6.06X.

Over the past five years, the industry has traded as high as 23.63X, as low as 4.16X, with a median of 13.59X, as the chart below shows.

Trailing 12-Month Enterprise Value-to-EBITDA (EV/EBITDA) Ratio (Past Five Years)

3 Oil and Gas - Drilling Stocks to Watch
Patterson-UTI Energy: Patterson-UTI Energy is an integrated oilfield services company with businesses covering drilling services, completion services and drilling products. Its offerings include Tier-1 super-spec rigs, directional drilling, hydraulic fracturing, wireline, cementing, natural gas fueling, drill bits and downhole tools. This broad portfolio allows the Zacks Rank #2 (Buy) company to serve customers across different stages of well development while generating cash flow from several business lines.

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

The company operates 137 Tier-1 super-spec drilling rigs and has 2.7 million hydraulic horsepower of completion capacity. Patterson-UTI focuses on high-quality assets, technology and operating efficiency. It is also upgrading its completion fleet toward natural gas-powered equipment while maintaining a disciplined capital-allocation approach.

Patterson-UTI has a market capitalization of $4.2 billion. Over the past 60 days, the Zacks Consensus Estimate for the firm’s 2026 bottom line has moved up 73.3%. PTEN stock has surged 102.6% in a year.

Price and Consensus: PTEN

Nabors Industries: Nabors Industries provides drilling and technology solutions to the oil and gas industry, combining drilling operations with specialized services and rig technologies. Its business spans U.S. and international drilling, Nabors Drilling Solutions and Rig Technologies. The integrated model is designed to improve drilling performance, reliability and customer outcomes through automation, advanced equipment and technology.

International drilling is its largest revenue contributor, accounting for 52% of the Zacks Rank #3 (Hold) company’s second-quarter 2026 revenues, followed by U.S. drilling at 30%. Nabors is selectively expanding internationally, particularly through its SANAD joint venture, while emphasizing operational efficiency in the U.S. Lower 48. Technology-led innovation and debt reduction also remain important priorities.

Nabors has a market capitalization of $1.3 billion. The Zacks Consensus Estimate for 2026 earnings for the firm indicates 75.8% growth. NBR stock has gained 181.5% in a year.

Price and Consensus: NBR

Helmerich & Payne: Helmerich & Payne is a drilling solutions provider serving customers across North America, international markets and offshore operations. Its portfolio includes North America Solutions, International Solutions and Offshore Solutions. The #3 Ranked company combines drilling rigs with technology aimed at improving efficiency and well performance. In the U.S. Lower 48, private-operator demand remains an important source of activity, while its FlexRobotics technology is being deployed on rigs in the Permian.

Internationally, H&P is expanding in Argentina’s Vaca Muerta, where multi-year contracts are set to increase its FlexRig count to 15. It also operates in Saudi Arabia, Bahrain and Australia. Offshore operations add further diversity, supported by long-term contracts and potential renewals.

The firm has a market capitalization of $4.3 billion. Over the past 60 days, the Zacks Consensus Estimate for Helmerich & Payne’s fiscal 2026 bottom line has moved up 30%. HP stock has surged 143.5% in a year.

Price and Consensus: HP

5 Tech Stocks Holding Their Ground Through the AI Trade PullbackHelmerich & Payne NYSE: HP reported fiscal third-quarter 2026 results that exceeded the midpoint of its guidance across all three operating segments, supported by a rebound in U.S. drilling activity, stronger Latin American performance and performance-related bonuses in its offshore business.

Adjusted EBITDA totaled $236 million for the quarter, while revenue exceeded $1 billion, up 11% sequentially. The company generated $98 million in free cash flow and reported net income of $0.74 per diluted share. Excluding the gain on the sale of Utica Square and other select items, Helmerich & Payne recorded a loss of $0.11 per share, CFO Todd Scruggs said.

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Chips & Clips: Memory Tariffs Rewire Tech Supply ChainsPresident and CEO Trey Adams said the company’s results demonstrated the strength of its operational execution and diversified portfolio despite commodity-price volatility and disruption from the conflict in the Middle East.

North America activity and margins rise North America Solutions was a key contributor during the quarter. The segment averaged 142 contracted rigs and generated direct margin of $241 million, reaching the high end of company guidance. Direct margin averaged $18,700 per day, up more than $1,000 per day sequentially.

Bank Earnings Are Roaring, But Wall Street Isn't Ready to CelebrateThe company reactivated 10 rigs during the quarter and exited the period with 147 rigs working in the Lower 48. Adams said private and smaller independent operators accounted for most recent rig additions, while larger operators have generally focused on adding contract term and technology to existing rigs.

Helmerich & Payne said super-spec fleet utilization is trending at 95%, which management believes could support further market tightening and direct-margin improvement. The company has roughly 10 additional rigs that could be returned to work relatively quickly at maintenance-capital levels or less, although some could be deployed outside the Lower 48.

For the fiscal fourth quarter, the company expects North America Solutions to operate 145 to 151 rigs and generate direct margin of $245 million to $255 million. It raised full-year North American rig-count guidance to a range of 140 to 144 rigs.

Management said the second Flex Robotics package has been deployed to a rig for a supermajor customer in the Permian Basin. Mike Lennox, executive vice president of the Western Hemisphere, said the first robotic rig has performed above the company’s initial P50 expectation and is currently the customer’s top-performing rig in a fleet of rigs in the high 20s. Helmerich & Payne expects to have five robotic rigs deployed by February.

International growth offsets Middle East disruption International Solutions produced $31 million in direct margin during the quarter, also at the high end of guidance. The result benefited from Latin American operations and a lower-than-expected impact from Middle East disruption as travel routes and logistics incrementally improved.

In Saudi Arabia, Helmerich & Payne completed four rig reactivations by quarter-end, while a fifth began drilling early in the fourth quarter. The company now has 22 rigs operating in the kingdom and expects to maintain that activity level through the fiscal fourth quarter. Operations on two previously suspended rigs in Bahrain resumed during the fourth quarter.

Management said it remains focused on reaching an International Solutions quarterly direct-margin run rate of at least $45 million, with growth in Argentina expected to offset some near-term changes in the Middle East. For the fourth quarter, International Solutions is expected to operate 60 to 70 rigs and produce direct margin of $25 million to $45 million. The wide range reflects possible outcomes related to the ongoing conflict in the region.

Argentina’s Vaca Muerta basin was a major area of growth. Helmerich & Payne currently operates nine rigs there, representing approximately 25% market share, and expects to activate its 10th and 11th rigs by the end of August. The company has contracted its final FlexRig already in Argentina and plans to export three more rigs from the United States later this year, which would bring its Argentine fleet to 15 FlexRigs. Management expects all 15 to be drilling by this time next year.

Adams said the company recently drilled a record-setting Vaca Muerta well 13% faster than the operator’s prior record and 15% below the operator’s budget under a performance-based contract. The company also deployed AutoSlide automation on a project that enabled zero manual slides.

In Australia, Helmerich & Payne received an award for a third rig to be exported from the U.S. for work in the Beetaloo Basin. The company also cited expanding geothermal activity, with agreements signed for three additional U.S. geothermal rigs. Management said it was working toward a double-digit geothermal rig count across the U.S. and Europe, though it did not provide a specific timeline.

Offshore continues to provide stable cash flow Offshore Solutions generated $29 million of direct margin, above the high end of guidance, aided by several performance-related bonuses. The segment had three active rigs and 30 management contracts in operation during the quarter.

The company secured a multimillion-dollar, four-year contract renewal with an operator in Norway and is pursuing potential multiyear renewals and possible rig mobilizations in the Gulf of Mexico. For the fourth quarter, it expects 30 to 35 management contracts and operating rigs, with direct margin of $26 million to $30 million.

Given year-to-date performance, Helmerich & Payne raised its full-year Offshore Solutions direct-margin guidance to $113 million to $117 million.

Debt reduction and cost initiatives Scruggs said Helmerich & Payne is targeting net debt-to-EBITDA of one turn and has already repaid its $400 million term loan ahead of schedule. The company is now focused on retiring a $350 million bond due at the end of 2027.

The company plans to streamline central functions, reduce duplication, standardize regional operating practices and harmonize enterprise resource planning systems. Management expects those efforts to reduce annualized corporate costs by $40 million by the end of 2027.

Helmerich & Payne also plans to exit non-core geographies and monetize assets where possible, targeting more than $160 million of asset sales by the end of fiscal 2027, if not sooner. The company said it will maintain its dividend during the deleveraging period, which it estimated at roughly $100 million annually.

Gross capital expenditures were $70 million in the third quarter, below anticipated spending because of deferred North America projects and delays in Middle East rig reactivations. The company expects spending to increase sequentially in the fourth quarter but remain within its full-year capital-expenditure guidance of $270 million to $310 million. It increased expected cash-tax payments to $150 million to $180 million, reflecting the tax impact from the Utica Square sale and stronger North American financial performance.

Looking ahead, Adams said management remains optimistic about fiscal 2027, citing constructive customer discussions, expected upstream spending growth and demand for the company’s drilling technology. The outlook, however, remains dependent on commodity prices remaining supportive and on developments in the Middle East.

About Helmerich & Payne (NYSE:HP)Helmerich & Payne, Inc is a leading provider of contract drilling services to the oil and gas industry, specializing primarily in onshore drilling operations. The company designs, engineers and operates a fleet of advanced drilling rigs, including its proprietary FlexRigs, which are engineered for high efficiency, safety and rapid mobilization. Alongside core drilling services, Helmerich & Payne offers well intervention, workover and coiled tubing services, positioning itself as a comprehensive drilling solutions partner for exploration and production companies worldwide.

Founded in 1920 and headquartered in Tulsa, Oklahoma, Helmerich & Payne has grown through innovation and strategic expansion to serve diverse hydrocarbon basins.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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AUSTIN, Texas--(BUSINESS WIRE)-- #Australia--Formentera Partners, its Australian operating company, Daly Waters Energy (DWE), and INPEX Pty Ltd (INPEX) today announced that, together with Helmerich & Payne (NYSE: HP), they have contracted an H&P FlexRig® for operations in Australia. This agreement is a key milestone and provides critical drilling capacity as the partners advance the Beetaloo Basin into its next phase of appraisal and development. The rig is expected to arrive during the second quart.

For the quarter ended June 2026, Helmerich & Payne (HP - Free Report) reported revenue of $1.03 billion, down 0.6% over the same period last year. EPS came in at -$0.11, compared to $0.22 in the year-ago quarter.

The reported revenue represents a surprise of +4.7% over the Zacks Consensus Estimate of $988.44 million. With the consensus EPS estimate being $0.11, the EPS surprise was -200%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Helmerich & Payne performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Average active rigs - North America Solutions: 142 versus the four-analyst average estimate of 141.Average active rigs - Offshore Solutions: 3 versus 3 estimated by four analysts on average.Number of available rigs at the end of period - Offshore Solutions: 4 versus 4 estimated by four analysts on average.Number of available rigs at the end of period - International Solutions: 127 versus 130 estimated by four analysts on average.Number of available rigs at the end of period - North America Solutions: 202 versus the four-analyst average estimate of 204.Average active rigs - International Solutions: 65 versus the four-analyst average estimate of 64.Operating Revenues- North America Solutions: $562.9 million versus $548.37 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -5% change.Operating Revenues- Offshore Solutions: $174.41 million versus $165.25 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +7.8% change.Operating Revenues- International Solutions: $250.12 million compared to the $239.85 million average estimate based on four analysts. The reported number represents a change of -5.9% year over year.Operating Revenues- Drilling services: $986.88 million compared to the $945.29 million average estimate based on two analysts. The reported number represents a change of -4.9% year over year.Operating Revenues- Other: $47.97 million versus $29.01 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +1474% change.Segment operating income (loss)- North America Solutions: $140.31 million versus the four-analyst average estimate of $130.81 million.View all Key Company Metrics for Helmerich & Payne here>>>

Shares of Helmerich & Payne have returned +8.4% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

TULSA, Okla.--(BUSINESS WIRE)--Helmerich & Payne, Inc. (NYSE:HP):

Operating and Financial Highlights for the Quarter Ended June 30, 2026

H&P announced consolidated revenue of $1.035 billion, reflecting strong sequential growth and solid execution across the portfolio. Consolidated net income attributable to Helmerich & Payne Inc. of $76 million, or $0.74 per share, which includes a gain of approximately $115 million related to the sale of Utica Square. Adjusted for this and other select items, adjusted losses(1) were $(10) million, or $(0.11) per share. Consolidated adjusted EBITDA(2) totaled $236 million. North America Solutions (NAS) reported operating income of $140 million and achieved industry-leading direct margin(3) of $241 million or $18,669 per day. During the quarter, we deployed 10 additional rigs in response to strong demand from private operators, while also growing daily margins by more than $1,000 sequentially. International Solutions reported an operating loss of approximately $(54) million and delivered approximately $31 million in direct margin(3). Experienced strong commercial momentum for our FlexRig® technology in Argentina, securing contracts for five additional rigs, including three rigs to be exported from the U.S. later this year. Offshore reported operating income of approximately $17 million and generated direct margin(3) of $29 million. Secured a four-year contract renewal for an operator in Norway, strengthening our offshore backlog to $3.6 billion, including firm and optional contract periods. Approximately $25 million was returned to shareholders through the Company’s ongoing dividend program. Management Commentary

“H&P delivered strong financial and operational results during the quarter. We generated direct margins that exceeded the midpoint of guidance ranges in all segments as well as strong adjusted EBITDA and free cash flows,” said President and CEO Trey Adams. “Our performance reflects the disciplined execution of our teams and the strength of our diversified global portfolio.”

“While near-term market conditions remain fluid, particularly in the Middle East, underlying trends across our portfolio continue to improve. Recent geopolitical events continue to highlight the importance of energy security and reliable supply, reinforcing the need for continued investment in oil and gas development to help meet global energy demand. Against this backdrop, customer activity remains constructive, supporting demand for high-performance drilling solutions as the industry looks toward 2027."

“In North America Solutions, activity growth was primarily driven by increased drilling demand from private and smaller independent operators. While industry supply and demand dynamics continue to evolve for the super-spec rig market, current conditions continue to support strong utilization levels and solid margin performance. H&P is well equipped to quickly meet rising customer demand, benefiting from our industry leading scale, uniform fleet and reactivation costs.”

“Our International Solutions segment is building momentum across key markets as we leverage the advantages of our large homogeneous fleet and diversified footprint. In Argentina, we are putting additional rigs back to work, supported by development of the Vaca Muerta shale basin. Technology adoption remains strong, and we continue to see attractive growth opportunities driven by resource scale, improving infrastructure, and rising demand for super-spec drilling solutions, which are contributing to organic margin expansion across the segment. In the Middle East, we continued rig reactivations in Saudi Arabia while focusing on the safety of our people and maintaining continuity of operations across our core operating countries.”

“Our Offshore Solutions segment delivered another quarter of strong operational and financial results. This was driven by the achievement of several performance-related bonuses during the quarter. Offshore continues to provide stability and strategic value through its long‑term contract portfolio and strong free cash flow generation,” Adams continued.

Senior Vice President and CFO Todd Scruggs added, “In conjunction with our strong financial performance and improving market outlook, we are embarking on company-wide initiatives focused on increasing efficiency, reducing cost, simplifying our portfolio, and streamlining support functions. These actions are designed to enhance margins, strengthen free cash flow generation, and accelerate deleveraging. As we look ahead, we remain committed to balancing debt reduction, maintaining our base dividend, and investing with discipline to support growth opportunities, ensuring we are well positioned regardless of how market conditions evolve.”

“We are encouraged by the momentum across our business,” Adams concluded. “With our leading super‑spec fleet, strong international presence, differentiated technology portfolio, and resilient offshore business, we believe H&P is positioned to create long-term value for shareholders. None of that would be possible without the commitment and expertise of our employees, whose focus on safety and operational excellence continues to drive our success.”

Operating Segment Results for the Third Quarter of Fiscal Year 2026

North America Solutions: Realized operating income of $140 million, compared with $111 million in the previous quarter. Direct margin(3) increased to $241 million, versus $215 million the previous quarter. On a per-day basis direct margins averaged $18,669 with 142 rigs active for the third fiscal quarter.

International Solutions: Recorded an operating loss of approximately $(54) million, compared with a loss of approximately $(100) million in the prior quarter, which included a $26 million impairment. Direct margin(3) improved significantly totaling $31 million, up from $11 million last quarter. During the third quarter we had an average of 65 rigs working.

Offshore Solutions: Reported operating income of approximately $17 million, compared with $14 million in the previous quarter. Direct margin(3) was $29 million, up from $27 million last quarter, led by performance-related bonuses. We had three active rigs and 30 management contracts in operation during the quarter.

Select Items (4) Included in Net Income per Diluted Share

Third quarter of fiscal year 2026 net income of $0.74 per diluted share included a net impact of $0.85 per share in after-tax gains and losses comprised of the following:

$0.88 of after-tax gain related to a real estate asset sale $0.10 of after-tax gain related to involuntary conversion $0.03 of non-cash after-tax gain related to the change in actuarial assumptions on estimated liabilities $(0.01) of non-cash after-tax loss related to impairment $(0.01) of after-tax loss related to restructuring charges $(0.01) of after-tax loss related to acquisition transaction and integration costs $(0.13) of non-cash after-tax loss related to investment securities Second quarter of fiscal year 2026 net loss of $(0.59) per diluted share included a net impact of $(0.21) per share in after-tax losses comprised of the following:

$0.11 of non-cash after-tax gain related to investment securities $(0.01) of after-tax loss related to International asset abandonment $(0.02) of after-tax loss related to transaction and integration costs $(0.03) of after-tax loss related to restructuring $(0.03) of non-cash after-tax loss related to the change in actuarial assumptions on estimated liabilities $(0.23) of non-cash after-tax loss related to impairment Operational Outlook for the Fourth Quarter of Fiscal Year 2026

The guidance below represents our expectations as of the date of this release.

Guidance

4Q’26

FY’26

North America Solutions

Direct Margin ($M)3

$245 - $255

Average Rigs

145 - 151

140 - 144

International Solutions

Direct Margin ($M)3

$25 - $45

Average Rigs

60 – 70

60 – 66

Offshore Solutions

Direct Margin ($M)3

$26 - $30

$113 - $117

Average Rigs / Mgmt. Cont.

30 - 35

30 - 35

Other

Direct Margin ($M)3

$0 - $5

Guidance

FY'26

Gross Capital Expenditures ($M)

$270 - $310

Depreciation

~$700

Research and Development

~$28

Selling, General & Administrative

$265 - $285

Cash Taxes

$150 - $180

Interest Expense

~$100

Conference Call

A conference call will be held at 10 a.m. (ET), Thursday, August 6, 2026, with Trey Adams, President and CEO, Todd Scruggs, Senior Vice President and CFO, and other management team members to discuss the Company’s third quarter fiscal year 2026 results. Dial-in information for the conference call is (800)-715-9871 for domestic callers or (646)-307-1963 for international callers. The call access code is 8620792. Participants can listen to the live webcast of the conference call and access the accompanying earnings presentation by visiting our website at www.hpinc.com. Navigate to the “Investor Hub” section, click on “Events & Presentations,” and select the event to access the webcast and materials.

About Helmerich & Payne, Inc.

Founded in 1920, Helmerich & Payne, Inc. (H&P) (NYSE: HP) is committed to delivering industry leading levels of drilling productivity and reliability. H&P operates with the highest level of integrity, safety and innovation to deliver superior results for its customers and returns for shareholders. Through its subsidiaries, the Company designs, fabricates and operates high-performance drilling rigs in conventional and unconventional plays around the world. H&P also develops and implements advanced automation, directional drilling and survey management technologies. As of August 5, 2026, H&P's fleet includes 202 land rigs in the United States, 127 international land rigs and four offshore platform rigs, plus operating 30 offshore management contracts. For more information, see H&P online at www.hpinc.com.

Forward-Looking Statements

This release includes “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, and such statements are based on current expectations and assumptions that are subject to risks and uncertainties. All statements other than statements of historical facts included in this release, including, without limitation, outlook for fiscal 2026, the Company’s business strategy, future financial position, operations outlook, future cash flow, future use of generated cash flow, dividend amounts and timing, amounts of any future dividends, investments, active rig count projections, projected costs and plans, objectives of management for future operations, contract terms, financing and funding, debt reduction plans, capex spending and budgets, outlook for domestic and international markets, future commodity prices, and future customer activity and relationships are forward-looking statements. For information regarding risks and uncertainties associated with the Company’s business, please refer to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections and other disclosures in the Company’s SEC filings, including but not limited to its annual report on Form 10‑K and quarterly reports on Form 10‑Q. As a result of these factors, Helmerich & Payne, Inc.’s actual results may differ materially from those indicated or implied by such forward-looking statements. Investors are cautioned not to put undue reliance on such statements. We undertake no duty to publicly update or revise any forward-looking statements, whether as a result of new information, changes in internal estimates, expectations or otherwise, except as required under applicable securities laws.

Helmerich & Payne uses its Investor Relations website as a channel of distribution for material company information. Such information is routinely posted and accessible on its Investor Relations website at www.hpinc.com. Information on our website is not part of this release.

Note Regarding Trademarks. Helmerich & Payne, Inc. owns or has rights to the use of trademarks, service marks and trade names that it uses in conjunction with the operation of its business. Some of the trademarks that appear in this release or otherwise used by H&P include FlexRig and FlexRobotics, which may be registered or trademarked in the United States and other jurisdictions.

(1) Adjusted net income, which is considered a non-GAAP metric, is defined as net income (loss), excluding the impact of 'select items' which management defines as certain items that do not reflect the ongoing performance of our core business operations. Adjusted net income is included as supplemental disclosure as management uses it to assess and understand current operational performance, especially in analyzing historical trends which are used in forecasting future period results. For this reason, we believe this measure will be useful information to investors. The presence of non-GAAP metrics is not intended to suggest that such measures should be considered as a substitute for certain GAAP metrics and, given that not all companies define adjusted net income the same way, this financial measure may not be comparable to similarly titled metrics disclosed by other companies. See Non-GAAP Measurements for a reconciliation of net income (loss) to adjusted net income.

(2) Adjusted EBITDA is considered to be a non-GAAP metric. Adjusted EBITDA is defined as net income (loss) before taxes, depreciation and amortization, gains and losses on asset sales, other income and expense - which includes interest income and interest expense, and excludes the impact of 'select items' which management defines as certain items that do not reflect the ongoing performance of our core business operations. Adjusted EBITDA is included as supplemental disclosure as management uses it to assess and understand current operational performance, especially in analyzing historical trends which are used in forecasting future period results. For this reason, we believe this measure will be useful information to investors. The presence of non-GAAP metrics is not intended to suggest that such measures should be considered as a substitute for certain GAAP metrics and, given that not all companies define Adjusted EBITDA the same way, this financial measure may not be comparable to similarly titled metrics disclosed by other companies. See Non-GAAP Measurements for a reconciliation of net income to Adjusted EBITDA.

(3) Direct margin, which is considered a non-GAAP metric, is defined as operating revenues (less reimbursements) less direct operating expenses (less reimbursements) and is included as a supplemental disclosure. We believe it is useful in assessing and understanding our current operational performance, especially in making comparisons over time. See Non-GAAP Measurements for a reconciliation of segment operating income (loss) to direct margin. Expected direct margin for the fourth quarter of fiscal 2026 is provided on a non-GAAP basis only because certain information necessary to calculate the most comparable GAAP measure is unavailable due to the uncertainty and inherent difficulty of predicting the occurrence and the future financial statement impact of certain items. Therefore, as a result of the uncertainty and variability of the nature and amount of future items and adjustments, which could be significant, we are unable to provide a reconciliation of expected direct margin to the most comparable GAAP measure without unreasonable effort.

(4) The adjusted measures excluding select items are considered non-GAAP metrics and are included as a supplemental disclosure as the Company believes identifying and excluding select items is useful in assessing and understanding current operational performance, especially in making comparisons over time involving previous and subsequent periods and/or forecasting future periods results. Select items are excluded as they are deemed to be outside the Company's core business operations. See Non-GAAP Measurements.

HELMERICH & PAYNE, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended

Nine Months Ended

(in thousands, except per share amounts)

June 30,

March 31,

June 30,

June 30,

June 30,

2026

2026

2025

2026

2025

OPERATING REVENUES

Drilling services

$

986,882

$

906,426

$

1,037,876

$

2,874,433

$

2,724,883

Other

47,974

25,936

3,048

109,811

9,382

1,034,856

932,362

1,040,924

2,984,244

2,734,265

OPERATING COSTS AND EXPENSES

Drilling services operating expenses, excluding depreciation and amortization

684,913

661,180

704,224

2,028,873

1,816,797

Other operating expenses

44,489

24,799

31,059

100,548

35,700

Depreciation and amortization

180,960

180,734

179,491

543,613

436,228

Research and development

5,909

7,016

7,777

19,571

26,558

Selling, general and administrative

65,849

71,080

65,506

207,373

209,407

Acquisition transaction and integration costs

1,671

2,738

8,623

7,814

49,025

Asset impairment charges

1,153

26,101

173,258

130,340

175,102

Restructuring charges

1,362

2,882

4,681

5,835

4,681

Gain on involuntary conversion

(13,581

)

—

—

(13,581

)

—

Gain on reimbursement of drilling equipment

(6,036

)

(5,943

)

(6,773

)

(18,099

)

(26,149

)

Other (gain) loss on sale of assets

(120,044

)

(1,305

)

1,347

(119,423

)

2,136

846,645

969,282

1,169,193

2,892,864

2,729,485

OPERATING INCOME (LOSS)

188,211

(36,920

)

(128,269

)

91,380

4,780

Other income (expense)

Interest and dividend income

2,280

2,155

2,856

7,193

31,854

Interest expense

(24,439

)

(25,814

)

(29,200

)

(75,860

)

(79,836

)

Gain (loss) on investment securities

(16,007

)

14,391

(337

)

(687

)

14,084

Foreign currency exchange gain (loss)

1,885

2,952

(9,216

)

4,864

(16,137

)

Other

(1,411

)

(3,327

)

31,258

(6,664

)

33,214

(37,692

)

(9,643

)

(4,639

)

(71,154

)

(16,821

)

Income (loss) before income taxes

150,519

(46,563

)

(132,908

)

20,226

(12,041

)

Income tax expense

72,362

9,298

28,991

92,861

92,100

NET INCOME (LOSS)

78,157

(55,861

)

(161,899

)

(72,635

)

(104,141

)

Net income attributable to non-controlling interest

2,475

2,748

859

6,998

2,191

NET INCOME (LOSS) ATTRIBUTABLE TO HELMERICH & PAYNE, INC.

$

75,682

$

(58,609

)

$

(162,758

)

$

(79,633

)

$

(106,332

)

Earnings (loss) per share attributable to Helmerich & Payne, Inc.:

Basic

$

0.74

$

(0.59

)

$

(1.64

)

$

(0.81

)

$

(1.08

)

Diluted

$

0.74

$

(0.59

)

$

(1.64

)

$

(0.81

)

$

(1.08

)

Weighted average shares outstanding:

Basic

99,931

99,878

99,422

99,783

99,214

Diluted

100,030

99,878

99,422

99,783

99,214

HELMERICH & PAYNE, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

June 30,

September 30,

(in thousands except share data and share amounts)

2026

2025

ASSETS

Current Assets:

Cash and cash equivalents

$

204,427

$

196,848

Restricted cash

33,552

27,412

Short-term investments

26,960

21,496

Accounts receivable, net of allowance of $21,162 and $19,647, respectively

869,464

782,644

Inventories of materials and supplies, net

325,803

324,326

Prepaid expenses and other, net

97,592

97,518

Assets held-for-sale

12,659

15,231

Total current assets

1,570,457

1,465,475

Investments, net

72,856

68,198

Property, plant and equipment, net

3,865,332

4,313,074

Other Noncurrent Assets:

Goodwill

182,425

182,854

Intangible assets, net

423,633

485,540

Operating lease right-of-use assets

109,250

123,598

Other assets, net

62,821

66,999

Total other noncurrent assets

778,129

858,991

Total assets

$

6,286,774

$

6,705,738

LIABILITIES & SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

207,365

$

217,923

Dividends payable

25,416

25,199

Accrued liabilities

560,850

564,855

Current portion of long-term debt, net

6,859

6,859

Total current liabilities

800,490

814,836

Noncurrent Liabilities:

Long-term debt, net

1,855,257

2,057,084

Deferred income taxes

592,397

624,000

Retirement benefit obligation

98,815

109,864

Other

269,406

270,616

Total noncurrent liabilities

2,815,875

3,061,564

Shareholders' Equity:

Common stock, $0.10 par value, 160,000,000 shares authorized, 112,222,865 shares issued as of June 30, 2026 and September 30, 2025, and 99,935,617 and 99,446,577 shares outstanding as of June 30, 2026 and September 30, 2025, respectively

11,222

11,222

Preferred stock, no par value, 1,000,000 shares authorized, no shares issued

—

—

Additional paid-in capital

514,167

513,050

Retained earnings

2,463,057

2,619,090

Accumulated other comprehensive income

30,233

44,964

Treasury stock, at cost, 12,287,248 shares and 12,776,288 shares as of June 30, 2026 and September 30, 2025, respectively

(444,588

)

(463,536

)

Non-controlling interest

96,318

104,548

Total shareholders’ equity

2,670,409

2,829,338

Total liabilities and shareholders' equity

$

6,286,774

$

6,705,738

HELMERICH & PAYNE, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended June 30,

(in thousands)

2026

2025

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss

$

(72,635

)

$

(104,141

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

543,613

436,228

Asset impairment charge

130,340

175,102

Amortization of debt discount and debt issuance costs

4,230

4,799

Stock-based compensation

28,013

22,837

Gain (loss) on investment securities

687

(14,084

)

Gain on involuntary conversion

(13,581

)

—

Gain on reimbursement of drilling equipment

(18,099

)

(26,149

)

Other (gain) loss on sale of assets

(119,423

)

2,136

Deferred income tax

(28,980

)

(64,649

)

Other

(4,974

)

5,832

Changes in assets and liabilities

(76,513

)

(101,911

)

Net cash provided by operating activities

372,678

336,000

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital expenditures

(200,198

)

(362,232

)

Purchase of short-term investments

(49,640

)

(111,678

)

Purchase of long-term investments

(2,239

)

(2,055

)

Payment for acquisition of business, net of cash acquired

—

(1,838,852

)

Proceeds from sale of short-term investments

42,542

373,028

Proceeds from sale of long-term investments

—

31,990

Insurance proceeds from involuntary conversion

2,500

2,366

Proceeds from asset sales

35,797

34,923

Proceeds from real estate asset sales

127,667

—

Other

(686

)

—

Net cash used in investing activities

(44,257

)

(1,872,510

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Dividends paid

(76,077

)

(75,534

)

Distributions to non-controlling interests

(15,000

)

(15,380

)

Proceeds from debt issuance

—

400,000

Debt issuance costs

—

(2,629

)

Payments for employee taxes on net settlement of equity awards

(6,398

)

(10,759

)

Payments on unsecured long-term debt

(200,000

)

(73,000

)

Other

(5,145

)

(2,044

)

Net cash provided by (used in) financing activities

(302,620

)

220,654

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(12,393

)

14,322

Net increase (decrease) in cash, cash equivalents and restricted cash

13,408

(1,301,534

)

Cash, cash equivalents and restricted cash, beginning of period

225,900

1,528,660

Cash, cash equivalents and restricted cash, end of period

$

239,308

$

227,126

HELMERICH & PAYNE, INC.

SEGMENT REPORTING

Three Months Ended

Nine Months Ended

(in thousands, except operating statistics)

June 30,

March 31,

June 30,

June 30,

June 30,

2026

2026

2025

2026

2025

NORTH AMERICA SOLUTIONS

Operating revenues

$

562,902

$

517,245

$

592,214

$

1,644,085

$

1,790,053

Direct operating expenses

321,686

302,038

326,042

948,857

992,462

Depreciation and amortization

83,214

82,955

88,078

250,413

263,565

Research and development

6,015

7,115

7,617

19,538

26,560

Selling, general and administrative expense

11,282

13,401

10,972

38,705

42,266

Acquisition transaction and integration costs

—

—

7

—

41

Asset impairment charges

—

—

—

97,922

1,507

Restructuring charges

393

402

1,849

795

1,849

Segment operating income

$

140,312

$

111,334

$

157,649

$

287,855

$

461,803

Financial Data and Other Operating Statistics1:

Direct margin (Non-GAAP)2

$

241,216

$

215,207

$

266,172

$

695,228

$

797,591

Revenue days3

12,921

12,208

13,400

38,255

40,523

Average active rigs4

142

136

147

140

148

Number of active rigs at the end of period5

147

137

141

147

141

Number of available rigs at the end of period

202

203

224

202

224

Reimbursements of "out-of-pocket" expenses

$

68,280

$

60,401

$

73,268

$

201,478

$

219,302

INTERNATIONAL SOLUTIONS

Operating revenues

$

250,117

$

218,321

$

265,803

$

702,726

$

561,192

Direct operating expenses

219,064

206,826

231,695

631,463

507,106

Depreciation and amortization

74,547

79,257

66,734

231,925

128,715

Selling, general and administrative expense

9,097

4,249

5,014

17,491

12,268

Acquisition transaction and integration costs

186

1,198

141

1,820

351

Asset impairment charges

1,153

26,101

128,352

27,254

128,352

Restructuring charges

498

302

380

2,118

380

Segment operating loss

$

(54,428

)

$

(99,612

)

$

(166,513

)

$

(209,345

)

$

(215,980

)

Financial Data and Other Operating Statistics1:

Direct margin (Non-GAAP)2

$

31,053

$

11,495

$

34,108

$

71,263

$

54,086

Revenue days3

5,950

5,492

6,573

16,886

14,460

Average active rigs4

65

61

72

62

53

Number of active rigs at the end of period5

66

64

69

66

69

Number of available rigs at the end of period

127

130

137

127

137

Reimbursements of "out-of-pocket" expenses

$

11,985

$

12,785

$

10,736

$

36,538

$

21,325

OFFSHORE SOLUTIONS

Operating revenues

$

174,409

$

171,378

$

161,777

$

534,069

$

340,067

Direct operating expenses

145,191

144,495

139,004

446,966

284,569

Depreciation and amortization

11,023

9,862

12,681

31,705

22,438

Selling, general and administrative expense

1,337

2,654

1,294

5,035

3,322

Acquisition transaction and integration costs

—

352

—

925

60

Asset impairment charges

—

—

—

2,128

—

Restructuring charges

58

—

29

58

29

Segment operating income

$

16,800

$

14,015

$

8,769

$

47,252

$

29,649

Financial Data and Other Operating Statistics1:

Direct margin (Non-GAAP)2

$

29,218

$

26,883

$

22,773

$

87,103

$

55,498

Revenue days3

273

270

273

819

819

Average active rigs4

3

3

3

3

3

Number of active rigs at the end of period5

3

3

3

3

3

Number of available rigs at the end of period

4

4

7

4

7

Reimbursements of "out-of-pocket" expenses

$

28,312

$

27,575

$

23,043

$

95,551

$

57,204

Segment operating income (loss) for all segments is a non-GAAP financial measure of the Company’s performance, as it excludes gain on involuntary conversion, gain on reimbursement of drilling equipment, other gain (loss) on sale of assets, corporate selling, general and administrative costs, corporate depreciation, corporate acquisition transaction and integration costs, corporate asset impairment charges, and corporate restructuring charges. The Company considers segment operating income (loss) to be an important supplemental measure of operating performance for presenting trends in the Company’s core businesses. This measure is used by the Company to facilitate period-to-period comparisons in operating performance of the Company’s reportable segments in the aggregate by eliminating items that affect comparability between periods. The Company believes that segment operating income (loss) is useful to investors because it provides a means to evaluate the operating performance of the segments and the Company on an ongoing basis using criteria that are used by our internal decision makers. Additionally, it highlights operating trends and aids analytical comparisons. However, segment operating income (loss) has limitations and should not be used as an alternative to operating income or loss, a performance measure determined in accordance with GAAP, as it excludes certain costs that may affect the Company’s operating performance in future periods.

The following table reconciles operating income (loss) per the information above to income (loss) before income taxes as reported on the Unaudited Condensed Consolidated Statements of Operations:

Three Months Ended

Nine Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

(in thousands)

2026

2026

2025

2026

2025

Operating income (loss)

North America Solutions

$

140,312

$

111,334

$

157,649

$

287,855

$

461,803

International Solutions

(54,428

)

(99,612

)

(166,513

)

(209,345

)

(215,980

)

Offshore Solutions

16,800

14,015

8,769

47,252

29,649

Other

1,344

(7,397

)

(70,004

)

(7,276

)

(70,605

)

Eliminations

1,528

(2,507

)

6,114

(1,774

)

(2,247

)

Segment operating income (loss)

105,556

15,833

(63,985

)

116,712

202,620

Gain on involuntary conversion

13,581

—

—

13,581

—

Gain on reimbursement of drilling equipment

6,036

5,943

6,773

18,099

26,149

Other gain (loss) on sale of assets

120,044

1,305

(1,347

)

119,423

(2,136

)

Corporate selling, general and administrative costs, corporate depreciation, corporate acquisition transaction and integration costs, corporate asset impairment charges, and corporate restructuring charges

(57,006

)

(60,001

)

(69,710

)

(176,435

)

(221,853

)

Operating income (loss)

188,211

(36,920

)

(128,269

)

91,380

4,780

Other expense

(37,692

)

(9,643

)

(4,639

)

(71,154

)

(16,821

)

Income (loss) before income taxes

$

150,519

$

(46,563

)

$

(132,908

)

$

20,226

$

(12,041

)

NON-GAAP MEASUREMENTS

NON-GAAP RECONCILIATION OF SELECT ITEMS AND ADJUSTED NET LOSS(**)

Three Months Ended June 30, 2026

(in thousands, except per share data)

Pretax

Tax Impact

Net

EPS

Net income attributable to Helmerich & Payne Inc. (GAAP basis)

$

75,682

$

0.74

(-) Gain related to a real estate asset sale

114,788

26,057

88,731

0.88

(-) Gain related to involuntary conversion

13,581

3,083

10,498

0.10

(-) Changes in actuarial assumptions on estimated liabilities

3,666

832

2,834

0.03

(-) Impairment expense

(1,153

)

—

(1,153

)

(0.01

)

(-) Restructuring charges

(1,362

)

(64

)

(1,298

)

(0.01

)

(-) Acquisition transaction and integration costs

(1,671

)

(378

)

(1,293

)

(0.01

)

(-) Loss on investment security

(16,007

)

(3,250

)

(12,757

)

(0.13

)

Adjusted net loss (Non-GAAP)

$

(9,880

)

$

(0.11

)

Three Months Ended March 31, 2026

(in thousands, except per share data)

Pretax

Tax Impact

Net

EPS

Net loss attributable to Helmerich & Payne Inc. (GAAP basis)

$

(58,609

)

$

(0.59

)

(-) Gain on investment security

14,391

3,267

11,124

0.11

(-) International asset abandonment

(1,000

)

—

(1,000

)

(0.01

)

(-) Acquisition transaction and integration costs

(2,738

)

(300

)

(2,438

)

(0.02

)

(-) Restructuring charges

(2,882

)

(256

)

(2,626

)

(0.03

)

(-) Changes in actuarial assumptions on estimated liabilities

(3,669

)

(834

)

(2,835

)

(0.03

)

(-) Impairment expense

(26,101

)

(3,498

)

(22,603

)

(0.23

)

Adjusted net loss (Non-GAAP)

$

(38,231

)

$

(0.38

)

NON-GAAP RECONCILIATION OF DIRECT MARGIN

Direct margin is considered a non-GAAP metric. We define "direct margin" as operating revenues less direct operating expenses. Direct margin is included as a supplemental disclosure because we believe it is useful in assessing and understanding our current operational performance, especially in making comparisons over time. Direct margin is not a substitute for financial measures prepared in accordance with GAAP and should therefore be considered only as supplemental to such GAAP financial measures.

The following table reconciles direct margin to segment operating income (loss), which we believe is the financial measure calculated and presented in accordance with GAAP that is most directly comparable to direct margin.

Three Months Ended

Nine Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

(in thousands)

2026

2026

2025

2026

2025

NORTH AMERICA SOLUTIONS

Segment operating income

$

140,312

$

111,334

$

157,649

$

287,855

$

461,803

Add back:

Depreciation and amortization

83,214

82,955

88,078

250,413

263,565

Research and development

6,015

7,115

7,617

19,538

26,560

Selling, general and administrative expense

11,282

13,401

10,972

38,705

42,266

Acquisition transaction and integration costs

—

—

7

—

41

Asset impairment charge

—

—

—

97,922

1,507

Restructuring charges

393

402

1,849

795

1,849

Direct margin (Non-GAAP)

$

241,216

$

215,207

$

266,172

$

695,228

$

797,591

INTERNATIONAL SOLUTIONS

Segment operating loss

$

(54,428

)

$

(99,612

)

$

(166,513

)

$

(209,345

)

$

(215,980

)

Add back:

Depreciation and amortization

74,547

79,257

66,734

231,925

128,715

Selling, general and administrative expense

9,097

4,249

5,014

17,491

12,268

Acquisition transaction and integration costs

186

1,198

141

1,820

351

Asset impairment charge

1,153

26,101

128,352

27,254

128,352

Restructuring charges

498

302

380

2,118

380

Direct margin (Non-GAAP)

$

31,053

$

11,495

$

34,108

$

71,263

$

54,086

OFFSHORE SOLUTIONS

Segment operating income

$

16,800

$

14,015

$

8,769

$

47,252

$

29,649

Add back:

Depreciation and amortization

11,023

9,862

12,681

31,705

22,438

Selling, general and administrative expense

1,337

2,654

1,294

5,035

3,322

Acquisition transaction and integration costs

—

352

—

925

60

Asset impairment charges

—

—

—

2,128

—

Restructuring charges

58

—

29

58

29

Direct margin (Non-GAAP)

$

29,218

$

26,883

$

22,773

$

87,103

$

55,498

NON-GAAP RECONCILIATION OF ADJUSTED EBITDA

Adjusted EBITDA and 'Select Items' are considered to be non-GAAP metrics. Adjusted EBITDA is defined as net income (loss) before taxes, depreciation and amortization, gains and losses on asset sales, other income and expense - which includes interest income and interest expense, and excludes the impact of 'select items' which management defines as certain items that do not reflect the ongoing performance of our core business operations. These metrics are included as supplemental disclosures as management uses them to assess and understand current operational performance, especially in analyzing historical trends which are used in forecasting future period results. For this reason, we believe this measure will be useful information to investors. The presence of non-GAAP metrics is not intended to suggest that such measures should be considered as a substitute for certain GAAP metrics and, given that not all companies define Adjusted EBITDA the same way, this financial measure may not be comparable to similarly titled metrics disclosed by other companies.

The following table reconciles Adjusted EBITDA to net income (loss), which we believe is the financial measure calculated and presented in accordance with GAAP that is most directly comparable to Adjusted EBITDA.

Three Months Ended

Nine Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

(in thousands)

2026

2026

2025

2026

2025

Net income (loss)

$

78,157

$

(55,861

)

$

(161,899

)

$

(72,635

)

$

(104,141

)

Add back:

Income tax expense

72,362

9,298

28,991

92,861

92,100

Other expense

37,692

9,643

4,639

71,154

16,821

Depreciation and amortization

180,960

180,734

179,491

543,613

436,228

Acquisition transaction and integration costs

1,671

2,738

8,623

7,814

49,025

Asset impairment charges

1,153

26,101

173,258

130,340

175,102

Restructuring charges

1,362

2,882

4,681

5,835

4,681

Gain on involuntary conversion

(13,581

)

—

—

(13,581

)

—

Other (gain) loss on sale of assets

(120,044

)

(1,305

)

1,347

(119,423

)

2,136

Excluding Select Items (Non-GAAP)

Change in actuarial assumptions on estimated liabilities

(3,666

)

3,669

28,932

(1,604

)

39,789

Gains related to an insurance claim

—

—

—

—

(2,366

)

Adjusted EBITDA (Non-GAAP)

$

236,066

$

177,899

$

268,063

$

644,374

$

709,375

More News From Helmerich & Payne, Inc.

Posted by Defense World Staff on Jul 30th, 2026

Helmerich & Payne, Inc. (NYSE:HP – Get Free Report) has received a consensus recommendation of “Hold” from the twelve research firms that are presently covering the stock, Marketbeat Ratings reports. Two investment analysts have rated the stock with a sell rating, five have given a hold rating and five have assigned a buy rating to the company. The average 1 year price target among analysts that have covered the stock in the last year is $39.80.

Several research firms have recently commented on HP. Morgan Stanley restated an “underweight” rating and issued a $36.00 target price on shares of Helmerich & Payne in a research note on Wednesday, July 15th. Susquehanna dropped their price target on shares of Helmerich & Payne from $43.00 to $40.00 and set a “positive” rating on the stock in a research note on Wednesday, July 8th. Barclays increased their price target on shares of Helmerich & Payne from $39.00 to $47.00 and gave the stock an “overweight” rating in a report on Friday, May 8th. Piper Sandler raised their price objective on shares of Helmerich & Payne from $41.00 to $43.00 and gave the company an “overweight” rating in a research report on Monday, May 18th. Finally, Citigroup dropped their target price on Helmerich & Payne from $38.00 to $36.00 and set a “neutral” rating on the stock in a research report on Monday, June 29th.

Check Out Our Latest Analysis on HP

Institutional Inflows and Outflows A number of institutional investors and hedge funds have recently bought and sold shares of the business. Royal Bank of Canada lifted its holdings in Helmerich & Payne by 4.4% in the first quarter. Royal Bank of Canada now owns 104,180 shares of the oil and gas company’s stock valued at $2,721,000 after acquiring an additional 4,394 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Helmerich & Payne by 6.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 58,630 shares of the oil and gas company’s stock worth $1,531,000 after purchasing an additional 3,611 shares during the period. NewEdge Advisors LLC grew its stake in shares of Helmerich & Payne by 39,685.1% during the 1st quarter. NewEdge Advisors LLC now owns 34,613 shares of the oil and gas company’s stock worth $904,000 after purchasing an additional 34,526 shares during the period. Empowered Funds LLC increased its holdings in shares of Helmerich & Payne by 9.9% in the 1st quarter. Empowered Funds LLC now owns 9,459 shares of the oil and gas company’s stock valued at $247,000 after purchasing an additional 852 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of Helmerich & Payne by 34.5% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 213,445 shares of the oil and gas company’s stock valued at $5,575,000 after purchasing an additional 54,758 shares in the last quarter. Institutional investors and hedge funds own 96.05% of the company’s stock.

Helmerich & Payne Trading Up 1.1% NYSE:HP opened at $33.46 on Monday. Helmerich & Payne has a 12-month low of $15.17 and a 12-month high of $41.82. The company has a current ratio of 1.71, a quick ratio of 1.32 and a debt-to-equity ratio of 0.71. The stock’s 50 day simple moving average is $35.55 and its 200-day simple moving average is $35.48. The firm has a market cap of $3.34 billion, a P/E ratio of -8.83 and a beta of 0.60.

Helmerich & Payne (NYSE:HP – Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The oil and gas company reported ($0.38) earnings per share for the quarter, missing the consensus estimate of ($0.06) by ($0.32). Helmerich & Payne had a negative return on equity of 1.16% and a negative net margin of 9.38%.The company had revenue of $932.36 million for the quarter, compared to analyst estimates of $945.60 million. During the same period in the prior year, the business earned $0.01 earnings per share. Helmerich & Payne’s revenue for the quarter was down 8.2% compared to the same quarter last year. Equities analysts anticipate that Helmerich & Payne will post -0.11 EPS for the current year.

Helmerich & Payne Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Tuesday, August 18th will be issued a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 3.0%. The ex-dividend date of this dividend is Tuesday, August 18th. Helmerich & Payne’s dividend payout ratio (DPR) is currently -26.39%.

Helmerich & Payne Company Profile (Get Free Report)

Helmerich & Payne, Inc is a leading provider of contract drilling services to the oil and gas industry, specializing primarily in onshore drilling operations. The company designs, engineers and operates a fleet of advanced drilling rigs, including its proprietary FlexRigs, which are engineered for high efficiency, safety and rapid mobilization. Alongside core drilling services, Helmerich & Payne offers well intervention, workover and coiled tubing services, positioning itself as a comprehensive drilling solutions partner for exploration and production companies worldwide.

Founded in 1920 and headquartered in Tulsa, Oklahoma, Helmerich & Payne has grown through innovation and strategic expansion to serve diverse hydrocarbon basins.

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TULSA, Okla.--(BUSINESS WIRE)--Helmerich & Payne, Inc. (NYSE: HP) will host a conference call to discuss its fiscal third quarter 2026 results. President and CEO Trey Adams and Senior Vice President and CFO Todd Scruggs will lead the call. The earnings release and accompanying presentation will be available at hpinc.com. Investors can join the call via phone or audio webcast.   What: Helmerich & Payne, Inc.'s Fiscal Third Quarter 2026 Earnings Release. Other material developments may al.

PALO ALTO, Calif., June 16, 2026 (GLOBE NEWSWIRE) -- HP Inc. (NYSE: HPQ) has declared a cash dividend of $0.3000 per share on the company’s common stock.

The dividend, the fourth in HP’s fiscal year 2026, is payable on October 7, 2026, to stockholders of record as of the close of business on September 9, 2026.

About HP Inc.

HP Inc. (NYSE: HPQ) is a global technology leader redefining the Future of Work. Operating in more than 180 countries, HP delivers innovative and AI-powered devices, software, services and subscriptions that drive business growth and professional fulfillment. For more information, please visit: http://www.hp.com.

TULSA, Okla.--(BUSINESS WIRE)--Helmerich & Payne, Inc. (NYSE: HP) will host a conference call on Thursday, May 7, 2026, at 11 a.m. ET to discuss its fiscal second quarter 2026 results. President and CEO Trey Adams and Senior Vice President and CFO Kevin Vann will lead the call. The earnings release and accompanying presentation will be available at hpinc.com. Investors can join the call via phone or audio webcast.   What: Helmerich & Payne, Inc.'s Fiscal Second Quarter 2026 Earnings Rel.

The market expects Helmerich & Payne (HP - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on May 6, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis oil and gas well-drilling contractor is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of -550%.

Revenues are expected to be $946.15 million, down 6.9% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.01% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Helmerich & Payne?For Helmerich & Payne, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +13.33%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Helmerich & Payne will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Helmerich & Payne would post earnings of $0.12 per share when it actually produced a loss of -$0.15, delivering a surprise of -225.00%.

Over the last four quarters, the company has beaten consensus EPS estimates just once.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Helmerich & Payne appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerValaris Limited (VAL - Free Report) , another stock in the Zacks Oil and Gas - Drilling industry, is expected to report loss per share of $0.05 for the quarter ended March 2026. This estimate points to a year-over-year change of +90.6%. Revenues for the quarter are expected to be $437.85 million, down 29.5% from the year-ago quarter.

The consensus EPS estimate for Valaris has been revised 10.9% lower over the last 30 days to the current level. However, an equal Most Accurate Estimate has resulted in an Earnings ESP of 0.00%.

This Earnings ESP, combined with its Zacks Rank #2 (Buy), makes it difficult to conclusively predict that Valaris will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Helmerich & Payne (HP - Free Report) came out with a quarterly loss of $0.38 per share versus the Zacks Consensus Estimate of a loss of $0.06. This compares to earnings of $0.02 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -570.19%. A quarter ago, it was expected that this oil and gas well-drilling contractor would post earnings of $0.12 per share when it actually produced a loss of $0.15, delivering a surprise of -225%.

Over the last four quarters, the company has surpassed consensus EPS estimates just once.

Helmerich & Payne, which belongs to the Zacks Oil and Gas - Drilling industry, posted revenues of $932.36 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 1.46%. This compares to year-ago revenues of $1.02 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Helmerich & Payne shares have added about 44.8% since the beginning of the year versus the S&P 500's gain of 6%.

What's Next for Helmerich & Payne?While Helmerich & Payne has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Helmerich & Payne was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.12 on $974 million in revenues for the coming quarter and $0.11 on $3.92 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Drilling is currently in the top 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Seadrill (SDRL - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 11.

This offshore drilling services provider is expected to post quarterly loss of $0.10 per share in its upcoming report, which represents a year-over-year change of +56.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Seadrill's revenues are expected to be $332 million, down 0.9% from the year-ago quarter.

Helmerich and Payne Inc (NYSE:HP) reported worse-than-expected second-quarter financial results, after the closing bell on Wednesday.

Helmerich & Payne reported quarterly losses of 38 cents per share which missed the analyst consensus estimate of losses of 2 cents per share. The company reported quarterly sales of $932.000 million which missed the analyst consensus estimate of $949.644 million.

Helmerich & Payne shares rose 1.2% to trade at $37.34 on Friday.

These analysts made changes to their price targets on Helmerich & Payne following earnings announcement.

Susquehanna analyst Charles Minervino maintained Helmerich & Payne with a Positive and raised the price target from $42 to $43. Barclays analyst Eddie Kim maintained the stock with an Overweight rating and raised the price target from $39 to $47. Considering buying HP stock? Here’s what analysts think:

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Key Takeaways HP posted a Q2 adjusted loss of 38 cents per share as revenues fell 8.2% year over year.HP's International Solutions unit logged a near $100M operating loss tied to Middle East costs.HP secured a five-year bp offshore Azerbaijan renewal with potential revenues above $1B. Helmerich & Payne, Inc. (HP - Free Report) reported a second-quarter fiscal 2026 adjusted net loss of 38 cents per share, wider than the Zacks Consensus Estimate of an adjusted net loss of 6 cents. Moreover, the bottom line decreased considerably from the year-ago quarter’s reported profit of 2 cents. This was due to a weaker rig activity in North America and international markets, and significantly higher operating costs related to its Middle East operations.

The International Solutions segment posted an operating loss of nearly $100 million as the company incurred additional expenses to reactivate rigs in Saudi Arabia and work around supply-chain disruptions caused by the Middle East conflict. Moreover, the quarter included a $26 million non-cash impairment charge, which further pressured profitability.

Revenues totaled $932 million, missing the consensus mark of $946 million by 1.46%. The top line also declined 8.2% year over year from the prior-year quarter’s level of $1 billion, primarily due to lower revenue contributions from drilling services.

The company returned approximately $25 million to shareholders through its ongoing dividend program during the quarter. Management also noted continued progress in expanding the deployment of FlexRobotics technology to support customer demand.

Q2 Segmental PerformanceNorth America Solutions: Operating revenues of $517.2 million decreased 13.7% year over year.  Moreover, the top line missed our projection of $519.1 million.

The segment averaged 136 active rigs in the quarter and delivered a direct margin of $215.2 million, or $17,628 on a per-day basis, maintaining industry-leading performance.

Segment operating income was $111.3 million, improving sequentially from the prior quarter that included a one-time impairment, but down from $151.9 million in the year-ago period.  However, the reported figure beat our estimate of $93.9 million.

HP highlighted strengthening customer sentiment and meaningful commercial momentum across the U.S. land market, supported by new contracts and extensions across multiple basins.

International Solutions: Operating revenues were $218.3 million, down 11.9% from $247.9 million a year ago. Moreover, the top line missed our projection of $231 million.

The segment recorded an operating loss of approximately $100 million and generated about $11.5 million of direct margin, down from the prior quarter’s level. The operating loss was wider than our projected loss of $85.1 million.

HP attributed the weaker profitability primarily to the impacts of the conflict in the Middle East. During the quarter, the company utilized in-house engineering and aftermarket capabilities to reactivate rigs in Saudi Arabia using in-country equipment and working around supply-chain constraints. While this enhanced returns and avoided customer delays, it also resulted in more costs being classified as operating expenses, pressuring direct margins.

Offshore Solutions: Revenues rose 15% year over year to $171.4 million. However, the top line beat our projection of $152.9 million.

The segment reported operating income of about $14 million and delivered a direct margin of roughly $27 million, down from the prior quarter’s level by 19.3%. Moreover, the figure beat our estimate of $11.4 million.

HP emphasized the strategic value of the offshore portfolio given its long-term contract structure and relative earnings stability. During the quarter, the company secured a five-year renewal with bp in the Caspian Sea, offshore Azerbaijan, with three one-year extension options. If all option periods are exercised, contract revenues could exceed $1 billion.

Financial PositionAs of March 31, 2026, HP had $177.2 million in cash and cash equivalents. Long-term debt totaled $1.9 billion (debt-to-capitalization of 41.4%).

Following the quarter, HP completed the sale of Utica Square in early April, with after-tax proceeds exceeding its previously communicated $100 million divestiture target. The transaction enabled the retirement of the term loan facility ahead of schedule, reducing post-acquisition debt by $400 million and accelerating deleveraging plans.

Q3 & 2026 GuidanceThe company expects steady operational performance in the third quarter of fiscal 2026. Within North America Solutions, direct margins are projected at $230-$240 million, supported by average rig activity of 137-143. International Solutions is expected to operate 58-68 rigs, generating direct margins of $12-$32 million. In Offshore Solutions, management forecasts 30-35 rigs, contributing $24-$28 million in direct margin. Other operations are expected to deliver up to $3 million in direct margin during the quarter.

For fiscal 2026, this Zacks Rank #3 (Hold) company anticipates average rig activity of 138-144 in North America and 58-68 internationally, while offshore operations are expected to contribute $100-$115 million in direct margin with 30-35 rigs under management. Broader financial guidance includes gross capital expenditures of $270-$310 million, depreciation of approximately $700 million, research and development expenses of about $28 million and selling, general and administrative costs of $265-$285 million. Additionally, cash taxes are projected at $125-$150 million, while interest expense is forecasted at roughly $100 million.

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

Important Earnings at a GlanceWhile we have discussed HP’s second-quarter results in detail, let us take a look at three other key reports in this space.

Houston, TX-based oil and gas equipment and services provider, Halliburton Company (HAL - Free Report) , posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.

Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.

Houston, TX-based oil and gas storage and transportation company,Kinder Morgan Inc. (KMI - Free Report) , posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.

As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.

Fort Worth, TX-based oil and gas exploration and production company, Range Resources Corporation (RRC - Free Report) , posted first-quarter 2026 adjusted earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.33. The bottom line also improved from the prior-year level of 96 cents. Strong quarterly results can be attributed to higher gas-equivalent production and increased natural gas price realization.

Drilling and completion expenditure totaled $130 million. An additional $5 million was spent on acreage and $4 million on infrastructure and other investments. At the end of the first quarter, Range Resources reported a total debt of $819.3 million, net of deferred financing costs.

On May 21, 2026, Helmerich & Payne Inc HP shares fell 3.1% today, closing at $39.61. Over the past 52 weeks, the stock has traded as high as $41.82 and as low as $14.65, reflecting significant volatility. The recent price drop contrasts with a year-to-date increase of 40.1% and an impressive 170.2% gain over the past year.

GF Value™ verdict: Current price of $39.61 is 17.3% below GF Value™ of $47.90.GF Score™: 72/100, indicating above-average performance potential.Most notable signal: Insiders sold $3.3M in stock over the last three months, with no buying activity reported. Is HP Overvalued or Undervalued? Currently, Helmerich & Payne Inc is trading at $39.61, which is 17.3% below its GF Value™ of $47.90. This suggests that the stock may be undervalued, providing a potential margin of safety for investors. The GF Valuation label categorizes HP as "Modestly Undervalued," indicating a favorable investment opportunity, albeit with caveats. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

While the undervaluation suggests an opportunity, it is essential to consider the broader market conditions and potential risks associated with the oil and gas industry. Factors such as fluctuating oil prices, regulatory changes, and geopolitical risks can significantly impact HP's performance. Investors should weigh these considerations against the current price to make informed decisions.

How Does HP's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 155.9x 10.3x Helmerich & Payne's current P/E ratio of 155.9x is significantly above its 5-year median P/E of 10.3x. This stark contrast indicates that the stock is trading well above its historical valuation levels. This analysis aligns with the GF Value™ verdict, suggesting that while the stock may be undervalued based on intrinsic value, it is trading at a high multiple compared to its historical earnings, warranting caution.

What Does HP's GF Score™ Tell Us? Metric Rating GF Score™ 72 Financial Strength 4/10 Profitability 5/10 Growth 7/10 Valuation 10/10 Momentum 3/10 The GF Score™ of 72/100 indicates that Helmerich & Payne has above-average potential for long-term returns. The strongest area is the Valuation rank at 10/10, highlighting that the stock may be attractively priced relative to its intrinsic value. Conversely, the weakest area is Momentum at 3/10, suggesting that recent price performance has not been strong. Financial Strength and Profitability scores of 4/10 and 5/10, respectively, indicate that while there is room for improvement, the company's fundamentals are not exceptionally robust at this time.

What Are Insiders Doing with HP Stock? In recent months, insider activity has shown a trend of selling, with insiders offloading $3.3 million worth of shares without any reported buying. This pattern can be interpreted as a lack of confidence from insiders regarding the company's short-term prospects. While insider selling does not necessarily indicate negative performance, it is a noteworthy signal that potential investors may want to consider when evaluating the stock.

What This Means for Investors Based on the GF Value™ assessment, Helmerich & Payne Inc appears to be undervalued at its current price of $39.61. However, potential investors should exercise caution due to the high P/E ratio compared to historical levels and the recent insider selling activity.

For the complete analysis, visit the Helmerich & Payne Inc HP stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is HP's GF Score™?

HP has a GF Score™ of 72/100, indicating above-average performance potential based on key financial metrics.

Is HP overvalued or undervalued?

HP is considered undervalued according to GF Value™, trading at 17.3% below its intrinsic value.

What is HP's P/E ratio?

HP's current P/E ratio is 155.9x, significantly higher than its historical 5-year median of 10.3x, suggesting it is trading at a premium relative to its past earnings.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

The Zacks Oil and Gas - Drilling industry appears to be entering a more constructive phase. While producers are still cautious with capital spending, the broader demand picture is improving. Tight oil supply, geopolitical uncertainty and rising energy-security needs could support future drilling plans. Natural gas adds another layer of opportunity, as LNG exports, new power demand and AI-related electricity use point to steady long-term growth. The industry is also benefiting from a shift toward better equipment. Longer laterals, deeper wells and complex drilling programs require advanced rigs, automation and digital tools. That gives well-equipped contractors a stronger pricing opportunity when customer activity picks up. The group’s solid Zacks Industry Rank and sharp outperformance over the past year add to the positive case. The recovery may be gradual, but the outlook is clearly brighter. In this improving setup, Patterson-UTI Energy (PTEN - Free Report) , Helmerich & Payne (HP - Free Report) and Nabors Industries (NBR - Free Report) stand out as attractive drilling names to watch.

Industry Overview The Zacks Oil and Gas - Drilling industry consists of companies that provide rigs (or specialized vehicles) on a contractual basis to explore and develop oil and gas. These operators offer drilling rigs (both land-based/onshore and offshore), equipment, services and workforce to exploration and production companies worldwide. Drilling for hydrocarbons is costly and technically difficult, and its future primarily depends on contracting activity and the total number of available rigs at a given time rather than the price of oil or gas. Within the industry, it's interesting to note that the volatility associated with offshore drilling companies is much higher than that of their onshore counterparts, and their share prices are more correlated to the price of oil. Overall, oil and gas drilling stocks are among the most volatile in the entire equity market.

4 Trends Defining the Oil and Gas - Drilling Industry's Future Oil Supply Tightness Can Lift Drilling Demand:Oil and gas drilling activity could improve if global supply stays tight. Recent Middle East disruptions have made energy security a bigger concern and could keep oil markets supported. When producers worry about future supply, they often need more wells to maintain or grow output. U.S. shale may benefit because it can respond faster than many global projects. That said, activity may not jump overnight. Customers usually wait for clearer price signals before changing budgets, but the setup is becoming more supportive for drilling demand.

Natural Gas Has a Stronger Long-Term Growth Story:Natural gas is becoming a key demand driver for drillers. LNG exports, new export facilities and rising electricity needs from data centers and AI are all adding to the long-term call on gas. Investors should know that gas wells still need rigs, crews and related drilling services. International gas development, especially in regions like the Middle East and Latin America, also supports activity. In simple terms, if the world needs more gas for power and exports, the drilling industry gets another growth path beyond oil.

Better Rigs and Automation Can Support Higher Pricing:The industry is no longer just about adding more rigs. Operators are drilling deeper wells and longer laterals, which require stronger, more advanced equipment. That favors high-spec rigs, automation and digital tools that can improve safety, speed and well performance. Since the supply of top-tier rigs is limited, drilling contractors may have more room to push pricing higher when demand improves. This is important for investors because better pricing, tied to better technology, can help margins recover even without a huge jump in overall rig counts.

Customer Caution Can Delay the Recovery:The biggest near-term risk is that producers remain careful with spending. Even with higher oil prices, many operators are not rushing to add rigs because price volatility makes planning harder. Public exploration and production companies are especially focused on capital discipline, returns and sticking to budgets. At the same time, the Middle East conflict has added logistics, crew rotation and supply-chain costs for the industry. So, while the backdrop is improving, the recovery may be gradual rather than sharp. For drillers, that means timing remains uncertain.

Zacks Industry Rank Indicates Positive Outlook The Zacks Oil and Gas - Drilling industry is a nine-stock group within the broader Zacks Oil - Energy sector. It currently carries a Zacks Industry Rank #70, which places it in the top 29% of 245 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates fairly strong near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.

Considering the encouraging dynamics of the industry, we will present a few stocks that you may want to consider for your portfolio. But it’s worth taking a look at the industry’s shareholder returns and current valuation first.

Industry Outperforms Sector & S&P 500 The Zacks Oil and Gas - Drilling industry has fared better than the broader Zacks Oil – Energy sector as well as the Zacks S&P 500 composite over the past year.

The industry has gone up 117.8% over this period compared with the broader sector’s increase of 42% and the S&P 500’s gain of 30.3%.

One-Year Price Performance

Industry's Current Valuation Since oil and gas drilling companies are debt-laden, it makes sense to value them based on the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) ratio. This is because the valuation metric takes into account not only equity but also the level of debt. For capital-intensive companies, EV/EBITDA is a better valuation metric because it is not influenced by changing capital structures and ignores the effect of non-cash expenses.

On the basis of the trailing 12-month enterprise value-to-EBITDA (EV/EBITDA), the industry is currently trading at 14.35X, lower than the S&P 500’s 18.65X. It is, however, above the sector’s trailing 12-month EV/EBITDA of 7.03X.

Over the past five years, the industry has traded as high as 24.81X, as low as 4.16X, with a median of 13.75X, as the chart below shows.

Trailing 12-Month Enterprise Value-to-EBITDA (EV/EBITDA) Ratio (Past Five Years)

3 Oil and Gas - Drilling Stocks to Watch Patterson-UTI Energy: Patterson-UTI is an integrated oilfield services company focused on drilling, completion and drilling products markets. Its platform combines contract drilling, hydraulic fracturing, wireline, cementing, natural gas fueling, directional services and drill bits, supported by digital tools that help improve wellsite efficiency. The Zacks Rank #2 (Buy) company operates 137 Tier-1 super-spec rigs and 2.7 million hydraulic horsepower of completion capacity.

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

With cash flow spread across drilling services, completion services and drilling products, Patterson-UTI positions itself as a balanced leader in U.S. shale. It is investing in upgraded rigs, natural gas-powered fleets and data-driven operations while maintaining a strong balance sheet and an investment-grade credit profile. The company also emphasizes shareholder returns and long-term sustainability.

Patterson-UTI has a market capitalization of $4.7 billion. Over the past 60 days, the Zacks Consensus Estimate for the firm’s 2026 earnings has moved up 40.6%. PTEN stock has surged 116% in a year.

Price and Consensus: PTEN

Nabors Industries: It is a global provider of advanced drilling technology and services, operating in more than 20 countries. Nabors combines drilling operations, rig equipment and digital solutions to improve performance, safety and efficiency. Its vertically integrated model allows it to design automated rig technologies and deliver specialized services directly through its fleet. Nabors is a leading provider of high-specification rigs in the United States and deploys fit-for-purpose rigs across key international markets.

The Zacks #2 Ranked company is also focused on innovation, sustainability and reducing debt. Nabors’ recent moves include acquiring Parker Wellbore, divesting Quail Tools and refinancing debt to extend maturities. These steps strengthen its balance sheet while supporting long-term growth and energy transition goals.

Nabors has a market capitalization of $1.6 billion. The Zacks Consensus Estimate for 2026 earnings for the firm indicates 71.2% growth. NBR stock has gained 304% in a year.

Price and Consensus: NBR

Helmerich & Payne: Helmerich & Payne is a global drilling solutions company focused on onshore, offshore and international markets. It operates more than 200 land rigs, with a broad geographic reach and portfolio flexibility to serve rising drilling activity. The Zacks Rank #3 (Hold) company is also a technology leader, running advanced onshore rigs and expanding customer-led FlexRobotics deployments.

In fiscal second-quarter 2026, HP delivered resilient results in a changing energy market, supported by North America performance, offshore execution and steady international operations. It is also sharpening its portfolio, reducing debt and keeping capital spending disciplined. With $1.1 billion in liquidity and a long dividend record, Helmerich & Payne remains focused on long-term shareholder value.

The firm has a market capitalization of $4 billion. The Zacks Consensus Estimate for fiscal 2026 revenues for Helmerich & Payne indicates 5.1% growth. HP stock has surged 164.8% in a year.

Price and Consensus: HP

A month has gone by since the last earnings report for Helmerich & Payne (HP - Free Report) . Shares have added about 7.3% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Helmerich & Payne due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Helmerich & Payne, Inc. before we dive into how investors and analysts have reacted as of late.

Helmerich & Payne Q2 Earnings & Revenues Miss EstimatesHelmerich & Payne reported a second-quarter fiscal 2026 adjusted net loss of 38 cents per share, wider than the Zacks Consensus Estimate of an adjusted net loss of 6 cents. Moreover, the bottom line decreased considerably from the year-ago quarter’s reported profit of 2 cents. This was due to a weaker rig activity in North America and international markets, and significantly higher operating costs related to its Middle East operations.

The International Solutions segment posted an operating loss of nearly $100 million as the company incurred additional expenses to reactivate rigs in Saudi Arabia and work around supply-chain disruptions caused by the Middle East conflict. Moreover, the quarter included a $26 million non-cash impairment charge, which further pressured profitability.

Revenues totaled $932 million, missing the consensus mark of $946 million by 1.46%. The top line also declined 8.2% year over year from the prior-year quarter’s level of $1 billion, primarily due to lower revenue contributions from drilling services.

The company returned approximately $25 million to shareholders through its ongoing dividend program during the quarter. Management also noted continued progress in expanding the deployment of FlexRobotics technology to support customer demand.

Q2 Segmental PerformanceNorth America Solutions: Operating revenues of $517.2 million decreased 13.7% year over year.  Moreover, the top line missed our projection of $519.1 million.

The segment averaged 136 active rigs in the quarter and delivered a direct margin of $215.2 million, or $17,628 on a per-day basis, maintaining industry-leading performance.

Segment operating income was $111.3 million, improving sequentially from the prior quarter that included a one-time impairment, but down from $151.9 million in the year-ago period.  However, the reported figure beat our estimate of $93.9 million.

HP highlighted strengthening customer sentiment and meaningful commercial momentum across the U.S. land market, supported by new contracts and extensions across multiple basins.

International Solutions: Operating revenues were $218.3 million, down 11.9% from $247.9 million a year ago. Moreover, the top line missed our projection of $231 million.

The segment recorded an operating loss of approximately $100 million and generated about $11.5 million of direct margin, down from the prior quarter’s level. The operating loss was wider than our projected loss of $85.1 million.

HP attributed the weaker profitability primarily to the impacts of the conflict in the Middle East. During the quarter, the company utilized in-house engineering and aftermarket capabilities to reactivate rigs in Saudi Arabia using in-country equipment and working around supply-chain constraints. While this enhanced returns and avoided customer delays, it also resulted in more costs being classified as operating expenses, pressuring direct margins.

Offshore Solutions: Revenues rose 15% year over year to $171.4 million. However, the top line beat our projection of $152.9 million.

The segment reported operating income of about $14 million and delivered a direct margin of roughly $27 million, down from the prior quarter’s level by 19.3%. Moreover, the figure beat our estimate of $11.4 million.

HP emphasized the strategic value of the offshore portfolio given its long-term contract structure and relative earnings stability. During the quarter, the company secured a five-year renewal with bp in the Caspian Sea, offshore Azerbaijan, with three one-year extension options. If all option periods are exercised, contract revenues could exceed $1 billion.

Financial PositionAs of March 31, 2026, HP had $177.2 million in cash and cash equivalents. Long-term debt totaled $1.9 billion (debt-to-capitalization of 41.4%).

Following the quarter, HP completed the sale of Utica Square in early April, with after-tax proceeds exceeding its previously communicated $100 million divestiture target. The transaction enabled the retirement of the term loan facility ahead of schedule, reducing post-acquisition debt by $400 million and accelerating deleveraging plans.

How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.

The consensus estimate has shifted 45.12% due to these changes.

VGM ScoresAt this time, Helmerich & Payne has a subpar Growth Score of D, a score with the same score on the momentum front. However, the stock was allocated a score of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Helmerich & Payne has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerHelmerich & Payne belongs to the Zacks Oil and Gas - Drilling industry. Another stock from the same industry, Patterson-UTI (PTEN - Free Report) , has gained 7.5% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

Patterson-UTI reported revenues of $1.12 billion in the last reported quarter, representing a year-over-year change of -12.7%. EPS of -$0.06 for the same period compares with $0.00 a year ago.

For the current quarter, Patterson-UTI is expected to post a loss of $0.05 per share, indicating a change of +16.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +20% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Patterson-UTI. Also, the stock has a VGM Score of B.