Halliburton Surges on Strong Q4 Earnings, International Growth
The oilfield services giant topped revenue and profit estimates, driven by a robust 7% increase in overseas activity that offset a slowdown in North America.
Halliburton Co. (NYSE: HAL) shares rose in pre-market trading after the company reported fourth-quarter earnings and revenue that surpassed analyst expectations, fueled by a surge in international drilling and exploration activity.
The Houston-based oilfield services leader announced an adjusted net income of $655 million, or $0.70 per diluted share, a significant beat of the consensus estimate of $0.496. Revenue for the quarter came in at $5.7 billion, according to a company press release, comfortably ahead of the $5.39 billion anticipated by Wall Street.
The results highlight a strategic divergence in the global energy market. Halliburton’s international revenue grew 7% sequentially, while its North American revenue declined by the same percentage. This shift reflects the maturation of U.S. shale basins compared to the initiation of new, large-scale projects across Latin America, the Middle East, and Asia.
“Our strong performance in 2025 and our positive outlook for the year ahead are exciting,” stated CEO Jeff Miller. He noted that the company's international business delivered its best-ever fourth-quarter performance, a trend he expects to continue. “I am confident in Halliburton's ability to generate significant free cash flow, and deliver industry-leading returns for our shareholders.”
In a sign of that confidence, Halliburton returned $250 million to shareholders through stock repurchases during the fourth quarter.
The strong performance comes amid a complex backdrop for the energy industry. While the broader oil and gas sector saw a slight contraction in 2025, the oilfield services market is projected to grow from $203 billion in 2025 to over $265 billion by 2030. Halliburton's results suggest it is well-positioned to capture a significant share of this expansion.
Analysts have reacted positively to the report and the company's outlook. Ahead of the announcement, firms like TD Cowen reiterated a "Buy" rating on Halliburton, with an average analyst price target hovering around $32.80. The company's focus on technological innovation and its strong foothold in burgeoning international markets are seen as key differentiators.
The company’s Drilling and Evaluation division saw revenue increase 3% sequentially, while the Completion and Production division experienced a modest 1% dip, largely due to the North American slowdown and lower stimulation activity.
Looking ahead, Halliburton anticipates continued strength in its international operations, which Miller described as a multi-year growth cycle. This outlook provides a buffer against potential softness in North America and volatility in commodity prices, with some forecasts, like one from analytics firm Enverus, projecting Brent crude oil to average around $55 per barrel in 2026. Management's commentary suggests a strategy built to deliver profitability even in a moderate price environment.
With nearly 91% of its shares held by institutions, investors will be closely watching if the continued international expansion can drive sustained earnings growth and shareholder returns throughout the coming year.