Financial Health Snapshot
What do Halliburton Company's latest financial numbers show about financial health?
Mixed. The strongest factor is margin and cash generation, while the main concern is the debt load and North American revenue pressure.
For Q1 2026, the verdict blends growth, profitability, cash generation, balance-sheet capacity, and capital efficiency. Halliburton Company’s latest quarter also sits alongside Halliburton Company (HAL): History, Ownership, Mission, How It Works & Makes Money, which helps frame why drilling activity and regional revenue trends matter.
Operating margin deserves deeper analysis first because it best shows whether Halliburton Company can turn revenue into durable earnings.
Revenue and Earnings Quality
Did Halliburton's Revenue Convert Into Durable Earnings?
Mixed. Halliburton showed positive earnings conversion in FY2025 and Q1 2026, but durability is less clear because North American revenue fell while international revenue carried the balance.
Growth was present, but quality varied by period and region. Investors compare revenue durability with operating income, net income, and EPS across compatible annual periods to see whether sales turn into real profit, not just top-line volume. That is especially important in cyclical oilfield services.
| Measure | Latest Period | Previous Period | Quality Test | Investor Meaning |
|---|---|---|---|---|
| Revenue | $2384B in FY2025 | Prior comparable revenue not provided | Organic mix was unclear, but FY2025 revenue was supported by Completion and Production Revenue of $345B and Drilling and Evaluation Revenue of $247B. | The mix suggests broad service demand, but repeatability is harder to judge without a full prior-year comparison. |
| Operating Income | $421B in FY2025 | Prior comparable operating income not provided | Positive operating income confirms revenue was not just volume without profit. | Operating profit supports earnings quality, even though the period-by-period trend cannot be fully measured here. |
| Net Income | $272B in FY2025 | Prior comparable net income not provided | Net income was positive, and Q1 2026 Net Income of $638M also remained positive, though FMP 2026-03-31 Net Income Growth of -2173% signals weaker period-based momentum. | Positive final earnings confirm conversion, but the recent growth signal warns investors not to assume steady acceleration. |
| Diluted EPS | $304 in FY2025 | Prior comparable diluted EPS not provided | Q1 2026 Adjusted Diluted EPS of $078 stayed positive, but FMP 2026-03-31 EPS Diluted Growth of -2143% points to pressure on per-share results. | Shareholders still received earnings, yet per-share momentum looks uneven. |
How durable is Halliburton's revenue?
The strongest durability signal is international demand, especially Middle East/Asia Revenue of $148B, Latin America Revenue of $102B, and Europe/Africa Revenue of $910M. The biggest limitation is concentration in North America, where revenue of $251B was down 320% year-over-year because of lower U.S. Permian Basin rig counts.
- Demand Quality: Revenue visibility is better outside North America, where regional demand appears more stable, while U.S. activity is more cyclical.
- Pricing and Volume: The split between price, volume, and mix was not fully provided, so the durability test is incomplete.
- Diversification: Halliburton has geographic spread across North America, international markets, and service lines, but North America still matters a lot.
That mix of earnings and cash conversion is what makes profitability and cash flow the next test. For a deeper academic layout, a Halliburton Company (HAL): History, Ownership, Mission, How It Works & Makes Money profile can be paired with a SWOT Analysis, Porter Five Forces Analysis, or DCF valuation model.
Profitability and Cash Flow
Is Halliburton Company turning profit into cash?
Halliburton Company’s Q1 2026 operating margin was 1824%, while net income of $638M translated into cash from operations of $612M and free cash flow of $241M. That is close enough to show real cash support, but weaker cash-flow growth signals timing effects and capex pressure.
Gross margin and net margin were not supplied, so the cleanest read is through operating margin, net income, operating cash flow, and free cash flow. For background on the company’s direction, see Mission Statement, Vision, & Core Values (2026) of Halliburton Company (HAL). The gap between earnings and cash still needs watching because service mix, North American softness, international activity, and working capital timing can all affect conversion.
| Measure | Latest Period | Previous Period | Verified Driver | Investor Meaning |
|---|---|---|---|---|
| Gross Margin | Unavailable in supplied data. | Unavailable in supplied data. | FMP 2026-03-31 Gross Profit Growth of -1505% signals pressure, but no verified gross margin ratio was provided. | Product and service economics cannot be measured directly from the supplied figures. |
| Operating Margin | 1824% in Q1 2026. | Unavailable in supplied data. | FMP 2026-03-31 Operating Income Growth of -898% and EBITgrowth of -1945% point to operating pressure. | Scale and mix did not fully offset margin pressure in the quarter. |
| Net Margin | Unavailable in supplied data. | Unavailable in supplied data. | 2025 Effective Tax Rate was 2180%, which matters for net income, but no net margin ratio was supplied. | Final profitability cannot be verified from margin data alone. |
| Operating Cash Flow | $612M in Q1 2026. | Unavailable in supplied data. | Cash from operations stayed close to net income, so working capital and other timing items likely mattered. | Reported earnings were supported by operating cash, though not perfectly one-for-one. |
| Free Cash Flow | $241M in Q1 2026. | Unavailable in supplied data. | FMP 2026-03-31 Free Cash Flow Growth of -9022% warns that period definitions and capex timing matter; FY2025 Free Cash Flow was $241B as an annual reference. | After capital spending, cash available for reinvestment and financing was positive but more constrained. |
What most affects Halliburton Company’s cash conversion?
Working-capital timing appears to be the strongest visible driver, with operating cash flow close to net income but free cash flow lower after capital spending and period-specific cash timing effects.
- Main Driver: Working-capital timing and capex look like the main pressure point; that seems partly structural in a project-based services business.
- Evidence Gap: The supplied data does not break out receivables, inventory, or payables changes.
- Metric to Monitor: Watch operating cash flow margin and quarterly free cash flow.
Funding Capacity
Can Halliburton Company’s balance sheet support its obligations and investment needs?
Mixed. Halliburton Company has a large cash buffer, but its debt load and refinancing exposure still matter. The main protection is $214B in cash and equivalents; the main concern is $762B in long-term debt and the cost of refinancing if rates stay high.
Cash helps, but it does not answer everything. Halliburton Company’s ability to meet obligations depends on working capital, asset quality, debt service, solvency, liquidity, and refinancing access together, not just cash alone. That matters more for a capital-intensive business facing funding pressure from sustained high interest rates on junior E&P customers.
| Area | Latest Evidence | Assessment | Investor Meaning |
|---|---|---|---|
| Cash and Working Capital | $214B cash and equivalents; FMP 2026-03-31 Receivables Growth of 516%; Inventory Growth of 144%. | Mixed | Cash supports near-term needs, but fast receivables and inventory growth deserve monitoring because they can tie up funds. |
| Total and Net Debt | $762B long-term debt; implied net debt of $548B using cash less debt; FMP 2026-03-31 Debt Growth of -064%. | Mixed | Leverage is still meaningful, even with the debt decline signal, so flexibility is not unlimited. |
| Debt Service and Refinancing | Debt service, maturities, and interest-rate detail are not fully verified in the supplied data; sustained high U.S. rates can raise funding pressure. | Mixed | Halliburton Company may cover obligations, but refinancing risk stays relevant if borrowing costs remain elevated. |
| Asset Quality | FMP 2026-03-31 Asset Growth of 053%; Book Valueper Share Growth of 329%. | Mixed | The asset base is growing, but investors should watch whether that growth stays efficient and collectible. |
| Liabilities and Equity | Latest verified total liabilities and shareholders' equity were not supplied in the prompt. | Mixed | Without the full liability and equity picture, it is harder to judge how much loss-absorption capacity exists. |
What balance-sheet risk matters most for Halliburton Company?
Refinancing risk matters most, followed by leverage. The cash position helps, but high debt and missing maturity and rate data limit confidence in how easily Halliburton Company can fund obligations if borrowing costs rise.
- Current Exposure: $762B long-term debt against $214B cash and equivalents leaves implied net debt of $548B.
- Protection: $214B cash and equivalents is the clearest liquidity buffer.
- Warning Signal: Watch whether receivables and inventory keep rising faster than the business can convert them into cash.
Capital Efficiency
Is Halliburton Company using capital efficiently while still funding growth?
Halliburton Company looks Mixed on capital efficiency, and internal cash appears only partly sufficient for reinvestment needs. It returned capital through a $0.17 quarterly dividend payable June 24, 2026 and $250M in Q1 2026 buybacks, but cash generation is tighter than annual payouts suggest.
Return measures need to be read with leverage, asset intensity, capital expenditure, working capital swings, and any outside funding. Halliburton Company’s latest cash figures matter because the company says it targets returning at least 50% of free cash flow to shareholders annually, while still funding tools, software, and field equipment. For background on the business model, see Halliburton Company (HAL): History, Ownership, Mission, How It Works & Makes Money.
| Capital Measure | Latest Evidence | Quality Test | Investor Meaning |
|---|---|---|---|
| ROIC | Unavailable in the supplied data. | Halliburton Company’s operating mix and cost discipline matter more than a missing ratio here. | Investors cannot verify whether invested capital is clearly creating operating value from the provided figures alone. |
| ROE and ROA | Unavailable in the supplied data. | Any ROE would be helped by leverage, while ROA would be pressured by asset intensity. | Shareholder return quality and asset efficiency cannot be confirmed without the missing ratios. |
| Maintenance and Growth Investment | 2.15% of annual revenue for R&D focus on automation and low-carbon tools, plus a $145M boutique AI acquisition and an $82M sale of non-core onshore assets. | The spending mix looks aimed at efficiency, software, and portfolio reshaping rather than heavy asset expansion alone. | Reinvestment appears targeted at improving utilization, reducing costs, and supporting future cash generation. |
| Internal Funding Capacity | Cash Flow from Operations of $612M and Free Cash Flow of $241M in the latest quarter; FY2025 Free Cash Flow of $241B as the annual reference. | Share repurchases, dividends, and reinvestment are partly supported by internal cash, but not with wide excess. | Capital returns are being funded mainly from operations, though flexibility depends on sustained cash conversion. |
Are Halliburton Company’s returns on capital sustainable?
Sustainability looks tied to operating cash conversion, with the strongest support coming from fee-based services, automation, and digital tools. Returns weaken if buybacks, dividends, or growth spending outrun Free Cash Flow and working capital stays tight.
- Operating Source: Pricing, utilization, and mix from Zeus, Landmark software, iStar, DS365, Octiv, and e-frac support cash generation.
- Funding Requirement: The largest verified need is shareholder returns plus selective reinvestment, including the $250M buyback and the $0.17 dividend.
- Durability Test: Returns look weaker if Free Cash Flow stays below payout and reinvestment demands, or if cash from operations falls materially.
Financial Stress Test
How resilient is Halliburton Company when revenue softens and balance sheet pressure rises?
Mixed. The main buffer is International Revenue of $341B, up 645% year-over-year. The most important verified warning sign is North American Revenue of $251B, down 320% year-over-year, which points to weaker U.S. activity and operating leverage.
Halliburton Company can still fund operations if international demand stays firm, but weaker North American activity would squeeze cash generation and debt service. The balance sheet also matters because Long-Term Debt of $762B exceeds Cash and equivalents of $214B. For company background, Mission Statement, Vision, & Core Values (2026) of Halliburton Company (HAL) fits well with a broader research file.
| Pressure | Financial Effect | Existing Protection | Warning Signal |
|---|---|---|---|
| Revenue or Margin Pressure | Lower North American activity would weaken operating leverage, earnings, cash flow, and debt capacity. | International Revenue of $341B, up 645% year-over-year, helps offset U.S. weakness. | Further North American revenue decline, margin compression, or weaker cash flow. |
| Working-Capital or Investment Pressure | FMP 2026-03-31 Operating Cash Flow Growth of -7657% and Free Cash Flow Growth of -9022% suggest cash conversion can deteriorate sharply and absorb funding for investment. | International growth and internal cash generation can still support essential spending if trends stabilize. | Continued negative operating cash flow, weaker free cash flow, or rising investment needs. |
| Interest or Refinancing Pressure | Higher interest rates would reduce financing flexibility and make Long-Term Debt of $762B harder to carry if cash flow weakens. | Cash and equivalents of $214B provide some liquidity buffer. | Rising debt burden, weaker coverage, tighter liquidity, or refinancing stress. |
Which financial warning signs should investors monitor at Halliburton Company?
First watch North American revenue and operating cash flow, because those already show deterioration. Next monitor long-term debt versus cash, then free cash flow; the risk is confirmed weakness, while high rates and Middle East or currency exposure are future pressure points.
North America Weakness and Cash Burn
North American Revenue of $251B, down 320% year-over-year, is the clearest operating warning sign. If that trend continues, earnings and debt capacity weaken. The key offset is international demand. Watch North American revenue, operating margin, and cash flow.
Debt Load Versus Liquid Cash
Long-Term Debt of $762B against Cash and equivalents of $214B leaves less room if cash flow softens. The exposure is refinancing and interest pressure. The buffer is current liquidity. Watch net debt, interest expense, and maturity needs.
Cash Conversion and Cost Pressure
FMP 2026-03-31 Operating Cash Flow Growth of -7657% and Free Cash Flow Growth of -9022% point to severe cash conversion stress if the figures persist. Higher cybersecurity spending and high interest rates can add cost pressure. Watch operating cash flow and free cash flow.
Financial Health Scorecard
What does Halliburton Company’s financial health mean for investors?
Overall, Halliburton Company looks Mixed. The strongest factor is margin-backed cash generation, while the weakest is leverage combined with demand cyclicality. The most important investment condition is whether cash flow stays strong enough to support debt and shareholder returns.
| Financial Factor | Rating | Evidence and Investor Meaning |
|---|---|---|
| Revenue and Earnings Quality | Mixed | FY2025 earnings were positive and Q1 2026 Total Revenue was $592B, but North American Revenue fell 320% year-over-year and FMP 2026-03-31 Net Income Growth was -2173%, so earnings remain volatile. |
| Profitability and Cash | Strong | Operating Margin was 1824%, Net Income was $638M, and Cash Flow from Operations was $612M, showing strong conversion even though cash flow growth still faces pressure. |
| Balance Sheet and Liquidity | Mixed | Cash and equivalents were $214B, but Long-Term Debt was $762B, so liquidity is present but leverage keeps debt service and refinancing risk relevant. |
| Capital Efficiency | Strong | Halliburton targets returning at least 50% of free cash flow to shareholders annually and declared a $017 per share dividend plus $250M in buybacks, supporting capital discipline. |
| Financial Resilience | Mixed | International growth helps offset North American cyclicality, but shale, geopolitical, interest rate, and cyber-related pressure still test durability. |
- What Supports the Thesis: Strong margin-backed operating cash flow, shareholder returns, and international growth support the case.
- What Challenges the Thesis: Long-Term Debt of $762B and cyclical North American demand remain the biggest risks.
- What to Monitor: International Revenue Growth, Operating Margin, Net Debt.
For forecasts and scenario work, the key question is whether cash generation can outpace leverage and cyclicality under different oilfield spending paths. If you want a deeper academic angle, the Halliburton Company (HAL): History, Ownership, Mission, How It Works & Makes Money page pairs well with a financial model or valuation framework.
FAQ
What Do Investors Ask About 's Financial Health?
Investors most often ask about the company's revenue quality, profitability, cash generation, debt, liquidity, capital efficiency, and ability to withstand financial pressure.
What does Halliburton's operating margin show investors?
Halliburton's Q1 2026 Operating Margin of 1824% shows that the company still generated meaningful operating profit from its service mix Investors should compare it with North American activity, international growth, pricing, and cost trends before treating the margin as fully sustainable
How strong is Halliburton's cash conversion currently?
Q1 2026 Cash Flow from Operations was $612M, while the latest free cash flow figure used in the map is $241M That supports a healthy cash profile, but FMP 2026-03-31 cash flow growth data shows pressure, so period definitions matter
Is Halliburton's debt manageable with current liquidity?
Halliburton had Cash and equivalents of $214B and Long-Term Debt of $762B as of the last reporting period That liquidity helps, but debt remains a key watch item because maturity schedules, interest costs, and refinancing terms were not supplied
Why does international revenue improve financial resilience?
International Revenue was $341B in Q1 2026, up 645% year-over-year This helps offset North American Revenue of $251B, which declined 320% year-over-year due to lower rig counts in the US Permian Basin
Can shareholder returns continue without weakening funding?
Halliburton targets returning at least 50% of free cash flow to shareholders annually and executed $250M in Q1 2026 buybacks plus a $017 per share dividend Sustainability depends on future free cash flow, debt needs, reinvestment, and demand conditions