Halliburton Q3 Revenue of $5.7B Beats Expectations, Middle East Business Up 8% QoQ
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Halliburton posted Q3 revenue of $5.7 billion and adjusted EPS of $0.60, both above consensus, with Middle East revenue up 8% sequentially — signaling a strategic pivot from North America dependence to Middle East-driven growth.
What made this quarter stand out?
Total revenue hit $5.7 billion, above the Street consensus of $5.58 billion; adjusted EPS of $0.60 topped the $0.58 estimate.
Net income reached $417 million ($0.50/share), versus just $18 million ($0.02/share) a year ago — a 20x-plus year-over-year jump.
This means → the pre-market rally of over 6% wasn't about a narrow beat; profit improvement at this scale is what moved the stock.
Why is the Middle East now the growth engine?
Middle East revenue rose 8% sequentially to $1.4 billion, well above FactSet's $1.28 billion estimate.
The gains came from higher activity across multiple product lines in Saudi Arabia and Kuwait, reversing a sequential decline last quarter.
In plain terms = Saudi Arabia and Kuwait are ramping drilling and completion spending, and Halliburton is a direct beneficiary.
Why did the two divisions diverge?
Drilling & Evaluation revenue grew 10% year-over-year to $2.61 billion, driven by higher Middle East and Latin America activity.
Completion & Production revenue fell 4.2% sequentially to $3.09 billion, as hydraulic fracturing — pumping high-pressure fluid to crack underground rock and release oil and gas — slowed in the Western Hemisphere.
This reflects a growth pivot away from North American fracking toward international markets, especially the Middle East.
What signal does the 2027 guidance send?
Halliburton expects mid-single-digit revenue growth in 2027, with an operating margin of roughly 15% — about 200 basis points above current levels.
CEO Jeff Miller was explicit: this outlook assumes no North American fracking recovery. "That recovery is pure upside for us."
This means → management is telling the market that Middle East and international business alone can deliver the growth target; any North American upturn is a bonus.
Where is the risk in this story?
Miller's vision of "the largest energy landscape reshaping in history" driving multi-year service demand remains a narrative, not yet a proven trend.
Whether the 2027 guidance can be met amid continued North American fracking weakness will be the key test of Halliburton's Middle East strategy.
In plain terms = the story is compelling, but next year's numbers have to prove it — can the Middle East really carry the whole show on its own?
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