Halliburton reported fourth-quarter adjusted EPS of $0.69, surpassing the consensus estimate of $0.55, driven by robust international revenue growth. International revenues grew by 12% year-over-year, led by strong demand for completions and well intervention services in the Middle East and Asia-Pacific regions. This performance offset a 5% sequential decline in North America revenue, resulting in total quarterly revenue of $5.7 billion, up 1% from the prior quarter.

Despite the overall beat, North America revenue fell 5% sequentially, weighed down by lower land drilling activity and reduced pressure pumping demand in the U.S. shale basins. Dayrates for hydraulic fracturing crews declined by an average of 8% compared to the third quarter, while utilization rates dipped to 72% from 78%. Management cited ongoing service pricing pressure and customer fleet optimization as headwinds in the region.

Wall Street analysts had projected EPS of $0.54 and revenues of $5.41 billion ahead of the release. Consensus EPS estimates have been revised upward by 0.3% over the past 30 days, reflecting growing confidence in margin recovery. At current multiples, the stock trades at a P/E ratio of 21.1 and a price-to-sales ratio of 1.25, compared with peer averages of 18.5 and 1.10, respectively. These metrics suggest investors are pricing in stronger international growth prospects and ongoing cost efficiencies.

Management highlighted that strategic cost-reduction programs delivered $200 million in annualized savings during the quarter. Digitalization initiatives—such as real-time drilling optimization and predictive maintenance tools—contributed to a 150-basis-point expansion in Drilling & Evaluation segment margins versus the year-ago period. Looking ahead, Halliburton expects to further leverage its integrated software platforms to improve operational efficiency and support margin gains across both divisions in 2026.