Halliburton Q2 Revenue Climbs to $5.7 Billion on North America Rebound as Middle East Activity Falls 2%

Halliburton Company reported second-quarter 2026 revenue of $5.7 billion, surpassing analyst consensus of $5.486 billion and rising from $5.4 billion in the first quarter. Net income reached $534 million, or $0.64 per diluted share, beating the $0.54 per share estimate. The company repurchased approximately $200 million in stock during the quarter.

North America Climbs 7% on Stronger Land Stimulation

Halliburton's North American segment generated $2.3 billion in Q2 revenue, a 7% sequential gain driven by stronger U.S. land stimulation and well construction activity. North America now accounts for 40.4% of the company's total quarterly revenue. That sequential improvement translates to approximately $150 million in incremental North American revenue against the Q1 segment total.

Baker Hughes' North America rig count for the week ended July 17 reached 786, up 26 units from the prior week. Canada contributed 19 of those additions, with oil rigs jumping 18 to reach 136. U.S. oil rigs gained seven positions to reach 452, while total U.S. rig activity reached 588.

Middle East and Asia Revenue Slips as Conflict Cuts Activity

International revenue totaled $3.4 billion, up 5% sequentially. Middle East and Asia revenue fell 2% sequentially to $1.298 billion, with conflict-related disruptions reducing activity in Kuwait, Iraq, and Qatar. Europe and Africa delivered the strongest regional growth at 19%, led by increased work in the North Sea, Namibia, Egypt, and Angola.

Halliburton's Completion and Production segment generated $3.2 billion in Q2, up 6% sequentially. Drilling and Evaluation contributed $2.5 billion, a 5% sequential gain. Operating income for the quarter reached $778 million.

A Hormuz Paradox: Crisis Hurts One Region, Lifts Another

The Strait of Hormuz disruption is simultaneously suppressing Halliburton's Middle East segment and incentivizing North American drilling through elevated commodity prices. WTI crude settled at $84.68 per barrel on the CME on July 21, up 2.67% on the day. ICE Brent settled at $91.46 per barrel, a gain of 2.51%.

Goldman Sachs projects Brent could exceed $120 per barrel in Q4 2026 if Hormuz flows remain disrupted and Gulf output does not fully recover until end of 2027. Goldman's base case remains $80 per barrel for Q4 2026 and $75 per barrel for 2027. North American operators added rigs under the current $84.68 WTI price, as the Baker Hughes count confirms, demonstrating that current prices support drilling economics across major shale plays.

Oil Authority's earlier coverage of Aker BP's record $3.12 billion Q2 operating cash flow showed how high oil prices benefited Norwegian producers. Halliburton's results extend that picture to the service sector: higher oil prices translate into increased North American drilling budgets. The Hormuz disruption thus delivers an asymmetric effect for a global services company with both Middle East and North American exposure.

Guidance and Capital Return

CEO Jeff Miller stated Halliburton "expects continued momentum in both international and North American markets" and anticipates "incremental improvement in North America through the remainder of the year." Baker Hughes' North America rig count stands 70 rigs above year-ago levels, with U.S. rigs up 44 and Canada up 26 year-over-year. Those gains reinforce the service demand trajectory Halliburton projects for the second half of 2026.