Halliburton's Outlook Improves as Contract Wins Fuel Global Growth Ahead

Halliburton Is Leaning on International Demand

International demand is the backbone of HAL’s current thesis. The company delivered $3.4 billion of international revenues in the second quarter, its highest second-quarter international level in more than a decade, despite disruptions in the Middle East.

Image Source: Halliburton Company

Management sees demand for Halliburton’s services and technology across every major region. Offshore, unconventional and intervention markets are carrying the international opportunity, and outside the Middle East, Halliburton expects low double-digit international growth in 2026.

HAL's Wins Are Expanding the Multiyear Backlog

Recent awards are broadening Halliburton’s opportunity set. The company secured a multi-year Kuwait Oil Company agreement tied to Ahmadi Innovation Valley, an integrated field management and engineering contract in Iraq, unconventional drilling work in Algeria and long-term projects in Saudi Arabia’s Jafurah field.

Offshore work adds another layer to the backlog. Halliburton won integrated well construction contracts for TotalEnergies’ GranMorgu deepwater development offshore Suriname, supporting a more diversified revenue base across national oil companies and global operators.

SLB SLB remains a key global technology competitor in energy services, while Baker Hughes Company BKR gives investors another reference point for oilfield services and equipment exposure. Against that peer backdrop, Halliburton’s wins matter because they extend relationships in multiple geographies rather than depending on one market cycle.

Halliburton's Technology Is Driving Better Mix

Technology is central to the margin story. Halliburton is using ZEUS IQ, LOGIX automation, OCTIV automated pumping controls and Sekal’s closed-loop drilling capabilities to improve well placement, drilling precision, recovery and operating efficiency.

This matters because the company is competing on performance, not only price. In Norway, the closed-loop drilling solution helped deliver back-to-back record wells, while the newest ZEUS IQ release gives customers better treatment control in simul-frac operations.

HAL Still Faces Near-Term Execution Risks

The improved long-term setup does not eliminate near-term risk. Middle East operations in Iraq, Kuwait, Bahrain and other markets remain tied to shifting geopolitical conditions, and management’s guidance assumes current activity rather than a return to pre-conflict levels.

Third-quarter guidance also points to uneven revenue trends. Completion and Production revenues are expected to be flat to down 2% sequentially, while Drilling and Evaluation revenues are expected to decline 3-5%.

Profit visibility is still affected by moving equipment into new international projects. Lower software sales, weaker project management activity in Latin America, lower specialty chemicals activity and Middle East service-line weakness show that recovery is not evenly distributed.

What HAL’s Ratings Signal Now

The bottom line is that HAL has a better international growth base, but the stock still reflects a balance between improving momentum and incomplete earnings visibility. Contract wins, technology deployment and cash generation support the long-term case, while guidance and geopolitical risk argue for discipline.

The stock currently carries a Zacks Rank #3 (Hold). That rank indicates a more balanced near-term earnings revision profile than a clear buy signal, which fits a company with credible drivers but not yet clean acceleration.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

HAL has a VGM Score of B, Value Score of B, Growth Score of C and Momentum Score of A. The Style Scores suggest solid value and very favorable momentum characteristics, while the Growth Score of C points to a less convincing growth profile than the headline award momentum alone might imply.

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