Halliburton Faces Pressure as Stock Declines Despite Higher Q1 Profits
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 8 hours ago
0mins
Source: seekingalpha
- Stock Decline: Halliburton (HAL) has seen its stock price drop over 7% in the past month to approximately $38.88, while the S&P 500 gained about 6.46%, indicating market concerns about its future prospects.
- Flat Revenue: Despite reporting higher profits in Q1 2026, Halliburton's revenue remained flat at $5.4 billion, reflecting the company's struggle to grow amid strong energy market expectations.
- Middle East/Asia Revenue Drop: Revenue from the Middle East and Asia fell 13% year-over-year to $1.3 billion, primarily due to reduced activity in Saudi Arabia and Qatar, with geopolitical tensions also impacting earnings by approximately $0.02 to $0.03 per share.
- Investor Concerns: Although Barclays upgraded Halliburton to overweight with a $55 price target, investors remain worried about weak cash flow, slow shale recovery, and margin pressure, compounded by lower oil prices and uncertainty related to the US-Iran conflict.
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Analyst Views on HAL
Wall Street analysts forecast HAL stock price to fall
18 Analyst Rating
12 Buy
6 Hold
0 Sell
Moderate Buy
Current: 39.330
Low
28.00
Averages
32.31
High
39.00
Current: 39.330
Low
28.00
Averages
32.31
High
39.00
About HAL
Halliburton Company is a provider of products and services to the energy industry. The Company operates through two segments: Completion and Production and the Drilling and Evaluation. The Completion and Production segment delivers cementing, stimulation, specialty chemicals, intervention, pressure control, artificial lift, and completion products and services. The segment consists of artificial lift, cementing, completion tools, multi-chem, pipeline and process services, production enhancement, and production solutions. The Drilling and Evaluation segment provides field and reservoir modeling, drilling fluids, evaluation and precise wellbore placement solutions that enable customers to model, measure, drill, and optimize their well construction activities. Its product service lines include Baroid, drill bits and services, Halliburton project management, landmark software and services, Sperry drilling, testing and subsea and wireline and perforating.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Halliburton Faces Pressure as Stock Declines Despite Higher Q1 Profits
- Stock Decline: Halliburton (HAL) has seen its stock price drop over 7% in the past month to approximately $38.88, while the S&P 500 gained about 6.46%, indicating market concerns about its future prospects.
- Flat Revenue: Despite reporting higher profits in Q1 2026, Halliburton's revenue remained flat at $5.4 billion, reflecting the company's struggle to grow amid strong energy market expectations.
- Middle East/Asia Revenue Drop: Revenue from the Middle East and Asia fell 13% year-over-year to $1.3 billion, primarily due to reduced activity in Saudi Arabia and Qatar, with geopolitical tensions also impacting earnings by approximately $0.02 to $0.03 per share.
- Investor Concerns: Although Barclays upgraded Halliburton to overweight with a $55 price target, investors remain worried about weak cash flow, slow shale recovery, and margin pressure, compounded by lower oil prices and uncertainty related to the US-Iran conflict.
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- Market Performance: On Wednesday, the S&P 500 Index rose by 0.02%, the Dow Jones Industrial Average increased by 0.36% to a new record high, while the Nasdaq 100 fell by 0.09%, indicating a divergence in market sentiment amid enthusiasm for artificial intelligence and declining oil prices.
- Oil Price Fluctuations: Crude oil prices plummeted over 5% to a five-week low due to optimism surrounding a US-Iran peace deal, which eased inflation expectations and pushed the 10-year Treasury yield down to a 1.5-week low of 4.45%, providing support for the bond market.
- Mortgage Application Decline: US MBA mortgage applications fell by 8.5% for the week ending May 22, with the purchase mortgage sub-index down 0.4% and the refinancing sub-index down 18.1%, reflecting the dampening effect of high interest rates on housing demand, as the average 30-year fixed mortgage rate rose to 6.65%.
- Corporate Earnings Outlook: As of Wednesday, 83% of the 475 S&P 500 companies that reported Q1 earnings exceeded expectations, with projected earnings growth of 12% year-over-year, but excluding the technology sector, the growth is only 3%, indicating signs of overall earnings weakness.
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- Capex Cuts: The sharp drop in oil prices leads producers to quickly slash their capital expenditure budgets, which directly impacts revenue for oilfield service companies like Baker Hughes, with significant revenue declines expected in the next two quarters.
- Market Reaction: Despite Baker Hughes's low volatility, with only six moves greater than 5% in the past year, today's drop suggests that the market considers the news significant, potentially affecting investors' long-term perceptions of the company.
- Investment Returns: Although Baker Hughes has risen 34.3% since the beginning of the year, its current price is still 9.2% below its 52-week high, presenting potential buying opportunities for investors, especially considering a 160% return for those who invested five years ago.
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- Impact of Falling Oil Prices: Crude oil prices dropped over 3% amid optimism for a normalization of oil flows from the Middle East, which not only eased inflation expectations but also pushed the 10-year Treasury yield down to a 1.5-week low of 4.45%, positively affecting the bond market.
- Decline in Mortgage Applications: US MBA mortgage applications fell by 8.5% for the week ending May 22, with the purchase mortgage sub-index down 0.4% and the refinancing sub-index plunging 18.1%, indicating the suppressive effect of high interest rates on the housing market.
- Corporate Earnings Overview: As of now, 83% of the 475 S&P 500 companies that reported Q1 earnings have exceeded expectations, with overall earnings projected to rise by 12% year-on-year, but excluding the tech sector, the growth is only 3%, highlighting disparities across industries.
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- Innovation Strategy: The patent portfolio encompasses various stages of the nuclear waste disposal lifecycle, including geological site characterization and canister systems, aimed at building a comprehensive disposal ecosystem that enhances the company's market competitiveness and technological barriers.
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Halliburton Faces Pressure as Stock Declines Despite Higher Q1 Profits
- Stock Decline: Halliburton (HAL) has seen its stock price drop over 7% in the past month to approximately $38.88, while the S&P 500 gained about 6.46%, indicating market concerns about its future prospects.
- Flat Revenue: Despite reporting higher profits in Q1 2026, Halliburton's revenue remained flat at $5.4 billion, reflecting the company's struggle to grow amid strong energy market expectations.
- Middle East/Asia Revenue Drop: Revenue from the Middle East and Asia fell 13% year-over-year to $1.3 billion, primarily due to reduced activity in Saudi Arabia and Qatar, with geopolitical tensions also impacting earnings by approximately $0.02 to $0.03 per share.
- Investor Concerns: Although Barclays upgraded Halliburton to overweight with a $55 price target, investors remain worried about weak cash flow, slow shale recovery, and margin pressure, compounded by lower oil prices and uncertainty related to the US-Iran conflict.
See More
Mixed Close for US Stocks as Oil Prices Plunge
- Market Performance: On Wednesday, the S&P 500 Index rose by 0.02%, the Dow Jones Industrial Average increased by 0.36% to a new record high, while the Nasdaq 100 fell by 0.09%, indicating a divergence in market sentiment amid enthusiasm for artificial intelligence and declining oil prices.
- Oil Price Fluctuations: Crude oil prices plummeted over 5% to a five-week low due to optimism surrounding a US-Iran peace deal, which eased inflation expectations and pushed the 10-year Treasury yield down to a 1.5-week low of 4.45%, providing support for the bond market.
- Mortgage Application Decline: US MBA mortgage applications fell by 8.5% for the week ending May 22, with the purchase mortgage sub-index down 0.4% and the refinancing sub-index down 18.1%, reflecting the dampening effect of high interest rates on housing demand, as the average 30-year fixed mortgage rate rose to 6.65%.
- Corporate Earnings Outlook: As of Wednesday, 83% of the 475 S&P 500 companies that reported Q1 earnings exceeded expectations, with projected earnings growth of 12% year-over-year, but excluding the technology sector, the growth is only 3%, indicating signs of overall earnings weakness.
See More
Baker Hughes Shares Drop Due to Falling Oil Prices
- Stock Decline: Baker Hughes (BKR) shares fell 5.5% in the morning session, primarily driven by a plunge in West Texas Intermediate (WTI) crude oil prices due to progress in the Iran-US peace deal, indicating market sensitivity to oil price fluctuations.
- Capex Cuts: The sharp drop in oil prices leads producers to quickly slash their capital expenditure budgets, which directly impacts revenue for oilfield service companies like Baker Hughes, with significant revenue declines expected in the next two quarters.
- Market Reaction: Despite Baker Hughes's low volatility, with only six moves greater than 5% in the past year, today's drop suggests that the market considers the news significant, potentially affecting investors' long-term perceptions of the company.
- Investment Returns: Although Baker Hughes has risen 34.3% since the beginning of the year, its current price is still 9.2% below its 52-week high, presenting potential buying opportunities for investors, especially considering a 160% return for those who invested five years ago.
See More
Mixed US Stock Market with Energy Stocks Under Pressure
- Divergent Market Performance: The S&P 500 index fell by 0.07% while the Dow Jones Industrial Average rose by 0.54%, indicating a divergence in market trends, particularly with the Dow reaching a new high, reflecting increased investor confidence in certain sectors.
- Impact of Falling Oil Prices: Crude oil prices dropped over 3% amid optimism for a normalization of oil flows from the Middle East, which not only eased inflation expectations but also pushed the 10-year Treasury yield down to a 1.5-week low of 4.45%, positively affecting the bond market.
- Decline in Mortgage Applications: US MBA mortgage applications fell by 8.5% for the week ending May 22, with the purchase mortgage sub-index down 0.4% and the refinancing sub-index plunging 18.1%, indicating the suppressive effect of high interest rates on the housing market.
- Corporate Earnings Overview: As of now, 83% of the 475 S&P 500 companies that reported Q1 earnings have exceeded expectations, with overall earnings projected to rise by 12% year-on-year, but excluding the tech sector, the growth is only 3%, highlighting disparities across industries.
See More
Deep Isolation Surpasses 100 Patents Milestone in Nuclear Waste Disposal
- Patent Milestone: Deep Isolation has announced that it has surpassed 100 issued patents worldwide, marking a significant advancement in the company's efforts to develop safe, scalable, and cost-effective solutions for the permanent disposal of nuclear waste, thereby reinforcing its leadership in the nuclear waste management sector.
- Innovation Strategy: The patent portfolio encompasses various stages of the nuclear waste disposal lifecycle, including geological site characterization and canister systems, aimed at building a comprehensive disposal ecosystem that enhances market competitiveness and meets the growing demand for nuclear energy.
- Market Demand Response: As governments and advanced reactor developers increasingly prioritize long-term waste management strategies, Deep Isolation's technology is poised to provide energy producers with safe and scalable disposal solutions, addressing the rising global interest in nuclear energy.
- Partnership Development: Deep Isolation's collaboration with supply chain partners like Amentum aims to advance its deep borehole commercialization pilot project in Cameron, Texas, showcasing the company's comprehensive intellectual property portfolio and its strategic significance in the nuclear waste management industry.
See More
Deep Isolation Surpasses 100 Patents, Enhancing Nuclear Waste Disposal Solutions
- Patent Milestone: Deep Isolation has announced that it has surpassed 100 issued patents globally, marking a significant advancement in the development of safe, scalable, and cost-effective solutions for the permanent disposal of nuclear waste, thereby reinforcing its leadership in the nuclear waste management sector.
- Innovation Strategy: The patent portfolio encompasses various stages of the nuclear waste disposal lifecycle, including geological site characterization and canister systems, aimed at building a comprehensive disposal ecosystem that enhances the company's market competitiveness and technological barriers.
- Market Demand Response: As global interest in nuclear energy continues to rise, Deep Isolation's technology is poised to meet the urgent demand for long-term waste management strategies from governments and advanced reactor developers, which is expected to drive further expansion in the nuclear energy market.
- Commercial Pilot Project: Deep Isolation has launched a full-scale deep borehole commercialization pilot project in Cameron, Texas, showcasing its comprehensive capabilities in nuclear waste management through its unique Universal Canister System, which is anticipated to lay the groundwork for future market applications.
See More
