hal-20260930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2026


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______to_______

Commission File Number 001-03492

HALLIBURTON COMPANY

(Exact name of registrant as specified in its charter)


Delaware	75-2677995
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)


3000 North Sam Houston Parkway East,	Houston,	Texas	77032
(Address of principal executive offices)			(Zip Code)

(281) 871-2699

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $2.50 per share	HAL	New York Stock Exchange
		NYSE Texas

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities

Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),

and (2) has been subject to such filing requirements for the past 90 days.☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted

pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the

registrant was required to submit such files).☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller

reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller

reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer	☒	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller Reporting Company	☐
		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for

complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐ Yes ☒ No

As of October 16, 2026, there were 827,126,342 shares of Halliburton Company common stock, $2.50 par value per share,

outstanding.

HAL Q3 2026 FORM 10-Q | 1


Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

HALLIBURTON COMPANY

Condensed Consolidated Statements of Operations

(Unaudited)


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
Millions of dollars and shares except per share data	2026	2025	2026	2025
Revenue:
Services	$4,092	$4,026	$12,024	$11,773
Product sales	1,611	1,574	4,795	4,754
Total revenue	5,703	5,600	16,819	16,527
Operating costs and expenses:
Cost of services	3,589	3,483	10,566	10,200
Cost of sales	1,274	1,261	3,826	3,773
Impairments and other charges	107	392	12	748
General and administrative	67	58	204	180
SAP S4 upgrade expense	42	50	130	112
Total operating costs and expenses	5,079	5,244	14,738	15,013
Operating income	624	356	2,081	1,514
Interest expense, net of interest income of $18, $23, $61, and $66	(84)	(88)	(249)	(266)
Other, net	(27)	(49)	(86)	(112)
Income before income taxes	513	219	1,746	1,136
Income tax provision	(94)	(199)	(325)	(433)
Net income	$419	$20	$1,421	$703
Net income attributable to noncontrolling interest	(2)	(2)	(9)	(9)
Net income attributable to company	$417	$18	$1,412	$694

Basic and diluted net income per share	$0.50	$0.02	$1.69	$0.81
Basic weighted average common shares outstanding	831	849	835	857
Diluted weighted average common shares outstanding	832	850	836	858

See Notes to Condensed Consolidated Financial Statements.

HAL Q3 2026 FORM 10-Q | 3


Table of Contents

HALLIBURTON COMPANY

Condensed Consolidated Balance Sheets

(Unaudited)


	September 30,	December 31,
Millions of dollars and shares except per share data	2026	2025
Assets
Current assets:
Cash and equivalents	$1,843	$2,206
Receivables (net of allowances for credit losses of $788 and $805)	5,515	4,942
Inventories	3,265	2,976
Other current assets	1,517	1,274
Total current assets	12,140	11,398
Property, plant, and equipment (net of accumulated depreciation of $12,979 and $12,616)	5,152	5,261
Goodwill	3,021	2,938
Deferred income taxes	2,377	2,298
Operating lease right-of-use assets	1,018	938
Other assets	2,365	2,177
Total assets	$26,073	$25,010
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable	$3,535	$3,133
Accrued employee compensation and benefits	788	767
Income taxes payable	348	375
Taxes other than income	294	291
Current portion of operating lease liabilities	276	263
Current maturities of long-term debt	90	—
Other current liabilities	681	759
Total current liabilities	6,012	5,588
Long-term debt	7,072	7,158
Operating lease liabilities	760	712
Employee compensation and benefits	431	428
Other liabilities	637	619
Total liabilities	14,912	14,505
Shareholders' equity:
Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,063 and 1,064 shares)	2,658	2,659
Paid-in capital in excess of par value	63	112
Accumulated other comprehensive loss	(342)	(363)
Retained earnings	15,999	15,036
Treasury stock, at cost (236 and 229 shares)	(7,260)	(6,983)
Company shareholders' equity	11,118	10,461
Noncontrolling interest in consolidated subsidiaries	43	44
Total shareholders' equity	11,161	10,505
Total liabilities and shareholders' equity	$26,073	$25,010

See Notes to Condensed Consolidated Financial Statements.

HAL Q3 2026 FORM 10-Q | 4


Table of Contents

HALLIBURTON COMPANY

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Nine Months Ended September 30,
Millions of dollars	2026	2025
Cash flows from operating activities:
Net income	$1,421	$703
Adjustments to reconcile net income to cash flows from operating activities:
Depreciation, depletion, and amortization	887	846
Impairments and other charges	12	748
Changes in assets and liabilities:
Receivables	(610)	(13)
Inventories	(309)	(38)
Accounts payable	402	(60)
Other operating activities	(338)	(425)
Total cash flows provided by operating activities	1,465	1,761
Cash flows from investing activities:
Capital expenditures	(693)	(917)
Purchases of investment securities	(111)	(128)
Payments to acquire businesses, net of cash acquired	(107)	(175)
Purchases of equity investments	(101)	(343)
Proceeds from sales of property, plant, and equipment	175	138
Sales of investment securities	65	228
Sale of an equity investment	50	120
Other investing activities	(48)	(49)
Total cash flows used in investing activities	(770)	(1,126)
Cash flows from financing activities:
Stock repurchase program	(558)	(757)
Dividends to shareholders	(426)	(436)
Other financing activities	(52)	(23)
Total cash flows used in financing activities	(1,036)	(1,216)
Effect of exchange rate changes on cash	(22)	(11)
Decrease in cash and cash equivalents	(363)	(592)
Cash and equivalents at beginning of period	2,206	2,618
Cash and equivalents at end of period	$1,843	$2,026
Supplemental disclosure of cash flow information:
Cash payments during the period for:
Interest	$314	$330
Income taxes	$352	$518

See Notes to Condensed Consolidated Financial Statements.

HAL Q3 2026 FORM 10-Q | 5


Table of Contents	Part I. Item 1 \| Notes to Condensed Consolidated Financial Statements

HALLIBURTON COMPANY

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Note 1. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements were prepared using United States

generally accepted accounting principles (U.S. GAAP) for interim financial information and the instructions to Form 10-Q and

Regulation S-X. Accordingly, these financial statements do not include all information or notes required by U.S. GAAP for

annual financial statements and should be read together with our 2025 Annual Report on Form 10-K.

Our accounting policies are in accordance with U.S. GAAP. The preparation of financial statements in conformity with

these accounting principles requires us to make estimates and assumptions that affect:

•the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the

financial statements; and

•the reported amounts of revenue and expenses during the reporting period.

Ultimate results could differ from our estimates.

In our opinion, the condensed consolidated financial statements included herein contain all adjustments necessary to

present fairly our financial position as of September 30, 2026, the results of our operations for the three and nine months ended

September 30, 2026 and 2025, and our cash flows for the nine months ended September 30, 2026 and 2025. Such adjustments

are of a normal recurring nature. In addition, certain reclassifications of prior period balances have been made to conform to the

current period presentation.

The results of our operations for the three and nine months ended September 30, 2026 may not be indicative of results

for the full year.

Note 2. Impairments and Other Charges

The following table presents various pre-tax charges we recorded during the three and nine months ended

September 30, 2026 and 2025, which are reflected within “Impairments and other charges” on our Condensed Consolidated

Statements of Operations.


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
Millions of dollars	2026	2025	2026	2025
Severance costs	$107	$169	$107	$276
Inventory costs and write-downs	25	—	25	—
Fixed and other assets write-offs	14	115	14	115
Impairment of assets held for sale	—	96	—	200
Loss on sale of a business	—	—	17	—
Impairment of real estate facilities	—	—	—	53
Cybersecurity incident	—	(10)	—	(10)
Gain on investments	(36)	(6)	(100)	(6)
Other	(3)	28	(51)	120
Total impairments and other charges	$107	$392	$12	$748

During the three months ended September 30, 2026, we recorded a pre-tax charge of $107 million, primarily related to

$107 million of severance costs associated with the rationalization of our global headcount, $25 million of inventory costs and

write-downs, and $14 million of fixed and other assets write-offs. These charges were partially offset by a $36 million gain

resulting from the sale of a portion of our shares in an equity investment.

HAL Q3 2026 FORM 10-Q | 6


Table of Contents	Part I. Item 1 \| Notes to Condensed Consolidated Financial Statements

During the nine months ended September 30, 2026, we recorded a pre-tax charge of $12 million. The charge primarily

reflected $107 million in severance costs, $25 million of inventory costs and write-downs, and $14 million of fixed and other

assets write-offs. These charges were substantially offset by gains of $100 million, primarily related to a $54 million gain

resulting from changes in our ownership interest in an equity investment and a $36 million gain resulting from the sale of a

portion of our shares in an equity investment, and $51 million of other gains, primarily due to a government refund recovery.

During the three months ended September 30, 2025, we recorded a pre-tax charge of $392 million primarily related to

$169 million of severance costs, $115 million of fixed and other assets write-offs primarily related to our North America Land

operations, and $96 million in impairment of assets held for sale related to our chemical business, partially offset by a $10

million release of cybersecurity related accruals and a $6 million gain on an equity investment.

For the nine months ended September 30, 2025, we recorded a pre-tax charge of $748 million, which included $276

million of severance costs, a $200 million impairment of assets held for sale related to our chemical business, $115 million of

fixed and other assets write-offs, a $53 million impairment associated with facility closures and lease terminations, and $120

million of other charges, primarily related to increases in legacy environmental remediation cost estimates.

HAL Q3 2026 FORM 10-Q | 7


Table of Contents	Part I. Item 1 \| Notes to Condensed Consolidated Financial Statements

Note 3. Business Segment Information

We operate under two divisions, which form the basis for the two operating segments we report: the Completion and

Production segment and the Drilling and Evaluation segment. Our equity in earnings and losses of unconsolidated affiliates that

are accounted for using the equity method of accounting is included within cost of services and cost of sales on our statements

of operations, which is part of operating income of the applicable segment.

Our company’s chief operating decision maker (CODM) is Jeffrey Miller, Chairman of the Board, President and Chief

Executive Officer. Throughout the year, our CODM assesses the performance of the two segments based on segment revenue

and operating income, in comparison with forecast and plan and overall results, to make capital and resource allocation

decisions.

The following table presents information on our business segments.


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
Millions of dollars	2026	2025	2026	2025
Revenue:
Completion and Production	$3,089	$3,223	$9,307	$9,514
Drilling and Evaluation	2,614	2,377	7,512	7,013
Total revenue	$5,703	$5,600	$16,819	$16,527
Operating income:
Completion and Production	$457	$514	$1,370	$1,558
Drilling and Evaluation	391	348	1,080	1,012
Total operations	848	862	2,450	2,570
Corporate and other (a)	(75)	(64)	(227)	(196)
SAP S4 upgrade expense	(42)	(50)	(130)	(112)
Impairments and other charges (b)	(107)	(392)	(12)	(748)
Total operating income	$624	$356	$2,081	$1,514
Interest expense, net of interest income	$(84)	$(88)	$(249)	$(266)
Other, net (c)	(27)	(49)	(86)	(112)
Income before income taxes	$513	$219	$1,746	$1,136
Capital expenditures:
Completion and Production	$150	$163	$405	$546
Drilling and Evaluation	116	98	287	371
Corporate and other	—	—	1	—
Total capital expenditures	$266	$261	$693	$917
Depreciation, depletion, and amortization:
Completion and Production	$161	$156	$486	$462
Drilling and Evaluation	126	123	378	368
Corporate and other	9	6	23	16
Total depreciation, depletion, and amortization	$296	$285	$887	$846


(a)	The amount included certain expenses not attributable to a business segment, such as costs related to certain support functions, corporate executives, and operating lease assets, and included amortization expense associated with intangible assets recorded as a result of acquisitions.
(b)	For the three months ended September 30, 2026, the amount included a $38 million charge attributable to Completion and Production, a $54 million charge attributable to Drilling and Evaluation, and a $15 million charge attributable to Corporate and other. For the nine months ended September 30, 2026, the amount included a $45 million credit attributable to Completion and Production, a $38 million charge attributable to Drilling and Evaluation, and a $19 million charge attributable to Corporate and other. For the three months ended September 30, 2025, the amount included a $252 million charge attributable to Completion and Production and a $140 million charge attributable to Drilling and Evaluation. For the nine months ended September 30, 2025, the amount included a $453 million charge attributable to Completion and Production, a $225 million charge attributable to Drilling and Evaluation, and a $70 million charge attributable to Corporate and other. See Notes to Condensed Consolidated Financial Statements, Note 2 for further discussion on impairments and other charges.
(c)	During the three and nine months ended September 30, 2025, we incurred a charge of $23 million due to the impairment of an investment in Argentina.

HAL Q3 2026 FORM 10-Q | 8


Table of Contents	Part I. Item 1 \| Notes to Condensed Consolidated Financial Statements

The following table presents significant segment expenses, which represent the difference between segment revenue

and segment operating income and are regularly reviewed by our CODM.


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2026		2026
Millions of dollars	Completion and Production	Drilling and Evaluation	Completion and Production	Drilling and Evaluation
Segment operating expenses:
Cost of products, materials, and supplies	$1,316	$1,055	$3,959	$2,996
Compensation	472	516	1,422	1,508
Depreciation, depletion, and amortization	161	126	486	378
Other	683	526	2,070	1,550
Total segment operating expenses	$2,632	$2,223	$7,937	$6,432


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2025		2025
Millions of dollars	Completion and Production	Drilling and Evaluation	Completion and Production	Drilling and Evaluation
Segment operating expenses:
Cost of products, materials, and supplies	$1,361	$911	$3,980	$2,715
Compensation	492	489	1,449	1,435
Depreciation, depletion, and amortization	156	123	462	368
Other	700	506	2,065	1,483
Total segment operating expenses	$2,709	$2,029	$7,956	$6,001

Other segment operating expenses primarily consist of maintenance, overhead allocations, facilities cost, and other

miscellaneous costs.

The following table presents total assets by segment.


Millions of dollars	September 30, 2026	December 31, 2025
Total assets:
Completion and Production (a)	$10,971	$10,492
Drilling and Evaluation (a)	8,662	7,870
Corporate and other (b)	6,440	6,648
Total assets	$26,073	$25,010


(a)	Assets associated with specific segments primarily included receivables, inventories, property, plant, and equipment, operating lease right- of-use assets, equity in and advances to related companies, and goodwill.
(b)	The amount included primarily cash and equivalents and deferred tax assets.

HAL Q3 2026 FORM 10-Q | 9


Table of Contents	Part I. Item 1 \| Notes to Condensed Consolidated Financial Statements

Note 4. Revenue

Revenue is recognized based on the transfer of control or our customers’ ability to benefit from our services and

products in an amount that reflects the consideration we expect to receive in exchange for those services and products. Most of

our service and product contracts are short-term in nature. In recognizing revenue for our services and products, we determine

the transaction price of purchase orders or contracts with our customers, which may consist of fixed and variable consideration.

We also assess our customers’ ability and intention to pay, which is based on a variety of factors, including our historical

payment experience with, and the financial condition of, our customers. Payment terms and conditions vary by contract type,

although terms generally include a requirement of payment within 20 to 60 days. Other judgments involved in recognizing

revenue include an assessment of progress towards completion of performance obligations for certain long-term contracts,

which involve estimating total costs to determine our progress towards contract completion and calculating the corresponding

amount of revenue to recognize.

Disaggregation of revenue

We disaggregate revenue from contracts with customers into types of services or products, consistent with our two

reportable segments, in addition to geographical area. Based on the location of services provided and products sold, 37% and

39% of our consolidated revenue was from the United States for the nine months ended September 30, 2026 and 2025,

respectively. No other country accounted for more than 10% of our revenue for those periods.

The following table presents information on our disaggregated revenue.


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
Millions of dollars	2026	2025	2026	2025
Revenue by segment:
Completion and Production	$3,089	$3,223	$9,307	$9,514
Drilling and Evaluation	2,614	2,377	7,512	7,013
Total revenue	$5,703	$5,600	$16,819	$16,527
Revenue by geographic region:
North America	$2,160	$2,364	$6,572	$6,859
Latin America	1,122	996	3,335	2,869
Europe/Africa/CIS	1,016	828	2,891	2,423
Middle East/Asia	1,405	1,412	4,021	4,376
Total revenue	$5,703	$5,600	$16,819	$16,527

Contract balances

We perform our obligations under contracts with our customers by transferring services and products in exchange for

consideration. The timing of our performance often differs from the timing of our customers’ payment, which results in the

recognition of receivables and deferred revenue. Deferred revenue represents consideration received in advance from customers

for contracts where revenue will be recognized as future services are performed. Deferred revenue balances as of September 30,

2026 and December 31, 2025 were not material to our condensed consolidated financial statements. Revenue recognized during

the three and nine months ended September 30, 2026, and 2025 from amounts included in deferred revenue was not material to

our condensed consolidated financial statements.

Transaction price allocated to remaining performance obligations

Remaining performance obligations represent firm contracts for which work has not been performed and future

revenue recognition is expected. We have elected the practical expedient permitting the exclusion of disclosing remaining

performance obligations for contracts that have an original expected duration of one year or less. We have some long-term

contracts related to software and integrated project management services such as lump sum turnkey contracts. For software

contracts, revenue is generally recognized over the duration of the contract period when the software is considered to be a right

to access our intellectual property. For lump sum turnkey projects, we recognize revenue over time using an input method,

which requires us to exercise judgment. Revenue allocated to remaining performance obligations for these long-term contracts

was not material.

HAL Q3 2026 FORM 10-Q | 10


Table of Contents	Part I. Item 1 \| Notes to Condensed Consolidated Financial Statements

Receivables

As of September 30, 2026, 28% of our net trade receivables were from customers in the United States and 10% were

from customers in Mexico. As of December 31, 2025, 31% of our net trade receivables were from customers in the United

States and 8% were from customers in Mexico. Receivables from our primary customer in Mexico accounted for approximately

8% of our total receivables as of September 30, 2026 and 7% as of December 31, 2025. While we have experienced payment

delays from this customer in Mexico, the amounts are not in dispute and we have not historically had, and we do not expect,

any material write-offs due to collectability of receivables from this customer. The credit default swaps (CDSs) that we had

previously entered into with third-party financial institutions related to borrowings provided by the financial institutions to one

of our primary customers in Mexico matured during the third quarter of 2026. Accordingly, there were no outstanding notional

amounts under these CDSs as of September 30, 2026, compared to $592 million as of December 31, 2025. No country other

than the United States and Mexico, and no single customer, accounted for more than 10% of our net trade receivables.

We have risk of delayed customer payments and payment defaults associated with customer liquidity issues. We

routinely monitor the financial stability of our customers and employ an extensive process to evaluate the collectability of

outstanding receivables. This process, which involves judgment and estimates, includes analysis of our customers’ historical

time to pay, financial condition and various financial metrics, debt structure, credit ratings, and production profile, as well as

political and economic factors in countries of operations and other customer-specific factors.

Note 5. Inventories

Inventories consisted of the following:


	September 30,	December 31,
Millions of dollars	2026	2025
Finished products and parts	$2,250	$1,968
Raw materials and supplies	846	884
Work in process	169	124
Total inventories	$3,265	$2,976

Note 6. Accounts Payable

We have an agreement with a third party that allows our participating suppliers to finance payment obligations from us

with a designated third-party financial institution that acts as our paying agent. We have generally extended our payment terms

with suppliers to 90 days. A participating supplier may request the participating financial institution to finance one or more of

our payment obligations to such supplier prior to the scheduled due date thereof at a discounted price. We are not required to

provide collateral to the financial institution.

Our obligations to participating suppliers, including amounts due and scheduled payment dates, are not impacted by

the suppliers’ decisions to finance amounts due under these financing arrangements. Our outstanding payment obligations under

this agreement were $294 million as of September 30, 2026, and $280 million as of December 31, 2025, and are included in

“Accounts payable” on the Condensed Consolidated Balance Sheets.

Note 7. Income Taxes

During the three months ended September 30, 2026, we recorded a total income tax provision of $94 million on a pre-

tax income of $513 million, resulting in an effective tax rate of 18.3% for the quarter. During the three months ended

September 30, 2025, we recorded a total income tax provision of $199 million on a pre-tax income of $219 million, resulting in

an effective tax rate of 90.9% for the quarter.

During the nine months ended September 30, 2026, we recorded a total income tax provision of $325 million on a pre-

tax income of $1.7 billion, resulting in an effective tax rate of 18.6% for the period. The effective tax rate for this period was

primarily impacted by the release of a valuation allowance in the amount of $32 million related to changes in deferred tax asset

realizability. During the nine months ended September 30, 2025, we recorded a total income tax provision of $433 million on a

pre-tax income of $1.1 billion, resulting in an effective tax rate of 38.1% for the period.

HAL Q3 2026 FORM 10-Q | 11


Table of Contents	Part I. Item 1 \| Notes to Condensed Consolidated Financial Statements

Note 8. Shareholders' Equity

The following tables summarize our shareholders’ equity activity for the three and nine months ended September 30,

2026 and 2025, respectively:


Millions of dollars	Common Stock	Paid-in Capital in Excess of Par Value	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interest in Consolidated Subsidiaries	Total Shareholders' Equity
Balance at December 31, 2025	$2,659	$112	$(6,983)	$15,036	$(363)	$44	$10,505
Comprehensive income:
Net income	—	—	—	461	—	3	464
Other comprehensive income	—	—	—	—	20	—	20
Cash dividends ($0.17 per share)	—	—	—	(142)	—	—	(142)
Stock repurchase program	—	—	(100)	—	—	—	(100)
Stock plans (a)	—	(19)	99	—	—	—	80
Other	—	—	—	—	—	(2)	(2)
Balance at March 31, 2026	$2,659	$93	$(6,984)	$15,355	$(343)	$45	$10,825
Comprehensive income:
Net income	—	—	—	534	—	4	538
Other comprehensive income	—	—	—	—	—	—	—
Cash dividends ($0.17 per share)	—	—	—	(143)	—	—	(143)
Stock repurchase program	—	—	(201)	—	—	—	(201)
Stock plans (a)	(1)	(76)	154	(24)	—	—	53
Other	—	(13)	—	—	—	(7)	(20)
Balance at June 30, 2026	$2,658	$4	$(7,031)	$15,722	$(343)	$42	$11,052
Comprehensive income:
Net income	—	—	—	417	—	2	419
Other comprehensive income	—	—	—	—	1	—	1
Cash dividends ($0.17 per share)	—	—	—	(141)	—	—	(141)
Stock repurchase program	—	—	(252)	—	—	—	(252)
Stock plans (a)	—	59	23	1	—	—	83
Other	—	—	—	—	—	(1)	(1)
Balance at September 30, 2026	$2,658	$63	$(7,260)	$15,999	$(342)	$43	$11,161


(a)	In the first, second, and third quarters of 2026, we issued common stock from treasury shares for stock options exercised, restricted stock grants, performance shares under our performance unit program, and purchases under our employee stock purchase plan.

HAL Q3 2026 FORM 10-Q | 12


Table of Contents	Part I. Item 1 \| Notes to Condensed Consolidated Financial Statements


Millions of dollars	Common Stock	Paid-in Capital in Excess of Par Value	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interest in Consolidated Subsidiaries	Total Shareholders' Equity
Balance at December 31, 2024	$2,662	$79	$(6,214)	$14,332	$(353)	$42	$10,548
Comprehensive income (loss):
Net income (loss)	—	—	—	204	—	(1)	203
Other comprehensive income (loss)	—	—	—	—	(6)	—	(6)
Cash dividends ($0.17 per share)	—	—	—	(147)	—	—	(147)
Stock repurchase program	—	—	(252)	—	—	—	(252)
Stock plans (a)	(1)	(24)	83	—	—	—	58
Other	—	4	—	—	—	1	5
Balance at March 31, 2025	$2,661	$59	$(6,383)	$14,389	$(359)	$42	$10,409
Comprehensive income:
Net income	—	—	—	472	—	8	480
Other comprehensive income	—	—	—	—	3	—	3
Cash dividends ($0.17 per share)	—	—	—	(145)	—	—	(145)
Stock repurchase program	—	—	(252)	—	—	—	(252)
Stock plans (a)	—	(28)	88	—	—	—	60
Other	—	—	—	—	—	(8)	(8)
Balance at June 30, 2025	$2,661	$31	$(6,547)	$14,716	$(356)	$42	$10,547
Comprehensive income:
Net income	—	—	—	18	—	2	20
Other comprehensive income	—	—	—	—	2	—	2
Cash dividends ($0.17 per share)	—	—	—	(144)	—	—	(144)
Stock repurchase program	—	—	(252)	—	—	—	(252)
Stock plans (a)	(2)	43	33	—	—	—	74
Other	—	—	—	—	—	(1)	(1)
Balance at September 30, 2025	$2,659	$74	$(6,766)	$14,590	$(354)	$43	$10,246


(a)	In the first, second, and third quarters of 2025, we issued common stock from treasury shares for stock options exercised, restricted stock grants, performance shares under our performance unit program, and purchases under our employee stock purchase plan.

Our Board of Directors has authorized a program to repurchase our common stock from time to time. We repurchased

7.3 million shares of our common stock under the program during the three months ended September 30, 2026 for $252 million.

Approximately $1.5 billion remained authorized for repurchases under the program as of September 30, 2026. From the

inception of this program in February of 2006 through September 30, 2026, we repurchased 342 million shares of our common

stock for a total cost of approximately $12.6 billion. We repurchased 11.3 million shares of our common stock under the

program during the three months ended September 30, 2025 for approximately $252 million.

Accumulated other comprehensive loss consisted of the following:


	September 30,	December 31,
Millions of dollars	2026	2025
Cumulative translation adjustments	$(83)	$(81)
Defined benefit and other postretirement liability adjustments	(223)	(245)
Other	(36)	(37)
Total accumulated other comprehensive loss	$(342)	$(363)

HAL Q3 2026 FORM 10-Q | 13


Table of Contents	Part I. Item 1 \| Notes to Condensed Consolidated Financial Statements

Note 9. Commitments and Contingencies

The Company is subject to various legal or governmental proceedings, claims or investigations, including personal

injury, property damage, environmental, intellectual property, commercial, tax, and other matters arising in the ordinary course

of business, the resolution of which, in the opinion of management, will not have a material adverse effect on our consolidated

results of operations or consolidated financial position. There is inherent risk in any legal or governmental proceeding, claim or

investigation, and no assurance can be given as to the outcome of these proceedings.

Guarantee arrangements

In the normal course of business, we have in place agreements with financial institutions under which approximately

$3.5 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of September 30, 2026. Some of the

outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization. None of these off-

balance sheet arrangements either has, or is likely to have, a material effect on our consolidated financial statements.

Note 10. Income per Share

Basic income or loss per share is based on the weighted average number of common shares outstanding during the

period. Diluted income per share includes additional common shares that would have been outstanding if potential common

shares with a dilutive effect had been issued. Antidilutive securities represent potentially dilutive securities which are excluded

from the computation of diluted income or loss per share as their impact was antidilutive.

A reconciliation of the number of shares used for the basic and diluted income per share computations is as follows:


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
Millions of shares	2026	2025	2026	2025
Basic weighted average common shares outstanding	831	849	835	857
Dilutive effect of awards granted under our stock incentive plans	1	1	1	1
Diluted weighted average common shares outstanding	832	850	836	858

Antidilutive shares:
Weighted average options with exercise price greater than the average market price	5	8	5	9
Total antidilutive shares	5	8	5	9

Note 11. Fair Value of Financial Instruments

The carrying amount of cash and equivalents, receivables, and accounts payable, as reflected in the Condensed

Consolidated Balance Sheets, approximates fair value due to the short maturities of these instruments.

The carrying amount and fair value of our total debt is as follows:


	September 30, 2026				December 31, 2025
Millions of dollars	Level 1	Level 2	Total fair value	Carrying value	Level 1	Level 2	Total fair value	Carrying value
Total debt	$6,502	$96	$6,598	$7,162	$6,722	$357	$7,079	$7,158

In the first nine months of 2026, the total fair value of our debt decreased as a result of higher yields.

Our debt categorized within level 1 on the fair value hierarchy is calculated using quoted prices in active markets for

identical liabilities with transactions occurring on the last two days of period-end. Our debt categorized within level 2 on the

fair value hierarchy is calculated using significant observable inputs for similar liabilities where estimated values are

determined from observable data points on our other bonds and on other similarly rated corporate debt or from observable data

points of transactions occurring prior to two days from period-end and adjusting for changes in market conditions. Differences

between the periods presented in our level 1 and level 2 classification of our long-term debt relate to the timing of when third-

party market transactions on our debt are executed. We have no debt categorized within level 3 on the fair value hierarchy.

HAL Q3 2026 FORM 10-Q | 14


Table of Contents	Part I. Item 1 \| Notes to Condensed Consolidated Financial Statements

Credit risk

The remaining CDSs we had previously entered into with third-party financial institutions related to borrowings

provided by the financial institutions to one of our primary customers in Mexico matured during the third quarter of 2026.

Accordingly, there were no outstanding notional amounts as of September 30, 2026, compared to $592 million as of

December 31, 2025.

No derivative liabilities were outstanding as of September 30, 2026, and the fair value of the derivative liabilities as of

December 31, 2025 were not material to our financial condition.

Note 12. New Accounting Pronouncements

In November 2024, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2024-03

(Subtopic 220-40), “Disaggregation of Income Statement Expenses”, which requires additional disclosure of certain expense

captions presented on the face of the Company’s income statement as well as disclosures about selling expenses. ASU 2024-03

is effective for the Company’s annual reporting periods beginning after December 15, 2026, and interim reporting periods

beginning after December 15, 2027, and should be applied on a prospective or retrospective basis, with early adoption

permitted. We continue to evaluate the effect that adoption of ASU 2024-03 will have on our disclosures.

HAL Q3 2026 FORM 10-Q | 15


Table of Contents		Part I. Item 2 \| Executive Overview

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in

conjunction with the condensed consolidated financial statements included in Item 1. Financial Statements contained herein.

EXECUTIVE OVERVIEW

Organization

We are one of the world’s largest providers of products and services to the energy industry. We help our customers

maximize asset value throughout the lifecycle of the reservoir from locating hydrocarbons and managing geological data, to

drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the asset.

Activity levels within our operations are significantly impacted by spending on upstream exploration, development, and

production programs by major, national, and independent oil and natural gas companies. We report our results under two

segments, the Completion and Production segment and the Drilling and Evaluation segment.

•Completion and Production delivers cementing, stimulation, specialty chemicals, intervention, pressure control,

artificial lift, and completion products and services. The segment consists of Artificial Lift, Cementing, Completion

Tools, Pipeline and Process Services, Production Enhancement, and Production Solutions. We completed the sale

of a portion of our chemical business in the second quarter of 2026.

•Drilling and Evaluation 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.

The segment consists of Baroid, Drill Bits and Services, Halliburton Project Management, Landmark Software and

Services, Sperry Drilling, Testing and Subsea, and Wireline and Perforating.

The business operations of our segments are organized around four primary geographic regions: North America, Latin

America, Europe/Africa/CIS, and Middle East/Asia. We have manufacturing operations in various locations, the most

significant of which are in the United States, Malaysia, Singapore, and the United Kingdom. With approximately 46,000

employees, we operate in more than 70 countries around the world, and our corporate headquarters is in Houston, Texas.

Our value proposition is to collaborate and engineer solutions to maximize asset value for our customers. We strive to

achieve strong cash flows and returns for our shareholders by delivering technology and services that improve efficiency,

increase recovery, and maximize production for our customers. Our strategic priorities are to:

- International: Consistently increase international growth in our directional drilling, unconventionals, well

intervention, and artificial lift businesses. Develop behind-the-meter power generation, independently or through

collaboration with VoltaGrid.

- North America: Maximize value by, among other things, utilizing our Zeus IQ electric fracturing platform, our

iCruise rotary steerable systems and LOGIX automation.

- Digital: Continue to drive differentiation and efficiencies through the deployment of digital and automation

technologies, both internally and for our customers.

- Capital efficiency: Maintain our capital expenditures at about $1.1 billion, while leveraging technology and targeted

process improvements to enhance utilization of existing capital.

- Shareholder returns: Return over 50% of annual free cash flow to shareholders through dividends and share

repurchases.

- Advance a Sustainable Energy Future: Continue to develop technologies and solutions to help lower our customers’

and our emissions intensity, grow our low carbon energy business, and support Halliburton Labs early-stage

company participants.

HAL Q3 2026 FORM 10-Q | 16


Table of Contents		Part I. Item 2 \| Executive Overview

Market conditions

During the third quarter of 2026, oil and natural gas markets remained volatile due to geopolitical developments and

global economic uncertainty. These factors continued to disrupt global oil supply and contribute to supply constraints.

Oil prices decreased in the third quarter of 2026 compared to the second quarter of 2026. The West Texas Intermediate

(WTI) crude oil price averaged approximately $87 per barrel during the third quarter of 2026, compared to approximately $96

per barrel during the second quarter of 2026, or a 9% decrease. The Brent crude oil price averaged approximately $96 per barrel

during the third quarter of 2026, compared to approximately $103 per barrel during the second quarter, or a 7% decrease.

Higher commodity prices generally support customer activity and capital spending in the markets we serve, as operator

investment decisions are often influenced by expectations regarding future commodity prices.

Trade tensions and tariffs continue to influence the global demand outlook, with varying impacts across end markets.

We continue to monitor and evaluate the effects of these on goods imported into the United States, developments related to

trade policy and the potential effects of future tariff actions on our business, financial position, results of operations, and cash

flows.

Globally, we continue to be impacted by inflationary cost increases, primarily related to logistics, chemicals, and

cement, which we expect to persist for sometime. We manage these pressures through global procurement strategies,

technology modifications, and sourcing efficiencies. As a standard practice, we generally seek to pass a portion of these cost

increases on to our customers and believe we have effective solutions in place to minimize their operational impact.

Customers remained focused on capital discipline, production optimization, operating efficiency, and expected returns

on investment. Customer activity and spending decisions were influenced by the geopolitical conflict in the Middle East, higher

commodity prices, uncertainty related to global trade policies and tariffs, and inflationary cost pressures. As a result, customers

continued to evaluate investment opportunities while balancing growth objectives, operating priorities, and return expectations.

HAL Q3 2026 FORM 10-Q | 17


Table of Contents		Part I. Item 2 \| Executive Overview

Financial results

The following graph illustrates our revenue and operating margins for each operating segment for the third quarter of

2025 and 2026.

The following charts depict the revenue split between our two operating segments and our four primary geographic

regions for the three months ended September 30, 2026.

During the third quarter of 2026, we generated total company revenue of $5.7 billion, an increase of 2% as compared

to the third quarter of 2025. We reported operating income of $624 million, including a pre-tax charge for impairments and

other charges of $107 million, in the third quarter of 2026, as compared to operating income of $356 million in the third quarter

of 2025, including impairments and other charges of $392 million.

Our Completion and Production segment revenue decreased 4% in the third quarter of 2026 as compared to the third

quarter of 2025. This decrease was primarily driven by decreased stimulation activity in North America and lower completion

tool sales in Middle East/Asia.

Our Drilling and Evaluation segment revenue increased 10% in the third quarter of 2026 as compared to the third

quarter of 2025. This increase was primarily driven by improved drilling related services in North America and Europe and

higher activity across multiple product service lines in Latin America.

Our North America revenue decreased 9% in the third quarter of 2026 as compared to the third quarter of 2025. This

decrease was primarily driven by lower stimulation activity in the region and reduced specialty chemicals in U.S. Land as a

result of the sale of a portion of our chemical business.

Internationally, revenue increased 9% in the third quarter of 2026 as compared to the third quarter of 2025, largely

driven by multiple product service lines in Europe/Africa/CIS and Latin America.

Our operating performance and liquidity are described in more detail in “Liquidity and Capital Resources” and

“Business Environment and Results of Operations.”

HAL Q3 2026 FORM 10-Q | 18


Table of Contents		Part I. Item 2 \| Liquidity and Capital Resources

LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 2026, we had $1.8 billion of cash and equivalents, compared to $2.2 billion of cash and

equivalents at December 31, 2025.

Significant sources and uses of cash during the first nine months of 2026

Sources of cash:

•Cash flows from operating activities were $1.5 billion. Working capital, which consists of receivables, inventories,

and accounts payable, had a negative impact of $517 million.

Uses of cash:

•Capital expenditures were $693 million.

•We repurchased 15.2 million shares of our common stock for $558 million, which includes the excise tax payment

for prior year share repurchases.

•We paid $426 million of dividends to our shareholders.

•We paid $111 million on the purchase of investment securities.

•We paid $107 million to acquire businesses.

•We paid $101 million primarily in connection with the purchase of an equity investment.

Future sources and uses of cash

We manufacture most of our own equipment, which provides us with some flexibility to increase or decrease our

capital expenditures based on market conditions. We still expect capital spending for 2026 to be approximately $1.1 billion. We

believe this level of spending will enable continued investment in our core strategic technologies and businesses, including the

international expansion of our artificial lift, unconventionals, production services, and drilling technologies. We will continue to

maintain capital discipline and monitor the rapidly changing market dynamics, and we may adjust our capital spending

accordingly.

While we maintain focus on liquidity and debt reduction, we are also focused on providing cash returns to our

shareholders. Our quarterly dividend rate is $0.17 per common share, or approximately $141 million. In 2023, our Board

approved a capital return framework with a goal of returning at least 50% of our annual free cash flow to shareholders through

dividends and share repurchases, and we expect our returns to shareholders will be in line with that framework for 2026.

Our Board of Directors has authorized a program to repurchase our common stock from time to time. We repurchased

7.3 million shares of common stock during the third quarter of 2026 under this program. Approximately $1.5 billion remained

authorized for repurchases as of September 30, 2026 and may be used for open market and other share purchases.

During 2023, we began our migration to SAP S4, which will be completed in the fourth quarter of 2026. For the nine

months ended September 30, 2026, we incurred $130 million in expense on our SAP S4 migration and expect the estimated cost

to be approximately $34 million in the fourth quarter of 2026. We believe the new system will provide important efficiency

benefits, cost savings, enhanced visibility to our operations, and advanced analytics that will benefit us and our customers.

We may, from time to time, redeem, repurchase, or otherwise acquire our outstanding debt through privately

negotiated transactions, open market purchases, redemptions, tender offers or otherwise, but we are under no obligation to do

so.

Other factors affecting liquidity

Financial condition in current market. As of September 30, 2026, we had $1.8 billion of cash and equivalents and $3.5

billion of available committed bank credit under our revolving credit facility, with an expiration date of August 16, 2030. We

believe we have a manageable debt maturity profile, with approximately $90 million due February 2027. Furthermore, we have

no financial covenants or material adverse change provisions in our bank agreements, and our debt maturities extend over a

long period of time. We believe our cash on hand, cash flows generated from operations, and our available credit facility will

provide sufficient liquidity to address expected global cash needs, including capital expenditures, working capital investments,

shareholder returns, if any, debt repurchases, if any, and scheduled interest and principal payments, in the short term and long

term.

HAL Q3 2026 FORM 10-Q | 19


Table of Contents		Part I. Item 2 \| Liquidity and Capital Resources

Guarantee agreements. In the normal course of business, we have agreements with financial institutions under which

approximately $3.5 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of September 30, 2026.

Some of the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization;

however, none of these triggering events have occurred. As of September 30, 2026, we had no material off-balance sheet

liabilities and were not required to make any material cash distributions to our unconsolidated subsidiaries.

The remaining CDSs we had previously entered into with third-party financial institutions related to borrowings

provided by the financial institutions to one of our primary customers in Mexico matured during the third quarter of 2026,

resulting in no outstanding notional amounts as of September 30, 2026, compared to $592 million as of December 31, 2025.

Credit ratings. Our credit ratings with Standard & Poor’s remain BBB+ for our long-term debt and A-2 for our short-

term debt, with a stable outlook. Our credit ratings with Moody's Investors Service remain A3 for our long-term debt and P-2

for our short-term debt, with a stable outlook.

Customer receivables. In line with industry practice, we bill our customers for our services in arrears and are,

therefore, subject to our customers delaying or failing to pay our invoices. In weak economic environments, we may experience

increased delays and failures to pay our invoices due to, among other reasons, a reduction in our customers’ cash flow from

operations and their access to the credit markets, as well as unsettled political conditions.

Receivables from our primary customer in Mexico accounted for approximately 8% of our total receivables as of

September 30, 2026 and 7% as of December 31, 2025. While we have experienced payment delays from this customer in

Mexico, the amounts are not in dispute and we have not historically had, and we do not expect, any material write-offs due to

collectability of receivables from this customer.

HAL Q3 2026 FORM 10-Q | 20


Table of Contents		Part I. Item 2 \| Business Environment and Results of Operations

BUSINESS ENVIRONMENT AND RESULTS OF OPERATIONS

We operate in more than 70 countries throughout the world and provide a broad range of services and products to the

energy industry. Our revenue is generated from the sale of services and products to major, national, and independent oil and

natural gas companies worldwide. The industry we serve is highly competitive, with numerous competitors across each of our

business segments. Based on the location of services provided and products sold, 37% and 39% of our consolidated revenue

was attributable to the United States during the nine months ended September 30, 2026 and 2025, respectively. No other

country accounted for more than 10% of our revenue for those periods.

Demand for our services and products is largely dependent on our customers' spending for the exploration,

development, and production of oil and natural gas reserves. Customer spending is influenced by a variety of factors, including

commodity prices and expectations regarding future prices, global oil and natural gas supply and demand fundamentals, the

availability of capital, government policies and regulations, geopolitical developments, and overall economic conditions.

Activity levels in certain markets may also be influenced by longer-term trends affecting energy demand, including

increasing electricity consumption associated with digital infrastructure and data center growth. These factors collectively

influence global drilling, completions, intervention, and production-related activity levels.

Because a significant portion of our business supports our customers' capital spending programs, our financial

performance is closely tied to oil and natural gas prices and worldwide drilling and completions activity. Lower commodity

prices generally result in reduced customer spending and lower activity levels, while higher commodity prices typically support

increased investment and activity. Accordingly, our operating results are significantly affected by changes in commodity prices

and global rig activity, which are summarized in the tables below.

The table below shows the average prices for West Texas Intermediate (WTI) crude oil, United Kingdom Brent crude

oil, and Henry Hub natural gas.


	Three Months Ended		Year Ended
	September 30,		December 31,
	2026	2025	2025
Oil Price - WTI (1)	$87.22	$65.74	$65.46
Oil Price - Brent (1)	96.33	68.97	69.10
Natural Gas Price - Henry Hub (2)	2.87	3.03	3.53


(1)	Oil prices measured in dollars per barrel.
(2)	Natural gas price measured in dollars per million British thermal units (Btu), or MMBtu.

The historical average rig counts based on the weekly Baker Hughes rig count data were as follows:


	Three Months Ended		Nine Months Ended		Year Ended
	September 30,		September 30,		December 31,
	2026	2025	2026	2025	2025
US Land	577	526	550	552	546
US Offshore	12	14	14	14	15
Canada	205	178	188	174	175
North America	794	718	752	740	736
International	1,107	1,080	1,082	1,086	1,080
Worldwide Total	1,901	1,798	1,834	1,826	1,816

HAL Q3 2026 FORM 10-Q | 21


Table of Contents		Part I. Item 2 \| Business Environment and Results of Operations

Business outlook

With the volatility of the oil and natural gas markets, we expect customer spending to remain focused on capital

discipline, production optimization, and operational efficiency across both international and North America markets. At the

same time, efforts to restore production, rebuild inventories and strengthen energy security are expected to drive growth for

oilfield services.

Outside of the Middle East, our international businesses continue to demonstrate strong performance relative to recent

years. We expect activity growth to be led by production services, drilling, unconventionals, and artificial lift. We believe these

markets will grow faster than the industry as a whole, supported by customer investment in development projects, production

capacity maintenance, and selected offshore and strategic energy projects. We remain focused on optimizing asset utilization

and generating appropriate returns on our investments. During the third quarter, we re-established our operations in Venezuela

and expect customer activity to increase as opportunities develop.

Operations in certain Middle East markets continue to be affected by ongoing geopolitical developments, including

periodic operational disruptions, persistent inflationary pressures that we expect to continue for some time, reduced activity in

some areas, and higher logistics and supply chain costs. While activity levels have shown signs of recovery in certain Middle

East markets, the pace and breadth of that recovery remain uncertain and continue to be influenced by geopolitical

developments across the region.

In North America, customer activity remains focused on maximizing returns and improving operating efficiency

within existing capital budgets. We remain focused on reducing exposure to commoditized activity and differentiating through

technology. Over the long term, we expect North America to remain critical for global energy security, which will require

performance-driven technology and greater service intensity.

While current industry fundamentals remain generally supportive of customer activity, the outlook for our business

remains subject to uncertainty. Customer spending and activity levels may be affected by volatility in oil and natural gas prices,

changes in global supply and demand balances, inflationary pressures, supply chain constraints, the availability of capital,

geopolitical developments, trade policies, sanctions, and regulatory actions. These factors may impact the timing and scope of

customer projects and demand for our services and products.

HAL Q3 2026 FORM 10-Q | 22


Table of Contents		Part I. Item 2 \| Results of Operations in 2026 Compared to 2025 (QTD)

RESULTS OF OPERATIONS IN 2026 COMPARED TO 2025

Three Months Ended September 30, 2026 Compared with Three Months Ended September 30, 2025


	Three Months Ended
	September 30,		Favorable	Percentage
Millions of dollars	2026	2025	(Unfavorable)	Change
Revenue:
By operating segment:
Completion and Production	$3,089	$3,223	$(134)	(4)%
Drilling and Evaluation	2,614	2,377	237	10
Total revenue	$5,703	$5,600	$103	2%
By geographic region:
North America	$2,160	$2,364	$(204)	(9)%
Latin America	1,122	996	126	13
Europe/Africa/CIS	1,016	828	188	23
Middle East/Asia	1,405	1,412	(7)	—
Total revenue	$5,703	$5,600	$103	2%

Operating income:
By operating segment:
Completion and Production	$457	$514	$(57)	(11)%
Drilling and Evaluation	391	348	43	12
Total operations	848	862	(14)	(2)
Corporate and other	(75)	(64)	(11)	(17)
SAP S4 upgrade expense	(42)	(50)	8	16
Impairments and other charges	(107)	(392)	285	n/m
Total operating income	$624	$356	$268	75%
n/m = not meaningful

Operating Segments

Completion and Production

Completion and Production revenue in the third quarter of 2026 was $3.1 billion, a decrease of $134 million, or 4%,

when compared to the third quarter of 2025. Operating income in the third quarter of 2026 was $457 million, a decrease of $57

million, or 11%, when compared to the third quarter of 2025. These decreases were primarily driven by decreased stimulation

activity in North America and lower completion tool sales in Middle East/Asia. Partially offsetting these decreases were higher

completion tool sales in Europe and improved activity across multiple product service lines in Africa.

Drilling and Evaluation

Drilling and Evaluation revenue in the third quarter of 2026 was $2.6 billion, an increase of $237 million, or 10%,

when compared to the third quarter of 2025. Operating income in the third quarter of 2026 was $391 million, an increase of $43

million, or 12%, when compared to the third quarter of 2025. These increases were primarily driven by higher activity across

multiple product service lines in Latin America and improved drilling related services in North America and Europe.

In the third quarter of 2026, results in both of our operating segments reflected continued recovery in activity

following disruptions related to the geopolitical conflict in the Middle East, partially offset by ongoing inflationary pressures on

operating costs in the region.

HAL Q3 2026 FORM 10-Q | 23


Table of Contents		Part I. Item 2 \| Results of Operations in 2026 Compared to 2025 (QTD)

Geographic Regions

North America

North America revenue in the third quarter of 2026 was $2.2 billion, a 9% decrease compared to the third quarter of

2025. This decrease was primarily driven by lower stimulation activity in the region and decreased specialty chemicals in U.S.

Land as a result of the sale of a portion of our chemical business. Partially offsetting these decreases was higher well

construction activity in U.S. Land.

Latin America

Latin America revenue in the third quarter of 2026 was $1.1 billion, a 13% increase compared to the third quarter of

2025. This increase was primarily driven by higher activity across multiple product service lines in Mexico, increased

stimulation activity in Argentina, and improved project management activity in Ecuador.

Europe/Africa/CIS

Europe/Africa/CIS revenue in the third quarter of 2026 was $1.0 billion, a 23% increase compared to the third quarter

of 2025. This increase was primarily driven by improved completion tool sales and drilling related services in Norway, higher

activity across multiple product service lines in Nigeria, and increased pipeline services and stimulation activity in Angola.

Middle East/Asia

Middle East/Asia revenue in the third quarter of 2026 was $1.4 billion, flat compared to the third quarter of 2025.

These results were primarily driven by decreased activity across multiple product service lines in Iraq and Qatar, and lower

completion tool sales in Saudi Arabia. Offsetting these decreases was higher activity across multiple product service lines in

Saudi Arabia and the United Arab Emirates (UAE).

Other Operating Items

Corporate and Other. During the three months ended September 30, 2026, Corporate and Other expense totaled $75

million, which was an increase of $11 million, or 17%, as compared to the three months ended September 30, 2025. This

increase was primarily attributable to higher executive compensation costs and increased amortization expense related to recent

acquisitions.

SAP S4 Upgrade Expense. As previously mentioned, during 2023, we began our migration to SAP S4, which will be

completed in the fourth quarter of 2026. During the third quarter of 2026 and 2025, we recognized $42 million and $50 million

of expense on our SAP S4 migration, respectively.

Impairments and Other Charges. During the three months ended September 30, 2026, we recognized a pre-tax charge

of $107 million recorded in impairments and other charges due to severance costs, inventory costs and write-downs, and fixed

and other assets write-offs, partially offset by a gain resulting from the sale of a portion of our shares in an equity investment.

During the three months ended September 30, 2025, there were pre-tax charges of $392 million recorded in impairments and

other charges due to severance costs, fixed and other assets write-offs, an impairment of assets held for sale, a reserve release

related to a cybersecurity incident, a gain on an equity investment and other items. See Notes to Condensed Consolidated

Financial Statements, Note 2. Impairments and Other Charges for further discussion of these charges.

Nonoperating Items

Argentina Impairment on Investment. In years 2022, 2023 and 2024, we executed a series of loans to a third party and

received notes that are to be repaid in U.S. dollars upon maturity or earlier if certain conditions are met. During the three

months ended September 30, 2025, we recorded a loss of $23 million resulting from the deterioration in the outlook of the

debtor’s liquidity and financial projections. This is included in “Other, net” on the Condensed Consolidated Statements of

Operations.

Income Tax Provision. During the three months ended September 30, 2026, we recorded a total income tax provision

of $94 million on a pre-tax income of $513 million, resulting in an effective tax rate of 18.3% for the quarter. During the three

months ended September 30, 2025, we recorded a total income tax provision of $199 million on a pre-tax income of $219

million, resulting in an effective tax rate of 90.9% for the quarter.

HAL Q3 2026 FORM 10-Q | 24


Table of Contents		Part I. Item 2 \| Results of Operations in 2026 Compared to 2025 (QTD)

Internal Revenue Service Notice of Proposed Adjustment. We are subject to taxes in the United States and in numerous

jurisdictions where we operate or where our subsidiaries are organized. Our tax returns are routinely subject to examination by

the taxing authorities in the jurisdictions where we file tax returns. In most cases we are no longer subject to examination by tax

authorities for years before 2014. The only significant operating jurisdiction that has tax filings under review or subject to

examination by the tax authorities is the United States. Our United States federal income tax filings for tax years 2016 through

2024, including carry back of 2016 net operating losses to 2014, are currently under review or remain open for review by the

Internal Revenue Service (IRS).

On September 28, 2023, we received a Notice of Proposed Adjustment (NOPA) from the IRS covering our 2016 U.S.

tax return. The NOPA proposed an adjustment to reclassify approximately 95% of the $3.5 billion termination fee paid to Baker

Hughes in 2016 from an ordinary expense deduction to a capital loss. The termination fee was paid to Baker Hughes under the

merger agreement after antitrust regulators in multiple jurisdictions failed to approve our proposed merger. It is common

commercial practice to include a termination fee in a merger agreement to compensate the target for damages incurred when the

acquisition does not go forward. The IRS’s long-understood position at the time of payment had been to treat such payments as

an ordinary and necessary business expense. We strongly disagree with the proposed adjustment on both a factual and legal

basis, and we plan to vigorously contest it.

We expect that resolving this dispute will take substantial time. In 2023, we initiated the IRS administrative appeals

process, which is ongoing. Failing a resolution through that process, the matter will ultimately be resolved by the United States

federal courts.

We regularly assess the likelihood of adverse outcomes resulting from tax examinations to determine the adequacy of

our tax reserves, and we believe our income tax reserves are appropriately provided for all open tax years. We cannot assure

you that the matter will be determined in our favor or against us, and if the matter is ultimately determined unfavorably to us, it

could have a material adverse impact on our results of operations and cash flows. Based on tax attributes currently available, we

estimate that, should the IRS's position prevail through the appellate process and subsequent litigation, the proposed adjustment

could result in cash taxes due of approximately $640 million (plus interest thereon in the case of amounts due for previous tax

years). Our estimates are calculated under current tax law and on the basis of our assumptions regarding taxable income and

loss and other tax attributes over the relevant period, of which the law could change and which assumptions could and likely

will differ materially from actual results. In any event, no payment of any additional tax is currently required, nor do we

anticipate that the proposed adjustment would materially and adversely impact our ability to meet our expected uses of cash,

including future capital expenditures, working capital investments, and scheduled debt repayments, or our ability to return cash

to shareholders, even if a final determination of the matter is reached that is adverse to us.

HAL Q3 2026 FORM 10-Q | 25


Table of Contents	Part I. Item 2 \| Results of Operations in 2026 Compared to 2025 (YTD)

Nine Months Ended September 30, 2026 Compared with Nine Months Ended September 30, 2025


	Nine Months Ended
	September 30,		Favorable	Percentage
Millions of dollars	2026	2025	(Unfavorable)	Change
Revenue:
By operating segment:
Completion and Production	$9,307	$9,514	$(207)	(2)%
Drilling and Evaluation	7,512	7,013	499	7
Total revenue	$16,819	$16,527	$292	2%
By geographic region:
North America	$6,572	$6,859	$(287)	(4)%
Latin America	3,335	2,869	466	16
Europe/Africa/CIS	2,891	2,423	468	19
Middle East/Asia	4,021	4,376	(355)	(8)
Total revenue	$16,819	$16,527	$292	2%

Operating income:
By operating segment:
Completion and Production	$1,370	$1,558	$(188)	(12)%
Drilling and Evaluation	1,080	1,012	68	7
Total operations	2,450	2,570	(120)	(5)
Corporate and other	(227)	(196)	(31)	(16)
SAP S4 upgrade expense	(130)	(112)	(18)	(16)
Impairments and other charges	(12)	(748)	736	n/m
Total operating income	$2,081	$1,514	$567	37%
n/m = not meaningful

Operating Segments

Completion and Production

Completion and Production revenue in the first nine months of 2026 was $9.3 billion, a decrease of $207 million, or

2%, when compared to the first nine months of 2025. Operating income for the segment in the first nine months of 2026 was

$1.4 billion, a decrease of $188 million, or 12%, when compared to the first nine months of 2025. These decreases were

primarily related to lower stimulation activity in North America and decreased activity across multiple product service lines in

the Middle East. Partially offsetting these decreases were higher completion tool sales and pressure pumping services in

Europe/Africa/CIS and increased stimulation activity in Latin America.

Drilling and Evaluation

Drilling and Evaluation revenue in the first nine months of 2026 was $7.5 billion, an increase of $499 million, or 7%,

when compared to the first nine months of 2025. Operating income for the segment in the first nine months of 2026 was $1.1

billion, an increase of $68 million, or 7%, when compared to the first nine months of 2025. These increases were primarily

driven by improved activity across multiple product service lines in Latin America and increased drilling related services in

North America and Europe. Partially offsetting these increases was decreased activity across multiple product service lines in

the Middle East.

In the first nine months of 2026, results in both of our operating segments were impacted by disruptions related to the

geopolitical conflict in the Middle East and ongoing inflationary pressures on operating costs in the region.

HAL Q3 2026 FORM 10-Q | 26


Table of Contents	Part I. Item 2 \| Results of Operations in 2026 Compared to 2025 (YTD)

Geographic Regions

North America

North America revenue in the first nine months of 2026 was $6.6 billion, a 4% decrease compared to the first nine

months of 2025. This decrease was primarily driven by lower stimulation activity in the region and decreased specialty

chemicals in U.S. Land as a result of the sale of a portion of our chemical business. Partially offsetting these decreases was

higher well construction activity in U.S. Land.

Latin America

Latin America revenue in the first nine months of 2026 was $3.3 billion, a 16% increase compared to the first nine

months of 2025. This increase was primarily driven by higher activity across multiple product service lines in Ecuador and the

Caribbean and increased stimulation activity in Argentina. Partially offsetting these increases was lower well construction

activity in Mexico.

Europe/Africa/CIS

Europe/Africa/CIS revenue in the first nine months of 2026 was $2.9 billion, a 19% increase compared to the first nine

months of 2025. This increase was primarily driven by higher activity across multiple product service lines in Angola and

Nigeria and increased drilling related services and completion tool sales in Norway.

Middle East/Asia

Middle East/Asia revenue in the first nine months of 2026 was $4.0 billion, an 8% decrease compared to the first nine

months of 2025. This decrease was primarily driven by lower activity across multiple product service lines in Saudi Arabia,

Qatar, and Iraq due to conflict-related disruptions. Partially offsetting these decreases was improved activity across multiple

product service lines in the UAE.

Other Operating Items

Corporate and Other. During the nine months ended September 30, 2026, Corporate and Other expense totaled $227

million, which was an increase of $31 million, or 16%, as compared to the nine months ended September 30, 2025. This

increase was primarily attributable to higher executive compensation costs and increased amortization expense related to recent

acquisitions.

SAP S4 Upgrade Expense. As previously mentioned, during 2023 we began our migration to SAP S4, which will be

completed in the fourth quarter of 2026. During the nine months ended September 30, 2026 and 2025, we recognized $130

million and $112 million of expense on our SAP S4 migration, respectively.

Impairments and Other Charges. During the nine months ended September 30, 2026, we recognized a pre-tax charge

of $12 million in impairments and other charges due to severance costs, inventory costs and write-downs, fixed and other assets

write-offs, substantially offset by gains on equity investments, and other credits primarily due to government refund recovery.

During the nine months ended September 30, 2025, we took a pre-tax charge of $748 million primarily related to severance

costs, fixed and other assets write-offs, an impairment of assets held for sale, an impairment of facility closures and lease

terminations, a reserve release related to a cybersecurity incident, a gain on an equity investment and other items, primarily

related to legacy environmental remediation cost estimate increases. See Notes to Condensed Consolidated Financial

Statements, Note 2. Impairments and Other Charges for further discussion of these charges.

Nonoperating Items

Pension Settlement Charges from Plan Terminations. During the nine months ended September 30, 2026, the

Company entered into agreements to transfer certain defined benefit pension obligations to third-party insurers in connection

with plan terminations. As a result, the Company recognized approximately $23 million of non-cash pension settlement

charges, primarily related to the acceleration of actuarial losses previously recorded in accumulated other comprehensive

income. This is included in “Other, net” on the Condensed Consolidated Statements of Operations.

Argentina Impairment on Investment. In years 2022, 2023 and 2024, we executed a series of loans to a third party and

received notes that are to be repaid in U.S. dollars upon maturity or earlier if certain conditions are met. During the nine months

ended September 30, 2025, we recorded a loss of $23 million resulting from the deterioration in the outlook of the debtor’s

liquidity and financial projections. This is included in “Other, net” on the Condensed Consolidated Statements of Operations.

HAL Q3 2026 FORM 10-Q | 27


Table of Contents	Part I. Item 2 \| Results of Operations in 2026 Compared to 2025 (YTD)

Income Tax Provision. During the nine months ended September 30, 2026, we recorded a total income tax provision of

$325 million on a pre-tax income of $1.7 billion, resulting in an effective tax rate of 18.6%. The effective tax rate for this

period was primarily impacted by the release of a valuation allowance in the amount of $32 million related to changes in

deferred tax asset realizability. During the nine months ended September 30, 2025, we recorded a total income tax provision of

$433 million on pre-tax income of $1.1 billion, resulting in an effective tax rate of 38.1%. The effective tax rate for this period

was primarily impacted by the additional valuation allowance recognized on our deferred tax assets, the pre-tax charge for

impairments and other charges, and an impairment of an investment in Argentina.

HAL Q3 2026 FORM 10-Q | 28


Table of Contents	Part I. Item 2 \| Forward-Looking Information

FORWARD-LOOKING INFORMATION

The Private Securities Litigation Reform Act of 1995 provides safe harbor provisions for forward-looking information.

Forward-looking information is based on projections and estimates, not historical information. Some statements in this Form

10-Q, including those in Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations –

Business Environment and Results of Operations – Business Outlook, are forward-looking and use words like “may,” “may

not,” “believe,” “do not believe,” “plan,” “estimate,” “intend,” “expect,” “do not expect,” “anticipate,” “do not anticipate,”

“should,” “likely,” and other expressions. We may also provide oral or written forward-looking information in our statements

and other materials we release to the public. Forward-looking information involves risks and uncertainties and reflects our best

judgment based on current information. Our results of operations can be affected by inaccurate assumptions we make or by

known or unknown risks and uncertainties. In addition, other factors may affect the accuracy of our forward-looking

information. As a result, no forward-looking information can be guaranteed. Actual events and the results of our operations may

vary materially.

We do not assume any responsibility to publicly update any of our forward-looking statements regardless of whether

factors change as a result of new information, future events, or for any other reason, except as required by law. You should

review any additional disclosures we make in our press releases and Forms 10-K, 10-Q, and 8-K filed with or furnished to the

Securities and Exchange Commission. We also suggest that you listen to our quarterly earnings release conference calls with

financial analysts.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

For quantitative and qualitative disclosures about market risk, see Part II, Item 7(a), “Quantitative and Qualitative

Disclosures About Market Risk,” in our 2025 Annual Report on Form 10-K. Our exposure to market risk has not changed

materially since December 31, 2025.

Item 4. Controls and Procedures.

In accordance with the Securities Exchange Act of 1934 Rules 13a-15 and 15d-15, we carried out an evaluation, under

the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, of

the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on that

evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were

effective as of September 30, 2026 to provide reasonable assurance that information required to be disclosed in our reports filed

or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the

Securities and Exchange Commission’s rules and forms. Our disclosure controls and procedures include controls and

procedures designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is

accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as

appropriate, to allow timely decisions regarding required disclosure.

There has been no change in our internal control over financial reporting that occurred during the quarter ended

September 30, 2026 that has materially affected, or is reasonably likely to materially affect, our internal control over financial

reporting.

HAL Q3 2026 FORM 10-Q | 29


Table of Contents	Part II. Item 1 \| Legal Proceedings

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

See Notes to Condensed Consolidated Financial Statements, Note 9 for further information regarding legal

proceedings.

Item 1(a). Risk Factors.

As of September 30, 2026, there have been no material changes in risk factors previously disclosed in our Annual

Report on Form 10-K for the fiscal year ended December 31, 2025.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Following is a summary of our repurchases of our common stock during the three months ended September 30, 2026.


Period	Total Number of Shares Purchased (a)	Average Price Paid per Share	Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (b)	Maximum Number (or Approximate Dollar Value) of Shares that may yet be Purchased Under the Program (b)
July 1 - 31	3,119,924	$33.52	2,945,500	$1,650,496,902
August 1 - 31	2,405,441	$33.85	2,376,701	$1,570,031,337
September 1 - 30	2,046,484	$35.06	2,027,719	$1,498,954,889
Total	7,571,849	$34.04	7,349,920


(a)	Of the 7,571,849 shares purchased during the three-month period ended September 30, 2026, 221,929 were acquired from employees in connection with the settlement of income tax and related benefit withholding obligations arising from vesting in restricted stock grants. These shares were not part of a publicly announced program to repurchase common stock.
(b)	Our Board of Directors has authorized a program to repurchase a specified dollar amount of our common stock from time to time. On July 21, 2014, our Board of Directors announced that it had approved an increase in the total available outstanding authorization for repurchases to $6.0 billion. Approximately $1.5 billion remained authorized for repurchases as of September 30, 2026. From the inception of this program in February of 2006 through September 30, 2026, we repurchased approximately 342 million shares of our common stock for a total cost of approximately $12.6 billion. The program may be terminated or suspended at any time and does not have a specified expiration date.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Our barite and bentonite mining operations, in support of our fluid services business, are subject to regulation by the

U.S. Mine Safety and Health Administration under the Federal Mine Safety and Health Act of 1977. Information concerning

mine safety violations or other regulatory matters required by section 1503(a) of the Dodd-Frank Wall Street Reform and

Consumer Protection Act and Item 104 of Regulation S-K (17 CFR 229.104) is included in Exhibit 95 to this quarterly report.

Item 5. Other Information.

During the quarter ended September 30, 2026, the following officer of the Company adopted or terminated a “Rule

10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K,

and no trading arrangements were adopted or terminated by directors of the Company.


Reporting Officer	Title	Reporting Action	Plan Adoption Date	Plan End Date	Aggregated Shares Covered	Intended to Satisfy Rule 10b5-1?
Jill D. Sharp	Senior Vice President, Internal Assurance Services	Plan Adoption	8/5/2026	5/19/2027	50,930	Yes

HAL Q3 2026 FORM 10-Q | 30


Table of Contents		Part II. Item 6 \| Exhibits

Item 6. Exhibits.


*	31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

*	31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

**	32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

**	32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*	95	Mine Safety Disclosures.

*	101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
*	101.SCH	XBRL Taxonomy Extension Schema Document
*	101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
*	101.LAB	XBRL Taxonomy Extension Label Linkbase Document
*	101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
*	101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
*	104	Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

	*	Filed with this Form 10-Q.
	**	Furnished with this Form 10-Q.


/s/ Eric J. Carre	/s/ Stephanie S. Holzhauser
Eric J. Carre	Stephanie S. Holzhauser
Executive Vice President and	Senior Vice President and
Chief Financial Officer	Chief Accounting Officer


		Page No.
PART I.	FINANCIAL INFORMATION	1

Item 1.	Financial Statements	1
	Condensed Consolidated Statements of Operations	1
	Condensed Consolidated Statements of Comprehensive Income	2
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Cash Flows	4
	Notes to Condensed Consolidated Financial Statements	5
	Note 1. Basis of Presentation	5
	Note 2. Impairments and Other Charges	5
	Note 3. Business Segment Information	7
	Note 4. Revenue	9
	Note 5. Inventories	10
	Note 6. Accounts Payable	10
	Note 7. Income Taxes	10
	Note 8. Shareholders' Equity	11
	Note 9. Commitments and Contingencies	13
	Note 10. Income per Share	13
	Note 11. Fair Value of Financial Instruments	13
	Note 12. New Accounting Pronouncements	14

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	15
	Executive Overview	15
	Liquidity and Capital Resources	18
	Business Environment and Results of Operations	20
	Results of Operations in 2026 Compared to 2025 (QTD)	22
	Results of Operations in 2026 Compared to 2025 (YTD)	25
	Forward-Looking Information	28

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28
Item 4.	Controls and Procedures	28

PART II.	OTHER INFORMATION	29

Item 1.	Legal Proceedings	29
Item 1(a).	Risk Factors	29
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29
Item 3.	Defaults Upon Senior Securities	29
Item 4.	Mine Safety Disclosures	29
Item 5.	Other Information	29
Item 6.	Exhibits	30

SIGNATURES		31