Halliburton filed its 10-Q with the SEC, and its figures are now in our data. The top line is expanding at a quickening pace. Revenue over the twelve months to Q3 2026 was $22.48 billion, which rose 1.5% on the year before. That growth rate was up 0.9 percentage points on the rate a quarter earlier.

What stands out

Net income rose 52.9% over the year while free cash flow fell 14.6%: reported profit and cash are moving at different speeds.

Profit and margins

Profit is there at every level. The trailing operating margin was 12.6%, up 1.5 percentage points from a year earlier. Over the same period, the trailing net margin was 8.9%. Net income over the twelve months was $2.00 billion, which rose 52.9% on the year before.

Cash flow

Cash generation weakened. Operating cash flow over the twelve months was $2.63 billion, down 18.2% on the year before. Over the same period, capital spending was $1.03 billion, or 4.6% of revenue. Free cash flow, operating cash flow less capital spending, was $1.60 billion, down 14.6% on the year before. At the same time, free cash flow was 7.1% of revenue (the free-cash-flow margin), down 1.3 percentage points from a year earlier.

Shares outstanding

The average diluted share count fell 2.9% over the year.

Against its own history

Set against the company’s own record: today’s free-cash-flow margin of 7.1% is higher than 65% of the company’s own past quarterly readings, which have ranged from −23.0% to 10.6%. Today’s operating margin of 12.6% is higher than 57% of the company’s own past quarterly readings, which have ranged from −42.6% to 20.8%. Today’s twelve-month revenue growth rate of 1.5% is higher than 42% of the company’s own past quarterly readings, which have ranged from −40.8% to 38.9%.

Guidance

The company has given an outlook. The company gave its 2027 guidance for operating margins: 15%.

The valuation angle

Our model translates these figures into value. In our model, growth 5 percentage points lower would lower the value by 31.4%, and 5 percentage points higher would raise it by 41.3%. In the same filing, a free-cash-flow margin 1 percentage point lower would lower it by 17.5%.