Halliburton reported Q3 2026 earnings and for the first time, management issued early 2027 earnings guidance. Management is projecting mid-single-digit revenue growth and operating margins expanding 200 basis points to ~15%, driven by $250-300M in combined savings from the completed SAP S4 transformation and a new structural cost reduction program. Once again, international strength continues to offset North America frac weakness.
Halliburton’s comments confirm what SynMax data is showing with the rig to frac crew disconnect deepening in Q3 2026, with rigs rising and frac crews dropping from Q2 2026 to Q3 2026 as shown in the chart below.
Pertaining to the public vs private split, Halliburton stated that private operators are adding rigs. SynMax data for Q3 2026 aligns with this statement as private producers significantly increased rigs (shown in the below).
Halliburton also stated that public producers continue to maintain discipline on their capital budgets, to which SynMax data also shows this with public producers cutting back on frac crews during Q3 2026 (shown in the chart below).
Large public operators are in the middle of their 2027 budget cycles, and Halliburton has received phone calls indicating serious planning for next year’s frac programs. Halliburton management noted that "all it takes is one or two of these guys to put together a program and that changes things for Halliburton."
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