Halliburton (HAL) Stock Forecast & Price Target

Halliburton, as the leading oilfield-services company in North America, is well-positioned to benefit from improved commodity prices and increased exploration and production spending, which are anticipated to drive growth in revenue. The company's strong market share in hydraulic fracturing and completions, coupled with advancements in technology that lower development costs, enhances its competitive edge, particularly as industry conditions improve. Furthermore, Halliburton is projected to generate $1.8 billion in free cash flow by 2026, reflecting a 4% year-over-year increase, along with revised revenue estimates showing growth of 2% to 6% over the next three years, underscoring its potential for margin expansion and profitability.

Halliburton's revenue guidance for the upcoming quarters indicates a projected decline of 2% quarter-over-quarter at the midpoint, with adjusted EBITDA forecasts falling below street expectations, reflecting anticipated decreases in completion and production (C&P) and drilling and evaluation (D&E) margins. The company is also facing unfavorable trends in its North America market, with expectations of low-double-digit revenue declines due to pricing pressures and planned operational gaps, coupled with a mid-single-digit decrease in its international business attributed to reduced activity in key regions like Saudi Arabia and Mexico. Additionally, increasing corporate expenses and the negative impacts from tariffs further suggest challenges ahead, leading to concerns regarding Halliburton's overall financial stability and performance.