Halliburton (HAL) Stock Forecast & Price Target

Halliburton is favored because it combines North America’s largest oilfield-services scale with a leading position in hydraulic fracturing and completions, a business mix that drives nearly half of revenue and gives it outsized leverage to any recovery in pressure-pumping demand and pricing. Its fundamental strength also comes from breadth across drilling and evaluation, fluids, directional drilling, and project management, while technology such as ZEUS electric fleets, iCruise®, LOGIX drill automation, and downhole diagnostics supports higher efficiency, tighter supply conditions, and the ability to solve increasingly complex reservoir-to-wellbore challenges for customers. Financially, the company’s 1Q26 adjusted EBITDA of $1.02Bn and EPS of $0.55 beat expectations, 2Q26 guidance implies roughly $1,035MM of adjusted EBITDA at the midpoint, and the outlook for 2026-27 reflects confidence in early-cycle recovery, mid- to high-single-digit international growth ex-Middle East for 2026, and margin expansion as utilization improves and fixed-cost absorption strengthens.

Halliburton is facing a fundamentally challenged setup because its North America revenue fell 4.5% year over year to $2,136 million and total revenue declined 0.3% year over year to $5,402 million, while adjusted EBITDA dropped 8.5% year over year to $974 million and operating income before corporate expenses and impairment fell 10.5% to $790 million, signaling weaker operating leverage. Even though the company remains a leader in hydraulic fracturing and completions, the business is exposed to soft stimulation activity, reduced completion tool sales, and pressure pumping weakness in the Middle East, with management also indicating that 1H26 frac calendar whitespace has now been largely filled and that 2Q26 D&E revenue is expected to be roughly flat to down 2% with margins contracting 75-125 basis points. While 2026/27 EBITDA estimates rise to $4,224/$4,545 million and the stock trades at 8.6/8.0x EV/EBITDA versus SLB at 10.2/9.3x, the current setup still reflects mid-cycle valuation on trough-to-midcycle earnings amid persistent Middle East disruptions, possible Strait of Hormuz-related cost pressure, and only $123 million of free cash flow and $273 million of cash from operations in the quarter.