Halliburton (HAL) Stock Forecast & Price Target

Halliburton's strong position in the hydraulic fracturing and completions market, which accounts for nearly half of its revenue, underscores its leadership in North America's oilfield-services sector. The company's recent financial performance, including increased quarter-over-quarter revenue and the highest margins of the year within its Completions and Production segment, suggest robust growth potential despite challenges such as low U.S. fracturing activity. Furthermore, projections indicate that Halliburton is expected to generate $1.8 billion in free cash flow by 2026, reflecting a 6% year-over-year increase, thereby enhancing its financial stability and capacity for dividends.

Halliburton's financial outlook shows a concerning trend, with projected revenues for 1Q26 estimated at $5.3-5.4 billion, reflecting a 6% quarter-over-quarter decrease at the midpoint, and a 14% sequential decline in adjusted EBITDA to $980-1,010 million. Additionally, the company's corporate expenses and net interest expenses are expected to rise, while revenue growth in its Completion & Production segment is forecasted to decrease by 7% to 9% quarter-over-quarter, indicating weakened operational efficiency and cost absorption challenges. Overall, with a projected corporate revenue decline of 3% year-over-year and a negative outlook for North American revenue, the financial metrics suggest potential difficulties ahead for Halliburton in maintaining its market position.