Halliburton (HAL) Stock Forecast & Price Target

Halliburton, as North America's largest oilfield services company, is well-positioned with a significant market share in the hydraulic fracturing and completions market, which constitutes nearly half of its revenue. The company's strong performance in its Completion and Production segment, reflected by increased quarterly revenue and the highest margins of the year, showcases its resilience despite challenging market conditions, such as low U.S. fracturing activity. Additionally, Halliburton's projected free cash flow of $1.8 billion in 2026 and its strong leverage to upcycles in North American drilling further underline the company’s growth potential and favorable financial outlook.

Halliburton’s first quarter 2026 outlook indicates a revenue projection of $5.3-5.4 billion, reflecting a 6% quarter-over-quarter decrease at the midpoint, alongside an adjusted EBITDA forecast of $980-1,010 million, which represents a 14% decline sequentially. Additionally, the company anticipates a decline in its Completion and Production (C&P) revenue by 7-9% and a decrease of 300 basis points in operating margins for the same period, driven by lower activity levels and reduced fixed cost absorption. Furthermore, Halliburton is facing headwinds from increased corporate and net interest expenses, which are expected to strain profitability and contribute to a broader negative outlook on its financial performance for fiscal year 2026.