Halliburton (HAL) Stock Forecast & Price Target

Halliburton, as the largest oilfield services company in North America, maintains a robust market position in hydraulic fracturing and completions, contributing nearly half of its revenue. The company is well-positioned to capitalize on increased drilling and completion activity, driven by favorable commodity price fluctuations and improving pricing for services, which are expected to bolster revenues and margins moving forward. With an anticipated free cash flow generation of $1.8 billion by 2026—representing a 4% year-over-year increase—Halliburton demonstrates strong financial health and the capability to enhance shareholder returns through potential dividend increases.

Halliburton's revenue guidance for the upcoming quarters indicates a forecasted decline of approximately 2% quarter-over-quarter at the midpoint, coupled with adjusted EBITDA expectations falling significantly below street estimates, driven by decreased margins in the completions and drilling segments. Additionally, the company's expectations of a low-double-digit revenue drop in North America and mid-single-digit declines internationally highlight a concerning decrease in activity levels and pricing softness, which could negatively impact the overall financial performance. Furthermore, the anticipated increases in corporate and net interest expenses, along with the adverse effects of tariffs, present additional challenges that could undermine Halliburton's profitability moving forward.