Revenue has been flat around $5.7B, but gross margin has eroded from 19.3% in Q2 2024 to 14.1% in Q2 2026, with operating income down 22% over the same period.
Halliburton Company (HAL) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 22.48B | 22.18B | 22.94B | 23.02B | 20.3B | 15.29B | 14.45B | 22.41B | 24B | 20.62B | 15.89B | 23.63B | 32.87B | 29.4B | 28.5B | 24.83B | 17.97B | 14.68B | 18.28B | 15.26B | 12.96B | 10.1B | 19.88B | 16.27B | 12.57B | 13.05B | 11.94B | 12.31B | 14.5B | 16.27B | 13.95B |
| Revenue Growth % | 1.53% | -3.31% | -0.32% | 13.41% | 32.7% | 5.88% | -35.54% | -6.61% | 16.37% | 29.79% | -32.78% | -28.1% | 11.8% | 3.15% | 14.8% | 38.15% | 22.47% | -19.72% | 19.75% | 17.82% | 28.27% | -49.21% | 22.21% | 29.42% | -3.63% | 9.23% | -3% | -15.11% | -10.87% | 16.67% | 137.07% |
| Cost of Goods Sold | 19.1B | 18.7B | 18.64B | 18.66B | 17.05B | 13.28B | 13.4B | 20.12B | 21.01B | 18.34B | 15.02B | 21.11B | 27.33B | 24.93B | 23.77B | 19.81B | 14.73B | 12.48B | 14.05B | 11.53B | 9.43B | 7.74B | 18.75B | 15.27B | 12.38B | 11.57B | 11.22B | 11.61B | 12.52B | 13.64B | 11.84B |
| COGS % of Revenue | - | 84.3% | 81.25% | 81.06% | 84.02% | 86.82% | 92.8% | 89.8% | 87.56% | 88.96% | 94.52% | 89.34% | 83.16% | 84.79% | 83.39% | 79.79% | 81.98% | 85.04% | 76.86% | 75.5% | 72.76% | 76.66% | 94.31% | 93.84% | 98.46% | 88.72% | 93.92% | 94.27% | 86.33% | 83.81% | 84.89% |
| Gross Profit | 3.37B | 3.48B | 4.3B | 4.36B | 3.24B | 2.02B | 1.04B | 2.29B | 2.99B | 2.28B | 870M | 2.52B | 5.54B | 4.47B | 4.73B | 5.02B | 3.24B | 2.2B | 4.23B | 3.74B | 3.53B | 2.36B | 1.13B | 1B | 193M | 1.47B | 726M | 705M | 1.98B | 2.63B | 2.11B |
| Gross Margin % | 15% | 15.71% | 18.75% | 18.94% | 15.98% | 13.18% | 7.2% | 10.2% | 12.44% | 11.04% | 5.48% | 10.66% | 16.84% | 15.21% | 16.61% | 20.21% | 18.02% | 14.96% | 23.14% | 24.5% | 27.24% | 23.34% | 5.69% | 6.16% | 1.54% | 11.28% | 6.08% | 5.73% | 13.67% | 16.19% | 15.11% |
| Gross Profit Growth % | - | -19% | -1.35% | 34.44% | 60.86% | 93.85% | -54.49% | -23.48% | 31.14% | 161.72% | -65.48% | -54.48% | 23.82% | -5.56% | -5.66% | 54.97% | 47.45% | -48.09% | 13.13% | 5.95% | 49.72% | 108.22% | 12.86% | 419.69% | -86.88% | 102.62% | 2.98% | -64.43% | -24.75% | 24.95% | 200.03% |
| Operating Expenses | 545M | 1.22B | 479M | 277M | 536M | 216M | 3.48B | 2.73B | 519M | 903M | 7.64B | 2.69B | 439M | 1.38B | 614M | 281M | 229M | 202M | 220M | 241M | 284M | 193M | 312M | 283M | 305M | 387M | 264M | 304M | 937M | 1.23B | 1.12B |
| OpEx % of Revenue | - | 5.52% | 2.09% | 1.2% | 2.64% | 1.41% | 24.06% | 12.2% | 2.16% | 4.38% | 48.09% | 11.36% | 1.34% | 4.68% | 2.15% | 1.13% | 1.27% | 1.38% | 1.2% | 1.58% | 2.19% | 1.91% | 1.57% | 1.74% | 2.43% | 2.97% | 2.21% | 2.47% | 6.46% | 7.55% | 8.02% |
| Selling, General & Admin | 278M | 239M | 239M | 226M | 240M | 204M | 182M | 227M | 254M | 256M | 226M | 200M | 293M | 333M | 275M | 281M | 229M | 207M | 282M | 293M | 342M | 294M | 361M | 330M | 335M | 387M | 352M | 351M | 437M | 665M | 621.3M |
| SG&A % of Revenue | - | 1.08% | 1.04% | 0.98% | 1.18% | 1.33% | 1.26% | 1.01% | 1.06% | 1.24% | 1.42% | 0.85% | 0.89% | 1.13% | 0.96% | 1.13% | 1.27% | 1.41% | 1.54% | 1.92% | 2.64% | 2.91% | 1.82% | 2.03% | 2.66% | 2.97% | 2.95% | 2.85% | 3.01% | 4.09% | 4.45% |
| Research & Development | 411M | 411M | 426M | 408M | 345M | 321M | 309M | 404M | 390M | 360M | 329M | 487M | 601M | 588M | 460M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 1.85% | 1.86% | 1.77% | 1.7% | 2.1% | 2.14% | 1.8% | 1.63% | 1.75% | 2.07% | 2.06% | 1.83% | 2% | 1.61% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 574M | -186M | -357M | -49M | -309M | 2.98B | 2.1B | -125M | 287M | 7.08B | 2B | -455M | 0 | 0 | 0 | 0 | -5M | -62M | -52M | -58M | -101M | -49M | -47M | -30M | 0 | -88M | -47M | 500M | 564M | 497.7M |
| Operating Income | 2.83B | 2.26B | 3.82B | 4.08B | 2.71B | 1.8B | -2.44B | -448M | 2.47B | 1.37B | -6.77B | -165M | 5.1B | 4.14B | 4.46B | 4.74B | 3.01B | 1.99B | 4.01B | 3.5B | 3.25B | 2.16B | 820M | 720M | -112M | 1.08B | 462M | 401M | 1.04B | 1.41B | 989M |
| Operating Margin % | 12.58% | 10.19% | 16.66% | 17.74% | 13.34% | 11.77% | -16.86% | -2% | 10.28% | 6.66% | -42.61% | -0.7% | 15.51% | 14.07% | 15.64% | 19.08% | 16.74% | 13.59% | 21.94% | 22.92% | 25.05% | 21.43% | 4.12% | 4.43% | -0.89% | 8.31% | 3.87% | 3.26% | 7.2% | 8.63% | 7.09% |
| Operating Income Growth % | - | -40.87% | -6.39% | 50.83% | 50.39% | 173.89% | -443.75% | -118.16% | 79.55% | 120.3% | -4003.03% | -103.24% | 23.18% | -7.2% | -5.87% | 57.43% | 50.9% | -50.27% | 14.64% | 7.8% | 49.95% | 163.9% | 13.89% | 742.86% | -110.33% | 134.63% | 15.21% | -61.63% | -25.62% | 42.06% | 141.63% |
| EBITDA | 4B | 3.4B | 4.9B | 5.08B | 3.65B | 2.7B | -1.38B | 1.18B | 4.07B | 2.93B | -5.27B | 1.67B | 7.22B | 6.04B | 6.09B | 6.1B | 4.13B | 2.92B | 4.75B | 4.08B | 3.77B | 2.67B | 1.33B | 1.24B | 393M | 1.61B | 965M | 1B | 1.63B | 1.71B | 1.26B |
| EBITDA Margin % | 17.81% | 15.31% | 21.36% | 22.07% | 17.97% | 17.68% | -9.54% | 5.25% | 16.97% | 14.21% | -33.15% | 7.07% | 21.97% | 20.54% | 21.36% | 24.55% | 22.97% | 19.93% | 25.98% | 26.74% | 29.12% | 26.42% | 6.68% | 7.61% | 3.13% | 12.38% | 8.08% | 8.12% | 11.25% | 10.54% | 9.01% |
| EBITDA Growth % | 12.25% | -30.71% | -3.54% | 39.32% | 34.87% | 296.23% | -217.08% | -71.1% | 39.01% | 155.63% | -415.39% | -76.88% | 19.63% | -0.8% | -0.15% | 47.67% | 41.13% | -38.4% | 16.34% | 8.19% | 41.38% | 100.75% | 7.35% | 215.01% | -75.67% | 67.36% | -3.5% | -38.73% | -4.81% | 36.41% | 92.36% |
| D&A (Non-Cash Add-back) | 1.18B | 1.14B | 1.08B | 998M | 940M | 904M | 1.06B | 1.63B | 1.61B | 1.56B | 1.5B | 1.83B | 2.13B | 1.9B | 1.63B | 1.36B | 1.12B | 931M | 738M | 583M | 527M | 504M | 509M | 518M | 505M | 531M | 503M | 599M | 587M | 309.5M | 267.9M |
| EBIT | 2.86B | 2.98B | 3.93B | 3.94B | 3B | 1.74B | 577M | 1.48B | 2.73B | 2.02B | 644M | 2.32B | 5.24B | 4.14B | 4.46B | 4.72B | 2.96B | 1.97B | 4.02B | 3.61B | 3.25B | 2.16B | 765M | 720M | -112M | 1.08B | 462M | 401M | 1.04B | 1.41B | 989M |
| Net Interest Income | -269M | -352M | -256M | -497M | -463M | -520M | -505M | -569M | -554M | -593M | -639M | -447M | -383M | -331M | -298M | -263M | -297M | -285M | -128M | -30M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 22M | 0 | 97M | 81M | 29M | 9M | 38M | 23M | 44M | 112M | 59M | 0 | 13M | 8M | 7M | 0 | 11M | 12M | 39M | 124M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 291M | 352M | 353M | 578M | 492M | 529M | 543M | 592M | 598M | 705M | 698M | 447M | 396M | 339M | 305M | 263M | 308M | 297M | 160M | 154M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -446M | -489M | -588M | -720M | -597M | -548M | -784M | -674M | -653M | -692M | -855M | -771M | -385M | -1.37B | -637M | -288M | -354M | -312M | -161M | -38M | -46M | -167M | -186M | -108M | -116M | -130M | -127M | -94M | -1.01B | -141M | -182.7M |
| Pretax Income | 2.38B | 1.77B | 3.23B | 3.36B | 2.11B | 1.25B | -3.22B | -1.12B | 1.81B | 682M | -7.63B | -936M | 4.71B | 2.76B | 3.82B | 4.45B | 2.65B | 1.68B | 3.85B | 3.46B | 3.2B | 2B | 634M | 612M | -228M | 954M | 335M | 307M | 35M | 1.26B | 806.3M |
| Pretax Margin % | 10.59% | 7.98% | 14.1% | 14.61% | 10.4% | 8.19% | -22.29% | -5.01% | 7.56% | 3.31% | -48% | -3.96% | 14.34% | 9.4% | 13.41% | 17.92% | 14.77% | 11.46% | 21.06% | 22.67% | 24.69% | 19.77% | 3.19% | 3.76% | -1.81% | 7.31% | 2.8% | 2.49% | 0.24% | 7.77% | 5.78% |
| Income Tax | 371M | 479M | 718M | 701M | 515M | -216M | -278M | 7M | 157M | 1.13B | -1.86B | -274M | 1.27B | 648M | 1.24B | 1.44B | 853M | 518M | 1.21B | 907M | 1B | -125M | 235M | 234M | 80M | 384M | 129M | 116M | 155M | 492M | 248.4M |
| Effective Tax Rate % | 15.58% | 27.05% | 22.2% | 20.84% | 24.41% | -17.25% | 8.63% | -0.62% | 8.65% | 165.84% | 24.37% | 29.27% | 27.06% | 23.44% | 32.31% | 32.34% | 32.13% | 30.8% | 31.46% | 26.21% | 31.35% | -6.26% | 37.07% | 38.24% | -35.09% | 40.25% | 38.51% | 37.79% | 442.86% | 38.92% | 30.81% |
| Net Income | 2B | 1.28B | 2.5B | 2.64B | 1.57B | 1.46B | -2.94B | -1.13B | 1.66B | -463M | -5.76B | -671M | 3.5B | 2.13B | 2.63B | 2.84B | 1.83B | 1.15B | 2.22B | 3.5B | 2.35B | 2.36B | -979M | -820M | -998M | 809M | 501M | 438M | -15M | 772M | 557.9M |
| Net Margin % | 8.9% | 5.78% | 10.9% | 11.46% | 7.75% | 9.53% | -20.39% | -5.05% | 6.9% | -2.25% | -36.27% | -2.84% | 10.65% | 7.23% | 9.24% | 11.43% | 10.21% | 7.8% | 12.17% | 22.92% | 18.12% | 23.35% | -4.92% | -5.04% | -7.94% | 6.2% | 4.19% | 3.56% | -0.1% | 4.74% | 4% |
| Net Income Growth % | 52.86% | -48.7% | -5.19% | 67.81% | 7.89% | 149.47% | -160.39% | -168.3% | 457.67% | 91.97% | -758.87% | -119.17% | 64.71% | -19.35% | -7.19% | 54.71% | 60.26% | -48.52% | -36.44% | 49.02% | -0.42% | 340.86% | -19.39% | 17.84% | -223.36% | 61.48% | 14.38% | 3020% | -101.94% | 38.38% | 203.7% |
| Net Income (Continuing) | 2.01B | 1.29B | 2.52B | 2.66B | 1.59B | 1.47B | -2.94B | -1.13B | 1.66B | -449M | -5.77B | -662M | 3.44B | 2.12B | 2.59B | 3.01B | 1.8B | 1.16B | 1.95B | 2.55B | 2.2B | 2.41B | 410M | 339M | -346M | 551M | 188M | 174M | -120M | 772M | 557.9M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -19M | -2M | -5M | 64M | 19M | 58M | -166M | 40M | -9M | -423M | 975M | 171M | 251M | -1.35B | -1.15B | -652M | 257M | 313M | 283M | 105M | 0 | 0 |
| Minority Interest | 43M | 44M | 42M | 42M | 29M | 15M | 9M | 13M | 22M | 27M | 39M | 33M | 31M | 34M | 25M | 18M | 14M | 29M | 19M | 94M | 447M | 145M | 108M | 100M | 71M | 41M | 38M | 153M | 170.2M | 19.7M | 0 |
| EPS (Diluted) | 2.41 | 1.50 | 2.83 | 2.92 | 1.73 | 1.63 | -3.34 | -1.29 | 1.89 | -0.53 | -6.69 | -0.79 | 4.11 | 2.36 | 2.84 | 3.08 | 2.01 | 1.27 | 1.70 | 3.68 | 2.23 | 2.27 | -1.11 | -0.94 | -1.16 | 0.94 | 0.56 | 0.49 | -0.02 | 0.88 | 0.57 |
| EPS Growth % | 58.15% | -47% | -3.08% | 68.79% | 6.13% | 148.8% | -158.91% | -168.25% | 456.6% | 92.08% | -746.84% | -119.22% | 74.15% | -16.9% | -7.79% | 53.23% | 58.27% | -25.29% | -53.8% | 65.02% | -1.76% | 304.5% | -18.09% | 18.97% | -223.4% | 67.86% | 14.29% | 3034.13% | -101.9% | 54.39% | 67.65% |
| EPS (Basic) | - | 1.51 | 2.83 | 2.93 | 1.74 | 1.63 | -3.34 | -1.29 | 1.89 | -0.53 | -6.69 | -0.79 | 4.13 | 2.37 | 2.85 | 3.09 | 2.02 | 1.27 | 1.75 | 3.83 | 2.32 | 2.33 | -1.12 | -0.94 | -1.16 | 0.95 | 0.57 | 0.50 | -0.02 | 0.90 | 0.57 |
| Diluted Shares Outstanding | 832M | 840M | 883M | 902M | 908M | 892M | 881M | 875M | 877M | 870M | 861M | 853M | 852M | 902M | 928M | 922M | 911M | 902M | 904M | 950M | 1.05B | 1.04B | 882M | 874M | 864M | 860M | 892M | 886M | 878M | 514.29M | 522.6M |
| Basic Shares Outstanding | 831M | 839M | 882M | 899M | 904M | 892M | 881M | 875M | 875M | 870M | 861M | 853M | 848M | 898M | 926M | 918M | 908M | 900M | 877M | 913M | 1.01B | 1.01B | 874M | 868M | 864M | 856M | 884M | 880M | 878M | 505.79M | 522.6M |
| Dividend Payout Ratio | - | 45.13% | 23.99% | 21.83% | 27.67% | 11.05% | - | - | 38.04% | - | - | - | 15.23% | 21.88% | 12.64% | 11.62% | 17.82% | 28.3% | 14.34% | 8.97% | 13.03% | 10.77% | - | - | - | 26.58% | 44.11% | 50.46% | - | 16.49% | 42.95% |
Quick answers to the most common questions about buying HAL stock.
For fiscal year 2025, Halliburton Company (HAL) reported total revenue of $22.18B. This represents a 59.1% increase compared to $13.95B in 1996.
Halliburton Company (HAL) is profitable, generating $1.28B in net income for the fiscal year ending 2025 with a net profit margin of 5.8%.
Halliburton Company (HAL) reported an operating income of $2.26B, resulting in an operating profit margin of 10.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Halliburton Company (HAL) generated $3.48B in gross profit for the year, representing a gross profit margin of 15.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin compression from pricing pressure
Metrics are mathematically derived from official filings.
Revenue Plateau Amidst Downcycle
Halliburton's revenue has been essentially flat, hovering around $5.4-5.8B per quarter over the past two years, with recent growth of only 3.7% in Q2 2026, as per the latest income statement data.
The top line has been range-bound, with year-over-year growth oscillating between -6.7% and +3.7% over the last ten quarters, indicating a mature or cyclical plateau. The slight uptick in Q2 2026 may reflect a modest recovery in activity, but the lack of sustained acceleration suggests limited pricing power or volume growth in the current oilfield services environment. Investors should monitor whether this stability can be maintained as the cycle matures.
Gross Margin Erosion Signals Pricing Weakness
Gross margin has declined from 19.3% in Q2 2024 to 14.1% in Q2 2026, a 520 basis point contraction, according to reported financials, indicating significant pricing pressure or cost inflation.
The steady erosion in gross margin, from the high-teens to the low-teens, suggests that Halliburton is unable to pass on cost increases or is facing competitive pricing pressures in its service lines. This trend is more pronounced than peers like SLB and BKR, which maintain gross margins above 18%, implying a potential competitive disadvantage. The margin compression is a critical concern as it directly impacts profitability and may reflect a structural shift in the market.
Operating Leverage Fading as Costs Outpace Revenue
Operating income has not scaled with revenue; despite similar revenue levels, Q2 2026 operating income of $778M is 22% below Q2 2024's $1.0B, as per income statement data, indicating negative operating leverage.
The decline in operating margin from 17.7% in Q2 2024 to 13.6% in Q2 2026, while revenue remained roughly flat, indicates that fixed costs are not being absorbed efficiently. The spike in R&D in Q4 2025 and Q4 2024 (over $400M) appears to be a periodic investment, but even excluding that, SG&A has remained relatively stable, suggesting that the primary driver of operating leverage is the gross margin compression. This implies that Halliburton's cost structure is not flexible enough to offset revenue stagnation.
Earnings Volatility Masks Underlying Weakness
Net income swung from $709M in Q2 2024 to just $18M in Q3 2025, a 97% drop, before recovering to $534M in Q2 2026, as per reported figures, highlighting significant earnings instability.
The extreme volatility in net income, particularly the near-zero earnings in Q3 2025, suggests that reported results are sensitive to one-off items or impairments, which may not reflect core operational performance. The EPS growth of 129% in Q1 2026 is misleading given the low base, and the lack of stock-based compensation data makes it difficult to assess the quality of earnings. Investors should scrutinize the sustainability of the recent recovery and whether it is driven by operational improvements or non-recurring gains.
Cost Discipline Fails to Offset Margin Decline
SG&A has been held relatively flat at $55-75M per quarter, but COGS has risen as a percentage of revenue, with gross margin falling to 14.1% in Q2 2026 from 19.3% in Q2 2024, per income statement data.
While Halliburton has maintained tight control over SG&A, the primary cost pressure lies in COGS, which has not declined proportionally with revenue. The periodic R&D spikes in Q4 quarters suggest a pattern of investment that may be aimed at long-term competitiveness, but the immediate impact is margin dilution. The inability to reduce COGS despite lower revenue indicates a fixed-cost base that is difficult to adjust, which could continue to pressure margins if the downcycle persists.
Q3 2025: A Profitability Shock
The most striking inflection occurred in Q3 2025, when operating income plummeted to $356M and net income to $18M, a 97% sequential drop, as per income statement data, marking a clear operational trough.
This quarter stands out as a significant negative inflection, likely driven by a combination of lower revenue, compressed margins, and possibly one-time charges. The subsequent recovery in Q4 2025 and Q2 2026 suggests that the trough may have been temporary, but the lasting impact is a lower profitability baseline compared to 2024. This episode underscores the cyclicality of Halliburton's earnings and the potential for sudden deterioration in market conditions.
Margin Compression Could Persist
Despite a recent revenue uptick, gross margins remain near multi-year lows at 14.1% in Q2 2026, and with peers like SLB and BKR maintaining higher margins, Halliburton's competitive position appears vulnerable, per financial data.
Short-sellers might argue that the margin compression is not cyclical but structural, as Halliburton's gross margin is now significantly below its peers (SLB 18.2%, BKR 23.6%). The company's inability to restore margins to 2024 levels despite stable revenue suggests a loss of pricing power or a shift in mix toward lower-margin services. If this trend continues, operating income could remain suppressed, and the recent EPS recovery may be unsustainable. Investors should monitor whether management can implement cost cuts or pricing initiatives to reverse the margin decline.