Weatherford International plc (WFRD) Income Statement

Growth rolled over decisively after 2024Q2's 10.3% expansion, with YoY rates turning negative by 2024Q4 and deepening to double-digit declines through mid-2025 before stabilizing in the -3% to -8% band during 2026. The pattern is more consistent with sustained demand weakness or deliberate contract pruning than a single-period shock, and the absence of any rebound across six consecutive quarters means investors should not assume mean reversion without segment-level confirmation of Western Hemisphere volumes.

The fact that gross margin fell faster than revenue indicates the erosion is not simply fixed-cost deleverage on lower volumes; it points toward unfavorable service mix, discounting to defend utilization, or input cost inflation in steel and logistics that could not be passed through contractually. The 2026Q1 recovery to 29.5% offers a partial reversal, but quarters showing zero COGS and 100% gross margin are data unavailable and should be excluded from trend extrapolation.

Operating margin has slid from 18.8% in 2024Q2 to 13.4% in 2026Q3, confirming that SG&A reductions have not fully offset the gross profit erosion feeding through to the operating line. Given the specialized workforce and capital-intensive global tool fleet that characterize this business, the observed behavior suggests overhead is stickier than management may have assumed when setting the post-reorganization cost baseline, warranting close monitoring of whether SG&A can be reduced further if revenue continues contracting.