Halliburton (HAL) Stock Forecast & Price Target

Halliburton, as North America's largest oilfield-services company, maintains a dominant position in key segments, particularly hydraulic fracturing and completions, which contributes significantly to nearly half of its revenue. The company's ability to generate strong free cash flow, projected at $1.8 billion by 2026, coupled with expected revenue growth rates of 2% to 6% in the following years, highlights its financial strength and growth potential. Additionally, factors such as higher commodity prices, improved service pricing, and enhanced operational efficiencies are poised to further support margin expansion and operational performance.

Halliburton is projecting a revenue decline of 2% quarter-over-quarter at the mid-point guidance for Q4 2025, reflecting a downturn in its cementing and completion (C&P) revenues by 4% to 6% and overall operating margins contracting by 25-75 basis points. Additionally, the company's corporate expenses are anticipated to rise, resulting in increased net interest and other expenses that may further strain profitability, with a forecasted effective tax rate of 21.5%. Furthermore, Halliburton's International business is expected to drop by mid-single digits year-over-year, influenced by reduced activity in key markets such as Saudi Arabia and Mexico, alongside a projected low-double-digit decline in North American revenue due to pricing softness and operational gaps.