UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
			
FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934	
For the quarterly period ended March 31, 2026
or
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934	
For the transition period from _______to_______
Commission File Number 001-03492
			
HALLIBURTON COMPANY
(Exact name of registrant as specified in its charter)

Delaware	75-2677995	
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)	

3000 North Sam Houston Parkway East,	Houston,	Texas	77032	
(Address of principal executive offices)	(Zip Code)	
(281) 871-2699
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol	Name of each exchange on which registered	
Common Stock, par value $2.50 per share	HAL	New York Stock Exchange	
		NYSE Texas	

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.					☒ Yes   ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).								☒ Yes   ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 	Large Accelerated Filer	☒	Accelerated Filer	☐	
 	Non-accelerated Filer	☐	Smaller Reporting Company	☐	
			Emerging Growth Company	☐	
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
☐ Yes   ☒ No
As of April 17, 2026, there were 835,397,735 shares of Halliburton Company common stock, $2.50 par value per share, outstanding.

HALLIBURTON COMPANY

Index
 	 	Page No.	
PART I.	FINANCIAL INFORMATION	1	
 	 	 	
Item 1.	Financial Statements	1	
 	Condensed Consolidated Statements of Operations	1	
 	Condensed Consolidated Statements of Comprehensive Income	2	
 	Condensed Consolidated Balance Sheets	3	
 	Condensed Consolidated Statements of Cash Flows	4	
 	Notes to Condensed Consolidated Financial Statements	5	
	Note 1. Basis of Presentation	5	
	Note 2. Impairments and Other Charges	5	
	Note 3. Business Segment Information	6	
	Note 4. Revenue	8	
	Note 5. Inventories	9	
	Note 6. Accounts Payable	9	
	Note 7. Income Taxes	10	
	Note 8. Shareholders' Equity	11	
	Note 9. Commitments and Contingencies	12	
	Note 10. Income per Share	12	
	Note 11. Fair Value of Financial Instruments	12	
	Note 12. New Accounting Pronouncements	13	
			
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	14	
	Executive Overview	14	
	Liquidity and Capital Resources	17	
	Business Environment and Results of Operations	19	
	Results of Operations in 2026 Compared to 2025	21	
	Forward-Looking Information	24	
	New Accounting Standards Not Yet Adopted	24	
 	 	 	
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	24	
Item 4.	Controls and Procedures	24	
 	 	 	
PART II.	OTHER INFORMATION	25	
 	 	 	
Item 1.	Legal Proceedings	25	
Item 1(a).	Risk Factors	25	
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	25	
Item 3.	Defaults Upon Senior Securities	25	
Item 4.	Mine Safety Disclosures	25	
Item 5.	Other Information	25	
Item 6.	Exhibits	26	
 	 	 	
SIGNATURES	 	27	

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

HALLIBURTON COMPANY
Condensed Consolidated Statements of Operations
(Unaudited)
	Three Months Ended	
	March 31, 	
Millions of dollars and shares except per share data	2026	2025	
Revenue:			
Services	$	3,823		$	3,809		
Product sales		1,579			1,608		
Total revenue		5,402			5,417		
Operating costs and expenses:			
Cost of services		3,366			3,286		
Cost of sales		1,253			1,252		
Impairments and other charges		—			356		
General and administrative		62			62		
SAP S4 upgrade expense 		42			30		
Total operating costs and expenses		4,723			4,986		
Operating income		679			431		
Interest expense, net of interest income of $22 and $25		(82)		(86)	
Other, net		(28)		(39)	
Income before income taxes		569			306		
Income tax provision		(105)		(103)	
Net income	$	464		$	203		
Net (income) loss attributable to noncontrolling interest		(3)		1		
Net income attributable to company	$	461		$	204		
			
Basic and diluted net income per share	$	0.55		$	0.24		
Basic weighted average common shares outstanding		837			866		
Diluted weighted average common shares outstanding		839			866		
See Notes to Condensed Consolidated Financial Statements.

HALLIBURTON COMPANY
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
	Three Months Ended	
	March 31, 	
Millions of dollars	2026	2025	
Net income	$	464		$	203		
Other comprehensive income (loss), net of income taxes		20			(6)	
Comprehensive income	$	484		$	197		
Comprehensive (income) loss attributable to noncontrolling interest		(3)		1		
Comprehensive income attributable to company shareholders	$	481		$	198		
See Notes to Condensed Consolidated Financial Statements.

HALLIBURTON COMPANY
Condensed Consolidated Balance Sheets
(Unaudited)
Millions of dollars and shares except per share data	March 31, 2026	December 31, 2025	
Assets	
Current assets:			
Cash and equivalents	$	2,003	$	2,206	
Receivables (net of allowances for credit losses of $782 and $805)		5,197		4,942	
Inventories		3,019		2,976	
Other current assets		1,316		1,274	
Total current assets		11,535		11,398	
Property, plant, and equipment (net of accumulated depreciation of $12,753 and $12,616)		5,182		5,261	
Goodwill		2,992		2,938	
Deferred income taxes		2,339		2,298	
Operating lease right-of-use assets		895		938	
Other assets		2,199		2,177	
Total assets	$	25,142	$	25,010	
Liabilities and Shareholders' Equity	
Current liabilities:			
Accounts payable	$	3,211	$	3,133	
Accrued employee compensation and benefits		622		767	
Income taxes payable		384		375	
Taxes other than income		250		291	
Current portion of operating lease liabilities		243		263	
Current maturities of long-term debt		90		—	
Other current liabilities		737		759	
Total current liabilities		5,537		5,588	
Long-term debt		7,070		7,158	
Operating lease liabilities		678		712	
Employee compensation and benefits		395		428	
Other liabilities		637		619	
Total liabilities		14,317		14,505	
Shareholders' equity:			
Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,063 and 1,064 shares)		2,659		2,659	
Paid-in capital in excess of par value		93		112	
Accumulated other comprehensive loss		(343)		(363)	
Retained earnings		15,355		15,036	
Treasury stock, at cost (228 and 229 shares)		(6,984)		(6,983)	
Company shareholders' equity		10,780		10,461	
Noncontrolling interest in consolidated subsidiaries		45		44	
Total shareholders' equity		10,825		10,505	
Total liabilities and shareholders' equity	$	25,142	$	25,010	
See Notes to Condensed Consolidated Financial Statements.

HALLIBURTON COMPANY
Condensed Consolidated Statements of Cash Flows
(Unaudited)
	Three Months Ended
March 31, 	
Millions of dollars	2026	2025	
Cash flows from operating activities:			
Net income	$	464		$	203		
Adjustments to reconcile net income to cash flows from operating activities:			
   Depreciation, depletion, and amortization		295			277		
   Impairments and other charges		—			356		
Changes in assets and liabilities:			
   Receivables		(293)		(86)	
   Inventories		(41)		(4)	
   Accounts payable		82			(64)	
Other operating activities		(234)		(305)	
Total cash flows provided by operating activities		273			377		
Cash flows from investing activities:			
Capital expenditures		(192)		(302)	
Payments to acquire businesses, net of cash acquired		(97)		(116)	
Purchase of investment securities		(2)		(96)	
Proceeds from sales of property, plant, and equipment		42			49		
Sales of investment securities		27			41		
Purchase of an equity investment		—			(345)	
Other investing activities		(21)		(15)	
Total cash flows used in investing activities		(243)		(784)	
Cash flows from financing activities:			
Dividends to shareholders		(142)		(147)	
Stock repurchase program		(100)		(250)	
Other financing activities		5			(9)	
Total cash flows used in financing activities		(237)		(406)	
Effect of exchange rate changes on cash		4			(1)	
Decrease in cash and cash equivalents		(203)		(814)	
Cash and equivalents at beginning of period		2,206			2,618		
Cash and equivalents at end of period	$	2,003		$	1,804		
Supplemental disclosure of cash flow information:			
Cash payments during the period for:			
   Interest	$	114		$	116		
   Income taxes	$	102		$	165		
See Notes to Condensed Consolidated Financial Statements.

HALLIBURTON COMPANY
Notes to Condensed Consolidated Financial Statements
(Unaudited)

Note 1. Basis of Presentation
The accompanying unaudited condensed consolidated financial statements were prepared using United States generally accepted accounting principles (U.S. GAAP) for interim financial information and the instructions to Form 10-Q and Regulation S-X. Accordingly, these financial statements do not include all information or notes required by U.S. GAAP for annual financial statements and should be read together with our 2025 Annual Report on Form 10-K.
Our accounting policies are in accordance with U.S. GAAP. The preparation of financial statements in conformity with these accounting principles requires us to make estimates and assumptions that affect:
•	the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements; and
•	the reported amounts of revenue and expenses during the reporting period.
Ultimate results could differ from our estimates.
In our opinion, the condensed consolidated financial statements included herein contain all adjustments necessary to present fairly our financial position as of March 31, 2026, the results of our operations for the three months ended March 31, 2026 and 2025, and our cash flows for the three months ended March 31, 2026 and 2025. Such adjustments are of a normal recurring nature. In addition, certain reclassifications of prior period balances have been made to conform to the current period presentation.
The results of our operations for the three months ended March 31, 2026 may not be indicative of results for the full year.

Note 2. Impairments and Other Charges

During the three months ended March 31, 2026, there were no amounts recorded in impairments and other charges.
During the three months ended March 31, 2025, we recorded a pre-tax charge of $356 million primarily related to $107 million in severance expense as we rationalized global headcount to align with activity levels and $104 million of additional impairment associated with a strategic decision to market for sale a portion of our chemical business. Additionally, we recognized a $53 million impairment related to facility closures and lease terminations. Other charges of $92 million were primarily related to legacy environmental remediation cost estimate increases.

Note 3. Business Segment Information
We operate under two divisions, which form the basis for the two operating segments we report: the Completion and Production segment and the Drilling and Evaluation segment. Our equity in earnings and losses of unconsolidated affiliates that are accounted for using the equity method of accounting are included within cost of services and cost of sales on our statements of operations, which is part of operating income of the applicable segment.
Our company’s chief operating decision maker (CODM) is Jeffrey Miller, Chairman of the Board, President and Chief Executive Officer. Throughout the year, our CODM assesses the performance of the two segments based on segment revenue and operating income, in comparison with forecast and plan and overall results, to make capital and resource allocation decisions.

The following table presents information on our business segments. 
	Three Months Ended	
	March 31, 	
Millions of dollars	2026	2025	
Revenue:			
Completion and Production	$	3,016		$	3,120		
Drilling and Evaluation		2,386			2,297		
Total revenue	$	5,402		$	5,417		
Operating income:			
Completion and Production	$	439		$	531		
Drilling and Evaluation		351			352		
Total operations		790			883		
Corporate and other (a)		(69)		(66)	
SAP S4 upgrade expense		(42)		(30)	
Impairments and other charges (b)		—			(356)	
Total operating income	$	679		$	431		
Interest expense, net of interest income	$	(82)	$	(86)	
Other, net		(28)		(39)	
Income before income taxes	$	569		$	306		
Capital expenditures:			
Completion and Production	$	109		$	178		
Drilling and Evaluation		83			124		
Total capital expenditures	$	192		$	302		
Depreciation, depletion, and amortization:			
Completion and Production	$	163		$	152		
Drilling and Evaluation		126			121		
Corporate and other		6			4		
Total depreciation, depletion, and amortization	$	295		$	277		

(a)	Includes certain expenses not attributable to a business segment, such as costs related to support functions, corporate executives, and operating lease assets, and includes amortization expense associated with intangible assets recorded as a result of acquisitions.	
(b)	For the three months ended March 31, 2025, the amount includes a $201 million charge attributable to Completion and Production, an $85 million charge attributable to Drilling and Evaluation, and a $70 million charge attributable to Corporate and other. See Notes to Condensed Consolidated Financial Statements, Note 2 for further discussion on impairments and other charges.	

 The following table presents significant segment expenses, which represent the difference between segment revenue and segment operating income and are regularly reviewed by our CODM.
	Three Months Ended	
	March 31, 	
	2026	
Millions of dollars	Completion and Production	Drilling and Evaluation	
Segment operating expenses:			
Cost of products, materials, and supplies	$	1,271		$	913		
Compensation		479			487		
Depreciation, depletion, and amortization		163			126		
Other		664			509		
Total segment operating expenses	$	2,577		$	2,035		
 
	Three Months Ended	
	March 31, 	
	2025	
Millions of dollars	Completion and Production	Drilling and Evaluation	
Segment operating expenses:			
Cost of products, materials, and supplies	$	1,300		$	882		
Compensation		474			467		
Depreciation, depletion, and amortization		152			121		
Other		663			475		
Total segment operating expenses	$	2,589		$	1,945		

Other segment operating expenses primarily consist of maintenance, overhead allocations, facilities cost, and other miscellaneous costs.
The following table presents total assets by segment.
Millions of dollars	March 31,
2026	December 31,
2025	
Total assets:			
Completion and Production (a)	$	10,621		$	10,492		
Drilling and Evaluation (a)		8,087			7,870		
Corporate and other (b)		6,434			6,648		
Total assets	$	25,142		$	25,010		

(a)	Assets associated with specific segments primarily include receivables, inventories, property, plant, and equipment, operating lease right-of-use assets, equity in and advances to related companies, and goodwill.	
(b)	Includes primarily cash and equivalents and deferred tax assets.	

Note 4. Revenue
Revenue is recognized based on the transfer of control or our customers’ ability to benefit from our services and products in an amount that reflects the consideration we expect to receive in exchange for those services and products. Most of our service and product contracts are short-term in nature. In recognizing revenue for our services and products, we determine the transaction price of purchase orders or contracts with our customers, which may consist of fixed and variable consideration. We also assess our customers’ ability and intention to pay, which is based on a variety of factors, including our historical payment experience with, and the financial condition of, our customers. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 20 to 60 days. Other judgments involved in recognizing revenue include an assessment of progress towards completion of performance obligations for certain long-term contracts, which involve estimating total costs to determine our progress towards contract completion and calculating the corresponding amount of revenue to recognize.

Disaggregation of revenue
We disaggregate revenue from contracts with customers into types of services or products, consistent with our two reportable segments, in addition to geographical area. Based on the location of services provided and products sold, 37% and 39% of our consolidated revenue was from the United States for the three months ended March 31, 2026 and 2025, respectively. No other country accounted for more than 10% of our revenue for those periods.

The following table presents information on our disaggregated revenue.
 
	Three Months Ended	
	March 31, 	
Millions of dollars	2026	2025	
Revenue by segment:			
Completion and Production	$	3,016		$	3,120		
Drilling and Evaluation		2,386			2,297		
Total revenue	$	5,402		$	5,417		
Revenue by geographic region:			
North America	$	2,136		$	2,236		
Latin America		1,090			896		
Europe/Africa/CIS		858			775		
Middle East/Asia		1,318			1,510		
Total revenue	$	5,402		$	5,417		
Contract balances
We perform our obligations under contracts with our customers by transferring services and products in exchange for consideration. The timing of our performance often differs from the timing of our customers’ payment, which results in the recognition of receivables and deferred revenue. Deferred revenue represents advance consideration received from customers for contracts where revenue is recognized on future performance of service. Deferred revenue, as well as revenue recognized during the period relating to amounts included as deferred revenue at the beginning of the period, was not material to our condensed consolidated financial statements.
Transaction price allocated to remaining performance obligations
Remaining performance obligations represent firm contracts for which work has not been performed and future revenue recognition is expected. We have elected the practical expedient permitting the exclusion of disclosing remaining performance obligations for contracts that have an original expected duration of one year or less. We have some long-term contracts related to software and integrated project management services such as lump sum turnkey contracts. For software contracts, revenue is generally recognized over the duration of the contract period when the software is considered to be a right to access our intellectual property. For lump sum turnkey projects, we recognize revenue over time using an input method, which requires us to exercise judgment. Revenue allocated to remaining performance obligations for these long-term contracts is not material.

Receivables
As of March 31, 2026, 32% of our net trade receivables were from customers in the United States. As of December 31, 2025, 31% of our net trade receivables were from customers in the United States. Receivables from our primary customer in Mexico accounted for approximately 7% of our total receivables as of both March 31, 2026 and December 31, 2025. While we have experienced payment delays from our primary customer in Mexico, the amounts are not in dispute and we have not historically had, and we do not expect, any material write-offs due to collectability of receivables from this customer. Furthermore, we have entered into credit default swaps (CDSs) with third-party financial institutions that have an aggregate notional amount outstanding as of March 31, 2026 of $374 million, compared to an aggregate notional amount outstanding as of December 31, 2025 of $592 million, related to borrowings provided by the financial institutions to one of our primary customers in Mexico, of which portions of the proceeds were utilized by this customer to pay certain of our outstanding receivables. See Notes to Condensed Consolidated Financial Statements, Note 11 for further information on these CDSs. No countries other than the United States, and no single customer, accounted for more than 10% of our net trade receivables at those dates.
We have risk of delayed customer payments and payment defaults associated with customer liquidity issues. We routinely monitor the financial stability of our customers and employ an extensive process to evaluate the collectability of outstanding receivables. This process, which involves judgment and estimates, includes analysis of our customers’ historical time to pay, financial condition and various financial metrics, debt structure, credit ratings, and production profile, as well as political and economic factors in countries of operations and other customer-specific factors.

Note 5. Inventories
Inventories consisted of the following:
	March 31, 	December 31,	
Millions of dollars	2026	2025	
Finished products and parts	$	2,012		$	1,968		
Raw materials and supplies		871			884		
Work in process		136			124		
Total inventories	$	3,019		$	2,976		

Note 6. Accounts Payable
We have an agreement with a third party that allows our participating suppliers to finance payment obligations from us with a designated third-party financial institution who acts as our paying agent. We have generally extended our payment terms with suppliers to 90 days. A participating supplier may request the participating financial institution to finance one or more of our payment obligations to such supplier prior to the scheduled due date thereof at a discounted price. We are not required to provide collateral to the financial institution.
Our obligations to participating suppliers, including amounts due and scheduled payment dates, are not impacted by the suppliers’ decisions to finance amounts due under these financing arrangements. Our outstanding payment obligations under this agreement was $267 million as of March 31, 2026, and $280 million as of December 31, 2025, and are included in “Accounts payable” on the Condensed Consolidated Balance Sheets.

Note 7. Income Taxes

During the three months ended March 31, 2026, we recorded a total income tax provision of $105 million on a pre-tax income of $569 million, resulting in an effective tax rate of 18.5% for the quarter. The effective tax rate for this period was primarily impacted by the release of a valuation allowance in the amount of $32 million related to changes in deferred tax asset realizability. During the three months ended March 31, 2025, we recorded a total income tax provision of $103 million on a pre-tax income of $306 million, resulting in an effective tax rate of 33.7% for the quarter. The effective tax rate for this period was primarily impacted by the additional valuation allowance recognized on our deferred tax assets, which resulted from the pre-tax $356 million of impairments and other charges. 
Our tax returns are subject to review by the taxing authorities in the jurisdictions where we file tax returns. In most cases we are no longer subject to examination by tax authorities for years before 2014. The only significant operating jurisdiction that has tax filings under review or subject to examination by the tax authorities is the United States. As of March 31, 2026, the United States federal income tax filings for tax years 2016 through 2024 are currently under review or remain open for review by the Internal Revenue Service (the IRS).
As of March 31, 2026, the primary unresolved issue for the IRS audit for 2016 relates to the classification of the $3.5 billion ordinary deduction that we claimed for the termination fee we paid to Baker Hughes in the second quarter of 2016 for which we received a Notice of Proposed Adjustment (NOPA) from the IRS on September 28, 2023. We regularly assess the likelihood of adverse outcomes resulting from tax examinations to determine the adequacy of our tax reserves, and we believe our income tax reserves are appropriately provided for all open tax years. We do not expect a final resolution of this issue in the next twelve months.
Based on the information currently available, we do not anticipate a significant increase or decrease to our tax contingencies within the next twelve months.

Note 8. Shareholders' Equity

The following tables summarize our shareholders’ equity activity for the three months ended March 31, 2026 and March 31, 2025, respectively:
Millions of dollars	Common Stock	Paid-in Capital in Excess of Par Value	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interest in Consolidated Subsidiaries	Total	
Balance at December 31, 2025	$	2,659		$	112		$	(6,983)		$	15,036		$	(363)		$	44		$	10,505		
Comprehensive income (loss):								
Net income		—			—			—			461			—			3			464		
Other comprehensive income (loss)		—			—			—			—			20			—			20		
Cash dividends ($0.17 per share)		—			—			—			(142)			—			—			(142)		
Stock repurchase program		—			—			(100)			—			—			—			(100)		
Stock plans (a)		—			(19)			99			—			—			—			80		
Other		—			—			—			—			—			(2)			(2)		
Balance at March 31, 2026	$	2,659		$	93		$	(6,984)		$	15,355		$	(343)		$	45		$	10,825		

(a)	In the first quarter of 2026, we issued common stock from treasury shares for stock options exercised, restricted stock grants, performance shares under our performance unit program, and purchases under our employee stock purchase plan.	

Millions of dollars	Common Stock	Paid-in Capital in Excess of Par Value	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interest in Consolidated Subsidiaries	Total	
Balance at December 31, 2024	$	2,662		$	79		$	(6,214)	$	14,332		$	(353)	$	42		$	10,548		
Comprehensive income (loss):								
Net income		—			—			—			204			—			(1)		203		
Other comprehensive income (loss)		—			—			—			—			(6)		—			(6)	
Cash dividends ($0.17 per share)		—			—			—			(147)		—			—			(147)	
Stock repurchase program		—			—			(252)		—			—			—			(252)	
Stock plans (a)		(1)		(24)		83			—			—			—			58		
Other		—			4			—			—			—			1			5		
Balance at March 31, 2025	$	2,661		$	59		$	(6,383)	$	14,389		$	(359)	$	42		$	10,409		

(a)	In the first quarter of 2025, we issued common stock from treasury shares for stock options exercised, restricted stock grants, performance shares under our performance unit program, and purchases under our employee stock purchase plan.	
Our Board of Directors has authorized a program to repurchase our common stock from time to time. We repurchased 2.8 million shares of our common stock under the program during the three months ended March 31, 2026 for $100 million. Approximately $1.9 billion remained authorized for repurchases under the program as of March 31, 2026. From the inception of this program in February of 2006 through March 31, 2026, we repurchased 329 million shares of our common stock for a total cost of approximately $12.2 billion. We repurchased 9.6 million shares of our common stock under the program during the three months ended March 31, 2025 for approximately $252 million.
Accumulated other comprehensive loss consisted of the following: 
	March 31, 	December 31,	
Millions of dollars	2026	2025	
Cumulative translation adjustments	$	(81)	$	(81)	
Defined benefit and other postretirement liability adjustments		(225)		(245)	
Other		(37)		(37)	
Total accumulated other comprehensive loss	$	(343)	$	(363)	

Note 9. Commitments and Contingencies

The Company is subject to various legal or governmental proceedings, claims or investigations, including personal injury, property damage, environmental, intellectual property, commercial, tax, and other matters arising in the ordinary course of business, the resolution of which, in the opinion of management, will not have a material adverse effect on our consolidated results of operations or consolidated financial position. There is inherent risk in any legal or governmental proceeding, claim or investigation, and no assurance can be given as to the outcome of these proceedings.
Guarantee arrangements
In the normal course of business, we have in place agreements with financial institutions under which approximately $3.2 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of March 31, 2026. Some of the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization. None of these off-balance sheet arrangements either has, or is likely to have, a material effect on our consolidated financial statements. 

Note 10. Income per Share
Basic income or loss per share is based on the weighted average number of common shares outstanding during the period. Diluted income per share includes additional common shares that would have been outstanding if potential common shares with a dilutive effect had been issued. Antidilutive securities represent potentially dilutive securities which are excluded from the computation of diluted income or loss per share as their impact was antidilutive.
A reconciliation of the number of shares used for the basic and diluted income per share computations is as follows:
	Three Months Ended March 31, 	
Millions of shares	2026	2025	
Basic weighted average common shares outstanding		837			866		
Dilutive effect of awards granted under our stock incentive plans		2			—		
Diluted weighted average common shares outstanding		839			866		
			
Antidilutive shares:			
Weighted average options with exercise price greater than the average market price		5			9		
Total antidilutive shares		5			9		

Note 11. Fair Value of Financial Instruments
The carrying amount of cash and equivalents, receivables, and accounts payable, as reflected in the Condensed Consolidated Balance Sheets, approximates fair value due to the short maturities of these instruments.
The carrying amount and fair value of our total debt is as follows:
	March 31, 2026		December 31, 2025	
Millions of dollars	Level 1	Level 2	Total fair value	Carrying value		Level 1	Level 2	Total fair value	Carrying value	
Total debt	$	6,916		$	98		$	7,014		$	7,160			$	6,722		$	357		$	7,079		$	7,158		

The total fair value of our debt decreased during the first quarter of 2026, primarily as a result of higher yields.

Our debt categorized within level 1 on the fair value hierarchy is calculated using quoted prices in active markets for identical liabilities with transactions occurring on the last two days of period-end. Our debt categorized within level 2 on the fair value hierarchy is calculated using significant observable inputs for similar liabilities where estimated values are determined from observable data points on our other bonds and on other similarly rated corporate debt or from observable data points of transactions occurring prior to two days from period-end and adjusting for changes in market conditions. Differences between the periods presented in our level 1 and level 2 classification of our long-term debt relate to the timing of when third-party market transactions on our debt are executed. We have no debt categorized within level 3 on the fair value hierarchy.

Credit risk

We have entered into CDSs with third-party financial institutions that had an aggregate notional amount outstanding as of March 31, 2026 of $374 million, compared to an aggregate notional amount outstanding as of December 31, 2025 of $592 million, related to borrowings provided by the financial institutions to one of our primary customers in Mexico, of which a portion of the proceeds were then utilized by this customer to pay certain of our outstanding receivables. Approximately $331 million of the outstanding amount of the CDSs reduces monthly over its remaining 6-month term and $43 million reduces monthly over its remaining 3-month term.
The fair value of the derivative liabilities was not material to our financial condition as of March 31, 2026.

Note 12. New Accounting Pronouncements
In November 2024, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2024-03 (Subtopic 220-40), “Disaggregation of Income Statement Expenses”, which requires additional disclosure of certain expense captions presented on the face of the Company’s income statement as well as disclosures about selling expenses. ASU 2024-03 is effective for the Company’s annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, and should be applied on a prospective or retrospective basis, with early adoption permitted. We continue to evaluate the effect that adoption of ASU 2024-03 will have on our disclosures.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the condensed consolidated financial statements included in Item 1. Financial Statements contained herein.

EXECUTIVE OVERVIEW

Organization
We are one of the world’s largest providers of products and services to the energy industry. We help our customers maximize asset value throughout the lifecycle of the reservoir from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the asset. Activity levels within our operations are significantly impacted by spending on upstream exploration, development, and production programs by major, national, and independent oil and natural gas companies. We report our results under two segments, the Completion and Production segment and the Drilling and Evaluation segment.
•	Completion and Production delivers cementing, stimulation, specialty chemicals, intervention, pressure control, artificial lift, and completion products and services. The segment consists of Artificial Lift, Cementing, Completion Tools, Multi-Chem, Pipeline and Process Services, Production Enhancement, and Production Solutions. During the third quarter of 2024, we made a strategic decision to market for sale a portion of our chemical business. We expect the sale to be completed in the second quarter of 2026.
•	Drilling and Evaluation provides field and reservoir modeling, drilling, fluids, evaluation, and precise wellbore placement solutions that enable customers to model, measure, drill, and optimize their well construction activities. The segment consists of Baroid, Drill Bits and Services, Halliburton Project Management, Landmark Software and Services, Sperry Drilling, Testing and Subsea, and Wireline and Perforating.
The business operations of our segments are organized around four primary geographic regions: North America, Latin America, Europe/Africa/CIS, and Middle East/Asia. We have manufacturing operations in various locations, the most significant of which are in the United States, Malaysia, Singapore, and the United Kingdom. With over 46,000 employees, we operate in more than 70 countries around the world, and our corporate headquarters is in Houston, Texas.
Our value proposition is to collaborate and engineer solutions to maximize asset value for our customers. We strive to achieve strong cash flows and returns for our shareholders by delivering technology and services that improve efficiency, increase recovery, and maximize production for our customers. Our strategic priorities are to:
- International: Consistently increase international growth in our directional drilling, unconventionals, well intervention, and artificial lift businesses. Develop our strategic collaboration with VoltaGrid around behind-the-meter power generation.
- North America: Maximize value by, among other things, utilizing our Zeus IQ electric fracturing platform, our iCruise rotary steerable systems and LOGIX automation.
- Digital: Continue to drive differentiation and efficiencies through the deployment of digital and automation technologies, both internally and for our customers.
- Capital efficiency: Maintain our capital expenditures at about $1.1 billion, while leveraging technology and targeted process improvements to enhance utilization of existing capital.
- Shareholder returns: Return over 50% of annual free cash flow to shareholders through dividends and share repurchases.
- Advance a Sustainable Energy Future: Continue to develop technologies and solutions to help lower our customers’ and our emissions intensity, grow our low carbon energy business, and support Halliburton Labs early-stage company participants.

The following charts depict the revenue split between our two operating segments and our four primary geographic regions for the three months ended March 31, 2026.

Market conditions
During the first quarter of 2026, the ongoing geopolitical conflict has impacted activity in the Middle East resulting in an impact of $0.02 to $0.03 of diluted net income per share across both of our segments. Oilfield activity reflected continued customer focus on capital discipline and returns, with spending concentrated on projects and programs that improve near-term production and operating efficiency. Customer activity levels and spending plans remained sensitive to oil and natural gas price volatility and changes in global supply-and-demand fundamentals and were impacted by geopolitical developments, including regional conflicts, sanctions, and trade or regulatory actions. 
Trade tensions and tariffs continue to influence the global demand outlook, with varying impacts across end markets. Following a U.S. Supreme Court ruling that invalidated tariffs imposed in 2025 by the Trump Administration on goods from all countries, President Trump implemented a 150-day “global tariff” of 10% effective February 24, 2026, using presidential powers under Section 122 of the Trade Act of 1974, and indicated a desire to increase such “global tariff” to 15%. Although the Section 122 tariffs are due to expire in July, the Trump Administration has initiated processes that could result in new tariffs being imposed under other statutes. We continue to monitor and evaluate the effects on goods imported into the United States.
Oil prices increased in the first quarter of 2026 compared to the fourth quarter of 2025. The West Texas Intermediate (WTI) crude oil price averaged approximately $72 per barrel during the first quarter of 2026, compared to approximately $60 per barrel during the fourth quarter of 2025, or a 20% increase. The Brent crude oil price averaged approximately $80 per barrel during the first quarter of 2026, compared to approximately $64 per barrel during the fourth quarter, or a 25% increase.
Globally, we continue to be impacted by inflationary cost increases, primarily related to logistics, chemicals, and cement, we manage these pressures through global procurement strategies, technology modifications, and sourcing efficiencies. As a standard practice, we generally seek to pass a portion of these cost increases on to our customers and believe we have effective solutions in place to minimize their operational impact.

Financial results
The following graph illustrates our revenue and operating margins for each operating segment for the first quarter of 2025 and 2026.

During the first quarter of 2026, we generated total company revenue of $5.4 billion, relatively flat as compared to the first quarter of 2025. We reported operating income of $679 million, in the first quarter of 2026, as compared to operating income of $431 million in the first quarter of 2025, including impairments and other charges of $356 million.
Our Completion and Production segment revenue decreased 3% in the first quarter of 2026, as compared to the first quarter of 2025. These results were primarily driven by lower stimulation activity in North America, and lower completion tool sales and decreased pressure pumping services in the Middle East. Partially offsetting these decreases were higher completion tool sales in the Western Hemisphere, and improved pressure pumping services in Africa.

Our Drilling and Evaluation segment revenue increased 4% in the first quarter of 2026 as compared to the first quarter of 2025. These results were primarily driven by higher project management activity in Latin America and increased drilling-related services in Europe and the Western Hemisphere. Partially offsetting these increases were lower activity across multiple product service lines in the Middle East, lower wireline activity in the Eastern Hemisphere, and decreased fluid services in the Gulf of America. 
Both divisional results were negatively impacted by the geopolitical conflict in the Middle East.

Our North America revenue decreased 4% in the first quarter of 2026 as compared to the first quarter of 2025. This decline was primarily driven by lower stimulation activity and decreased artificial lift activity in US Land, and lower stimulation activity and decreased fluid services in the Gulf of America. Partially offsetting these decreases were increased drilling-related services in US Land and higher completion tool sales in the region.

Internationally, revenue increased 3% in the first quarter of 2026 as compared to the first quarter of 2025, largely driven by improved activity across multiple product service lines in Ecuador, the Caribbean, and Brazil, higher stimulation activity in Mexico and Argentina, increased drilling-related services and higher completion tool sales in Norway, and improved pressure pumping services in Angola. Offsetting these increases were lower activity across multiple product service lines in the Middle East and decreased drilling-related services in Namibia.

Our operating performance and liquidity are described in more detail in “Liquidity and Capital Resources” and “Business Environment and Results of Operations.”

LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 2026, we had $2.0 billion of cash and equivalents, compared to $2.2 billion of cash and equivalents at December 31, 2025.
Significant sources and uses of cash during the first three months of 2026 
Sources of cash:
•	Cash flows from operating activities were $273 million. Working capital, which consists of receivables, inventories, and accounts payable, collectively had a negative impact of $252 million.
Uses of cash:
•	Capital expenditures were $192 million.
•	We repurchased 2.8 million shares of our common stock for $100 million.
•	We paid $142 million of dividends to our shareholders.
Future sources and uses of cash
We manufacture most of our own equipment, which provides us with some flexibility to increase or decrease our capital expenditures based on market conditions. We currently expect capital spending for 2026 to be approximately $1.1 billion. We believe this level of spending will enable continued investment in our core strategic technologies and businesses, including the international expansion of our artificial lift, well intervention, unconventionals, and drilling technologies. We will continue to maintain capital discipline and monitor the rapidly changing market dynamics, and we may adjust our capital spending accordingly.

While we maintain focus on liquidity and debt reduction, we are also focused on providing cash returns to our shareholders. Our quarterly dividend rate is $0.17 per common share, or approximately $142 million. In 2023, our Board approved a capital return framework with a goal of returning at least 50% of our annual free cash flow to shareholders through dividends and share repurchases and we expect our returns to shareholders will be in line with our capital return framework for 2026.

We may utilize share repurchases as part of our capital return framework. Our Board of Directors has authorized a program to repurchase our common stock from time to time. We repurchased 2.8 million shares of common stock during the first quarter of 2026 under this program. Approximately $1.9 billion remained authorized for repurchases as of March 31, 2026 and may be used for open market and other share purchases.
During 2023, we began our migration to SAP S4 which we expect to complete in the fourth quarter of 2026. During the three months ended March 31, 2026, we incurred $42 million in expense on our SAP S4 migration and expect the estimated cost to be approximately $45 million per quarter going forward. We believe the new system will provide important efficiency benefits, cost savings, enhanced visibility to our operations, and advanced analytics that will benefit us and our customers.
We may, from time to time, redeem, repurchase, or otherwise acquire our outstanding debt through privately negotiated transactions, open market purchases, redemptions, tender offers or otherwise, but we are under no obligation to do so.
Other factors affecting liquidity
Financial condition in current market. As of March 31, 2026, we had $2.0 billion of cash and equivalents and $3.5 billion of available committed bank credit under our revolving credit facility, with an expiration date of August 16, 2030. We believe we have a manageable debt maturity profile, with approximately $90 million due February 2027. Furthermore, we have no financial covenants or material adverse change provisions in our bank agreements, and our debt maturities extend over a long period of time. We believe our cash on hand, cash flows generated from operations, and our available credit facility will provide sufficient liquidity to address expected global cash needs, including capital expenditures, working capital investments, shareholder returns, if any, debt repurchases, if any, and scheduled interest and principal payments, in the short term and long term.
Guarantee agreements. In the normal course of business, we have agreements with financial institutions under which approximately $3.2 billion of letters of credit, bank guarantees, or surety bonds were outstanding as of March 31, 2026. Some of the outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization; however, none of these triggering events have occurred. As of March 31, 2026, we had no material off-balance sheet liabilities and were not required to make any material cash distributions to our unconsolidated subsidiaries.
We have entered into credit default swaps (CDSs) with third-party financial institutions that have an aggregate notional amount outstanding as of March 31, 2026 of $374 million, compared to an aggregate notional amount outstanding as of December 31, 2025 of $592 million, related to borrowings provided by the financial institutions to one of our primary customers in Mexico, of which portions of the proceeds were utilized by this customer to pay certain of our outstanding receivables. Approximately $331 million of the outstanding amount of the CDSs reduces monthly over its remaining 6-month term and $43 million reduces monthly over its remaining 3-month term. 
Credit ratings. Our credit ratings with Standard & Poor’s remain BBB+ for our long-term debt and A-2 for our short-term debt, with a stable outlook. Our credit ratings with Moody's Investors Service remain A3 for our long-term debt and P-2 for our short-term debt, with a stable outlook.
Customer receivables. In line with industry practice, we bill our customers for our services in arrears and are, therefore, subject to our customers delaying or failing to pay our invoices. In weak economic environments, we may experience increased delays and failures to pay our invoices due to, among other reasons, a reduction in our customers’ cash flow from operations and their access to the credit markets, as well as unsettled political conditions.
Receivables from our primary customer in Mexico accounted for approximately 7% of our total receivables as of both March 31, 2026 and December 31, 2025. While we have experienced payment delays from our primary customer in Mexico, the amounts are not in dispute and we have not historically had, and we do not expect, any material write-offs due to collectability of receivables from this customer.

BUSINESS ENVIRONMENT AND RESULTS OF OPERATIONS

We operate in more than 70 countries throughout the world to provide a comprehensive range of services and products to the energy industry. Our revenue is generated from the sale of services and products to major, national, and independent oil and natural gas companies worldwide. The industry we serve is highly competitive with many substantial competitors in each segment of our business. Based on the location of the services provided and products sold, 37% and 39% of our consolidated revenue was from the United States for the three months ended March 31, 2026 and 2025, respectively. No other country accounted for more than 10% of our revenue for those periods.

Activity within our business segments is significantly impacted by spending on upstream exploration, development, and production programs by our customers. Also impacting our activity is the status of the global economy, which impacts oil and natural gas consumption.
Some of the more significant determinants of current and future spending levels of our customers are oil and natural gas prices, our customers’ expectations about future prices, global oil supply and demand, the impact on natural gas supply and demand in North America of electrification and data centers power requirements, completions intensity, the world economy, the availability of capital, government regulation, and global stability, which together drive worldwide drilling and completions activity. Lower oil and natural gas prices usually translate into lower exploration and production budgets and lower rig count, while the opposite is usually true for higher oil and natural gas prices. Our financial performance is therefore significantly affected by oil and natural gas prices and worldwide rig activity, which are summarized in the tables below.
The table below shows the average prices for West Texas Intermediate (WTI) crude oil, United Kingdom Brent crude oil, and Henry Hub natural gas. 
	Three Months Ended	Year Ended	
	March 31, 	December 31,	
	2026	2025	2025	
Oil Price - WTI (1)	$	71.98		$	71.84		$	65.46		
Oil Price - Brent (1)		80.21			75.81			69.10		
Natural Gas Price - Henry Hub (2)		4.79			4.15			3.53		

(1)	Oil prices measured in dollars per barrel.	
(2)	Natural gas price measured in dollars per million British thermal units (Btu), or MMBtu.	
              The historical average rig counts based on the weekly Baker Hughes rig count data were as follows:  
	Three Months Ended	Year Ended	
	March 31, 	December 31,	
	2026	2025	2025	
US Land		532			573			546		
US Offshore		16			15			15		
Canada		209			216			175		
North America		757			804			736		
International (1)		1,083			1,097			1,080		
Worldwide Total		1,840			1,901			1,816		

(1)	For the three months ended March 31, 2025, historical average rig counts shown are based on data provided by Baker Hughes, which included retroactive adjustments to international rig counts previously reported as a result of a methodology change.	

Business outlook 
We expect oilfield services activity to be supported by continued customer focus on capital discipline, production optimization, and efficiency‑driven investment across both international and North America markets. While we continue to experience operational disruptions in the Middle East, including work cancellations, force‑majeure declarations, reduced offshore activity, and higher logistics costs, the majority of our operations remain active.

Outside the Middle East, our outlook remains positive. International activity is expected to grow in the mid‑to‑high single digits for the full year 2026, led by strong customer engagement and investment in Latin America and continued momentum in offshore markets.

In North America, we see early signs of a services‑market recovery as customers accelerate development within existing budgets and reduce calendar white‑space. Depleted drilled‑but‑uncompleted well inventories are expected to support additional drilling activity, and demand for differentiated technologies, including electric fracturing and automated well‑construction solutions, continues to increase.

We expect broader market fundamentals to remain supportive, although customer spending and activity levels may be influenced by volatility in oil and natural gas prices, changes in global supply‑and‑demand dynamics, inflationary cost pressures, and geopolitical developments. These factors, including regional conflicts, sanctions, and regulatory or trade changes, may affect project timing, supply chains, and access to certain markets.

RESULTS OF OPERATIONS IN 2026 COMPARED TO 2025
Three Months Ended March 31, 2026 Compared with Three Months Ended March 31, 2025
	Three Months Ended			
	March 31, 	Favorable	Percentage	
Millions of dollars	2026	2025	(Unfavorable)	Change	
Revenue:					
By operating segment:					
Completion and Production	$	3,016		$	3,120		$	(104)		(3)	%	
Drilling and Evaluation		2,386			2,297			89			4		
Total revenue	$	5,402		$	5,417		$	(15)		—	%	
By geographic region:					
North America	$	2,136		$	2,236		$	(100)		(4)	%	
Latin America		1,090			896			194			22		
Europe/Africa/CIS		858			775			83			11		
Middle East/Asia		1,318			1,510			(192)		(13)		
Total revenue	$	5,402		$	5,417		$	(15)		—	%	
					
Operating income:					
By operating segment:					
Completion and Production	$	439		$	531		$	(92)		(17)	%	
Drilling and Evaluation		351			352			(1)		—		
Total operations		790			883			(93)		(11)		
Corporate and other		(69)		(66)		(3)		(5)		
SAP S4 upgrade expense		(42)		(30)		(12)		(40)		
Impairments and other charges		—			(356)		356		n/m	
Total operating income	$	679		$	431		$	248			58	%	
n/m = not meaningful					
Operating Segments
Completion and Production
Completion and Production revenue in the first quarter of 2026 was $3.0 billion, a decrease of $104 million, or 3%, when compared to the first quarter of 2025. Operating income in the first quarter of 2026 was $439 million, a decrease of $92 million, or 17%, when compared to the first quarter of 2025. These results were primarily driven by lower stimulation activity in North America, and lower completion tool sales and decreased pressure pumping services in the Middle East. Partially offsetting these decreases were higher completion tool sales in the Western Hemisphere, and improved pressure pumping services in Africa.

Drilling and Evaluation
Drilling and Evaluation revenue in the first quarter of 2026 was $2.4 billion, an increase of $89 million, or 4%, when compared to the first quarter of 2025. Operating income in the first quarter of 2026 was $351 million, flat when compared to the first quarter of 2025. These results were primarily driven by higher project management activity in Latin America and increased drilling-related services in Europe and the Western Hemisphere. Partially offsetting these increases were lower activity across multiple product service lines in the Middle East, lower wireline activity in the Eastern Hemisphere, and decreased fluid services in the Gulf of America. 

In the first quarter of 2026, the geopolitical conflict in the Middle East affected both of our operating segments, with an impact of $0.02 to $0.03 of diluted net income per share.

Geographic Regions
North America
North America revenue in the first quarter of 2026 was $2.1 billion, a 4% decrease, as compared to the first quarter of 2025. This decline was primarily driven by lower stimulation activity and decreased artificial lift activity in US Land, and lower stimulation activity and decreased fluid services in the Gulf of America. Partially offsetting these decreases were increased drilling-related services in US Land and higher completion tool sales in the region.

Latin America
Latin America revenue in the first quarter of 2026 was $1.1 billion, a 22% increase compared to the first quarter of 2025. This increase was primarily driven by higher activity across multiple product service lines in Ecuador, the Caribbean, and Brazil, and improved stimulation activity in Mexico and Argentina. Partially offsetting these increases were lower project management activity and decreased drilling-related services in Mexico.

Europe/Africa/CIS
Europe/Africa/CIS revenue in the first quarter of 2026 was $858 million, an 11% increase compared to the first quarter of 2025. This increase was primarily driven by increased drilling-related services and higher completion tool sales in Norway, and improved pressure pumping services in Angola. Partially offsetting these increases were lower completion tool sales in the Caspian Area and decreased drilling-related services in Namibia.

Middle East/Asia
Middle East/Asia revenue in the first quarter of 2026 was $1.3 billion, a 13% decrease compared to the first quarter of 2025. This decrease was primarily driven by conflict-related disruptions that resulted in lower activity across multiple product service lines in Saudi Arabia and decreased drilling-related services in Qatar. Partially offsetting these decreases were higher completion tool sales and improved fluid services in Asia.

Other Operating Items
SAP S4 Upgrade Expense. As previously mentioned, during 2023, we began our migration to SAP S4, which we expect to complete in the fourth quarter of 2026. During the first quarter of 2026, we recognized $42 million of expense on our SAP S4 migration. During the first quarter of 2025, we recognized $30 million of expense on our SAP S4 migration.

Impairments and Other Charges. During the three months ended March 31, 2026, there were no amounts recorded in impairments and other charges. During the three months ended March 31, 2025, we took a pre-tax charge of $356 million primarily related to severance costs, an impairment of assets held for sale, an impairment of facility closures and lease terminations, and other items. See Notes to Condensed Consolidated Financial Statements, Note 2 for further discussion of these charges.

Nonoperating Items
Pension Settlement Charges from Plan Terminations. During the three months ended March 31, 2026, the Company entered into agreements to transfer certain defined benefit pension obligations to third-party insurers in connection with plan terminations. As a result, the Company recognized approximately $23 million of non-cash pension settlement charges, primarily related to the acceleration of actuarial losses previously recorded in accumulated other comprehensive income. This is included in “Other, net” on the Condensed Consolidated Statements of Operations.
Income Tax Provision. During the three months ended March 31, 2026, we recorded a total income tax provision of $105 million on a pre-tax income of $569 million, resulting in an effective tax rate of 18.5% for the quarter. The effective tax rate for this period was primarily impacted by the release of a valuation allowance in the amount of $32 million related to changes in deferred tax asset realizability. During the three months ended March 31, 2025, we recorded a total income tax provision of $103 million on a pre-tax income of $306 million, resulting in an effective tax rate of 33.7% for the quarter. The effective tax rate for this period was primarily impacted by the additional valuation allowance recognized on our deferred tax assets, which resulted from the pre-tax $356 million of impairments and other charges.

Pillar Two. The Organization for Economic Co-operation and Development enacted model rules for a new global minimum tax framework, also known as Pillar Two, and certain governments globally have enacted, or are in the process of enacting, legislation considering these model rules. These rules did not have a material impact on our taxes for the three months ended March 31, 2026 and 2025.
Internal Revenue Service Notice of Proposed Adjustment. We are subject to taxes in the United States and in numerous jurisdictions where we operate or where our subsidiaries are organized. Our tax returns are routinely subject to examination by the taxing authorities in the jurisdictions where we file tax returns. In most cases we are no longer subject to examination by tax authorities for years before 2014. The only significant operating jurisdiction that has tax filings under review or subject to examination by the tax authorities is the United States. Our United States federal income tax filings for tax years 2016 through 2024, including carry back of 2016 net operating losses to 2014, are currently under review or remain open for review by the IRS.
On September 28, 2023, we received a NOPA from the IRS covering our 2016 U.S. tax return. The NOPA proposed an adjustment to reclassify approximately 95% of the $3.5 billion termination fee paid to Baker Hughes in 2016 from an ordinary expense deduction to a capital loss. The termination fee was paid to Baker Hughes under the merger agreement after antitrust regulators in multiple jurisdictions failed to approve our proposed merger. It is common commercial practice to include a termination fee in a merger agreement to compensate the target for damages incurred when the acquisition does not go forward. The IRS’s long-understood position at the time of payment had been to treat such payments as an ordinary and necessary business expense. We strongly disagree with the proposed adjustment on both a factual and legal basis, and we plan to vigorously contest it. 
We expect that resolving this dispute will take substantial time. In 2023, we initiated the IRS administrative appeals process, which is ongoing. Failing a resolution through that process, the matter would ultimately be resolved by the United States federal courts.
We regularly assess the likelihood of adverse outcomes resulting from tax examinations to determine the adequacy of our tax reserves, and we believe our income tax reserves are appropriately provided for all open tax years. We cannot assure you that the matter will be determined in our favor or against us, and if the matter is ultimately determined unfavorably to us, it could have a material adverse impact on our results of operations and cash flows. Based on tax attributes currently available, we estimate that, should the IRS's position prevail through the appellate process and subsequent litigation, the proposed adjustment could result in cash taxes due of approximately $640 million (plus interest thereon in the case of amounts due for previous tax years). Our estimates are calculated under current tax law and on the basis of our assumptions regarding taxable income and loss and other tax attributes over the relevant period, which law could change and which assumptions could and likely will differ materially from actual results. In any event, no payment of any additional tax is currently required, nor do we anticipate that the proposed adjustment would materially and adversely impact our ability to meet our expected uses of cash, including future capital expenditures, working capital investments, and scheduled debt repayments, or our ability to return cash to shareholders, even if a final determination of the matter is reached that is adverse to us.

FORWARD-LOOKING INFORMATION
The Private Securities Litigation Reform Act of 1995 provides safe harbor provisions for forward-looking information. Forward-looking information is based on projections and estimates, not historical information. Some statements in this Form 10-Q, including those in Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations –Business Environment and Results of Operations – Business Outlook, are forward-looking and use words like “may,” “may not,” “believe,” “do not believe,” “plan,” “estimate,” “intend,” “expect,” “do not expect,” “anticipate,” “do not anticipate,” “should,” “likely,” and other expressions. We may also provide oral or written forward-looking information in our statements and other materials we release to the public. Forward-looking information involves risks and uncertainties and reflects our best judgment based on current information. Our results of operations can be affected by inaccurate assumptions we make or by known or unknown risks and uncertainties. In addition, other factors may affect the accuracy of our forward-looking information. As a result, no forward-looking information can be guaranteed. Actual events and the results of our operations may vary materially.
We do not assume any responsibility to publicly update any of our forward-looking statements regardless of whether factors change as a result of new information, future events, or for any other reason, except as required by law. You should review any additional disclosures we make in our press releases and Forms 10-K, 10-Q, and 8-K filed with or furnished to the Securities and Exchange Commission. We also suggest that you listen to our quarterly earnings release conference calls with financial analysts.

NEW ACCOUNTING STANDARDS NOT YET ADOPTED
See Notes to Condensed Consolidated Financial Statements, Note 12 for further discussion of accounting standards adopted during the quarter and to be adopted in future periods.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

For quantitative and qualitative disclosures about market risk, see Part II, Item 7(a), “Quantitative and Qualitative Disclosures About Market Risk,” in our 2025 Annual Report on Form 10-K. Our exposure to market risk has not changed materially since December 31, 2025.

Item 4. Controls and Procedures.
In accordance with the Securities Exchange Act of 1934 Rules 13a-15 and 15d-15, we carried out an evaluation, under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of March 31, 2026 to provide reasonable assurance that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Our disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
There has been no change in our internal control over financial reporting that occurred during the quarter ended March 31, 2026 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.
See Notes to Condensed Consolidated Financial Statements, Note 9 for further information regarding legal proceedings.

Item 1(a). Risk Factors.
The statements in this section describe the known material risks to our business and should be considered carefully. As of March 31, 2026, there have been no material changes in risk factors previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Following is a summary of our repurchases of our common stock during the three months ended March 31, 2026.
Period	Total Number
of Shares Purchased (a)	Average
Price Paid per Share	Total Number
of Shares
Purchased as
Part of Publicly
Announced Plans or Programs (b)	Maximum
Number (or
Approximate
Dollar Value) of
Shares that may yet
be Purchased Under the Program (b)	
January 1 - 31	289,276	$29.67	—	$2,049,168,144	
February 1 - 28	991,682	$35.20	969,000	$2,015,004,883	
March 1 - 31	2,036,724	$35.18	1,873,433	$1,949,168,163	
Total	3,317,682	$34.71	2,842,433		

(a)	Of the 3,317,682 shares purchased during the three-month period ended March 31, 2026, 475,249 were acquired from employees in connection with the settlement of income tax and related benefit withholding obligations arising from vesting in restricted stock grants. These shares were not part of a publicly announced program to repurchase common stock.	
(b)	Our Board of Directors has authorized a program to repurchase a specified dollar amount of our common stock from time to time. On July 21, 2014, our Board of Directors announced that it had approved an increase in the total available outstanding authorization for repurchases to $6.0 billion. Approximately $1.9 billion remained authorized for repurchases as of March 31, 2026. From the inception of this program in February of 2006 through March 31, 2026, we repurchased approximately 329 million shares of our common stock for a total cost of approximately $12.2 billion. The program may be terminated or suspended at any time and does not have a specified expiration date.	

Item 3. Defaults Upon Senior Securities.
None.

Item 4. Mine Safety Disclosures.
Our barite and bentonite mining operations, in support of our fluid services business, are subject to regulation by the U.S. Mine Safety and Health Administration under the Federal Mine Safety and Health Act of 1977. Information concerning mine safety violations or other regulatory matters required by section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K (17 CFR 229.104) is included in Exhibit 95 to this quarterly report.

Item 5. Other Information.
During the quarter ended March 31, 2026, the following officers of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K, and no trading arrangements were adopted or terminated by directors of the Company. 
Reporting Officer	Title	Reporting Action	Plan Adoption Date	Plan End Date	Aggregated Shares Covered	Intended to Satisfy Rule 10b5-1?	
M. Casey Maxwell	President, Western Hemisphere	Plan Adoption	2/3/2026	8/14/2026	20,348	Yes	
Eric J. Carre	Executive Vice President and Chief Financial Officer	Plan Adoption	3/18/2026	8/14/2026	188,957	Yes	

Item 6. Exhibits.
†	10.1	Executive Agreement (effective February 1, 2026) (M. Casey Maxwell) (incorporated by reference to Exhibit 10.1 of Halliburton’s Form 8-K filed on January 14, 2026, File No. 001-03492).	
			
*	31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.	
 	 		
*	31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.	
 	 		
**	32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	
 	 		
**	32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	
 	 		
*	95	Mine Safety Disclosures.	
			
*	101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document	
*	101.SCH	XBRL Taxonomy Extension Schema Document	
*	101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document	
*	101.LAB	XBRL Taxonomy Extension Label Linkbase Document	
*	101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document	
*	101.DEF	XBRL Taxonomy Extension Definition Linkbase Document	
*	104	Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document	
			
 	*	Filed with this Form 10-Q.	
 	**	Furnished with this Form 10-Q.	
	†	Management contracts or compensatory plans or arrangements.	

			

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

HALLIBURTON COMPANY
/s/ Eric J. Carre	/s/ Stephanie S. Holzhauser	
Eric J. Carre	Stephanie S. Holzhauser	
Executive Vice President and	Senior Vice President and	
Chief Financial Officer	Chief Accounting Officer	

Date: April 24, 2026