Is Halliburton’s (HAL) Aggressive Buyback Amid Weaker Earnings a Signal of Strategic Confidence?

• Halliburton recently reported its second quarter 2025 earnings, revealing year-over-year declines in both revenue to US$5.51 billion and net income to US$472 million, with basic earnings per share falling to US$0.55.
• An interesting insight is that, alongside these weaker results, Halliburton continued its aggressive share buyback program, repurchasing nearly 12 million shares in the quarter, despite ongoing analyst caution regarding the company's outlook.
• We’ll now explore how Halliburton’s lower-than-expected profits and ongoing buybacks shape its updated investment narrative.

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Halliburton Investment Narrative Recap

To be a Halliburton shareholder today, you need confidence in the company’s ability to capture international oilfield and production service demand, even as North American markets soften and as energy transition pressures intensify. This quarter’s weaker earnings and revenue likely do not change the biggest catalyst, ongoing global energy demand and international diversification, or the most immediate risk: Halliburton’s persistent exposure to North American market cycles, which continue to influence its near-term revenue and margin trends.

Among recent announcements, Halliburton’s aggressive share buyback, repurchasing nearly 12 million shares last quarter, even during a period of earnings decline, is particularly relevant. These buybacks can potentially support per-share metrics and reflect continued return of capital to shareholders, but whether they offset anticipated headwinds from North American activity remains to be seen.

In contrast, investors should be aware that persistent weakness in U.S. drilling and completion could…

Read the full narrative on Halliburton (it's free!)

Halliburton's outlook anticipates $22.5 billion in revenue and $2.2 billion in earnings by 2028. This scenario reflects a -0.4% annual revenue decline and a $0.3 billion increase in earnings from the current $1.9 billion.

Uncover how Halliburton's forecasts yield a $27.74 fair value, a 21% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided 12 fair value estimates for Halliburton ranging from US$20 to US$43.75, showing wide variation in expectations. These differing outlooks come as revenue growth remains slow and exposure to North America may impact recovery; reviewing varied perspectives can help you understand potential outcomes.

Explore 12 other fair value estimates on Halliburton - why the stock might be worth as much as 92% more than the current price!

Build Your Own Halliburton Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Halliburton research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Halliburton research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Halliburton's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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