Halliburton Company reported first-quarter 2026 earnings on Sunday that fell short of analyst expectations, as prolonged uncertainty around the Strait of Hormuz disrupted international drilling schedules and squeezed demand for its completion and production services. The Houston-based oilfield services company posted adjusted earnings per share below the consensus estimate, with revenue from its international segment — particularly Middle East and North Africa operations — declining compared to the same period a year ago.

The results come as oil tankers only began cautiously testing Hormuz transit routes over the weekend, following weeks of restricted shipping that forced several national oil companies to delay or scale back upstream activity. Halliburton executives noted on an investor call that project sanctioning by major producers in the Gulf region slowed materially through February and March, creating a gap in service contract activity that is unlikely to be fully recovered in the second quarter.

North American operations provided a partial offset, with pressure pumping activity holding relatively steady amid resilient shale producer budgets, though pricing pressure from competitors SLB and Baker Hughes limited margin expansion. Halliburton's digital and automation services segment showed modest growth, as operators sought efficiency gains to manage costs in a volatile crude price environment that has seen Brent fluctuate sharply in recent weeks.

Chief Executive Jeff Miller acknowledged the headwinds but expressed cautious optimism about a second-half recovery, citing the gradual reopening of Hormuz shipping lanes and a pipeline of deferred projects that could accelerate once geopolitical conditions stabilise. The company maintained its full-year capital expenditure guidance while trimming its international revenue growth forecast by approximately two percentage points.

Analysts at Barclays and Bank of America flagged the results as a bellwether for the broader oilfield services sector, noting that SLB and Baker Hughes — both scheduled to report later in the month — are likely to face similar pressure from the Middle East slowdown. Halliburton shares were indicated lower in pre-market trading, extending a decline that has tracked closely with crude oil price weakness since mid-March.