UBS upheld its Neutral rating and set a price target of $32 for Halliburton (NYSE:HAL) following the company’s fourth-quarter earnings announcement, which outperformed analyst predictions. The stock is currently valued near $33, slightly trailing its 52-week peak of $33.80, and according to InvestingPro data, it is considered modestly undervalued when measured against Fair Value benchmarks.
For the fourth quarter of 2025, Halliburton reported adjusted earnings per share (EPS) of $0.69. This figure comfortably exceeded both UBS and Street expectations, which stood at $0.56 and $0.55 respectively. Revenue for the quarter sank in at $5.66 billion, outpacing UBS's forecast of $5.43 billion and Street estimates of $5.41 billion by margins of 4% and 5%. Over the full fiscal year, the company generated total revenues amounting to $22.18 billion and posted diluted EPS of $1.50.
The oilfield services giant saw its adjusted operating income reach $829 million in Q4, surpassing UBS’s $735 million and the Street's $731 million estimates. The Completion and Production segment delivered particularly impressive outcomes, outperforming Street forecasts by 23%. Both company segments demonstrated strength across revenues, profit margins, and operating income metrics. Notwithstanding these positive results, InvestingPro highlights Halliburton's relatively thin gross profit margins, recorded at 15.81%.
During the quarter, Halliburton repurchased $250 million worth of shares, aligning with UBS's projections. The company's performance occurred against a backdrop of a challenging environment for North American hydraulic fracturing operations, with the U.S. frac spread count declining into 2025, leveling at approximately 160 units. Despite these industry headwinds, Halliburton has maintained an unbroken streak of dividend payments for 55 years, currently offering a dividend yield of 2.04%, as noted by InvestingPro Tips.
UBS analysts consider the current U.S. frac spread count to be near maintenance levels. They forecast an improvement in domestic fracking activity during the second half of 2026 and into 2027, anticipating this trend will be bolstered by rising oil and natural gas prices. This optimistic projection parallels Halliburton's strong stock performance, having achieved an impressive 58.14% return over the past six months.
Financially, Halliburton operates with a moderate leverage level, reflected in a Debt-to-Equity ratio of 0.78, and sustains a robust liquidity position, indicated by a current ratio of 2.04, which signifies its short-term assets comfortably exceed its short-term liabilities.
Additional recent updates from other analysts reinforce a positive sentiment about Halliburton's trajectory. RBC Capital lifted its price target from $36 to $38 and maintained an Outperform rating, citing strong results in the Completion and Production segment. Evercore ISI adjusted its price target upwards to $36 and kept an "In Line" rating while noting the better-than-expected fourth-quarter outcomes. Conversely, Piper Sandler sustained its Neutral rating with a $30 price target, acknowledging the company’s solid Q4 results but expressing caution regarding Halliburton's guidance for 2026.
These varied analyst perspectives collectively underscore the market's generally favorable response to Halliburton’s recent financial performance and operational resilience amid a complex industry landscape.