Halliburton Co (NYSE:HAL) stock fell 0.33% (As on January 22, 11:36:53 AM UTC-4, Source: Google Finance) after the company reported fourth quarter 2025 financial results that exceeded Wall Street expectations, driven by stronger-than-anticipated revenue and higher profitability. Net income was $589 million, or $0.70 per diluted share, compared with $18 million, or $0.02 per diluted share, in the third quarter. Operating income increased to $746 million, while adjusted operating income, excluding impairments and other charges, reached $829 million, representing an adjusted operating margin of 15%. Completion & Production revenue was flat sequentially at $3.3 billion, while Drilling & Evaluation revenue remained steady at $2.4 billion. International revenue increased to $3.5 billion, offsetting flat North American activity, where revenue was $2.2 billion. In the Drilling and Evaluation division, revenue in Q4 was $2.4 billion, flat when compared to Q3 2025. Revenue improvements driven by higher wireline activity in the Eastern Hemisphere and increased year-end software sales were offset by lower fluid services in North America.

Moreover, during the quarter, Halliburton and VoltaGrid secured manufacturing capacity for 400 megawatts of modular power systems. Europe Africa revenue in Q4 was $928 million, an increase of 12% sequentially. This increase was primarily driven by higher completion tool sales in the North Sea and improved activity across multiple product service lines in Africa. Middle East Asia revenue in Q4 was $1.5 billion, an increase of 3% sequentially. Latin America revenue in Q4 was $1.1 billion, a 7% increase sequentially. This increase was primarily driven by higher completion tool sales in Brazil and The Caribbean, and higher software sales in Mexico.

HAL in the fourth quarter of FY25 has reported the adjusted earnings per share of 69 cents, beating the analysts’ estimates for the adjusted earnings per share of 54 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $5.66 billion in the fourth quarter of FY25, beating the analysts’ estimates for revenue by 4.64%. Revenue improvements were primarily driven by higher year-end completion tool sales globally, and offset by lower stimulation activity in the Western Hemisphere.

Additionally, the company generated $1.2 billion in operating cash flow and $875 million in free cash flow during the fourth quarter and repurchased $1 billion of shares over the full year, returning 85% of free cash flow to shareholders.

For fiscal 2026, the company expects North America revenue to decline high single digits compared to 2025. This outlook reflects the full year impact of reduced customer activity in land operations, the decision to stack uneconomic fleets, and the timing of customer programs in the Gulf Of America.