Halliburton (HAL) Could Be 25% Below Fair Value After Strong Q2 Earnings

Halliburton (HAL) is back in focus after reporting better than expected Q2 2026 earnings, with both operating divisions showing sequential revenue growth and international revenue reaching its highest second quarter level in over a decade.

See our latest analysis for Halliburton.

Halliburton’s share price has eased in recent months, with a 7 day share price return of 6.3% and a 90 day share price return of 16.7% in decline. The stock still shows an 11.6% year to date share price gain and a 1 year total shareholder return of 53.8%, suggesting momentum has cooled after a stronger run.

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After Halliburton’s pullback, and with the stock trading around a 32% discount to the average analyst target and roughly a 50% gap to one intrinsic value estimate, where does a reasonable fair value range really sit now?

Most Popular Narrative: 25.3% Undervalued

Halliburton’s most followed narrative pegs fair value at $44.24, above the last close of $33.03, framing a sizeable gap that hinges on long term project execution and margin expansion.

The company's ongoing international diversification, growing faster in regions like Latin America, Africa, and the Middle East, and leveraging U.S. style unconventional expertise, creates a larger, more stable revenue base and reduces earnings cyclicality, supporting both top line growth and improved earnings predictability.

Read the complete narrative.

Want to see what sits behind that fair value for Halliburton? The narrative leans on steady revenue gains, fatter margins, and a future earnings multiple that has to compress from today’s level. Curious which assumptions really carry the valuation work, and how much of it depends on execution outside North America? The full narrative lays out those numbers step by step.

Result: Fair Value of $44.24 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the Halliburton narrative still faces real tests, including pressure from faster renewable adoption and any slowdown or cancellation of large international oil and gas projects.

Find out about the key risks to this Halliburton narrative.

Next Steps

Seeing both risks and rewards in Halliburton’s story so far? Act while the data is fresh and stress test the thesis for yourself with the 4 key rewards and 3 important warning signs

Looking for more investment ideas beyond Halliburton?

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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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