Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Revenue | $9.45 billion | 5% sequential increase |
| EPS (excl. charges) | $0.64 | up $0.09 sequentially |
| Middle East Revenue | $1.9 billion | 13% sequential increase |
| Free Cash Flow | $828 million | Not stated |
| Digital Revenue | $693 million | flat sequentially |
Guidance and outlook
- Q4 revenue is expected to reach approximately $10 billion, a 5% to 7% sequential increase.
- Q4 adjusted EBITDA margins are expected to expand 100 to 150 basis points.
- Full-year 2026 capital investments are expected to be approximately $2.5 billion.
- The company expects global OFC market activity to grow in the mid-single digits in 2027, assuming Middle East activity remains at second-half 2026 levels.
How management sounded
Positive (+6 on our -10 to +10 scale). Management highlighted broad-based growth and a strong 2027 outlook, though they remain cautious regarding Middle East geopolitical tensions. Management sounded more upbeat than on 8% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Middle East Outlook
Asked: How resilient is the growth outlook if Middle East tensions persist or crude prices moderate?
Answer: Management believes the upcycle is supported by long-cycle deepwater and production recovery, providing a durable foundation for mid-single-digit growth even if Middle East activity remains flat.
Venezuela
Asked: What is the growth potential for Venezuela in the coming years?
Answer: Revenue is on track to double this year with potential for multi-fold growth in 2027, aiming for a long-term historical level of $1 billion.
Data Center Solutions
Asked: How is the customer base evolving and what is the appetite for further M&A?
Answer: The company is focused on closing the Kelvion acquisition and leveraging existing hyperscaler contracts to increase share of wallet per gigawatt.
Digital Growth
Asked: Can the digital business maintain double-digit growth in 2027?
Answer: Management expects double-digit growth driven by digital exploration, digital operations, and AI adoption.
What to watch before the next call
- Geopolitical developments in the Middle East and their impact on activity levels.
- Closing of the Kelvion acquisition in the first half of 2027.
- Timing of customer collections affecting free cash flow in the fourth quarter.
