Seadrill (NYSE:SDRL) Announces Earnings Results, Beats Estimates By $0.18 EPS

Seadrill (NYSE:SDRL) released its quarterly earnings results on Monday. The oil and gas company reported $0.47 earnings per share for the quarter, beating the consensus estimate of $0.29 by $0.18, FiscalAI reports. Seadrill had a negative net margin of 4.79% and a negative return on equity of 1.84%. The firm had revenue of $430.00 million for the quarter, compared to analysts’ expectations of $388.46 million.

Here are the key takeaways from Seadrill’s conference call:

• Strong second-quarter results: Seadrill reported $449 million in operating revenue and $144 million in adjusted EBITDA, driven by higher utilization, more operating days, and improved day rates. Management raised full-year 2026 guidance to $1.5–$1.55 billion of revenue and $420–$450 million of EBITDA.
• Backlog and contracting momentum improved: The company added approximately $200 million of backlog since May, including a 12-month, roughly $161 million West Vela contract with Talos and a 75-day West Capella option extension. Seadrill said year-to-date U.S. Gulf backlog additions are approaching $500 million.
• Deepwater market outlook is tightening: Management expects drillship utilization could reach the mid-90% range in 2027, supported by rising offshore project FIDs, renewed exploration activity, and limited new rig supply. Seadrill believes these conditions could support higher day rates and greater scarcity of high-specification floaters.
• Cash generation and capital returns are expected to strengthen: Major project outflows are largely complete, while higher-rate West Jupiter, West Capella, and West Tellus contracts should support second-half free cash flow. Seadrill resumed share repurchases with $20 million of buybacks in June and has $208 million remaining under its authorization, subject to board approval and market conditions.
• Near-term visibility remains uneven: Sevan Louisiana has limited revenue visibility for the remainder of 2026, and management is not including additional upside for the rig in its forecast. West Carina and West Gemini also require follow-on work, while higher repair and maintenance spending is expected in the second half.

Seadrill Stock Performance

Shares of NYSE:SDRL opened at $45.75 on Tuesday. Seadrill has a 1 year low of $28.02 and a 1 year high of $55.47. The stock has a market capitalization of $2.86 billion, a price-to-earnings ratio of -41.01 and a beta of 1.21. The company has a debt-to-equity ratio of 0.22, a current ratio of 1.94 and a quick ratio of 1.94. The company’s 50 day simple moving average is $42.03 and its 200 day simple moving average is $44.11.

Hedge Funds Weigh In On Seadrill

A number of institutional investors have recently modified their holdings of SDRL. Raymond James Financial Inc. bought a new position in Seadrill in the second quarter valued at about $27,000. Aquatic Capital Management LLC acquired a new position in Seadrill during the 3rd quarter worth approximately $44,000. EverSource Wealth Advisors LLC acquired a new stake in Seadrill in the second quarter valued at approximately $42,000. CIBC Private Wealth Group LLC bought a new stake in shares of Seadrill during the third quarter worth $61,000. Finally, Osaic Holdings Inc. increased its holdings in shares of Seadrill by 18.8% during the second quarter. Osaic Holdings Inc. now owns 3,521 shares of the oil and gas company’s stock worth $92,000 after buying an additional 558 shares in the last quarter. Institutional investors and hedge funds own 95.67% of the company’s stock.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on SDRL. Zacks Research raised Seadrill from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 28th. Citigroup upped their price objective on Seadrill from $46.00 to $48.00 and gave the company a “neutral” rating in a report on Wednesday, April 15th. Capital One Financial set a $55.00 price objective on Seadrill and gave the stock an “overweight” rating in a research report on Wednesday, July 1st. Weiss Ratings reissued a “sell (d+)” rating on shares of Seadrill in a report on Tuesday, June 30th. Finally, BTIG Research boosted their target price on shares of Seadrill from $50.00 to $55.00 and gave the company a “buy” rating in a research report on Friday, April 17th. Three equities research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Seadrill currently has an average rating of “Moderate Buy” and a consensus target price of $55.00.

Seadrill News Roundup

Here are the key news stories impacting Seadrill this week:

• Positive Sentiment: Seadrill reported $0.47 in quarterly EPS, well above the $0.29 analyst consensus and a significant improvement from a $0.68 loss per share in the year-ago period. Revenue of $430 million also exceeded expectations of $388.46 million. Seadrill Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: The company increased its full-year 2026 revenue guidance to approximately $1.5 billion-$1.6 billion, supporting expectations for stronger operating performance. Seadrill Announces Second Quarter 2026 Results
• Positive Sentiment: Management’s earnings call was characterized as signaling a strong turnaround, which may reinforce confidence that Seadrill’s results are improving after prior losses. Seadrill Limited Earnings Call Signals Strong Turnaround
• Positive Sentiment: The earnings surprise triggered a sharp upward opening in the shares, indicating that investors are responding favorably to the improved profitability and outlook. Seadrill Shares Gap Up After Better-Than-Expected Earnings

About Seadrill

Seadrill Limited, trading on the New York Stock Exchange under the symbol SDRL, is a leading provider of offshore drilling services to the global oil and gas industry. The company specializes in the design, construction, deployment and operation of mobile offshore drilling units, serving major exploration and production companies with turnkey drilling solutions.

Seadrill’s fleet comprises ultra-deepwater drillships, semi-submersible rigs and high-specification jack-up units capable of operating in some of the world’s most challenging offshore environments.