Halliburton reported Q3 2025 revenue of $5.60 billion, representing a YoY decline of 1.7% and a QoQ increase of 1.63%. A striking feature of the quarter is a negative gross profit of approximately $1.70 billion, yielding a gross margin of -30.4%. Despite the gross loss, operating income was positive at $356 million, translating to an operating margin of about 6.36%. Net income was modest at $20 million (EPS $0.02), with a notable drag from interest expense of roughly $0.49 billion and a tax line that shows a counterintuitive tax benefit in the period. Cash flow metrics convey resilience: operating cash flow per share of $0.57 implies roughly $490 million of operating cash flow for the quarter, while free cash flow per share of $0.265 points to about $230 million of free cash flow. Cash per share stood at $2.36, supporting a healthy liquidity profile alongside a current ratio near 2.0 and a moderate leverage footprint (debt-to-capitalization about 45.5%). The combination of negative gross profit and elevated financing costs highlights the cyclicality and cost-structure challenges within Halliburton’s currently stressed margin environment, even as the company preserves cash generation and balance-sheet strength. Absent a clear positive shift in activity mix or stabilization of input costs, the near-term profitability trajectory will likely hinge on cost discipline, favorable project mix, and continued monetization of digital and AI-enabled solutions across Subsurface, Drilling, and Production segments.