Seadrill (NYSE:SDRL) Posts Quarterly Earnings Results, Beats Expectations By $0.18 EPS

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

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

SDRL opened at $46.65 on Tuesday. The company has a quick ratio of 1.94, a current ratio of 1.94 and a debt-to-equity ratio of 0.22. The firm’s 50-day moving average price is $42.03 and its 200-day moving average price is $44.11. The company has a market cap of $2.92 billion, a P/E ratio of -41.65 and a beta of 1.21. Seadrill has a 52-week low of $28.02 and a 52-week high of $55.47.

Wall Street Analyst Weigh In

Several analysts have issued reports on SDRL shares. Weiss Ratings restated a “sell (d+)” rating on shares of Seadrill in a research report on Tuesday, June 30th. BTIG Research upped their price target on Seadrill from $50.00 to $55.00 and gave the company a “buy” rating in a report on Friday, April 17th. Citigroup lifted their price objective on Seadrill from $46.00 to $48.00 and gave the stock a “neutral” rating in a report on Wednesday, April 15th. BWS Financial restated a “buy” rating and issued a $80.00 target price on shares of Seadrill in a report on Monday, June 29th. Finally, Zacks Research raised Seadrill from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 28th. Three investment analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Seadrill has a consensus rating of “Moderate Buy” and an average price target of $55.00.

Institutional Investors Weigh In On Seadrill

Large investors have recently bought and sold shares of the company. Raymond James Financial Inc. purchased a new stake in shares of Seadrill in the second quarter valued at about $27,000. EverSource Wealth Advisors LLC acquired a new position in shares of Seadrill in the 2nd quarter valued at $42,000. Aquatic Capital Management LLC acquired a new stake in Seadrill during the 3rd quarter worth $44,000. CIBC Private Wealth Group LLC acquired a new stake in shares of Seadrill in the 3rd quarter worth $61,000. Finally, Osaic Holdings Inc. lifted its position in shares of Seadrill by 18.8% during the 2nd quarter. Osaic Holdings Inc. now owns 3,521 shares of the oil and gas company’s stock valued at $92,000 after acquiring an additional 558 shares during the period. 95.67% of the stock is currently owned by hedge funds and other institutional investors.

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.