Weatherford International plc (NASDAQ:WFRD) closed its 2025 fiscal year with a fourth-quarter earnings report that surpassed analyst expectations, a performance that appears to be resonating positively with investors in early market reactions.
Earnings and Revenue Versus Estimates
The oilfield services provider reported a strong finish to the year, with both top and bottom-line results coming in ahead of Wall Street forecasts. For the critical fourth quarter, the company posted revenue of $1.289 billion and adjusted earnings per share (EPS) of $1.91.
- Revenue: The reported $1.289 billion exceeded the analyst consensus estimate of approximately $1.285 billion.
- Earnings Per Share: The adjusted EPS of $1.91 significantly outperformed the estimated $1.46.
This earnings beat was driven by what President and CEO Girish Saligram described as "activity upticks in some regions, customer pull forwards on some deliveries, strong collections and excellent execution." The company's sequential performance showed notable strength, with revenue growing 5% from the third quarter and net income surging 70%.
Market Reaction and Price Action
The market's initial response to the earnings release has been favorable. Following the announcement, the stock saw an after-market gain of approximately 1.05%. This positive momentum builds on a solid recent performance, with the share price up over 15% in the last two weeks and about 8.3% over the past month, suggesting investor optimism was building ahead of the report. The decisive beat on profitability, as evidenced by the substantial EPS outperformance, is likely a key factor driving this positive sentiment.
Key Highlights from the Quarterly Report
Beyond the headline numbers, Weatherford's report highlighted several important operational and financial developments:
- Strong Cash Generation: The company generated $268 million in cash from operating activities and $222 million in adjusted free cash flow during the quarter, marking significant sequential increases of 94% and 124%, respectively.
- Shareholder Returns: Weatherford returned $25 million to shareholders in Q4 via dividends and share repurchases. Notably, the Board approved a 10% increase in the quarterly cash dividend to $0.275 per share.
- Segment Performance: The Well Construction and Completions (WCC) segment was a standout, with revenue of $510 million, up 9% sequentially. The Production and Intervention (PRI) segment also showed strong sequential profit growth, with adjusted EBITDA increasing 24%.
- Contract Wins: The period was marked by a series of multi-year contract awards across the Middle East, Europe, Latin America, and other regions, indicating sustained customer demand for its technology and services.
Forward Outlook and Analyst Expectations
In his commentary, CEO Girish Saligram provided a tempered outlook for the near term, noting that "the overall activity outlook in 2026, particularly in the first half, is expected to remain soft," though he identified pockets of growth opportunity for the second half. The company's internal focus will be on cost optimization and productivity improvements to navigate the subdued conditions.
This cautious guidance sets the stage for the coming year. Currently, analysts are estimating revenue of approximately $1.167 billion for the first quarter of 2026 and full-year 2026 sales of about $4.889 billion. Weatherford's ability to manage through the expected softness and capitalize on later-year opportunities will be closely watched against these benchmarks.
For a detailed breakdown of past earnings and future analyst estimates for Weatherford International, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, an endorsement, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
