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Earnings Beat Could Change The Case For Seadrill Stock

Simply Wall St · 15h ago
  • Seadrill reported third quarter 2026 revenue of US$428 million compared with US$363 million a year earlier, alongside an adjusted earnings figure of US$0.22 per share and a reported net loss of US$30 million.
  • The drilling contractor paired higher sales and revenue with a raised 2026 outlook, signaling management confidence despite continued reported losses and highlighting how contract quality and guidance now matter as much as headline profitability.
  • We now examine how Seadrill's raised 2026 guidance and stronger revenue figures could reshape the existing investment narrative.

Scan beyond Seadrill and size up other offshore and energy contractors that match this earnings-driven setup with the hand picked 35 high quality undervalued stocks.

Seadrill Investment Narrative Recap

To own Seadrill, you need to believe the offshore upcycle supports high dayrate, multi year contracts and that the fleet runs reliably enough for that growing backlog to convert into cash. The latest quarter backs up the top line part of that story, with revenue at US$428 million and an adjusted profit per share of US$0.22.

The key short term catalyst is still execution on high quality contracts and cost control as activity remains healthy. The biggest near term risk looks unchanged. Losses widened to US$30 million and profit margins remain thin, so any wobble in utilization or pricing could hit already tight earnings.

The most relevant update here is Seadrill’s raised full year 2026 revenue outlook to US$1.56b to US$1.58b. That sits alongside nine month revenue of US$1.235b and a small net loss of US$8 million over the same period. For you, the question is whether higher guided activity offsets the reality of still modest profitability.

That guidance links directly to the core catalysts. Offshore work remains supported by multi year exploration programs, a tight pool of high spec deepwater rigs and a backlog above US$3.1b. Execution risk stays real though. Contract slippage, operational issues or weaker dayrates would matter quickly when margins start from such a low base.

Seadrill's current analyst script points to revenue of US$1.8b and earnings of US$448.4 million by 2029, based on a projected 7.4% yearly increase in sales and a shift in profit from US$1.0 million today to that US$448.4 million level. This implies an earnings increase of about 448x from current earnings.

Uncover why Seadrill's fair value indicates a 17% potential upside to its current price that may not last much longer.

NYSE:SDRL 1-Year Stock Price Chart
NYSE:SDRL 1-Year Stock Price Chart

Exploring Other Perspectives

One alternate Seadrill story leans hard on free cash flow risk. Those bearish analysts were penciling in revenue of about US$1.7b by 2029 and earnings near US$350.6 million, yet still arrived at a much lower fair value. That gap shows how widely views can differ, so it pays to explore several angles before deciding what this latest earnings beat means for you.

Explore 3 other Seadrill fair value estimates, including one that suggests as much as 41% downside from the current price.

Reach Your Own Conclusion

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

Looking For More Ideas Beyond Seadrill?

Once you have a view on Seadrill, the next step is building a watchlist of other stocks that fit the kind of risk and return profile you want. The Simply Wall St Screener can help you quickly filter the market down to a manageable shortlist.