SDRL

Seadrill Limited (SDRL) raised its full-year 2026 revenue guidance to $1.50-$1.55B and adjusted EBITDA outlook to $420-$450M following strong Q2 results with 96% economic utilization and higher dayrates. Q2 revenues reached $449M (up 19.1% YoY) and EPS of 47 cents beat consensus. The company's $2.9B backlog and improved contract repricing support cash flow expectations, though maintenance costs and regional demand variability present execution risks.

Seadrill Limited (SDRL) has surged 14.8% in the past month, driven by improved operational execution, higher dayrates ($360,000 in Q2 2026), and a $2.9B contract backlog providing visibility into 2027. However, the stock's forward P/S ratio of 1.96 now exceeds its five-year median of 1.66, potentially capping near-term upside. The company carries a Zacks Rank #3 (Hold) rating despite strong momentum, with concerns about U.S. Gulf softness and execution risks.

Seadrill Limited is set to report Q3 2026 earnings on November 3 with estimated EPS of 20 cents and revenues of $382 million. While rising offshore investments, higher crude prices, and a strong backlog are expected to support results, inflation in labor and material costs may pressure profits. The company's negative Earnings ESP of -17.95% suggests limited likelihood of an earnings beat.