Helmerich & Payne Misses Q1 Estimates as Middle East Disruptions Hit Margins

Helmerich & Payne (NYSE: HP) reported weaker-than-expected first-quarter 2026 results, with revenue down 8.2% year over year to $932.4 million and a non-GAAP loss of $0.38 per share, below Wall Street estimates. The land drilling contractor cited higher costs, rig suspensions in Iraq and Bahrain, and supply chain constraints tied to Middle East conflict. Management said the disruptions weighed most heavily on the International Solutions segment, reducing direct margins and operating efficiency. Helmerich & Payne said its outlook assumes improving rig activity and margins in North America through 2026, supported by demand from private and independent operators, technology adoption and FlexRobotics deployments. The company also expects gradual recovery in international operations, though geopolitical risks remain. Shares traded at $38.81 as of May 14, 2026, down from $39.83 before the earnings release.