The sequential and year-over-year improvement in revenue, profitability, and cash flow, combined with positive Q4 guidance for both Drilling and Completion Services, signals a cyclical upturn in U.S. onshore activity. Watch the Q4 earnings call for further details on rig reactivation pace, pricing trajectory, and 2027 free cash flow expectations.
Price Chart
Executive Summary
Patterson-UTI Energy reported Q3 2026 revenue of $1.34 billion, a 9% sequential increase, and net income of $28 million, a turnaround from a net loss of $36 million in Q3 2025. Adjusted EBITDA rose to $264 million from $219 million a year ago. The company guided for continued improvement in Q4 2026 with Drilling Services adjusted gross profit of $150 million and Completion Services adjusted gross profit of $140 million, supported by strong pricing momentum and rig reactivations.
Key Financial Metrics
Key Facts
- Q3 2026 total revenue of $1.34 billion, up 9% sequentially from $1.23 billion in Q2 2026 and up 14% from $1.18 billion in Q3 2025.
- Net income attributable to common stockholders of $28 million ($0.07 diluted EPS) vs net loss of $36 million ($(0.10)) in Q3 2025.
- Adjusted EBITDA of $264 million, up from $219 million in Q3 2025 and $232 million in Q2 2026.
- Drilling Services revenue $417 million, adjusted gross profit $149 million; average 101 rigs operating, exited quarter with 104 rigs.
- Completion Services revenue $808 million, adjusted gross profit $133 million; mid-single-digit pricing increase vs Q2 2026.
- Drilling Products revenue $110 million, adjusted gross profit $51 million; strongest quarterly revenue and adjusted gross profit since 2023 Ulterra acquisition.
- Q4 2026 guidance: Drilling Services adjusted gross profit ~$150 million; Completion Services ~$140 million; Drilling Products down 5-10% sequentially.
- Company returned ~$62 million to shareholders in Q3, including $24 million in share repurchases.
- Quarterly dividend maintained at $0.10 per share.
Financial Impact
Revenue up 14% YoY to $1.34 billion; net income swing of $64 million YoY from loss to profit; Adjusted EBITDA up 21% YoY to $264 million.
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Drilling Services | $417.4M | +9.8% |
| Completion Services | $808.3M | +14.6% |
| Drilling Products | $110.2M | +28.3% |
| Other | $6.4M | +39.0% |
Risk Factors
- Commodity price volatility could reduce customer drilling and completion budgets.
- Geopolitical unrest in the Middle East may impact Drilling Products segment performance in Saudi Arabia.
- Reactivation costs and Colombia exit costs could pressure near-term margins.
- Elevated non-productive time from sand availability and trucking delays may recur.
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000889900-26-000070 |
| Document: pten-20261028.htm | 0000889900-26-000070 |
| Document: 0000889900-26-000070-index-headers.html | 0000889900-26-000070 |
| Document: 0000889900-26-000070-index.html | 0000889900-26-000070 |
| Document: 0000889900-26-000070.txt | 0000889900-26-000070 |
| 8-K Data (Synthetic) | 0000889900-26-000070 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 28, 2026 3d ago | 8-K | $12.69 | awaiting T+20 | awaiting T+20 | $13.32 (+4.96%) |
Sep 3, 2026 8w ago | Insider Cluster | $12.42 $11.55 | ▲ +7.00% | ▲ +7.61% | $13.32 (−7.25%) |
Aug 26, 2026 9w ago | Institutional Cluster | $11.75 $11.42 | ▼ −2.81% | ▼ −4.01% | $13.32 (+13.36%) |
Jun 11, 2026 20w ago | Institutional Cluster | $11.49 $9.40 | ▲ +18.19% | ▲ +20.08% | $13.32 (−15.93%) |
Jun 10, 2026 20w ago | Insider Cluster | $11.49 $9.40 | ▼ −18.19% | ▼ −20.08% | $13.32 (+15.93%) |
Jun 4, 2026 21w ago | 8-K | $11.51 $8.56 | ▼ −25.63% | ▼ −27.49% | $13.32 (+15.73%) |
May 26, 2026 22w ago | 8-K | $12.12 $10.07 | ▼ −16.90% | ▼ −14.63% | $13.32 (+9.92%) |
May 7, 2026 25w ago | 424B5 | $11.41 $12.01 | ▲ +5.28% | ▲ +2.14% | $13.32 (+16.76%) |
May 1, 2026 26w ago | Insider Cluster | $11.97 $11.53 | ▼ −3.67% | ▼ −8.95% | $13.32 (+11.29%) |
May 1, 2026 26w ago | Insider Cluster | $11.97 $11.53 | ▲ +3.67% | ▲ +8.95% | $13.32 (−11.29%) |
US Market Status
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