Equity Profile

SDRL

Seadrill Limited

EnergyOil & Gas Drilling$2.8B

Aug20Thu

Pre-Earnings Brief

UpcomingQ2-2026Pre-Market9:00 AM EDT

Company Snapshot

Seadrill Limited (SDRL) operates in the energy sector, specifically in oil and gas drilling. As a major player in offshore drilling, the company's performance is closely tied to oil prices and global energy demand, making it a key focus for investors interested in the energy market.

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a critical measure of profitability and can indicate how well the company is managing its costs and generating revenue.

N/A

Revenue

Revenue figures provide insight into the company's overall sales performance and market demand for its drilling services.

N/A

Wall Street expectations, options signals, track record, and call prep available with Pro.

SDRL Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

38%

Avg EPS Surprise

+154.68%

Avg Stock Reaction

-0.55%

Last Quarter Recap

In Q1 2026, Seadrill reported an EPS of -$0.11, which was slightly worse than the expected -$0.10. The stock reacted positively, gaining 3.39% the next day despite the loss.

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall expectations for Seadrill's upcoming earnings are mixed, with investors looking for signs of recovery in profitability and revenue growth amidst a volatile energy market.

Bull Case

If Seadrill can demonstrate improved operational efficiency and a rebound in demand for drilling services, it could lead to a significant positive reaction from investors.

Bear Case

Conversely, if the company continues to report losses and fails to provide a clear path to profitability, it could lead to further declines in stock price.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS figure be this quarter?

Given the company's recent history of losses, the EPS result will be crucial in assessing whether Seadrill is making progress toward profitability.

How does management view the demand for offshore drilling services moving forward?

Insights into demand will help investors gauge the company's future revenue potential and overall market conditions.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may underestimate Seadrill's ability to recover from recent losses, as operational efficiencies could lead to better-than-expected results.

Supporting Evidence

The options market is pricing in an 8.91% move, indicating expectations for volatility that may not align with the company's actual performance.

Seadrill's recent stock performance suggests that investors may be overly pessimistic, given the slight positive reaction to previous earnings despite losses.

Key Risk

If the EPS comes in better than -$0.10, it could challenge the current bearish sentiment.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's results are critical as they will indicate whether Seadrill can stabilize its operations and improve profitability in a challenging market.

Bull Confirmed If

A positive EPS of $0.05 or better would confirm the bull case and indicate a turnaround in profitability.

Bear Confirmed If

An EPS worse than -$0.20 would confirm the bear case and raise concerns about the company's financial health.

Pre-Earnings Positioning

Options Market

Implied Move

±8.91%

Historical Avg

±2.0%

Pricing rich

The options market is pricing in a significant move, suggesting that traders expect volatility around the earnings announcement.

Options are pricing ±8.9% while SDRL has averaged ±2.0% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.6%

30d HV

31.3%

Calls (1K)P/C Ratio: 1.00Puts (0)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Seadrill beats expectations, history suggests the stock could rise by around 3.39%, confirming a positive outlook for the company.

In-Line / Cautious

If results are in line with expectations, the stock may see muted movement, reflecting cautious sentiment among investors.

Miss

If the company misses expectations, history suggests a potential decline of around 0.72%, indicating ongoing concerns about profitability.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on operational efficiency improvements.
2Management's outlook on oil and gas demand for the upcoming quarters.
3Details on cost management strategies and their impact on profitability.
4Insights into new contracts or projects that could drive revenue.
5Any changes in the competitive landscape affecting Seadrill's market position.

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Company Snapshot

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a critical measure of profitability and can indicate how well the company is managing its costs and generating revenue.

N/A

Revenue

Revenue figures provide insight into the company's overall sales performance and market demand for its drilling services.

N/A

Wall Street expectations, options signals, track record, and call prep available with Pro.

SDRL Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

38%

Avg EPS Surprise

+154.68%

Avg Stock Reaction

-0.55%

Last Quarter Recap

In Q1 2026, Seadrill reported an EPS of -$0.11, which was slightly worse than the expected -$0.10. The stock reacted positively, gaining 3.39% the next day despite the loss.

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall expectations for Seadrill's upcoming earnings are mixed, with investors looking for signs of recovery in profitability and revenue growth amidst a volatile energy market.

Bull Case

If Seadrill can demonstrate improved operational efficiency and a rebound in demand for drilling services, it could lead to a significant positive reaction from investors.

Bear Case

Conversely, if the company continues to report losses and fails to provide a clear path to profitability, it could lead to further declines in stock price.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS figure be this quarter?

Given the company's recent history of losses, the EPS result will be crucial in assessing whether Seadrill is making progress toward profitability.

How does management view the demand for offshore drilling services moving forward?

Insights into demand will help investors gauge the company's future revenue potential and overall market conditions.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may underestimate Seadrill's ability to recover from recent losses, as operational efficiencies could lead to better-than-expected results.

Supporting Evidence

The options market is pricing in an 8.91% move, indicating expectations for volatility that may not align with the company's actual performance.

Seadrill's recent stock performance suggests that investors may be overly pessimistic, given the slight positive reaction to previous earnings despite losses.

Key Risk

If the EPS comes in better than -$0.10, it could challenge the current bearish sentiment.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's results are critical as they will indicate whether Seadrill can stabilize its operations and improve profitability in a challenging market.

Bull Confirmed If

A positive EPS of $0.05 or better would confirm the bull case and indicate a turnaround in profitability.

Bear Confirmed If

An EPS worse than -$0.20 would confirm the bear case and raise concerns about the company's financial health.

Pre-Earnings Positioning

Options Market

Implied Move

±8.91%

Historical Avg

±2.0%

Pricing rich

The options market is pricing in a significant move, suggesting that traders expect volatility around the earnings announcement.

Options are pricing ±8.9% while SDRL has averaged ±2.0% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.6%

30d HV

31.3%

Calls (1K)P/C Ratio: 1.00Puts (0)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Seadrill beats expectations, history suggests the stock could rise by around 3.39%, confirming a positive outlook for the company.

In-Line / Cautious

If results are in line with expectations, the stock may see muted movement, reflecting cautious sentiment among investors.

Miss

If the company misses expectations, history suggests a potential decline of around 0.72%, indicating ongoing concerns about profitability.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on operational efficiency improvements.
2Management's outlook on oil and gas demand for the upcoming quarters.
3Details on cost management strategies and their impact on profitability.
4Insights into new contracts or projects that could drive revenue.
5Any changes in the competitive landscape affecting Seadrill's market position.