Equity Profile

SDRL

Seadrill Limited

EnergyOil & Gas Drilling$2.6B

Aug20Thu

Pre-Earnings Brief

UpcomingQ2-2026Pre-Market9:00 AM EDT

Company Snapshot

Seadrill Limited (SDRL) is a major player in the energy sector, specifically in oil and gas drilling. The company operates offshore drilling rigs and provides services to oil and gas companies, making it a key contributor to energy production.

Key Metrics to Watch

EPS

Earnings per share (EPS) is crucial as it indicates the company's profitability and performance relative to expectations.

N/A

Revenue

Revenue figures will provide insight into the company's operational success 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, slightly missing expectations. The stock reacted positively, gaining 3.39% the next day.

Management Promises & Guidance

Expectations

Wall Street Expectations

Investors are cautiously optimistic about Seadrill's upcoming earnings, given the company's recent performance and the overall state of the energy market.

Bull Case

If Seadrill can show improved EPS and revenue figures, it could signal a recovery in demand for drilling services, boosting investor confidence.

Bear Case

Conversely, if the company reports another loss or disappointing revenue, it may raise concerns about its financial stability and future growth prospects.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be for Q2-2026?

The EPS figure will be critical in assessing the company's profitability and whether it can meet or exceed market expectations.

How has revenue changed compared to previous quarters?

Understanding revenue trends will help investors gauge the demand for Seadrill's services and the overall health of the drilling market.

Edge

What the Street Is Missing

Why consensus could be wrong

The market may underestimate Seadrill's potential for a turnaround, as recent operational improvements could lead to better-than-expected results.

Supporting Evidence

The options market is pricing in an 8.91% move, suggesting significant expectations for volatility.

Historical data shows that even with misses, the stock has occasionally reacted positively, indicating potential for surprise.

The recent increase in oil prices may boost demand for drilling services, benefiting Seadrill.

Key Risk

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

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's earnings will be pivotal in determining if Seadrill can stabilize its financial performance after a series of disappointing results.

Bull Confirmed If

A positive EPS of $0.05 or better would confirm the bull case.

Bear Confirmed If

An EPS loss greater than $0.20 would support the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±8.91%

Historical Avg

±2.0%

Pricing rich

The options market is pricing in a significant potential move, indicating 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)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter miss + options pricing rich in Energy

n=30

Fade rate: 18 of 29 (62%)

This setup has occurred 30 times across Energy in the last 2 years. 18 of 29 (62%) reversed within 5 days — this setup typically fades. The average absolute 1-day move is 3.4%, with a raw directional average of -0.1% (roughly flat historical bias).

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 recovery narrative.

In-Line / Cautious

A mixed report may lead to a muted response, reflecting ongoing investor caution.

Miss

If the company misses expectations, the stock could drop, with historical patterns indicating a potential decline of around 0.72%.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on contract wins or renewals that could impact future revenue.
2Management's outlook on the oil and gas market and its implications for drilling demand.
3Details on cost management strategies and their effectiveness in improving margins.
4Insights into operational efficiency improvements and their impact on profitability.
5Any commentary on the company's strategic initiatives or partnerships.

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Company Snapshot

Key Metrics to Watch

EPS

Earnings per share (EPS) is crucial as it indicates the company's profitability and performance relative to expectations.

N/A

Revenue

Revenue figures will provide insight into the company's operational success 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, slightly missing expectations. The stock reacted positively, gaining 3.39% the next day.

Management Promises & Guidance

Expectations

Wall Street Expectations

Investors are cautiously optimistic about Seadrill's upcoming earnings, given the company's recent performance and the overall state of the energy market.

Bull Case

If Seadrill can show improved EPS and revenue figures, it could signal a recovery in demand for drilling services, boosting investor confidence.

Bear Case

Conversely, if the company reports another loss or disappointing revenue, it may raise concerns about its financial stability and future growth prospects.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be for Q2-2026?

The EPS figure will be critical in assessing the company's profitability and whether it can meet or exceed market expectations.

How has revenue changed compared to previous quarters?

Understanding revenue trends will help investors gauge the demand for Seadrill's services and the overall health of the drilling market.

Edge

What the Street Is Missing

Why consensus could be wrong

The market may underestimate Seadrill's potential for a turnaround, as recent operational improvements could lead to better-than-expected results.

Supporting Evidence

The options market is pricing in an 8.91% move, suggesting significant expectations for volatility.

Historical data shows that even with misses, the stock has occasionally reacted positively, indicating potential for surprise.

The recent increase in oil prices may boost demand for drilling services, benefiting Seadrill.

Key Risk

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

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's earnings will be pivotal in determining if Seadrill can stabilize its financial performance after a series of disappointing results.

Bull Confirmed If

A positive EPS of $0.05 or better would confirm the bull case.

Bear Confirmed If

An EPS loss greater than $0.20 would support the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±8.91%

Historical Avg

±2.0%

Pricing rich

The options market is pricing in a significant potential move, indicating 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)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter miss + options pricing rich in Energy

n=30

Fade rate: 18 of 29 (62%)

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 recovery narrative.

In-Line / Cautious

A mixed report may lead to a muted response, reflecting ongoing investor caution.

Miss

If the company misses expectations, the stock could drop, with historical patterns indicating a potential decline of around 0.72%.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on contract wins or renewals that could impact future revenue.
2Management's outlook on the oil and gas market and its implications for drilling demand.
3Details on cost management strategies and their effectiveness in improving margins.
4Insights into operational efficiency improvements and their impact on profitability.
5Any commentary on the company's strategic initiatives or partnerships.