Companies /Energy
Transocean Ltd
NYSE: RIG Oil & Gas Drilling
$5.45
▼ $0.45 (−7.63%) today
Markets closed · 3:06am ET

Transocean (RIG) Q3 2026 Earnings

Reported Nov 2, 2026, 4:39pm ET · SEC source
$0.00
Miss −100.00%
EPS · est. $0.02 Adjusted

Adjusted diluted EPS reported as nil (—). GAAP diluted EPS of $0.02 includes a $101 million pre-tax ($62 million after-tax) benefit plan termination settlement cost, $10 million of acquisition and restructuring costs, a $4 million gain on disposal of assets, and a $93 million favorable discrete tax items benefit.

$937.0M
Miss −0.56%
Revenue · est. $942.3M
1 quarter
Consecutive EPS misses

How Did RIG Stock React to Q3 2026 Earnings?

% change · around the report
−6%−3%0+3%Nov 2Nov 3report 4:39pm ETearnings−0.2%−4.6%
−6%−3%0+3%Nov 2Nov 3earnings−0.2%−4.6%
RIG −4.6%S&P 500 −0.2%
−6%−3%0+3%Nov 2Nov 3report 4:39pm ETearnings−0.3%−4.6%
−6%−3%0+3%Nov 2Nov 3earnings−0.3%−4.6%
RIG −4.6%NASDAQ −0.3%
−14%−7%0+7%Nov 2Nov 4report 4:39pm ETearnings+1.8%−13.0%
−14%−7%0+7%Nov 2Nov 4earnings+1.8%−13.0%
RIG −13.0%S&P 500 +1.8%
−14%−7%0+7%Nov 2Nov 4report 4:39pm ETearnings+0.8%−13.0%
−14%−7%0+7%Nov 2Nov 4earnings+0.8%−13.0%
RIG −13.0%NASDAQ +0.8%
−5.30%
Day of report
−7.63%
Next session

Did RIG Beat Earnings? Q3 2026 Results

No. Transocean reported Q3 2026 earnings of $0.00 a share on Nov 2, 2026, missing the $0.02 consensus estimate by 100.0%. Revenue was $937.0M against a $942.3M estimate.

Transocean fell short on both top and bottom lines in the third quarter of 2026, posting adjusted diluted EPS of nil against a consensus estimate of $0.02 and revenue of $937 million, missing the $942.29 million analyst target by 0.56% and sliding 8.8% from a year earlier. The primary culprit was a drop in rig utilization, with fleet-wide rates slipping to 74.7% from 76.0% a year ago, led by the ultra-deepwater floater segment where utilization fell to 67.6% and average daily revenue eased to $442,100. GAAP results were complicated by a $101 million pre-tax benefit plan termination charge and a $93 million favorable discrete tax item, which together produced positive net income despite a pre-tax loss. The more compelling story, however, may be <a href="https://247wallst.com/investing/2026/10/27/will-rigs-1-6b-backlog-surge-disarm-short-sellers-on-nov-2-heres-what-to-watch/">the surge in new contract awards</a>, with nine fixtures adding roughly $2 billion in backlog and lifting the total to approximately $8 billion, while the pending Valaris combination, set to close December 1, targets $200 million in annual synergies. For 2027, management guided preliminary revenues of $3.85 billion to $4 billion.

Key Takeaways
  • Sequential revenue decline primarily due to an expected decrease in rig utilization; fleet utilization was 74.7% vs 78.2% in Q2 2026
  • Ultra-deepwater utilization fell to 67.6% from 72.6%; average daily revenue was $442,100 vs $455,500
  • Harsh environment utilization rose to 95.1% from 94.2%; average daily revenue was $504,300
  • Revenue efficiency of 96.8%; adjusted EBITDA margin improved to 33.4% from 32.2%
  • $101 million benefit plan termination settlement cost and $10 million of acquisition and restructuring costs
  • $93 million favorable discrete tax items drove an income tax benefit of $101 million

“Since our last report, we delivered solid operating results and significantly strengthened forward contract visibility. Strong cash flow enabled us to retire the remaining $200 million of debt associated with the Deepwater Aquila notes, ahead of schedule.”

Transocean CEO, on the earnings call

What Is Transocean's Outlook?

Transocean's guidance for 4Q26, full-year 2026 and preliminary 2027 is as follows. Contract drilling revenues: $915–965 million for 4Q26, $3,900–3,950 million for FY26, and $3,850–4,000 million preliminary for FY27, with fleet-wide revenue efficiency of 96.5% in each period. Operating and maintenance expense: $550–600 million for 4Q26, $2,350–2,400 million for FY26, and $2,375–2,500 million for FY27. G&A: $45–50 million for 4Q26, $185–190 million for FY26, and $180–190 million for FY27. Interest expense: $107 million for 4Q26, $500 million for FY26, and $415 million for FY27. Interest income: $5–10 million for 4Q26, $30 million for FY26, and $20–30 million for FY27. Capital expenditures: $50 million for 4Q26, $145 million for FY26, and $130–140 million for FY27. Cash taxes: $25–30 million for 4Q26, $50–55 million for FY26, and $60–65 million for FY27. Year-end liquidity is expected at about $1.3 billion for 2026 and $1.5–1.7 billion for 2027. The Valaris combination is expected to close December 1, 2026, targeting $200 million in identified annual synergies.

RIG YoY Financials

Q3 2026 vs Q3 2025 · SEC filings Q3 2025 Q3 2026
$0$300.0M$600.0M$900.0M$1.0B$937.0MRevenue$68.6M$143.0MOperating Income$12.9M$26.0MNet Income
$0$300.0M$600.0M$900.0MRevenueOperating IncomeNet Income
RIG income statement, Q3 2026 versus Q3 2025
Metric Q3 2026 Q3 2025 Year over year
Revenue $937.0M $1.0B −8.9%
Operating Income $143.0M $68.6M +108.5%
Net Income $26.0M $12.9M +101.4%

RIG Revenue by Segment

Ultra-deepwater floaters$590.0M−15.2%
Harsh environment floaters$347.0M+4.5%

Figures from SEC filings and company reports. Not investment advice.