Seadrill (SDRL) opened 2026 with Q1 revenue of US$348 million and a basic EPS loss of US$0.11. The trailing twelve months show revenue of US$1.4 billion and a net income loss of US$70 million. Over recent quarters the company has seen revenue move from US$320 million in Q1 2025 to US$361 million in Q2 2025 and US$352 million in Q3 2025, alongside basic EPS losses that ranged between US$0.23 and US$0.68 over that period. For investors, the focus this quarter is less on the top line and more on how persistent losses and the current margin profile frame the potential for future earnings improvement.

See our full analysis for Seadrill.

With the latest results on the table, the next step is to see how these reported margins and loss levels compare with the widely followed bullish and bearish narratives around Seadrill.

TTM loss of US$70 million despite steady revenue

• Over the trailing twelve months, Seadrill generated about US$1.4 billion of revenue and reported a net loss of US$70 million, compared with quarterly losses that ranged from US$7 million to US$42 million across 2025 and into Q1 2026.
• What challenges the bearish focus on persistent losses is that quarterly net loss has stayed in a relatively tight band between US$7 million and US$14 million in four of the last five quarters. Bears also point to the earlier US$42 million loss in Q2 2025 as a reminder that profitability is still sensitive to cost and activity levels.
  • Critics highlight that even with Q1 2026 net loss at US$7 million, the trailing twelve month result is still a loss rather than a profit, so the business is not yet through this phase.
  • At the same time, the loss narrowing rate of about 1.7% per year over five years is used by more optimistic investors to argue that the long run direction has been toward smaller losses rather than a deepening deficit.

EPS swing from US$6.56 profit to TTM loss

• Seadrill moved from basic EPS of US$6.56 in Q4 2024 and US$1.58 in Q4 2024 period financials to a trailing twelve month EPS loss of US$1.12 by Q1 2026, with quarterly EPS between a loss of US$0.68 and a loss of US$0.11 during 2025 and early 2026.
• The bearish view that earnings are fragile is supported by this shift from strong profit to loss. Some investors also point to the more recent trend where quarterly EPS losses have stayed between US$0.11 and US$0.23 in four of the last five quarters as a sign that the sharp swings of earlier periods have not been repeated so far.
  • Bears argue that moving from EPS of US$6.56 on a trailing basis in late 2024 to a trailing loss of US$1.12 by Q1 2026 underlines how quickly conditions can affect the bottom line.
  • Others counter that the smaller Q1 2026 loss of US$0.11 per share, compared with the much deeper loss of US$0.68 per share in Q2 2025, indicates that the more extreme quarterly volatility visible in past numbers has not persisted in the same way across all recent quarters.

On these swings in EPS, skeptics may want to see how a full bear case frames the risks and what would need to change for that stance to soften 🐻 Seadrill Bear Case.

Valuation gap vs DCF fair value and rich P/S

• At a share price of US$49.96, Seadrill trades well below the DCF fair value estimate of about US$95.06, while its P/S of 2.2x sits above both the 1.1x peer average and the 1.5x US Energy Services industry average.
• The bullish narrative leans on the large DCF gap and very strong forecast earnings growth of about 95.69% per year. However, the higher P/S multiple and current trailing twelve month loss profile give cautious investors concrete reasons to question how quickly that potential upside might be reflected in the share price.
  • Supporters point to the roughly 47.4% discount to DCF fair value and the expectation that Seadrill could become profitable within three years as the main pillars of the bullish case.
  • Critics respond that paying 2.2x sales, above peers and the broader industry, for a business that currently reports a trailing twelve month net loss of US$70 million and forecast revenue growth of 8.1% per year, still below the cited 11.6% US market rate, leaves limited margin for disappointment relative to those forecasts.

If you want to see how different investors balance that DCF gap against the richer P/S multiple and current loss profile, it helps to see how others are joining the dots in one place 📊 Read the what the Community is saying about Seadrill..

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Seadrill's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

If this mix of bullish and cautious signals leaves you undecided, examine the underlying metrics yourself, compare them with your expectations, and then review the 2 key rewards.

See What Else Is Out There

Seadrill is still reporting trailing twelve month losses alongside a relatively rich 2.2x P/S multiple, which leaves limited room if expectations are not met.

If you want ideas where valuation and fundamentals may line up more comfortably, start comparing opportunities in the 44 high quality undervalued stocks while this one remains a higher risk, higher expectation story.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.