Helmerich & Payne (HP) opened Q1 2026 with revenue of about US$1.0 billion and a basic EPS loss of US$0.97, as net income excluding extra items came in at a loss of US$96.7 million. Over the last year, the company has seen quarterly revenue stay around the US$1.0 billion mark while EPS has swung from a profit of US$0.55 in Q1 2025 to losses of US$1.64 in Q3 2025, US$0.58 in Q4 2025, and now US$0.97 in Q1 2026. This sets up a results season in which investors are likely to focus on how quickly margins can stabilize from these loss-making levels.

With the headline numbers on the table, the next step is to see how this latest print lines up with the widely followed narratives around Helmerich & Payne's path back to profitability and what that could mean for margins from here.

Trailing losses widen to US$316.6 million

• Over the last 12 months, Helmerich & Payne booked a net loss of US$316.6 million on US$4.1b of revenue, compared with a quarterly pattern where net income excluding extra items moved from a US$163.1 million loss in Q3 2025 to a US$57.7 million loss in Q4 2025 and a US$96.7 million loss in Q1 2026.
• For a bullish view that focuses on a move back to profitability, one key point is the contrast between these trailing losses and the forecasted earnings swing, with modeled EPS growth of about 152.5% per year, while Q1 2026 still shows a basic EPS loss of US$0.97.
  • Supporters of the bullish angle might point to the company reducing losses over the past five years at about 36.8% per year. However, the latest trailing EPS of US$3.18 loss per share indicates that this transition is still in progress rather than complete.
  • For you as an investor, that means the optimistic case about future profitability exists alongside a current earnings profile where losses remain material, and recent quarters have not yet returned to positive net income.

If you want to see how other investors connect this loss profile to longer term stories on growth and risks, it is worth checking the broader community views through Curious how numbers become stories that shape markets? Explore Community Narratives.

Interest and dividends strain current earnings

• The trailing data indicates that earnings do not cover interest expense and that the 2.9% dividend is not well supported by current earnings. This aligns with the trailing net loss of US$316.6 million and basic EPS loss of US$3.18 over the same period.
• Bears focus on this weak coverage, arguing that paying interest and dividends from an unprofitable base can pressure cash flows, and the numbers here largely support that concern.
  • The major risk item highlighted is that interest payments are not well covered by earnings. This is consistent with four of the last five quarters showing losses, including Q3 2025 and Q1 2026 where net income excluding extra items was a loss of US$163.1 million and US$96.7 million respectively.
  • In addition, the 2.9% dividend yield is not supported by current earnings according to the trailing data, so anyone relying on that payout needs to be aware it currently rests on a loss making base rather than surplus profit.

P/S at 0.9x while revenue holds around US$1.0b

• Against a trailing revenue base of US$4.1b and recent quarterly revenue around US$1.0b, Helmerich & Payne trades on a P/S of 0.9x. This sits below the US energy services industry average of 1.2x and a peer average of 1.4x, while the current share price of US$34.53 is about 39.9% below a DCF fair value of roughly US$57.46 indicated in the data.
• Supporters of a more optimistic stance highlight this relative cheapness. However, the same data also indicates that revenue is expected to decline by around 0.6% per year over the next three years, which creates a tension between the valuation case and the top line outlook.
  • On one hand, a lower P/S versus peers and industry together with the gap to the stated DCF fair value supports the idea that the stock could be priced cautiously compared with the provided model estimates.
  • On the other hand, the projection for modest revenue decline, paired with trailing unprofitability and the interest coverage issue, shows that the lower multiple is being set against real business challenges rather than simply being disconnected from fundamentals.

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 Helmerich & Payne'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.

See What Else Is Out There

Helmerich & Payne is working through material losses, weak interest coverage, and a dividend not supported by current earnings, which together raise clear risk flags.

If you want ideas that start from a stronger footing, check out 79 resilient stocks with low risk scores today and focus your research on companies with more resilient risk profiles.

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.