Transocean Ltd. (RIG) AI Stock Analysis

Transocean Ltd., headquartered in Steinhausen, Switzerland, specializes in providing offshore contract drilling services worldwide for oil and gas wells. The company leases out its fleet of mobile offshore drilling rigs, associated equipment, and skilled crews to integrated energy companies, government-owned entities, and independent producers. As of February 14, 2022, Transocean operated a fleet of 37 mobile offshore drilling units, including 27 ultra-deepwater rigs and 10 harsh environment floaters. The business traces its history back to 1926 and focuses on drilling in challenging offshore environments.

Transocean grew annual revenue from $2.56B in FY2021 to $3.96B in FY2025, recording a 5-year revenue CAGR of 4.7% from FY2020 to FY2025. Gross margin expanded from 71.0% in FY2021 to 83.4% in FY2025, while operating margin improved from -4.4% to 17.8%. Net income remained negative over most of this span, posting -$2.92B in FY2025 despite an EPS of $0.03. For the trailing twelve months ended June 30, 2026, revenue stood at $4.12B with an operating margin of 17.4% and an EPS of -$1.60. In the latest quarter ended June 30, 2026, quarterly revenue fell 2.2% year-over-year.

As of June 30, 2026, Transocean held $509.0M in cash and short-term investments alongside total debt of $5.12B, resulting in net debt of $4.61B. The company recorded total assets of $15.17B and shareholders' equity of $8.37B, with a current ratio of 1.59 and a debt-to-equity ratio of 0.61. In FY2025, operating cash flow reached $749.0M, supporting capital expenditures of $123.0M and generating free cash flow of $626.0M. In addition, the company completed $421.0M in share issuance in FY2025, with its share count increasing 84.1% over 5 years.

At a last close of $5.62, Transocean had a market cap of $6.28B and an enterprise value of $10.72B. The stock trades at a forward P/E of 15.2x compared to 12.7x for the median of its US-listed Energy peers. Its EV/EBITDA of 14.2x is above the peer median of 8.0x, while its price-to-sales of 1.5x sits below the peer median of 1.8x. Over the past year, Transocean returned 74.0%, outpacing the S&P 500 ETF (SPY) return of 16.8%, though its 5-year return of 40.1% trailed SPY's 83.0%.

Wall Street coverage consists of 5 Strong Buy, 1 Buy, 5 Hold, and 2 Sell ratings. The mean price target of $6.55 stands 16.6% above the last close of $5.62. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $0.16 and revenue of $3.94B. For the following fiscal year, 9 analysts project EPS of $0.29 on revenue of $3.89B, reflecting an expected revenue decline of 1.2%. Transocean beat EPS estimates in 2 of the last 4 quarters, and its next earnings date is November 2, 2026.

This page is an AI-written research summary of Transocean Ltd. (RIG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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