Seadrill Limited (SDRL) AI Stock Analysis

Seadrill Limited provides offshore contract drilling services globally to the oil and gas industry. Operating through three segments—Harsh Environment, Floaters, and Jack-ups Rigs—the company specializes in drilling operations across shallow to ultra-deep waters. Seadrill owns and operates a fleet of drillships, semi-submersible rigs, and jack-up rigs tailored for both benign and harsh environments. It also provides operation support and management services to third parties. As of April 8, 2022, its fleet included 21 offshore drilling units: two harsh-environment rigs, two benign-environment semi-submersibles, six drillships, and 11 jack-up rigs, serving oil super-majors, national oil companies, and independent producers.

Seadrill's revenue grew at a 5-year CAGR of 8.4% from FY2020 to FY2025. Annual revenue reached $1.47B in FY2023, declined 5.8% to $1.39B in FY2024, and rebounded 3.8% to $1.44B in FY2025. Profitability has fluctuated significantly: net income was $300.0M in FY2023, $446.0M in FY2024, and fell to -$77.0M in FY2025 as gross margin contracted to 12.0% and operating margin dropped to 4.9%. In the trailing twelve months ending June 30, 2026, revenue stood at $1.48B with an operating margin of 16.7%. For the quarter ended June 30, 2026, quarterly revenue grew 19.1% year-over-year, while quarterly earnings grew 63.1%.

As of June 30, 2026, Seadrill held $337.0M in cash and short-term investments against total debt of $737.0M, resulting in net debt of $400.0M. The company reported a current ratio of 2.50 and a debt-to-equity ratio of 0.26 on shareholders' equity of $2.86B. Operating cash flow in FY2025 was -$28.0M, and free cash flow stood at -$138.0M after capital expenditures of $110.0M. Over the trailing 5-year period, share count increased by 24.2%.

Seadrill trades at a forward P/E of 14.1x, above the 12.7x median of its US-listed Energy peers. Its EV/EBITDA multiple of 9.5x also trades at a premium to the peer group median of 8.0x, while its price-to-sales ratio of 2.0x compares to the peer median of 1.8x. Seadrill has a market capitalization of $2.96B and an enterprise value of $3.32B. Over the past year, SDRL stock returned 60.8%, outpacing the S&P 500 ETF (SPY) return of 16.8%.

Wall Street coverage on Seadrill includes 4 Strong Buy, 3 Buy, and 2 Hold ratings, with zero Sell or Strong Sell recommendations. The mean price target is $54.00, representing a 14.3% upside from the last close of $47.25. For FY2026 ending December 31, 2026, consensus estimates project revenue of $1.57B and EPS of $0.86. For FY2027, 7 analysts project revenue of $1.70B and EPS of $3.39. Seadrill beat EPS estimates in 2 of the last 4 quarters, with its next earnings date scheduled for November 3, 2026.

This page is an AI-written research summary of Seadrill Limited (SDRL). 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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