10-Q · May 5, 2026
Transocean Ltd. reported Q1 2026 results showing revenues of $1.081 billion, exceeding consensus estimates by 4.76% but with an EPS loss of -$0.03, missing expectations of $0.08. The company indicated improved…
Earnings analysis · 10-Q
RIG earnings analysis
Filed November 3, 2026 · Our reading of the company's report
The latest report
Transocean reported approximately $937 million of Q3 revenue and diluted EPS of $0.00, slightly below the provided consensus estimates of $942.6 million and $0.03. Cash generation was positive at $131 million of free…
Read full summary
Transocean reported approximately $937 million of Q3 revenue and diluted EPS of $0.00, slightly below the provided consensus estimates of $942.6 million and $0.03. Cash generation was positive at $131 million of free cash flow, while debt fair value declined by $572 million to $5.18 billion through early redemption and scheduled repayments. The filing reports no material risk-factor changes from the 2025 Form 10-K; the combination of deleveraging and liquidity is favorable, but debt, interest-rate exposure, and compliance obligations support a neutral assessment.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.0
What stood out
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Positive free cash flow
The company generated $131 million of free cash flow in the quarter, supporting debt reduction and liquidity.
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Debt fair value declined
Outstanding debt fair value declined to $5.18 billion at September 30, 2026 from $5.76 billion at December 31, 2025, a $572 million decrease.
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Meaningful debt repayment
The filing states that debt fair value declined by $366 million from early redemption of the 8.375% senior secured notes due February 2028 and by another $366 million from scheduled repayments.
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Controls remained effective
Disclosure controls and procedures were evaluated as effective as of September 30, 2026, with no material internal-control changes during the quarter.
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Large repurchase authorization
The company retained $3.88 billion of remaining share-repurchase authorization at September 30, 2026, although no shares were repurchased during July, August, or September 2026.
What to watch
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High debt and interest burden
Debt remains material: outstanding debt had a $5.18 billion fair value at September 30, 2026, with a weighted-average fixed interest rate of 7.44%.
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Financing-market exposure
The company remains exposed to interest-rate risk on long-term debt, including current maturities, and to equity-price risk from exchangeable bonds; the filing reports $5.18 billion of debt fair value.
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Environmental compliance obligations
The company continues to face compliance obligations under a Clean Water Act consent decree, including an independent audit and potential stipulated monetary penalties; termination requires at least 3 years of continuous satisfactory compliance.
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Litigation uncertainty
The filing states there were no material changes to the risk factors from the 2025 Form 10-K, but it also notes that litigation outcomes could materially differ from management's current estimates.
Management's outlook
The filing excerpt does not provide comparable prior guidance. The previously disclosed outlook cited FY2026 contract-drilling revenue of $3.900-$3.950 billion and preliminary FY2027 revenue of $3.850-$4.000 billion; no change direction can be determined.
Earlier filings 4
10-K · February 23, 2026
Transocean positions itself as a high-specification offshore contract driller focused on ultra-deepwater and harsh-environment work with a 27-unit fleet (20 drillships, 7 semis). Q4 2025 showed stronger operating…
10-Q · August 5, 2025
Transocean reported Q2 2025 contract drilling revenue of $988 million (up from $861 million in Q2 2024) but recorded a large asset-impairment that drove an operating loss of $964 million and a net loss attributable to…
10-Q · April 29, 2025
Transocean reported Q1 2025 contract drilling revenue of $906 million, up from $763 million in Q1 2024, with operating income of $64 million versus an operating loss of $3 million a year ago. Despite the operating…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.