Transocean (NYSE:RIG) Posts Quarterly Earnings Results, Misses Expectations By $0.07 EPS

Transocean (NYSE:RIG) announced its earnings results on Thursday. The offshore drilling services provider reported $0.02 EPS for the quarter, missing the consensus estimate of $0.09 by ($0.07), Zacks reports. Transocean had a negative net margin of 73.52% and a positive return on equity of 0.40%. The firm had revenue of $1.04 billion during the quarter, compared to analysts’ expectations of $1.03 billion. During the same quarter in the prior year, the company earned ($0.09) EPS. The business’s revenue for the quarter was up 9.6% on a year-over-year basis.

Transocean Price Performance

Shares of NYSE RIG opened at $6.51 on Friday. The company has a debt-to-equity ratio of 0.60, a quick ratio of 0.91 and a current ratio of 1.08. Transocean has a fifty-two week low of $1.97 and a fifty-two week high of $6.57. The stock has a market cap of $7.17 billion, a PE ratio of -1.98 and a beta of 1.46. The stock has a fifty day moving average of $4.75 and a 200-day moving average of $3.96.

Insider Activity

In other news, Director Perestroika purchased 1,500,000 shares of the stock in a transaction dated Monday, November 24th. The shares were purchased at an average cost of $4.02 per share, with a total value of $6,030,000.00. Following the completion of the acquisition, the director owned 96,574,894 shares in the company, valued at $388,231,073.88. This represents a 1.58% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, EVP Robert Thaddeus Vayda sold 30,000 shares of the company’s stock in a transaction that occurred on Wednesday, November 26th. The stock was sold at an average price of $4.29, for a total transaction of $128,700.00. Following the sale, the executive vice president directly owned 235,154 shares in the company, valued at $1,008,810.66. This trade represents a 11.31% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 712,970 shares of company stock valued at $3,152,132. 12.27% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Transocean

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Zimmer Partners LP bought a new stake in shares of Transocean during the 3rd quarter valued at about $30,262,000. Barclays PLC raised its stake in Transocean by 230.6% in the fourth quarter. Barclays PLC now owns 10,802,664 shares of the offshore drilling services provider’s stock valued at $44,615,000 after purchasing an additional 7,535,041 shares in the last quarter. Dimensional Fund Advisors LP raised its stake in Transocean by 20.9% in the fourth quarter. Dimensional Fund Advisors LP now owns 43,470,312 shares of the offshore drilling services provider’s stock valued at $179,531,000 after purchasing an additional 7,516,589 shares in the last quarter. Renaissance Technologies LLC increased its holdings in shares of Transocean by 416.8% in the 4th quarter. Renaissance Technologies LLC now owns 9,035,328 shares of the offshore drilling services provider’s stock worth $37,316,000 after buying an additional 7,287,083 shares during the last quarter. Finally, Goldman Sachs Group Inc. raised its position in Transocean by 88.9% in the 1st quarter. Goldman Sachs Group Inc. now owns 12,151,817 shares of the offshore drilling services provider’s stock worth $38,521,000 after purchasing an additional 5,719,637 shares during the period. 67.73% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the company. Susquehanna increased their price target on Transocean from $4.50 to $5.00 and gave the company a “positive” rating in a research report on Wednesday, January 7th. Citigroup upped their price objective on Transocean from $4.25 to $4.50 and gave the company a “neutral” rating in a research note on Thursday, December 11th. Fearnley Fonds cut Transocean from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, February 10th. Weiss Ratings reissued a “sell (d-)” rating on shares of Transocean in a report on Thursday, January 22nd. Finally, Morgan Stanley set a $4.50 price objective on shares of Transocean in a research report on Monday, December 15th. Two equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Reduce” and a consensus target price of $5.44.

More Transocean News

Here are the key news stories impacting Transocean this week:

• Positive Sentiment: Company reported multiple new contract awards and option exercises that add about $610 million of incremental backlog, bringing reported backlog to roughly $6.1 billion — supports revenue visibility for upcoming quarters. Fleet Status Report
• Positive Sentiment: Company outlined a pro‑forma backlog of ~$11 billion and said it targets ~1.5x net leverage after the Valaris acquisition — this signals stronger scale and leverage policy that could materially improve cash‑flow profile if the deal closes and synergies materialize. Pro‑Forma Backlog / Valaris
• Neutral Sentiment: Q4 revenue of $1.04B modestly beat consensus (~$1.03B) and revenue rose ~9.6% year‑over‑year, providing top‑line confirmation of improving demand in ultra‑deepwater/harsh‑enviro drilling. Q4 Results Release
• Neutral Sentiment: Company posted updated FY‑2026 and Q1‑2026 revenue guidance ranges (Q1: ~$1.0–1.1B; FY: ~$3.8–4.0B) roughly in line with Street expectations — guidance reduces uncertainty around 2026 revenue but left EPS guidance unclear in releases. Guidance Update
• Negative Sentiment: Adjusted EPS of $0.02 missed consensus (~$0.08–0.09), and the company still shows a wide negative net margin — the earnings miss is the immediate catalyst for analyst caution and short‑term volatility. Earnings Summary
• Negative Sentiment: Barclays downgraded Transocean to Equal Weight (and other analysts have raised varied views), a sign that some sell‑side desks see limited near‑term upside despite operational wins — downgrades can pressure shares and cap rallies. Barclays Downgrade
• Neutral Sentiment: Investor commentary and media pieces highlight RIG as a momentum name and discuss longer‑term upside tied to fleet specialization and consolidation — these narratives can attract momentum buyers but are longer‑dated drivers. Momentum Coverage
• Neutral Sentiment: Earnings call/transcript and analyst roundups provide more color on contract mix, dayrates, and capex — these details will matter to investors assessing margin recovery and the Valaris integration; listen to/read the call for specifics. Earnings Call Transcript

Transocean Company Profile

Transocean Ltd. is a leading international provider of offshore contract drilling services for the oil and gas industry. The company specializes in the operation of mobile drilling units, including ultra-deepwater drillships, semisubmersible rigs and high-specification jackup rigs. Transocean’s fleet is designed to meet complex drilling requirements, from ultra-deepwater well construction to shelf exploration and development projects.

The company’s core services encompass the full spectrum of offshore drilling operations, including project and engineering management, marine operations, drilling supervision, and maintenance support.