SLB (Schlumberger) delivered $8.97 billion in total revenue, a 3% sequential gain and 5% year-over-year increase, topping Wall Street consensus estimates of $8.68 billion. GAAP net income attributable to SLB reached $786 million ($0.52 diluted EPS), while adjusted EPS (excluding charges and credits) came in at $0.55, up 6% sequentially and beating expectations. The company generated $1.90 billion in adjusted EBITDA (21.2% margin), supported by $1.36 billion in operating cash flow and $716 million in free cash flow.
Performance was led by sequential strength in Production Systems ($3.77 billion revenue, up 7%) and Digital ($697 million revenue, up 9%), driven by platform adoption and digital operations. The acquisition of ChampionX contributed $870 million to total revenue and $158 million to pretax segment operating income. Geographically, broad-based offshore growth across Latin America, Europe/Africa, and Asia, along with a rebound in U.S. unconventionals, generated $6.67 billion in international revenue and $2.24 billion in North America, effectively overriding ongoing operational disruptions in the Middle East. Capital returns remained a key focus, with the Board approving a quarterly dividend of $0.295 per share.
SLB projected strong second-half momentum, forecasting 3% to 4% sequential revenue growth in Q3 and expecting Q4 revenue to surpass $10 billion, driven by late-year digital demand and international project completions. Full-year CapEx remains set at ~$2.5 billion, with over $4 billion targeted for shareholder returns through dividends and buybacks. Growth will be anchored by deepwater offshore expansion across Europe, Africa, Latin America, and Asia, alongside an accelerating Digital segment where high-performance computing and data center revenue surged 80% year-over-year. In the Middle East, management expects stable overall performance, as growth in Saudi Arabia and the UAE counterbalances localized regional volatility.
The conflict involving Iran had a significantly milder operational impact on SLB in Q2 2026 than on its peers, as its broad international footprint absorbed localized Middle East headwinds. Disruption-related drag shaved just ~$0.01 to $0.02 per share off Q2 earnings, primarily from brief supply chain rerouting and temporary security pauses. Middle East & Asia revenue held virtually flat at ~$2.8 billion (down <1% sequentially), as gas expansions and offshore projects in Saudi Arabia and the UAE offset curtailed activity in Kuwait and Iraq. Supported by surging deepwater demand across Latin America, Europe, and Africa, SLB easily beat Q2 consensus expectations.
For H2 2026, management projected stable Middle East performance, expecting sustained national oil company investments in core Gulf markets to counter ongoing regional volatility.
Below are key drivers of SLB's value that present opportunities for upside or downside to the current Trefis price estimate:
For additional details, select a division from the interactive Trefis split for SLB at the top of the page.
SLB provides upstream reservoir characterization, drilling, and exploration services for the oil and gas industry. SLB's services are required by integrated oil companies such as Exxon Mobil, National Oil Companies (NOCs) like Saudi Aramco, and independent producers to explore, develop, and service their oil resources. The company has an extensive geographical reach, conducting business in over 80 countries and providing products and services for oil and gas exploration, including seismic services, drilling, and post-drilling services.
SLB's global footprint, proprietary subsurface technologies, and dominant offshore execution capabilities form the principal foundation of its corporate valuation.
SLB maintains a commanding presence across major international energy basins, leveraging its scale and integrated service model to secure long-term performance contracts with national and international oil companies.
The company's proprietary cloud applications and AI-driven subsurface modeling platforms generate high-margin recurring revenue while deepening client integration across the reservoir lifecycle.
Global energy security priorities and long-cycle offshore project commitments continue to drive upstream capital allocation toward international deepwater and national oil company reserves.
SLB is actively leveraging its subsurface expertise to scale new energy technologies, including carbon capture and storage, geothermal energy, and digital emissions management solutions.
