SLB (NYSE:SLB) Releases Earnings Results, Beats Estimates By $0.04 EPS

Key Points

• SLB beat quarterly expectations, posting adjusted EPS of $0.55 versus the $0.51 consensus and revenue of $8.97 billion versus expectations of $8.67 billion.
• The company said results were supported by broad international growth, a rebound in North America, and stronger performance in Production Systems and Digital businesses.
• Management flagged the Middle East disruption as an ongoing headwind but said it was manageable, while also pointing to a longer-term upcycle in offshore and deepwater activity and rapid growth in data center solutions.

SLB (NYSE:SLB - Get Free Report) issued its earnings results on Friday. The oil and gas company reported $0.55 EPS for the quarter, topping the consensus estimate of $0.51 by $0.04, FiscalAI reports. SLB had a return on equity of 15.54% and a net margin of 9.26%.The firm had revenue of $8.97 billion during the quarter, compared to analysts' expectations of $8.67 billion. During the same period last year, the business earned $0.74 earnings per share. SLB's quarterly revenue was up 5.0% compared to the same quarter last year.

Here are the key takeaways from SLB's conference call:

• SLB reported a solid second quarter with revenue up 3% sequentially to $9 billion, helped by broad international growth and a rebound in North America that more than offset weakness in the Middle East.
• Production Systems and Digital were standout areas, with Production Systems margins moving back above 20% and Digital margins reaching about 35% on stronger exploration data licenses and recurring revenue growth.
• The company said the Middle East disruption remained manageable in the quarter, but full normalization will take time and recovery will vary by country; SLB’s Q3 outlook assumes only a gradual improvement there.
• Management sees a broader upcycle in international and deepwater activity, citing expectations for roughly 30% year-over-year growth in long-cycle FIDs in 2026 and stronger spending momentum into 2027.
• Data center solutions continued to scale rapidly, with revenue up 33% sequentially and 80% year over year, and SLB now expects the business to exit 2027 at an annualized revenue run rate above $2 billion.

SLB Price Performance

SLB stock traded up $5.21 during trading hours on Friday, hitting $52.43. 28,892,755 shares of the stock were exchanged, compared to its average volume of 11,283,987. The stock has a market capitalization of $78.39 billion, a P/E ratio of 22.90, a P/E/G ratio of 1.91 and a beta of 0.72. The business's 50-day moving average is $51.16 and its two-hundred day moving average is $50.55. The company has a debt-to-equity ratio of 0.35, a quick ratio of 0.98 and a current ratio of 1.34. SLB has a 12 month low of $31.64 and a 12 month high of $58.82.

SLB Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Shareholders of record on Wednesday, September 2nd will be paid a dividend of $0.295 per share. This represents a $1.18 annualized dividend and a yield of 2.3%. The ex-dividend date of this dividend is Wednesday, September 2nd. SLB's dividend payout ratio is currently 51.53%.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on SLB. Sanford C. Bernstein boosted their price target on shares of SLB from $56.10 to $71.00 and gave the company an "outperform" rating in a report on Monday, May 11th. Weiss Ratings lowered shares of SLB from a "hold (c+)" rating to a "hold (c)" rating in a research report on Wednesday, May 6th. Wolfe Research started coverage on shares of SLB in a research note on Wednesday, July 8th. They set an "outperform" rating and a $62.00 price target for the company. Stifel Nicolaus upped their price objective on SLB from $61.00 to $64.00 and gave the company a "buy" rating in a research note on Thursday, June 18th. Finally, Susquehanna dropped their target price on SLB from $65.00 to $55.00 and set a "positive" rating for the company in a report on Wednesday, July 8th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $60.30.

Insider Buying and Selling

In other news, EVP Steve Matthew Gassen sold 53,379 shares of the business's stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $56.18, for a total value of $2,998,832.22. Following the transaction, the executive vice president directly owned 47,421 shares of the company's stock, valued at $2,664,111.78. The trade was a 52.96% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director La Chevardiere Patrick De sold 2,000 shares of the stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $54.33, for a total value of $108,660.00. Following the sale, the director owned 16,953 shares in the company, valued at approximately $921,056.49. This trade represents a 10.55% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.16% of the company's stock.

Institutional Trading of SLB

A number of hedge funds and other institutional investors have recently made changes to their positions in SLB. Compound Planning Inc. raised its holdings in SLB by 20.9% during the 4th quarter. Compound Planning Inc. now owns 13,003 shares of the oil and gas company's stock worth $499,000 after purchasing an additional 2,248 shares during the last quarter. Invesco Ltd. boosted its stake in shares of SLB by 35.1% in the 4th quarter. Invesco Ltd. now owns 13,009,477 shares of the oil and gas company's stock valued at $499,304,000 after purchasing an additional 3,380,917 shares during the last quarter. Mercer Global Advisors Inc. ADV boosted its stake in shares of SLB by 40.2% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 82,507 shares of the oil and gas company's stock valued at $2,895,000 after purchasing an additional 23,663 shares during the last quarter. Vident Advisory LLC grew its position in shares of SLB by 23.3% during the 4th quarter. Vident Advisory LLC now owns 333,775 shares of the oil and gas company's stock worth $12,810,000 after buying an additional 63,049 shares during the period. Finally, FAS Wealth Partners Inc. raised its stake in shares of SLB by 6.7% during the fourth quarter. FAS Wealth Partners Inc. now owns 58,614 shares of the oil and gas company's stock worth $2,250,000 after buying an additional 3,698 shares during the last quarter. 81.99% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting SLB

Here are the key news stories impacting SLB this week:

• Positive Sentiment: SLB reported Q2 adjusted EPS of $0.55, ahead of estimates of $0.51, on revenue of $8.97 billion versus expectations of $8.67 billion. SLB NYSE: SLB Beats Expectations in Strong Q2 CY2026
• Positive Sentiment: Management pointed to higher offshore activity and growth in Digital and Production Systems, which helped drive the quarter and support the outlook. SLB Posts Higher Revenue on Increased Offshore Activity, Data-Center Demand
• Positive Sentiment: SLB’s expanding data-center power and infrastructure push is being viewed as an additional growth vector, adding to investor optimism. What SLB (SLB)'s AI Data Center Power Push and Baleine Win Means For Shareholders
• Neutral Sentiment: Revenue still declined year over year, so the quarter was solid but not a return to broad-based growth. Top US oilfield services firm SLB beats quarterly profit estimates
• Neutral Sentiment: Middle East disruptions remain a headwind, but resilient demand in other regions is currently outweighing that pressure. SLB Stock Rises on Earnings Beat as Strong Activity Offsets Middle East Disruption

About SLB

SLB NYSE: SLB, historically known as Schlumberger, is a leading global provider of technology, integrated project management and information solutions for the energy industry. Founded by Conrad and Marcel Schlumberger in 1926, the company develops and supplies products and services used across the exploration, drilling, completion and production phases of oil and gas development. Its offerings are intended to help operators characterize reservoirs, drill and complete wells, optimize production and manage field operations throughout the asset lifecycle.

SLB's product and service portfolio spans reservoir characterization and well testing, wireline and logging services, directional drilling and drilling tools, well construction and completion technologies, production systems, and subsea equipment.

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