SLB (SLB) - Company Research
Last Updated: 29 May 2026
SLB (NYSE: SLB), the rebranded Schlumberger Limited, is the world's largest oilfield services and equipment provider, serving upstream operators across drilling, well construction, reservoir characterisation, production systems and an increasingly important digital and AI platform. The 2025 acquisition of ChampionX added a significant production chemicals and artificial-lift footprint. FY2025 revenue of $35.71 bn was down 2% YoY against a tough comparison and Middle East conflict-related disruption in Q1 2026 has pressured early 2026 margins. This research walks through the snapshot, segments, financial trajectory, valuation, peer set, key risks and upcoming catalysts using primary-source data gathered this session.
1. Company Snapshot
| Field | Value |
|---|---|
| Ticker | SLB (NYSE) |
| Sector / Industry | Energy — Oil & Gas Equipment & Services |
| Headquarters | Houston, Texas (US principal offices); legal domicile Curaçao |
| CEO / Leadership | Olivier Le Peuch (Chief Executive Officer since August 2019); CFO Stephane Biguet (since January 2020); Chief Legal Officer Dianne Ralston |
| Employees | ~109,000 globally as of 31 December 2025 (down ~1,000 from 110,000 a year earlier per the FY2025 10-K) |
| Market cap | ~$84 bn (28 May 2026) |
| Revenue (FY2025) | $35.71 bn (-2% YoY) |
| Net income (FY2025) | $3.37 bn (GAAP EPS $2.35; adjusted EPS $2.93) |
| Adjusted EBITDA (FY2025) | $8.46 bn (-7% YoY) |
| Dividend (annualised) | $1.18 / share ($0.295 quarterly, raised from $0.285 in April 2026) |
| 52-week range | $31.64 – $57.91 |
2. Bull & Bear Case
Bull Case
- Digital & Integration scaling fast: Digital revenue of $2.44 bn grew 20% YoY in 2025 with Cloud, AI and Edge technologies up close to 35%; this is the company's highest-margin division and structurally less cyclical than traditional service lines.
- ChampionX acquisition closed: ChampionX (production chemicals and artificial lift) contributed $1.46 bn of revenue in 2025 from a partial-year contribution and broadens SLB's exposure to the production phase, which is less rig-count-sensitive than drilling.
- International & offshore strength: Middle East alone generated $12.22 bn (~34% of FY2025 revenue), reflecting durable Saudi Aramco, ADNOC and Qatar work; SLB has structurally higher international exposure than Halliburton, which insulates it from US shale rig-count swings.
- $4 bn+ shareholder returns commitment in 2026: Buybacks of $2.41 bn in 2025 (60 m shares); dividend raised 3.5% to $0.295/quarter from April 2026; total return target of >$4 bn in 2026 between dividends and repurchases.
- Strong free cash flow conversion: FY2025 cash from operations of $6.49 bn against capex of ~$2.3 bn delivered $4.11 bn of free cash flow — ample to fund returns and the ChampionX integration.
Bear Case
- Middle East conflict disruption in Q1 2026: Q1 2026 net income fell 6% YoY to $752 m and adjusted EBITDA dropped 12% to $1.77 bn; management cited "significant operational disruption from the Middle East conflict" as a material driver alongside lower customer spending.
- Earnings momentum reversing: Q4 2025 diluted EPS fell ~29% YoY to $0.55; FY2025 net income dropped 24% to $3.37 bn; FY2025 adjusted EBITDA fell 7%. The earnings trajectory has clearly inflected lower despite revenue holding flat.
- Net debt expansion from ChampionX: Net debt as of 30 September 2025 was $9.18 bn vs LT debt of ~$10.89 bn plus ST debt $2.81 bn — ChampionX-driven leverage increases pressure to deliver synergies before customer spending pulls back further.
- Insider selling pressure: All recent Form 4 transactions are sales; seven insiders sold ~206,902 shares worth $10.4 m between 26 January and 25 February 2026, with zero open-market purchases reported.
- Customer concentration in NOCs: The Middle East 34% revenue share is also a concentration risk — any sustained shift in Saudi Aramco or ADNOC activity (capacity targets, capex cycles) directly hits SLB's largest geography.
3. Business Segments
SLB reports four operating divisions. The 2025 mix is approximate, based on the FY2025 segment disclosures and individual division revenue figures published in earnings press releases.
| Segment | % of revenue | What it is |
|---|---|---|
| Well Construction | ~32% | Drilling-related services including bits, drilling fluids, measurement-while-drilling, directional drilling and integrated drilling services. The most cyclical division, tied directly to rig activity. |
| Reservoir Performance | ~19% | Stimulation, well intervention, evaluation and intervention services that help producers maximise output from existing wells. |
| Production Systems | ~33% | Surface and subsea production systems, completions, artificial lift and production chemicals (significantly expanded post-ChampionX). Includes the new data-center infrastructure solutions line in North America. |
| Digital & Integration | ~7% | Highest-margin segment. Includes the Delfi cognitive E&P platform, Petrel software suite, Cloud, AI and Edge technology offerings, and integrated production services. Revenue $2.44 bn in 2025 (+20% YoY). |
| Other / corporate & eliminations | ~9% | Asset Performance Solutions (APS) revenue, exploration data licensing and intersegment eliminations. |
4. Business Model & Moat
How it makes money. SLB sells services, equipment and software to oil and gas operators across the well lifecycle: it evaluates reservoirs, drills wells, completes and stimulates them, and runs production systems once they're online. Revenue is recognised either per-job, per-service, on long-term integrated contracts (especially with Middle East national oil companies), or as recurring software/subscription fees for Digital & Integration. There is no direct ownership of hydrocarbons — SLB is a service provider, not a producer.
Where the moat sits. The defensible position rests on technology depth (more patented sub-surface and subsea technologies than any peer), an unmatched global footprint of operating bases that newer competitors cannot replicate cheaply, and long-standing master service agreements with the world's largest national oil companies. The Delfi digital platform and Cloud/AI partnerships (Microsoft Azure, NVIDIA) create switching costs once customer workflows are migrated.
How the cycle works. SLB's revenue is leveraged to global E&P capital spending. International markets — particularly Middle East, North Sea and offshore Latin America — tend to be more contracted and less volatile than US land, which is dominated by Halliburton. The 2024–2025 cycle saw US land softness offset by international growth; the 2026 wobble is being driven more by geopolitical disruption than by customer demand collapse.
Capital allocation. Management has been explicit about returning >$4 bn to shareholders in 2026 (vs $2.41 bn of buybacks + $1.13 bn of dividends in 2025) and integrating ChampionX without sacrificing the dividend or buyback floor. Free cash flow of $4.11 bn in 2025 provides a comfortable margin above the >$4 bn return commitment.
5. Financial Health
All figures from SLB earnings press releases, Form 10-K and 10-Q filings, and FY2025 reported financials.
| Year | Revenue ($bn) | YoY % | GAAP EPS | Adjusted EPS | Dividend/share | Long-term debt (YE, $bn) |
|---|---|---|---|---|---|---|
| FY2021 | 22.9 | -3% | $1.32 | $1.27 | $0.50 | 13.3 |
| FY2022 | 28.1 | +23% | $2.39 | $2.18 | $0.70 | 10.6 |
| FY2023 | 33.1 | +18% | $3.21 | $3.09 | $1.00 | 10.8 |
| FY2024 | 36.3 | +10% | $3.09 | $3.41 | $1.10 | 11.0 |
| FY2025 | 35.7 | -2% | $2.35 | $2.93 | $1.14 | 11.5 |
Long-term debt expanded modestly into 2025 to fund the ChampionX acquisition. Total debt at 30 September 2025 was approximately $13.7 bn (LT $10.89 bn + ST $2.81 bn), with cash of $3.75 bn giving net debt of $9.18 bn.
| Quarter | Revenue ($bn) | Adjusted EPS | GAAP EPS |
|---|---|---|---|
| Q1 2026 | 8.72 | $0.52 | $0.50 |
| Q4 2025 | 9.75 | $0.83 | $0.55 |
| Q3 2025 | ~8.93 | $0.84 | $0.48 |
| Q2 2025 | 8.55 | $0.74 | $0.74 |
| Q1 2025 | ~8.49 | $0.72 | $0.58 |
| FY2025 total | 35.71 | $2.93 | $2.35 |
Cash flow profile (FY2025): Cash from operations $6.49 bn; capex ~$2.30 bn (capex-light services model); D&A $2.64 bn; free cash flow $4.11 bn. Net income $3.45 bn (gross, before NCI; $3.37 bn attributable to SLB). Cash conversion is robust thanks to the asset-light services business model.
6. Valuation Metrics
Raw metrics, May 2026. Not opinions on whether the stock is cheap or expensive.
| Metric | Value |
|---|---|
| Market cap | ~$84 bn (28 May 2026) |
| Enterprise value | ~$93.2 bn (market cap ~$84 bn + total debt ~$13.7 bn − cash ~$3.75 bn + ChampionX-assumed obligations per Sep 2025 balance sheet; net debt $9.18 bn at 30 Sep 2025) |
| Trailing P/E (GAAP) | ~25.9x (share price ~$58 / TTM GAAP EPS ~$2.27 = Q2'25 $0.74 + Q3'25 $0.48 + Q4'25 $0.55 + Q1'26 $0.50) |
| P/E (forward) | ~20x (implied from consensus 2026 EPS ~$2.90 against price ~$58) |
| P/S (TTM) | ~2.4x (market cap ~$84 bn / TTM revenue ~$35.6 bn) |
| EV/EBITDA (TTM) | ~11.0x (EV ~$93.2 bn / EBITDA ~$8.46 bn; EBITDA from FY2025 adjusted EBITDA disclosure, equivalent to net income $3.45 bn + D&A $2.64 bn + interest + tax per FY2025 income statement and cash flow statement) |
| P/FCF | ~20.4x (market cap ~$84 bn / FCF ~$4.11 bn; FCF = operating CF $6.49 bn − capex ~$2.38 bn per FY2025 cash flow statement) |
| Dividend yield | ~2.0% (annualised $1.18 / share price ~$58) |
| 52-week high | $57.91 |
| 52-week low | $31.64 |
| Short interest (% of float) | ~3.0% (41.3 m shares short as of 15 Dec 2025 per Fintel/exchange data — current April 2026 reading not published in full at time of writing) |
| Days to cover | ~2.6 days (per January 2026 reporting, Fintel) |
7. Growth Drivers
Digital & Integration as the structural growth engine. Digital revenue of $2.44 bn in 2025 (+20% YoY; Cloud/AI/Edge growing ~35%) is the highest-margin and lowest-cyclicality piece of the portfolio. Continued migration of customers onto the Delfi platform, combined with NVIDIA and Microsoft partnerships, builds a recurring software-style revenue stream within an otherwise project-based business.
ChampionX revenue and synergy capture. The acquired ChampionX business contributed $1.46 bn of partial-year revenue in 2025; full-year run-rate revenue in 2026 (with synergies) is the next operational milestone. Production chemicals demand is less cyclical than rig-count work, materially smoothing SLB's earnings profile.
Middle East capacity and offshore project starts. Continued Saudi Aramco, ADNOC, QatarEnergy and PEMEX activity; renewed offshore deepwater FIDs in Brazil, Guyana, Namibia and West Africa. SLB has the largest international footprint of the big three (SLB / HAL / BKR) and is structurally best positioned to capture this.
Data-centre infrastructure crossover. Production Systems' surface equipment unit has begun supplying data-centre infrastructure solutions in North America — a small but symbolically important crossover into AI/hyperscaler-adjacent demand.
Shareholder returns commitment. The >$4 bn return commitment for 2026, supported by $4.11 bn of FY2025 FCF, anchors a 2%+ dividend yield with structural buyback support beneath.
8. Peer Comparison
| Peer | Market cap (May 2026) | Key 2025 metric |
|---|---|---|
| Halliburton (HAL) | ~$25 bn | FY2025 revenue ~$22 bn (-3.2% YoY); US-land heavy with most rig-count sensitivity of the big three |
| Baker Hughes (BKR) | ~$45 bn | FY2025 revenue ~$28 bn; gas turbines / LNG equipment exposure differentiates it from SLB and HAL |
| NOV Inc. (NOV) | ~$6 bn | ~$8 bn FY2025 revenue; equipment and capital products focus; small relative to SLB |
| Weatherford International (WFRD) | ~$3 bn | ~$5 bn FY2025 revenue; turnaround story with international service focus |
| TechnipFMC (FTI) | ~$15 bn | FY2025 revenue ~$9 bn; subsea EPC focus; closest peer for offshore project work |
9. Insider Activity
Recent SLB Form 4 disclosures show a clear net-selling pattern in 2026, with no open-market insider purchases reported. The CEO, Olivier Le Peuch, remains in post and chairs the executive committee. Director Patrick de La Chevardiere has been the most active recent seller.
| Name | Date | Type | Shares | Price | Value | Plan Type |
|---|---|---|---|---|---|---|
| Patrick de La Chevardiere (Director) | 26 Mar 2026 | Open-market sale | 2,000 | $51.95 | $103,900 | Open-market |
| Patrick de La Chevardiere (Director) | 25 Mar 2026 | Open-market sale | 2,000 | $52.10 | $104,200 | Open-market |
| Multiple officers (combined) | 26 Jan – 25 Feb 2026 | Stock sales | 206,902 | Various | $10,356,666 | Mix of 10b5-1 and open-market |
| All insiders (trailing window) | 2026 YTD | Purchases | 0 | n/a | $0 | n/a |
10. Key Risks
- Geopolitical disruption to Middle East operations: The Middle East conflict cited as a Q1 2026 earnings headwind directly impacts SLB's largest geography (34% of FY2025 revenue). Escalation could compress 2026 EBITDA further.
- E&P capital spending cycle: Sustained lower oil and gas prices would push operators to defer or cut capex, with the largest impact on Well Construction and Reservoir Performance segments.
- ChampionX integration risk: Capturing synergies and cleanly merging production-chemicals operations into the existing Production Systems segment without customer disruption.
- Energy transition pressure: Longer-term, accelerated decarbonisation policies and reduced exploration spending in Europe and North America could shrink the addressable market for traditional drilling-related services.
- FX and commodity input exposure: Operations in ~100 countries create meaningful FX translation effects, particularly across emerging-market currencies and the euro.
- Insider sentiment trend: The clear net-selling pattern across multiple executives and directors in early 2026, with zero open-market purchases, is a negative signal of internal conviction at current prices.
11. Recent Developments
- 24 Apr 2026 — Q1 2026 results. Revenue $8.72 bn (+3% YoY); net income $752 m (-6% YoY); GAAP EPS $0.50 (-14% YoY); adjusted EPS $0.52 (-28% YoY); adjusted EBITDA $1.77 bn (-12% YoY). Cash from operations $487 m. Quarterly dividend held at $0.295/share. Management cited Middle East conflict disruption as material to the result.
- 2 Apr 2026 — Dividend increase. Quarterly dividend raised 3.5% from $0.285 to $0.295/share, effective with the April 2026 payment.
- 26 Mar 2026 — Director insider sale. Patrick de La Chevardiere disposed of 4,000 shares across two open-market transactions on 25–26 March 2026 at $51.95–$52.10/share.
- 23 Jan 2026 — Q4 2025 and full-year results. FY2025 revenue $35.71 bn (-2% YoY); net income $3.37 bn (-24% YoY); GAAP EPS $2.35; adjusted EBITDA $8.46 bn (-7% YoY); FCF $4.11 bn. Committed to return >$4 bn to shareholders in 2026.
- 15 Sep 2025 — ChampionX acquisition closed. Acquired ChampionX Corporation in an all-stock transaction; ChampionX contributed $1.46 bn of revenue in 2025 (partial year).
12. Key Dates & Catalysts
- 1 Jul 2026 — Q2 2026 quarterly dividend payment ($0.295/share, payable 9 July 2026 per company announcement).
- 24 Jul 2026 — Q2 2026 earnings release and conference call (confirmed by company press release).
- 23 Oct 2026 — Q3 2026 results expected (typical late-October cadence).
- 22 Jan 2027 — Q4 2026 and FY2026 results expected (typical late-January cadence).
- 30 Jun 2026 — ChampionX one-year integration milestone; target run-rate synergy delivery.
- 31 Dec 2026 — Target completion of >$4 bn shareholder return commitment for full-year 2026.
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13. Thesis Verdict
The central thesis. SLB is the world’s largest oilfield services company, providing drilling, reservoir, production and digital solutions to operators across roughly 100 countries, with the Middle East alone contributing $12.22 bn or 34% of FY2025 revenue. FY2025 revenue of $35.71 bn was down 2% YoY with net income of $3.37 bn (GAAP EPS $2.35) and free cash flow of $4.11 bn. Management has committed to returning over $4 bn to shareholders in 2026 through dividends and buybacks, raised the quarterly dividend to $0.295/share, and is integrating the September 2025 ChampionX acquisition. The primary growth driver is the Digital & Integration segment, where revenue grew 20% in 2025 with Cloud/AI/Edge up close to 35%.
What would confirm or break it. Confirmation requires Q2 2026 earnings on 24 July 2026 showing a sequential recovery from the Q1 2026 Middle East disruption, alongside continued Digital & Integration double-digit growth. The thesis would be invalidated by further geopolitical escalation in the Middle East, sustained insider selling without offsetting share repurchases, or a material cut to the >$4 bn shareholder return commitment for 2026.
Watchpoints
- ConfirmsQ2 2026 earnings (24 Jul 2026) (56 days) landing in line with or above management guidance.
- ConfirmsEvidence supporting the "Digital & Integration scaling fast:" thesis continuing to build across subsequent filings.
- InvalidatesMaterialisation of the "Geopolitical disruption to Middle East operations:" risk, or any disclosure that fundamentally alters the capital-return or growth profile stated by management.
Diagnostic grid
Generated by ChartsView research tooling. Thesis strength measures how well the evidence in this report supports the company's stated thesis — it is NOT a buy/sell rating or price target. ChartsView is not authorised by the FCA to provide regulated investment advice. Generated 29 May 2026.