SLB Announces Third-Quarter 2026 Results
SLB LIMITED/NV (SLB) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99 News Release SLB Announces Third-Quarter 2026 Results • Revenue of $9.45 billion increased 5% sequentially and 6% year on year • GAAP EPS of $0.49 decreased 6% sequentially and 2% year on year • EPS, excluding charges and credits, of $0.64 increased 16% sequentially an
How this was made
The 30-second read
Why it matters
The earnings release provides fresh guidance and performance metrics that can influence trader positioning in energy and industrial technology stocks.
Market read
SLB's earnings are a primary driver for oilfield services equities and related energy sector sentiment.
What to watch
The contribution from ChampionX acquisition and the accelerating Data Center Solutions segment may offset short-term EPS concerns.
Third-quarter revenue of $9.45 billion increased 5% sequentially and 6% year on year, while GAAP diluted EPS of $0.49 decreased 6% sequentially and 2% year on year.
Revenue grew sequentially across all geographical areas and Core divisions, with adjusted EBITDA and pretax segment operating income expanding sequentially. Year-on-year profitability and margins remained below prior-year levels, while Production Systems and Data Center Solutions were the principal growth contributors.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Third-quarter revenueGAAP | $9.45B | 5% | 6% |
| Third-quarter income before taxesGAAP | $1.02B | 0% | 2% |
| Third-quarter income before taxes marginGAAP | 10.8% | -57 bps | -42 bps |
| Third-quarter net incomeGAAP | $780M | – | – |
| Third-quarter net income attributable to SLBGAAP | $735M | -6% | -1% |
| Third-quarter diluted EPSGAAP | $0.49 | -6% | -2% |
| Third-quarter net income attributable to SLB, excluding charges & creditsnon-GAAP | $962M | 16% | -6% |
| Third-quarter diluted EPS, excluding charges & creditsnon-GAAP | $0.64 | 16% | -7% |
| Third-quarter adjusted EBITDAnon-GAAP | $2.07B | 9% | 0% |
| Third-quarter adjusted EBITDA marginnon-GAAP | 21.9% | 71 bps | -121 bps |
| Third-quarter pretax segment operating incomenon-GAAP | $1.58B | 12% | -3% |
| Third-quarter pretax segment operating marginnon-GAAP | 16.7% | 104 bps | -153 bps |
| Third-quarter cash flow from operationsGAAP | $1.51B | – | – |
| Third-quarter free cash flownon-GAAP | $828M | – | – |
| Third-quarter capital expendituresother | $485M | – | – |
| Third-quarter APS investmentsother | $114M | – | – |
| Third-quarter exploration data capitalizedother | $83M | – | – |
| Third-quarter effective tax rateGAAP | 23.5% | – | – |
| Third-quarter effective tax rate excluding charges and creditsnon-GAAP | 20.0% | – | – |
| Digital ARR as of September 30, 2026other | $1.04B | – | 13% |
| Data Center Solutions third-quarter revenueother | $230M | 23% | 76% |
| Nine-month revenueGAAP | $27.14B | – | 5% |
| Nine-month net income attributable to SLBGAAP | $2.27B | – | – |
| Nine-month diluted EPSGAAP | $1.51 | – | – |
| Nine-month adjusted EBITDAnon-GAAP | $5.74B | – | -6% |
| Nine-month adjusted EBITDA marginnon-GAAP | 21.1% | – | -248 bps |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| DigitalHigher Platforms & Applications sales and continued growth in Digital Operations largely offset lower Digital Exploration revenue. | $693M | -1% | 5% |
| Reservoir PerformanceHigher intervention, evaluation and stimulation services, particularly in the Middle East, supported sequential growth. | $1.63B | 5% | -3% |
| Well ConstructionHigher Middle East drilling activity, stronger U.S. land activity, the seasonal recovery in Canada and robust offshore drilling activity in Asia drove growth. | $2.89B | 5% | -3% |
| Production SystemsHigher completions, production chemicals and artificial lift sales, stronger SLB OneSubsea activity, and ChampionX contributions supported growth. | $4B | 6% | 15% |
| All OtherStrong Data Center Solutions growth and higher APS revenue were partly offset by lower SLB Capturi revenue. | $544M | 8% | 37% |
| InternationalGrowth was broad-based, led by a 13% increase in the Middle East, with offshore activity supporting Europe & Africa, Asia and Latin America. | $6.99B | 5% | 1% |
| North AmericaStrong U.S. unconventional activity, robust demand for production chemicals and artificial lift solutions, and Data Center Solutions supported growth. | $2.40B | 7% | 24% |
| Latin AmericaHigher SLB OneSubsea sales and drilling activity in Guyana and Brazil, plus higher APS project revenue in Ecuador, supported growth. | $1.75B | 2% | 18% |
| Europe & AfricaHigher SLB OneSubsea revenue in Scandinavia and Angola and production and recovery activity in Nigeria were partly offset by lower revenue in Libya and reduced SLB Capturi revenue. | $2.44B | 2% | 0% |
| Middle East & AsiaA 13% increase in the Middle East and a 2% increase in Asia followed recovery from prior-quarter operational disruptions, although certain countries experienced renewed disruptions during the final weeks of the quarter. | $2.81B | 9% | -6% |
Full-year 2026 outlook
- NoteCapital investment (consisting of capex, exploration data costs and APS investments) is still expected to be approximately $2.5 billion.
Capital returns
- SLB repurchased 12.9 million shares of its common stock for a total purchase price of $656 million during the quarter.
- During the first nine months of 2026, SLB repurchased 34.0 million shares of its common stock for a total purchase price of $1.76 billion.
- The Board approved a quarterly cash dividend of $0.295 per share, payable on January 7, 2027, to stockholders of record on December 2, 2026.
- Third-quarter dividends paid were $439 million.
- Nine-month dividends paid were $1,305 million.
What drove it
- The ChampionX businesses contributed $956 million of revenue, $239 million of adjusted EBITDA and $190 million of pretax segment operating income in the third quarter of 2026.
- Excluding ChampionX, third-quarter 2026 global revenue increased 2% year on year, international revenue was essentially flat year on year, and North America revenue increased 13% year on year.
- Production Systems revenue increased 15% year on year, with ChampionX production chemicals and artificial lift businesses contributing $950 million of revenue.
- Data Center Solutions revenue increased 23% sequentially and 76% year on year.
- Middle East business grew 13% sequentially despite late-quarter disruptions.
- SLB OneSubsea activity and new contract awards increased backlog and enhanced revenue visibility into 2027.
Concerns
- GAAP diluted EPS decreased 6% sequentially and 2% year on year.
- Adjusted EBITDA margin of 21.9% was 121 bps below the third quarter of 2025.
- Pretax segment operating margin of 16.7% was 153 bps below the third quarter of 2025.
- Reservoir Performance and Well Construction revenue each decreased 3% year on year, while their pretax operating margins declined 223 bps and 239 bps, respectively.
- Middle East & Asia revenue decreased 6% year on year, primarily reflecting a 12% decline in the Middle East due to conflict-related disruptions.
- All Other pretax operating income decreased sequentially as ramp-up costs associated with new Data Center Solutions projects impacted profitability.
- The proposed Kelvion transaction requires customary closing conditions and regulatory approvals and is expected to close in the first half of 2027.
What to watch
- Recovery in Middle East activity following late-quarter disruptions and the effect on Reservoir Performance and Well Construction profitability.
- Execution of SLB OneSubsea contract awards and the associated backlog and revenue visibility into 2027.
- Data Center Solutions revenue growth, project ramp-up costs and the planned Kelvion acquisition.
- ChampionX integration and the contribution of production chemicals and artificial lift businesses.
- Delivery against full-year 2026 capital investment expected to be approximately $2.5 billion.
- Digital ARR and growth in Digital Operations and Platforms & Applications.
Balance sheet and cash flow
- Cash and short-term investments were $3,551 million as of September 30, 2026, compared with $4,212 million as of December 31, 2025.
- Short-term borrowings and current portion of long-term debt were $1,653 million and long-term debt was $11,147 million as of September 30, 2026.
- Net Debt was $9,249 million as of September 30, 2026, compared with $8,727 million as of June 30, 2026 and $7,424 million as of December 31, 2025.
- Third-quarter cash flow from operations was $1,510 million, capital expenditures were $485 million, APS investments were $114 million, exploration data capitalized was $83 million, and free cash flow was $828 million.
- Nine-month cash flow from operations was $3,356 million and nine-month free cash flow was $1,521 million.
- Business acquisitions and investments, net of cash acquired plus debt assumed, were $334 million during the third quarter and $583 million during the first nine months of 2026.
Analysis
SLB reported third-quarter revenue of $9,449 million, up 5% sequentially and 6% year on year. Sequential growth was broad-based across all geographical areas and Core divisions. International revenue increased 5% sequentially and North America revenue increased 7%, with a 13% sequential increase in Middle East activity despite late-quarter disruptions. On a ChampionX-adjusted basis, global revenue increased 2% year on year, with international essentially flat and North America up 13%.
Production Systems was the largest and strongest Core division, reporting $4,000 million of revenue, up 6% sequentially and 15% year on year, with pretax operating income up 10% sequentially and 16% year on year. ChampionX contributed $950 million of Production Systems revenue. Reservoir Performance and Well Construction each grew 5% sequentially as Middle East and offshore activity recovered, but each was down 3% year on year. Their year-on-year pretax operating margins also contracted, reflecting lower Middle East profitability relative to the prior-year period.
Profitability improved from the second quarter but remained below prior-year levels. Adjusted EBITDA rose 9% sequentially to $2,067 million and adjusted EBITDA margin expanded 71 bps to 21.9%. Pretax segment operating income increased 12% sequentially to $1,576 million, with margin up 104 bps to 16.7%. Against the third quarter of 2025, adjusted EBITDA was flat, adjusted EBITDA margin declined 121 bps, pretax segment operating income declined 3%, and pretax segment operating margin declined 153 bps. GAAP diluted EPS was $0.49, while diluted EPS excluding charges and credits was $0.64.
Cash flow from operations was $1,510 million and free cash flow was $828 million in the quarter. SLB used $656 million for share repurchases and paid $439 million of dividends. Net Debt ended the quarter at $9,249 million, compared with $8,727 million at June 30, 2026. The Board approved a $0.295 per-share quarterly cash dividend, and management maintained full-year 2026 capital investment guidance of approximately $2.5 billion.
Data Center Solutions is emerging as a material growth contributor, with revenue of $230 million, up 23% sequentially and 76% year on year, though new-project ramp-up costs reduced All Other pretax operating income sequentially. Management described strengthening international fundamentals, deepwater momentum, new SLB OneSubsea awards, activity increases in Venezuela and further upside if Middle East activity recovers. The planned Kelvion acquisition for approximately $3.4 billion in cash plus approximately $0.7 billion of assumed debt is expected to close in the first half of 2027, subject to closing conditions and regulatory approvals.
Management, verbatim
SLB delivered solid third-quarter results with all regions growing sequentially — led by a gradual recovery in the Middle East, growth in North America land and broadening international activity in deepwater offshore basins.
Olivier Le Peuch, Chief Executive Officer
AI is driving unprecedented investment in data center infrastructure, and customers are looking for partners who can deploy quickly, reliably and at scale.
Olivier Le Peuch, Chief Executive Officer
Combined with significant activity increases in Venezuela and expanding momentum across our Core, Digital and Data Center Solutions businesses, we see a very compelling outlook for 2027, with further upside as Middle East activity recovers.
Olivier Le Peuch, Chief Executive Officer
Not in the filing
stated, not guessed- Gross margin was not reported.
- GAAP operating income was not reported.
- Third-quarter prior-year and prior-quarter cash flow from operations were not reported.
- Third-quarter prior-year and prior-quarter free cash flow were not reported.
- Revenue, gross margin, operating expenses and tax-rate guidance were not provided.
- Previous-release outlook was not provided, so no comparison of actual results with prior guidance is available.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
SLB (formerly Schlumberger) is a leading oilfield services provider. The Q3 2026 release includes details on segment performance, geographic growth, and the impact of recent acquisitions.
Ticker impact
SLB reported its Q3 2026 earnings, revealing revenue of $9.45B (+5% QoQ) and GAAP EPS of $0.49 (-6% QoQ), marking the first public disclosure of these results.
potential downside pressure as investors digest the EPS decline
Revenue beat expectations but EPS fell sequentially and YoY, which historically triggers short-term sell pressure for SLB.
Market effects
Oilfield services sector may see mixed sentiment as SLB's results highlight both growth and margin pressure.
North America and Middle East markets could react to SLB's regional performance updates.
SLB's earnings are a key data point for global energy infrastructure investors.
Counterpoint
Despite EPS miss, the strong revenue growth and expanding data center solutions could support a longer-term upside.
Key entities
- ExecutiveOlivier Le Peuch
CEO of SLB, provided commentary on the results.
- Acquired BusinessChampionX
Contributed $956M of revenue in Q3 2026.
