SLB (NYSE:SLB – Get Free Report) released its quarterly earnings results on Friday. The oil and gas company reported $0.64 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.62 by $0.02, FiscalAI reports. SLB had a net margin of 8.53% and a return on equity of 14.05%. The business had revenue of $9.45 billion for the quarter, compared to analyst estimates of $9.27 billion. During the same quarter in the previous year, the business earned $0.69 earnings per share. The firm’s revenue was up 5.8% compared to the same quarter last year.
Here are the key takeaways from SLB’s conference call:
- Broad-based third-quarter growth lifted revenue 5% sequentially to $9.45 billion, with margin expansion across all four core divisions and adjusted EBITDA margin reaching 21.9%.
- SLB expects fourth-quarter revenue of approximately $10 billion, up 5%–7% sequentially, with adjusted EBITDA margins expanding by 100–150 basis points despite Middle East revenue remaining flat.
- Management sees a durable international upcycle into 2027, driven by deepwater projects, renewed exploration, production-recovery spending, Venezuela, and OneSubsea backlog; SLB expects the global OFS market to grow at a mid-single-digit rate and believes its core divisions will outperform.
- Digital revenue is expected to deliver double-digit growth for the full year with adjusted EBITDA margins above 35%, while Data Center Solutions is accelerating; the Kelvion acquisition is expected to close in the first half of 2027 and expand SLB’s AI-infrastructure offering.
- Third-quarter adjusted EPS fell to $0.64 from $0.69 a year earlier, partly reflecting a $187 million non-cash pension settlement charge and $0.03 per share of ChampionX merger and integration costs.
SLB Stock Up 5.1%
Shares of SLB traded up $2.51 during trading hours on Friday, hitting $52.06. 4,420,571 shares of the company were exchanged, compared to its average volume of 15,782,455. SLB has a 52 week low of $34.65 and a 52 week high of $60.46. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.05 and a current ratio of 1.44. The firm’s 50 day moving average is $52.58 and its 200-day moving average is $52.15. The company has a market cap of $77.27 billion, a PE ratio of 25.15, a PEG ratio of 2.82 and a beta of 0.83.
More SLB News
Here are the key news stories impacting SLB this week:
- Positive Sentiment: SLB reported adjusted earnings of $0.64 per share, above the $0.62 consensus estimate, marking its fourth consecutive quarterly earnings beat. Revenue rose 5.8% year over year to $9.45 billion, also exceeding expectations. SLB Q3 Earnings and Revenues Surpass Estimates
- Positive Sentiment: Management indicated that activity in the Middle East is gradually recovering after a difficult start to the year. Resilient demand in North America and broad-based international growth helped offset weakness related to the Iran conflict. Top oilfield services firm SLB beats quarterly profit estimates
- Positive Sentiment: SLB’s emerging data-center business reportedly increased 76% year over year, adding a potential diversification and growth avenue beyond traditional oilfield services. SLB: Oilfield-Services Giant or AI Stock? Earnings Offer a Clue.
- Positive Sentiment: A new multi-client 3D seismic survey offshore southern Brazil could increase visibility for SLB’s exploration technology and create longer-term opportunities in a prospective frontier basin. SLB Back In Focus Following Brazil Survey
- Neutral Sentiment: Despite the earnings beat, GAAP net income attributable to SLB declined to $735 million from $739 million a year earlier, while the pretax margin narrowed to 10.8% from 11.2%. EPS fell from $0.69 to $0.64 year over year. SLB Announces Third-Quarter 2026 Results
- Negative Sentiment: Some investors may view SLB’s valuation as demanding after its multiyear share-price gains, with one analysis suggesting that contract wins and technology awards may already be reflected in the stock. Geopolitical disruption in the Middle East remains an ongoing operational risk.
Analyst Ratings Changes
Several equities analysts have weighed in on SLB shares. Capital One Financial lowered their price objective on shares of SLB from $64.00 to $63.00 and set an “overweight” rating on the stock in a research report on Tuesday, August 18th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of SLB in a research report on Monday, August 3rd. UBS Group raised their target price on SLB from $72.00 to $75.00 and gave the stock a “buy” rating in a research report on Monday, September 14th. Jefferies Financial Group reiterated a “buy” rating and set a $66.00 price target (up from $65.00) on shares of SLB in a report on Sunday, July 26th. Finally, Rothschild & Co Redburn upped their target price on SLB from $66.00 to $68.00 and gave the company a “buy” rating in a report on Friday, September 25th. Twenty-four analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, SLB currently has an average rating of “Moderate Buy” and an average price target of $62.27.
SLB Company Profile
SLB, formerly known as Schlumberger, is a global energy technology company that provides products, services and digital solutions to the oil and gas industry. Its offerings support the exploration, development and production of hydrocarbon resources across the life cycle of an oil or gas field.
The company provides reservoir characterization, drilling and well-construction services, well completion and production technologies, and equipment for subsea and surface operations. SLB also develops software, data and automation solutions designed to help energy companies improve operational efficiency, manage reservoirs and reduce emissions.
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