SLB (0SCL) AI Stock Analysis

Company Guidance

For the fourth quarter, SLB assumes Middle East revenue remains flat sequentially at approximately $1.9 billion, representing about 83% of revenue generated in the fourth quarter of 25, and expects overall revenue to reach approximately $10 billion, representing an increase of 5% to 7% sequentially; excluding The Middle East, global fourth quarter revenue is expected to grow in the high single digits year on year, adjusted EBITA margins are expected to expand 100 to 150 bps, combined core division revenue is expected to increase by low single digits, led by high single digit growth in Production Systems, with well construction and Reservoir Performance essentially flat, while digital revenue is expected to increase in line with fourth quarter historical trends, with full-year double digit year on year growth and adjusted EBITA margins >35%; for 2027, assuming Middle East activity remains at second half 26 levels and that the conflict does not materially escalate, global OFS market activity is expected to grow in the mid single digits, with normalization of activity in The Middle East providing further upside, digital is expected to continue its established growth trajectory, and data center solutions is expected to continue to accelerate; full-year capital investments are expected to be approximately $2.5 billion, repurchases approximately $2.4 billion, total returns to shareholders slightly above $4 billion, Kelvion closing is expected in the first half of 2027, OneSubsea bookings are expected to surpass the $9 billion target across the 2 years, data center solutions is on track for surpassing $1 billion by the end of this year as a run rate and surpassing $2 billion in its run-rate for 2027, ChampionX is expected to achieve its initial synergy target of about $200 million after 18 months post acquisition, and Venezuela has potential for a multi-fold next year with the historical level of $1 billion of goal in the long term.