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SLB
(NYSE:SLB)
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Rating:70Outperform
Price Target:
$55.00
â–²(3.21% Upside)
Action:Reiterated
Date:10/07/26
SLB scores well overall on strong cash generation and a sounder leverage profile, supported by constructive guidance and strategic momentum in Digital/Data Center Solutions. The score is held back by weak near-term technicals (downtrend and negative momentum) and a valuation that is only moderately supportive given a ~24x P/E, alongside ongoing Middle East disruption risk.
Positive Factors
Strong cash generation and conversion
Strong operating and free cash flow provides internally generated funding for technology investment, growth initiatives, debt management, and shareholder returns. The sharp sequential improvement and substantial free-cash-flow conversion also support earnings quality and financial resilience over the coming quarters.
Negative Factors
Persistent Middle East disruption
Ongoing regional conflict is already reducing activity and revenue in an important operating area, while management expects recovery to take time. Continued disruption could weigh on utilization, project execution, and profitability across well-construction and reservoir-related activities.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and conversion
Strong operating and free cash flow provides internally generated funding for technology investment, growth initiatives, debt management, and shareholder returns. The sharp sequential improvement and substantial free-cash-flow conversion also support earnings quality and financial resilience over the coming quarters.
Read all positive factors
SLB Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where Schlumberger is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where Schlumberger is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlySLB (SLB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$72.38B
Dividend Yield2.4%
Average Volume (3M)13.71M
Price to Earnings (P/E)23.4
Beta (1Y)0.62
Revenue Growth2.34%
EPS Growth-29.38%
CountryUS
Employees109,000
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)2.08
Shares Outstanding1,484,143,200
10 Day Avg. Volume14,141,734
30 Day Avg. Volume13,708,338
Financial Highlights & Ratios
PEG Ratio-0.67
Price to Book (P/B)2.16
Price to Sales (P/S)1.58
P/FCF Ratio12.43
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue2.20
Enterprise Value/Gross Profit13.29
Enterprise Value/Ebitda11.17
Forecast
1Y Price Target
$63.80Price Target Upside19.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
EPS Forecast (FY)2.46
Revenue Forecast (FY)$36.93B
SLB Business Overview & Revenue Model
Company Description
SLB N.V. engages in the provision of technology for the energy industry worldwide. The company operates through four divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems. The company provides field dev...
How the Company Makes Money
SLB primarily makes money by selling services, equipment, and technology to oil and gas operators (and, in some cases, national oil companies and other industry participants) under contracts tied to exploration, drilling, well construction, and pr...
SLB Earnings Call Summary
Earnings Call Date:Jul 24, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 23, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and strategic picture: sequential revenue growth, strong performance and margin expansion in Digital and Production Systems, rapid scaling of Data Center Solutions with a clear $2+ billion exit rate target, improved free cash flow and active shareholder returns. These positives were tempered by meaningful, ongoing disruption in the Middle East (a ~13% sequential revenue decline in the region), some YoY earnings decline, net debt of $8.7 billion, and downside geopolitical risk that could subtract ~$150 million of Q3 revenue and ~$75 million of adjusted EBITDA in a severe scenario. On balance, the company conveyed confidence in recovery paths, diversification drivers (digital, data centers, deepwater), and an encouraging outlook into Q3/Q4 and 2027.Positive Updates
Solid Quarterly Revenue and Sequential Growth
Company revenue of $9.0 billion in Q2 2026, up ~3% sequentially, driven by broad-based international growth and a rebound in North America.
Negative Updates
Middle East Disruption and Revenue Impact
Middle East activity remained disrupted by regional conflict. Middle East revenue declined ~13% sequentially to approximately $1.36 billion (company clarified figure). Operations in some countries (notably Iraq) remain constrained by security, and a full recovery is expected to take time.
Read all updates
Q2-2026 Updates
Positive
Negative
Solid Quarterly Revenue and Sequential Growth
Company revenue of $9.0 billion in Q2 2026, up ~3% sequentially, driven by broad-based international growth and a rebound in North America.
Read all positive updates
Company Guidance
SLB's guidance calls for Q3 base-case sequential global revenue growth of 3–4% with adjusted EBITDA margin expansion of roughly 75 basis points; management expects core divisions to grow low‑ to mid‑single digits sequentially and Digital to grow in the low single digits. They disclosed a downside scenario in which flat sequential Middle East revenue would reduce Q3 revenue by about $150 million and impose an adjusted EBITDA headwind of about $75 million. For Q4 the company preliminarily assumes Middle East activity of $2.1–$2.2 billion (≈95% of Q4 2025), expects Q4 revenue to exceed $10 billion (~5% year‑over‑year growth) with an adjusted EBITDA margin near 24%, and reiterated longer‑term targets including Data Center Solutions exiting 2027 at an annualized revenue run rate above $2 billion; full‑year capital investments remain ~ $2.5 billion, minimum share repurchases $2.4 billion, and total 2026 shareholder returns targeted at >$4 billion.SLB Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 36.37B | 35.71B | 36.29B | 33.13B | 28.09B | 22.93B |
| Gross Profit | 6.01B | 6.50B | 7.46B | 6.56B | 5.16B | 3.66B |
| EBITDA | 7.15B | 7.34B | 8.07B | 7.54B | 6.43B | 5.03B |
| Net Income | 3.08B | 3.35B | 4.46B | 4.20B | 3.44B | 1.88B |
Balance Sheet | ||||||
| Total Assets | 55.53B | 54.87B | 48.94B | 47.96B | 43.13B | 41.51B |
| Cash, Cash Equivalents and Short-Term Investments | 4.07B | 4.21B | 4.67B | 3.99B | 2.89B | 3.14B |
| Total Debt | 12.80B | 12.31B | 12.07B | 11.96B | 12.23B | 14.20B |
| Total Liabilities | 28.28B | 27.58B | 26.59B | 26.60B | 25.15B | 26.23B |
| Stockholders Equity | 26.07B | 26.11B | 21.13B | 20.19B | 17.68B | 15.00B |
Cash Flow | ||||||
| Free Cash Flow | 4.55B | 4.54B | 4.47B | 4.54B | 2.00B | 3.47B |
| Operating Cash Flow | 6.53B | 6.49B | 6.60B | 6.64B | 3.72B | 4.65B |
| Investing Cash Flow | -2.75B | -1.41B | -3.15B | -2.78B | -1.39B | -919.00M |
| Financing Cash Flow | -4.26B | -5.64B | -2.77B | -2.51B | -2.38B | -2.82B |
SLB Technical Analysis
Negative
53.29
Price Trends
52.67
Negative
51.60
Negative
50.41
Negative
Market Momentum
-1.28
Positive
38.56
Neutral
36.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLB, the sentiment is Negative. The current price of 53.29 is above the 20-day moving average (MA) of 50.54, above the 50-day MA of 52.67, and above the 200-day MA of 50.41, indicating a bearish trend. The MACD of -1.28 indicates Positive momentum. The RSI at 38.56 is Neutral, neither overbought nor oversold. The STOCH value of 36.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLB.
SLB Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $27.35B | 23.81 | 35.29% | 0.29% | 8.77% | 35.66% | |
74 Outperform | $5.58B | 15.05 | 21.52% | 1.38% | -7.17% | -22.96% | |
71 Outperform | $55.77B | 17.89 | 16.25% | 1.62% | 0.42% | 1.75% | |
70 Outperform | $72.38B | 23.45 | 11.84% | 2.39% | 2.34% | -29.38% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $27.16B | 17.06 | 15.08% | 2.09% | 0.63% | -10.50% | |
58 Neutral | $6.73B | 72.65 | 1.53% | 2.29% | -1.63% | -78.44% |
* Energy Sector Average
SLB
SLB
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54.83%
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SLB Corporate Events
Business Operations and StrategyExecutive/Board Changes
SLB appoints Jing Ulrich to board, committees
Positive
Oct 6, 2026
On October 5, 2026, SLB Limited appointed Ms. Jing Ulrich to its Board of Directors, with immediate effect, and named her to the Audit and Finance Committees, indicating an emphasis on financial oversight and capital markets expertise. Her appoint...
Business Operations and StrategyM&A Transactions
SLB to Acquire Kelvion in $3.4 Billion Deal
Positive
Aug 31, 2026
On August 31, 2026, SLB Limited announced an agreement to acquire Kelvion, a global thermal management and heat exchange specialist, from Apollo-managed funds and Triton for approximately $3.4 billion in cash while assuming about $0.7 billion of K...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Schlumberger Issues Regulation FD Disclosure on Operations
Neutral
Jul 24, 2026
On July 24, 2026, SLB announced via a press release that it had furnished information under Item 7.01 of Form 8-K, clarifying that the disclosure is treated as “furnished” rather than “filed” under U.S. securities regulatio...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.