SLB Exceeds Earnings Expectations Driven by Rising Global Oilfield Demand
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SLB outperform third-quarter expectations, driven by a surge in North American shale activity and a gradual rebound in Middle Eastern operations, positioning the oilfield services giant for expansion through 2027.
The company posted adjusted diluted earnings of $0.64 per share, beating Wall Street estimates of $0.62 per share. Quarterly revenue rose to $9.45 billion—a 6% year-over-year increase and a 5% gain sequentially.
Net income reached $735 million for the quarter, while adjusted EBITDA came in at $2.07 billion.
North American revenues surged 24% year-over-year to $2.40 billion, up 7% sequentially. This expansion was driven by U.S. land drilling activity, demand for artificial lift and production chemicals, and the integration of ChampionX operations.
International revenues grew 5% sequentially to $6.99 billion. In the Middle East and Asia, revenue climbed 9% sequentially to $2.81 billion, though it remained down 6% compared to the previous year due to ongoing regional instability. SLB noted a 13% sequential increase in Middle Eastern activity specifically, as clients resumed previously delayed drilling and production operations.
Outside the Middle East, sustained global offshore activity drove strong demand for subsea hardware, reservoir services, and advanced drilling technology. SLB’s major operating divisions—Production Systems, Well Construction, and Reservoir Performance—all recorded sequential top-line growth.
Beyond its core energy operations, SLB expanded its technology infrastructure footprint. Revenue from its Data Center Solutions segment rose 23% quarter-over-quarter, fueled by rising demand for AI computing infrastructure. The company also highlighted its pending acquisition of thermal management firm Kelvion to strengthen its cooling capabilities for industrial data centers.
For the quarter, SLB generated $1.51 billion in operating cash flow and $828 million in free cash flow. Capital expenditures remain on track to meet the company’s full-year target of approximately $2.5 billion for 2026.
