SLB (NYSE:SLB) Announces Quarterly Earnings Results

SLB (NYSE:SLB) posted its earnings results on Friday. The oil and gas company reported $0.64 EPS for the quarter, topping 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 firm had revenue of $9.45 billion during the quarter, compared to analysts’ expectations of $9.27 billion. During the same quarter in the prior year, the business earned $0.69 earnings per share. The business’s revenue for the quarter 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 Trading Up 6.6%

Shares of NYSE:SLB traded up $3.29 during midday trading on Friday, hitting $52.84. 6,374,321 shares of the stock were exchanged, compared to its average volume of 15,787,104. The stock has a market capitalization of $78.42 billion, a price-to-earnings ratio of 25.53, a P/E/G ratio of 2.82 and a beta of 0.83. 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 business’s 50-day moving average price is $52.58 and its 200 day moving average price is $52.15. SLB has a 12 month low of $34.65 and a 12 month high of $60.46.

Analysts Set New Price Targets

SLB has been the subject of several research reports. Raymond James Financial dropped their price objective on shares of SLB from $62.00 to $61.00 and set an “outperform” rating for the company in a research note on Friday, July 10th. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of SLB in a research note on Tuesday, September 1st. Weiss Ratings reaffirmed a “hold (c)” rating on shares of SLB in a research note on Monday, August 3rd. Morgan Stanley upped their price target on shares of SLB from $54.00 to $55.00 and gave the stock an “overweight” rating in a report on Monday, July 27th. Finally, UBS Group increased their price target on SLB from $72.00 to $75.00 and gave the company a “buy” rating in a research note on Monday, September 14th. Twenty-four investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $62.27.

Key Headlines Impacting SLB

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.

About SLB

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.