Schlumberger’s (SLB) shares edged higher early Friday even though the oilfield services giant reported lower 2025 profit and revenue in its fourth-quarter results.
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For the full year, the energy technology company’s revenue fell 2% from a year ago to $35.71 billion, with profit dropping 24% to $3.37 billion.
Schlumberger Posts Mixed Q4 Result
In the final three months of 2025, Schlumberger’s earnings per share fell 40% from a year ago to $0.55, well below analyst consensus of $0.74. However, the firm’s revenue jumped 5% from the prior-year quarter to reach $9.74 billion, beating the Wall Street estimate of $9.55 billion.
For the quarter, Schlumberger’s profit also fell by 25% year-over-year to $824 million, although it rose 12% from the previous quarter. This compares less favorably with rival Halliburton (HAL), which also saw its net income fall about 4% to $589 million and similarly posted a 2% year-over-year growth in its revenue.
Schlumberger Beats Halliburton on Cash Generation
Meanwhile, while Halliburton’s operating cash flow — cash available for its day-to-day business — and its free cash flow — cash left after essential capital investments — fell sharply from a year earlier in the fourth quarter, Schlumberger increased both significantly. The company’s cash flow from its operations and free cash flow grew 26% and 40% to $3.01 billion and $2.29 billion.
Schlumberger said its acquisition of oilfield technology and services provider ChampionX, which was completed in July last year, contributed $1.5 billion to its revenue in the quarter.
“The addition of ChampionX activity and growth in the Digital and Data Center Solutions businesses mostly offset notable revenue declines in Saudi Arabia, Mexico, and across Sub-Saharan Africa,” noted Olivier Le Peuch, Schlumberger’s chief executive.
Schlumberger to Boost Capital Expenditure in 2026
Looking ahead, Schlumberger expects capital spending of $2.5 billion, up from $2.4 billion in 2025. The company, which has raised its quarterly dividend by 3.5% to 29.5 cents per share, expects to return more than $4 billion to shareholders this year.
In addition, Schlumberger expects the contribution from ChampionX “to continue to accelerate in 2026 as we capture further synergies and extend its leading capabilities into additional international markets.”
Is SLB a Good Stock to Buy?
On Wall Street, Schlumberger’s shares remain a Strong Buy based on analysts’ consensus rating. This breaks down to 17 Buys issued over the past three months.
However, the average SLB price target of $49.84 only implies growth of about 1%. Nonetheless, it is important to note that the consensus rating might change as more analysts reassess the stock following the latest earnings update.
