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Schlumberger Limited (SLB)
NYSE:SLB
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Schlumberger
(NYSE:SLB)
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Rating:73Outperform
Price Target:
$55.00
â–²(13.68% Upside)
The score is driven primarily by solid financial quality (strong cash generation and a notably strengthened balance sheet) and a constructive earnings-call outlook with defined growth and capital-return plans. These positives are tempered by cooling 2025 profitability versus 2024, stretched technical momentum signals, and a valuation that is not clearly cheap for a cyclical business.
Positive Factors
Strong cash generation
Consistent, multi-year operating cash flow and a $4.1B free cash flow result provide durable internal funding for capex, R&D, buybacks and dividends. High cash generation improves resilience through oil-cycle volatility and supports strategic reinvestment without over-reliance on debt.
Material balance-sheet repair
Marked decline in leverage to ~0.32 materially strengthens capital structure, lowers financing risk, and increases strategic optionality. Lower net debt improves ability to pursue M&A, sustain shareholder returns and endure cyclical downturns without compromising investment plans.
Strategic scale via ChampionX and production systems
ChampionX integration and a larger production-systems franchise boost recurring, higher-margin product and service revenue. This expands cross-sell opportunities into international markets, diversifies revenue away from spot drilling, and embeds more stable, systems-driven cash flows over the medium term.
Negative Factors
Cyclical revenue and margin cooling
A recent revenue decline and margin compression highlight the company’s sensitivity to upstream activity and pricing. Persistent cyclical exposure can limit structural margin expansion and creates earnings volatility, reducing visibility for multi-quarter planning and capital allocation.
Pricing pressure in select international markets
Sustained pricing competition in international tenders and softer regional demand (noted in several markets) can depress long-run contract profitability. Prolonged price pressure forces margin trade-offs, constrains pricing power and can erode returns on large equipment and subsea contracts.
Suboptimal cash conversion and rising below-the-line costs
FCF converting at ~66–75% of net income indicates working-capital needs and investments limit cash available versus reported earnings. Coupled with one-time impairments and higher amortization from deals, this constrains net distributable cash and reduces buffer for unexpected shocks or accelerated buybacks.
Schlumberger (SLB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$72.34B
Dividend Yield2.98%
Average Volume (3M)17.55M
Price to Earnings (P/E)20.6
Beta (1Y)0.82
Revenue Growth-2.13%
EPS Growth-16.76%
CountryUS
Employees110,000
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.78
Shares Outstanding1,495,331,500
10 Day Avg. Volume22,739,371
30 Day Avg. Volume17,546,472
Financial Highlights & Ratios
PEG Ratio-0.70
Price to Book (P/B)2.16
Price to Sales (P/S)1.58
P/FCF Ratio11.77
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue2.27
Enterprise Value/Gross Profit12.45
Enterprise Value/Ebitda11.33
Forecast
1Y Price Target
$53.25Price Target Upside10.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)2.89
Revenue Forecast (FY)$37.18B
Schlumberger Business Overview & Revenue Model
Company DescriptionSLB 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 development and hydrocarbon production, carbon management, and integration of adjacent energy systems; reservoir interpretation and data processing services for exploration data; and well construction and production improvement services and products. It also offers subsurface geology and fluids evaluation information; stimulation services to restore or enhance well productivity through hydraulic fracturing, matrix stimulation, and water treatment; and intervention services to oil and gas operators. In addition, the company offers mud logging, directional drilling, measurement-while-drilling, and logging-while-drilling services, as well as engineering support services; supplies drilling fluid systems; designs, manufactures, and markets roller cone and fixed cutter drill bits; bottom-hole-assembly and borehole enlargement technologies; well planning, well drilling, engineering, supervision, logistics, procurement, and contracting of third parties, as well as drilling rig management solutions; and drilling equipment and services, as well as land drilling rigs and related services. Further, it provides artificial lift; supplies packers, safety valves, sand control technology, and various intelligent systems; midstream production systems; valves, chokes, actuators, and surface trees; and OneSubsea, an integrated solutions, products, systems, and services, including wellheads, subsea trees, manifolds and flowline connectors, control systems, connectors, and services. The company was formerly known as Schlumberger Limited and change its name to SLB N.V. in October 2025. SLB N.V. was founded in 1926 and is based in Houston, Texas.
How the Company Makes MoneySchlumberger generates revenue primarily through the provision of oilfield services and technology solutions to upstream oil and gas companies. Its revenue model is largely based on charging clients for its services, which include drilling, well services, and reservoir management. Key revenue streams include contracts for drilling services, production optimization, and data analysis. Schlumberger also benefits from long-term contracts with major oil companies and government entities, which provide a stable income. Additionally, the company has formed significant partnerships with other industry players and technology firms to enhance its service offerings and maintain a competitive edge, further contributing to its earnings.
Schlumberger 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 FlySchlumberger Earnings Call Summary
Earnings Call Date:Jan 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 17, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial highlights — meaningful sequential revenue and margin expansion, robust cash generation, meaningful digital acceleration, material ChampionX production-systems contribution, OneSubsea backlog momentum, and an ambitious data-center growth trajectory. These positives were balanced against discrete near-term headwinds including Q1 seasonality, a carbon-capture goodwill impairment and project loss, pricing pressure in select international markets, and some region-specific weakness (Saudi, Sub-Saharan Africa, Mexico). Management provided constructive 2026 guidance with sustained shareholder returns and a pathway to capture synergies and international recovery, implying confidence in a broader rebound through 2026–2027.Q4-2025 Updates
Positive Updates
Sequential Revenue Growth and Margin Expansion (Q4 2025)
Q4 revenue of $9.7B, up $817M or 9% sequentially (ex-ChampionX: +6% sequential). Adjusted EBITDA margin 23.9%, up 83 basis points sequentially, demonstrating margin expansion alongside revenue growth.
Strong Cash Flow and Balance Sheet Improvement
Generated $3.0B cash from operations and $2.3B free cash flow in Q4; full-year free cash flow of $4.1B (third consecutive year ≥ $4B). Net debt reduced by $1.8B in the quarter to $7.4B.
Digital Business Acceleration
Digital revenue $825M in Q4, up 25% sequentially; full-year digital revenue $2.7B (+9% YoY). Digital pretax operating margin expanded 557 bps to 34%. Digital annual recurring revenue (ARR) surpassed $1B (ARR YoY growth 15%) and trailing twelve-month net recurring revenue retention was 103%.
Production Systems Strength and ChampionX Contribution
Production systems revenue $4.1B in Q4, up 17% sequentially (ex-ChampionX: +11%). Company delivered approximately $500M of organic revenue growth in Q4 plus roughly $300M contribution from an extra month of ChampionX consolidation. ChampionX expected to add ~ $1.8B incremental revenue in 2026 (full-year benefit).
Subsea and OneSubsea Momentum
OneSubsea awarded ~ $4B in subsea bookings in 2025 and management sees a path to cumulative bookings exceeding $9B over the next two years. Management expects >500 subsea trees to be awarded across 2026–2027 (~20% higher than 2025 run rate).
Data Center Solutions Rapid Growth
Data center solutions grown from launch under two years; company expects to exit the year at a quarterly revenue run rate equivalent to $1B/year and plans geographic and customer base expansion to scale the business internationally.
2026 Financial Guidance and Shareholder Returns
Full-year 2026 revenue guidance of $36.9B–$37.7B (assumes oil in high $50s–low $60s). Adjusted EBITDA guidance $8.6B–$9.1B with margins in line with 2025. Management expects to return >$4B to shareholders in 2026 (3.5% dividend increase announced and targeted $2.4B buyback, potentially more).
Operational Breadth and Geographic Stabilization
Sequential growth across all geographies for the first time since 2024; international organic revenue increased ~7% sequentially and North America ~6% (ex-ChampionX). Notable rebounds in Middle East (UAE, Kuwait, Iraq growth), Asia, and parts of Latin America.
Negative Updates
Charges and Carbon Capture Impairment
Recorded $0.23 of net charges in Q4, including a $0.11 goodwill impairment related to carbon capture, $0.08 merger/integration charges, $0.07 workforce reductions. Carbon capture project loss negatively impacted margins by ~50 basis points in the quarter.
Earnings Per Share Trends
Q4 adjusted EPS (excluding charges/credits) was $0.78, up $0.09 sequentially but down $0.14 versus Q4 prior year, showing some pressure versus last year on an EPS basis.
Near-Term Seasonality and Q1 2026 Guidance
Q1 2026 expected to decline high single digits sequentially (seasonal dip) with adjusted EBITDA margin expected to decrease 150–200 basis points versus Q4 2025, reflecting near-term softness before a mid-year rebound.
Market and Pricing Headwinds
Management cautioned near-term commodity oversupply pressure could keep prices subdued through 2026, leading E&P customers to be cautious and maintain backlogs; pricing pressure persists in some international tenders and is expected to pressure margins in reservoir performance and well construction in 2026.
Regional Weaknesses that Impacted FY2025
Full-year 2025 organic revenue decline was entirely attributed to Saudi Arabia, Sub-Saharan Africa, and Mexico (Mexico flat). Some land markets declined and certain international markets remain under pressure, though management expects improvement in 2026.
Divestitures and Revenue Headwinds
2025 divestitures (Palliser APS project interest in Canada and RIG business in Middle East) will reduce comparables by ~ $350M of combined revenue, partially offsetting ChampionX gains in 2026.
Division-Specific Margin Pressure
Reservoir performance and well construction margins are expected to be down year-over-year in 2026 due to activity mix and pricing headwinds in select markets; well construction revenue was down 1% sequentially in Q4.
Rising Below-the-Line Costs
Corporate costs to increase year-over-year, driven by ~ $70M incremental intangible amortization from a full year of ChampionX in 2026 and a slightly higher effective tax rate (~20%).
Company Guidance
SLB guided 2026 revenue of $36.9–$37.7 billion and adjusted EBITDA of $8.6–$9.1 billion with margins roughly in line with 2025, reflecting an incremental ~$1.8 billion of ChampionX revenue and roughly half of $400 million in total synergies expected by 2026 (≈75% of synergies to production systems); it expects ~ $2.5 billion of capital investments (CapEx + APS + exploration), an effective tax rate of ~20%, and to return >$4 billion to shareholders (a 3.5% dividend increase and a targeted ~$2.4 billion buyback). Near term, Q1 revenue is expected to decline high single digits sequentially with adjusted EBITDA margin down 150–200 bps versus Q4, followed by a rebound and a higher Q4 2026 exit rate versus Q4 2025. Division outlooks: digital to grow at 2025’s pace (digital full‑year 2025 revenue $2.7B, Q4 digital $825M, digital ARR >$1B and 35% margin), production systems to increase (Q4 production systems $4.1B), reservoir performance flattish, well construction modestly down, and data‑center solutions targeting about a $1 billion run rate by year‑end. Recent Q4 metrics anchoring the outlook included $9.7B revenue (+9% sequential), 23.9% adjusted EBITDA margin (+83 bps sequential), $3.0B operating cash flow, $2.3B free cash flow (FY free cash flow $4.1B), and year‑end net debt of $7.4B.Schlumberger Financial Statement Overview
Summary
Above-average fundamentals supported by a strong post-2020 recovery, improved leverage (debt-to-equity down to ~0.32 in 2025), and consistently strong operating cash flow with healthy free cash flow. The main drag is softer 2025 performance versus 2024 (modest revenue decline and margin compression), indicating cooling momentum and some cost/price pressure.Income Statement
Revenue expanded strongly from 2021–2024 (with positive growth each year), but 2025 saw a modest revenue decline versus 2024. Profitability improved materially from the 2020 loss year, with net margin staying solid in 2022–2024 (~12% range) before easing in 2025 (~9%). Gross margin and cash earnings margin also softened in 2025 versus 2024, suggesting some mix/price or cost pressure. Overall: good post-cycle recovery and profitability, but momentum cooled in the most recent year.72
Positive
Balance Sheet
Leverage has improved meaningfully over time: debt-to-equity moved down from elevated levels in 2020–2021 to ~0.57 in 2023–2024 and ~0.32 in 2025, indicating a stronger capital structure. Equity rose sharply in 2025 versus prior years, further supporting balance sheet resilience. Total debt is broadly stable to slightly lower versus the peak period, which is favorable; however, the business remains exposed to a cyclical industry, so maintaining this lower leverage profile is important.78
Positive
Cash Flow
Operating cash flow is consistently strong in 2021–2025, and free cash flow is healthy and improved meaningfully from 2022 levels. Free cash flow growth was robust in 2025 (up strongly versus 2024) after being roughly flat-to-down in 2024, showing renewed cash generation momentum. A watch item is that free cash flow remains below net income in recent years (roughly two-thirds to three-quarters of earnings), implying some working capital and/or investment needs that limit conversion, even though absolute cash flow is solid.74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 35.71B | 36.29B | 33.13B | 28.09B | 22.93B |
| Gross Profit | 6.50B | 7.46B | 6.56B | 5.16B | 3.66B |
| EBITDA | 7.15B | 8.07B | 7.54B | 6.43B | 4.62B |
| Net Income | 3.35B | 4.46B | 4.20B | 3.44B | 1.88B |
Balance Sheet | |||||
| Total Assets | 54.87B | 48.94B | 47.96B | 43.13B | 41.51B |
| Cash, Cash Equivalents and Short-Term Investments | 4.21B | 4.67B | 3.99B | 2.89B | 3.14B |
| Total Debt | 12.31B | 12.07B | 11.96B | 12.23B | 14.20B |
| Total Liabilities | 27.58B | 26.59B | 26.60B | 25.15B | 26.23B |
| Stockholders Equity | 26.11B | 21.13B | 20.19B | 17.68B | 15.00B |
Cash Flow | |||||
| Free Cash Flow | 4.79B | 4.47B | 4.54B | 2.00B | 3.47B |
| Operating Cash Flow | 6.49B | 6.60B | 6.64B | 3.72B | 4.65B |
| Investing Cash Flow | -1.41B | -3.15B | -2.78B | -1.39B | -919.00M |
| Financing Cash Flow | -5.64B | -2.77B | -2.51B | -2.38B | -2.82B |
Schlumberger Technical Analysis
Positive
48.38
Price Trends
41.12
Positive
37.94
Positive
35.94
Positive
Market Momentum
2.48
Positive
66.03
Neutral
45.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLB, the sentiment is Positive. The current price of 48.38 is above the 20-day moving average (MA) of 46.52, above the 50-day MA of 41.12, and above the 200-day MA of 35.94, indicating a bullish trend. The MACD of 2.48 indicates Positive momentum. The RSI at 66.03 is Neutral, neither overbought nor oversold. The STOCH value of 45.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLB.
Schlumberger Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $22.54B | 24.98 | 28.72% | 0.44% | 11.73% | 45.70% | |
76 Outperform | $55.30B | 21.55 | 14.42% | 2.04% | 1.51% | 30.09% | |
75 Outperform | $23.84B | 11.88 | 11.69% | 4.43% | -9.76% | -18.94% | |
73 Outperform | $72.34B | 20.60 | 14.28% | 2.98% | -2.13% | -16.76% | |
72 Outperform | $6.69B | 18.33 | 5.93% | 3.24% | -1.43% | -63.13% | |
66 Neutral | $28.21B | 22.29 | 12.24% | 2.41% | -4.06% | -47.41% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
SLB
Schlumberger
48.38
9.45
24.28%
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Schlumberger Corporate Events
Financial DisclosuresRegulatory Filings and Compliance
Schlumberger issues Form 8-K Regulation FD disclosure update
Neutral
Jan 23, 2026
On January 23, 2026, SLB announced via press release that it had furnished information related to its operations and financial condition in connection with a Form 8-K filing, specifying that this information is provided for reference but will not be treated as filed under Section 18 of the Exchange Act or automatically incorporated into other securities filings. The announcement clarifies the regulatory status of the disclosed information, signaling that while SLB is making additional operational and financial details available to the market, it is doing so under a framework that limits certain legal and reporting implications for the company and its stakeholders.
The most recent analyst rating on (SLB) stock is a Buy with a $47.00 price target. To see the full list of analyst forecasts on Schlumberger stock, see the SLB Stock Forecast page.
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.