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Schlumberger Limited (SLB)
NYSE:SLB
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Schlumberger (SLB) AI Stock Analysis

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SLB

Schlumberger

(NYSE:SLB)

Rating:74Outperform
Price Target:
$39.00
â–²(9.95%Upside)
Schlumberger's robust financial performance and strategic acquisition of ChampionX are the primary drivers of its strong stock score. The financial health is underpinned by solid revenue and profit growth, while the acquisition is expected to yield significant synergies. However, mixed technical indicators and regional market challenges temper the overall outlook, warranting cautious optimism moving forward.
Positive Factors
Growth Opportunities
SLB remains a clear technology leader in the sector with a significant long-term growth opportunity through its Energy Transition Technology portfolio.
Market Resilience
SLB's diverse portfolio, including US offshore and digital solutions, provides resilience against trends affecting North American onshore markets.
Strategic Positioning
The acquisition of ChampionX enhances Schlumberger's production-focused portfolio, adding stability and potential for the company's shares to outperform.
Negative Factors
Financial Performance
SLB's free cash flow was 33% below consensus due to a higher working capital build.
Market Conditions
The US land activity and pricing outlook is under pressure, which could affect Schlumberger's business.
Market Guidance
There was confusion and disappointment over 2H guidance, with many interpreting the outlook as reflecting a decline rather than the expected growth.

Schlumberger (SLB) vs. SPDR S&P 500 ETF (SPY)

Schlumberger Business Overview & Revenue Model

Company DescriptionSchlumberger Limited, known as SLB, is a leading global technology company that provides a comprehensive range of services and products to the energy industry. Operating in over 120 countries, SLB offers integrated solutions for reservoir characterization, drilling, production, and processing. The company's expertise spans across various sectors, including oil and gas exploration, offshore and onshore drilling, and energy management, aiming to enhance efficiency and sustainability throughout the energy lifecycle.
How the Company Makes MoneySchlumberger generates revenue primarily through its extensive portfolio of oilfield services and technology-driven solutions. The company's revenue streams are categorized into four main divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems. These divisions offer a range of products and services such as software solutions, subsurface evaluation, drilling technologies, completion and production optimization, and equipment for oil and gas extraction and processing. Schlumberger collaborates with major energy companies around the world, establishing long-term partnerships that often involve large-scale projects. Additionally, SLB focuses on digital transformation and sustainability, investing in technologies and practices that improve operational efficiencies and reduce environmental impact, which can also drive revenue growth through innovative service offerings.

Schlumberger Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability, and indicating strategic focus areas for Schlumberger.
Chart InsightsSchlumberger's Digital and Integration segment is experiencing robust growth, reflecting a strategic pivot towards digital and AI solutions, as highlighted by a 17% year-on-year increase. However, Well Construction faces headwinds with a notable revenue decline, impacted by reduced drilling activity. Despite these challenges, the Production Systems segment is leading with margin expansion, supported by strong cash flow generation. The company is navigating uncertainties with a focus on cost management and strategic positioning, aiming for steady revenue growth in the second half of 2025, driven by digital and low carbon markets.
Data provided by:Main Street Data

Schlumberger Earnings Call Summary

Earnings Call Date:Jul 18, 2025
(Q2-2025)
|
% Change Since: 2.31%|
Next Earnings Date:Oct 17, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a solid quarter for Schlumberger Limited with steady revenue growth and successful integration of ChampionX. However, challenges persist in certain regional markets and segments, particularly in North America and offshore projects. The overall sentiment is cautiously optimistic with expectations of growth driven by the ChampionX acquisition and digital segment expansion.
Q2-2025 Updates
Positive Updates
Steady Revenue Growth
Schlumberger Limited delivered steady revenue and slight EBITDA margin expansion despite considerable macro headwinds. International markets revenue grew by 2% with strong growth in Iraq, the UAE, Kuwait, East Asia, China, and Australia.
Successful Integration of ChampionX
The acquisition of ChampionX is expected to enhance Schlumberger Limited's portfolio, particularly in production chemicals and artificial lift, with expected annual pretax synergies of $400 million within three years.
Strong Performance in Production Systems
Production Systems revenue increased by 3% sequentially with strong sales in artificial lift, midstream production systems, and valves.
Digital Segment Growth
Digital revenue remained steady with double-digit growth across platforms, applications, and digital operations. More than 7,800 users are on the Delphi platform, representing double-digit growth year on year.
Carbon Capture and Storage (CCS) Expansion
Continued growth in CCS with successful execution of several large-scale projects, including the Longship CCS project in Norway.
Strong Cash Flow Generation
Generated $1.1 billion of cash flow from operations and $622 million in free cash flow during the quarter, a $519 million increase compared to the last quarter.
Negative Updates
Revenue Decline in North America
Revenue in North America declined sequentially due to the seasonal spring breakup in Canada and non-repeat of exploration data sales in US offshore.
Challenges in Offshore Markets
Certain offshore projects, particularly in sub-Saharan Africa, are being pushed wide due to market conditions.
Well Construction Margin Pressure
Well construction margins decreased by 119 basis points due to an unfavorable technology and geography mix internationally.
Reservoir Performance Revenue Decline
Reservoir performance revenue declined by 1% sequentially due to a slowdown in evaluation and stimulation activity.
Uncertain Macro Environment
The macro environment remains uncertain with risks from OPEC+ supply releases and geopolitical tensions.
Company Guidance
In the second half of 2025, Schlumberger Limited expects revenue to range between $18.2 billion and $18.8 billion, driven by the integration of ChampionX, which will contribute five months of revenue. This increase is anticipated to offset the decline in U.S. activity and certain offshore markets, with revenue being backloaded in the fourth quarter due to a full quarter contribution from ChampionX and a seasonal uplift in year-end digital and product sales. The company also projects second-half EBITDA margins to remain flat compared to the second quarter, accounting for ChampionX's contribution and a tariff impact of 20 to 40 basis points. Despite these challenges, the integration of ChampionX is expected to yield $400 million in annual pretax synergies within three years, enhancing Schlumberger Limited's margins and earnings per share, particularly in 2026.

Schlumberger Financial Statement Overview

Summary
Schlumberger's financial statements demonstrate strong revenue and profit growth, effective cost management, and solid cash flow generation. While the increase in debt levels warrants monitoring, the overall financial health of the company is robust, supported by strong margins and effective capital utilization.
Income Statement
85
Very Positive
The company has shown strong performance with a consistent increase in total revenue from $22.93B in 2021 to $36.08B in the TTM period ending March 2025. The gross profit margin is robust at 20.5% TTM, indicating efficient cost management. The net profit margin is healthy at 11.6% TTM, showing solid profitability. Revenue growth has been impressive at 28.8% from 2022 to 2023 and 9.9% from 2023 to 2024. EBIT and EBITDA margins are also strong, reflecting efficient operations.
Balance Sheet
78
Positive
The balance sheet shows a stable financial structure with a debt-to-equity ratio of 0.49 TTM, indicating manageable leverage. Return on equity is strong at 14.5% TTM, reflecting effective use of shareholder funds. The equity ratio is reasonable at 65.9% TTM, suggesting a solid equity base. However, the slight increase in total debt from 2024 to TTM could be a potential risk if not managed properly.
Cash Flow
82
Very Positive
Cash flow performance is robust with a significant operating cash flow of $6.94B TTM. The free cash flow has shown steady growth, with a free cash flow growth rate of 6.1% from 2023 to 2024. The operating cash flow to net income ratio is strong at 1.65 TTM, indicating efficient cash generation relative to earnings. Additionally, the free cash flow to net income ratio of 1.13 TTM highlights strong cash conversion.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue36.29B33.13B28.09B22.93B23.60B
Gross Profit7.46B6.56B5.16B3.66B2.60B
EBITDA8.07B7.54B6.43B4.62B-8.76B
Net Income4.46B4.20B3.44B1.88B-10.49B
Balance Sheet
Total Assets48.94B47.96B43.13B41.51B42.57B
Cash, Cash Equivalents and Short-Term Investments4.67B3.99B2.89B3.14B3.01B
Total Debt12.07B11.96B12.23B14.20B17.89B
Total Liabilities26.59B26.60B25.15B26.23B30.08B
Stockholders Equity21.13B20.19B17.68B15.29B12.07B
Cash Flow
Free Cash Flow4.47B4.54B2.00B3.47B1.73B
Operating Cash Flow6.60B6.64B3.72B4.65B2.94B
Investing Cash Flow-3.15B-2.78B-1.39B-919.00M-2.35B
Financing Cash Flow-2.77B-2.51B-2.38B-2.82B-873.00M

Schlumberger Technical Analysis

Technical Analysis Sentiment
Positive
Last Price35.47
Price Trends
50DMA
34.71
Positive
100DMA
35.87
Negative
200DMA
38.33
Negative
Market Momentum
MACD
<0.01
Positive
RSI
53.24
Neutral
STOCH
55.76
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 35.47 is above the 20-day moving average (MA) of 35.19, above the 50-day MA of 34.71, and below the 200-day MA of 38.33, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.24 is Neutral, neither overbought nor oversold. The STOCH value of 55.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLB.

Schlumberger Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$14.98B17.2629.27%0.55%12.15%91.88%
81
Outperform
$20.40B11.6410.43%5.78%-15.42%-45.54%
76
Outperform
$19.30B10.5018.16%3.03%-4.08%-29.26%
75
Outperform
$45.40B15.0718.32%1.91%2.13%54.69%
74
Outperform
$53.24B12.1519.78%3.16%0.94%-4.63%
74
Outperform
$5.25B9.329.29%3.65%0.54%-39.88%
52
Neutral
C$2.95B-1.61-3.48%6.56%3.05%-49.39%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SLB
Schlumberger
35.47
-11.06
-23.77%
BKR
Baker Hughes Company
46.05
8.45
22.47%
FTI
TechnipFMC
36.45
7.31
25.09%
HAL
Halliburton
22.45
-10.54
-31.95%
NOV
NOV
13.97
-5.10
-26.74%
TS
Tenaris SA
38.07
7.97
26.48%

Schlumberger Corporate Events

Financial DisclosuresRegulatory Filings and Compliance
Schlumberger Releases Financial Update via Form 8-K
Neutral
Jul 18, 2025

On July 18, 2025, SLB issued a press release related to its operations and financial condition, which was furnished with Form 8-K. The information provided in the release is not considered filed for purposes of the Exchange Act or incorporated by reference in any Securities Act filings unless explicitly stated.

The most recent analyst rating on (SLB) stock is a Buy with a $67.00 price target. To see the full list of analyst forecasts on Schlumberger stock, see the SLB Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Schlumberger Completes Acquisition of ChampionX Corporation
Positive
Jul 16, 2025

On July 16, 2025, Schlumberger Limited completed the acquisition of ChampionX Corporation in an all-stock transaction. This strategic merger positions SLB to enhance its market presence by integrating ChampionX’s capabilities, potentially leading to improved operational efficiencies and expanded service offerings for stakeholders.

The most recent analyst rating on (SLB) stock is a Buy with a $69.00 price target. To see the full list of analyst forecasts on Schlumberger stock, see the SLB Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Schlumberger Receives Final Approval for ChampionX Merger
Positive
Jul 15, 2025

On April 2, 2024, Schlumberger Limited entered into a Merger Agreement to acquire ChampionX Corporation in an all-stock transaction. The U.K. Competition and Markets Authority cleared the merger on July 15, 2025, marking the final regulatory approval needed. The merger is expected to be completed on July 16, 2025, subject to remaining conditions, and will result in ChampionX becoming a wholly owned subsidiary of Schlumberger. This acquisition is anticipated to enhance Schlumberger’s market position and operational capabilities in the oilfield services sector.

The most recent analyst rating on (SLB) stock is a Buy with a $69.00 price target. To see the full list of analyst forecasts on Schlumberger stock, see the SLB Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
SLB CEO Highlights Q2 Operational Challenges at Conference
Negative
Jun 24, 2025

On June 24, 2025, SLB CEO Olivier Le Peuch addressed the J.P. Morgan Energy, Power & Renewables Conference, highlighting the company’s operational challenges in the second quarter of 2025. Despite uncertainties in energy markets, including geopolitical tensions and tariff negotiations, SLB experienced a decline in activity in Saudi Arabia and Latin America, offset by growth in the Middle East and North Africa. The company anticipates flat revenue and EBITDA for the quarter, with the Well Construction division facing margin pressures. SLB remains committed to returning $4 billion to shareholders in 2025.

The most recent analyst rating on (SLB) stock is a Buy with a $69.00 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.Date of analysis: Jul 24, 2025