SLB Announces Second-Quarter 2026 Results

• Revenue of $8.97 billion increased 3% sequentially and 5% year on year
• GAAP EPS of $0.52 increased 4% sequentially and decreased 30% year on year
• EPS, excluding charges and credits, of $0.55 increased 6% sequentially and decreased 26% year on year
• Net income attributable to SLB of $786 million increased 5% sequentially and decreased 22% year on year
• Adjusted EBITDA of $1.90 billion increased 7% sequentially and decreased 7% year on year
• Cash flow from operations was $1.36 billion and free cash flow was $716 million
• Board approved quarterly cash dividend of $0.295 per share

LONDON--(BUSINESS WIRE)--SLB (NYSE: SLB) today announced results for the second-quarter 2026.

Broad-Based International Growth More than Offset Impact of Middle East Disruptions

"SLB delivered solid second-quarter results, as broad-based sequential growth across international markets — led by offshore activity in Latin America, Europe & Africa and Asia — more than offset the impact of continued disruptions in the Middle East," said SLB Chief Executive Officer Olivier Le Peuch.

"Excluding the Middle East, revenue grew sequentially across all Divisions, supported by higher offshore activity, a rebound in U.S. unconventionals and strong demand for production and recovery solutions.

"Importantly, this quarter marked a return to year-on-year revenue growth outside the Middle East, reinforcing our view of the favorable investment backdrop for the industry. This growth is driven by customers’ increased focus on energy security, supply diversification, and production capacity expansion,” Le Peuch said.

Production Systems and Digital Drive Sequential Growth

"Production Systems revenue grew 7% sequentially supported by U.S. unconventionals and international markets, as customers increasingly prioritized solutions that enhance production, improve recovery and extend asset life. This drove growth in artificial lift, valves, surface production systems and production chemicals, further highlighting the strategic value of ChampionX in our portfolio.

"Production Systems also benefited from increased subsea activity, reflecting growing momentum in long-cycle offshore investment as customers advance key developments and sanction new projects.

"In Digital, revenue increased 9% sequentially, driven by strong revenue in Digital Exploration, Platforms & Applications, and Digital Operations.

"Digital, AI, and data-driven workflows are playing an increasingly important role in improving subsurface understanding, accelerating decision making, and enhancing operational performance. We continue to see strong demand for these capabilities going forward,” Le Peuch said.

Data Center Solutions Growth Accelerates on Rising Demand and Customer Expansion

“Our Data Center Solutions business maintained its strong growth trajectory during the second quarter, supported by rising demand and customer expansion. Data Center Solutions revenue in the first six months of 2026 grew 63% year on year.

“During the quarter, Meta announced plans for a new 1GW data center in Canada, and we are proud to have been selected as a delivery partner for this project.

"Beyond adding new hyperscaler customers and expanding our footprint internationally, we have widened our scope to include engineering and design. This reflects the strength of SLB's modular and scalable off-site manufacturing and engineering capabilities — and underscores the significant opportunity ahead to support hyperscaler customers as they accelerate investments in critical digital infrastructure.

"The Data Center Solutions business remains on track to exceed $1 billion annualized revenue run rate by the end of this year. As we broaden our offering and further diversify our customer base and geographic footprint, we expect to surpass $2 billion annualized revenue run rate as we exit 2027," Le Peuch said.

Strong Foundation for 2027

"Our second-quarter performance demonstrates that growth is broadening across geographies outside the Middle East and spanning both short- and long-cycle resource plays. The regional conflict has heightened the industry’s focus on supply diversification, which is expected to shape the next upcycle and is reinforcing the strategic importance of deepwater, exploration, and production and recovery activities.

“In the Middle East, the first-half revenue decline reflected lower activity and operational disruptions associated with the conflict. While activity began to recover in certain countries during the second quarter, the timing of a full recovery remains uncertain and will depend on a durable resolution of the conflict. As activity improves, we expect the return to full production capacity to take time.

“The recovery will require higher service intensity — particularly in well intervention — as well as increased equipment demand, infrastructure repair and the realignment of shipping logistics. With our differentiated technology, execution capabilities and regional scale, SLB is well positioned to support customers as activity and production normalize.

"Looking ahead, the combination of improving activity in the Middle East, strengthening offshore momentum led by exploration and deepwater, stronger demand for production and recovery solutions, continued Digital growth and increasing adoption of our Data Center Solutions business provides a strong foundation for SLB's growth heading into 2027," Le Peuch concluded.

Other Events

During the quarter, SLB repurchased 12 million shares of its common stock for a total purchase price of $648 million.

During the quarter, SLB completed the acquisition of Tachyus Corp., a Houston-based technology company specializing in high-speed reservoir modeling and optimization. This acquisition strengthens SLB’s digital portfolio with differentiated physics-based reservoir modeling capabilities that enable faster reservoir management decisions to maximize recovery. The transaction also helps bridge development planning and production execution across complex and mature assets.

On July 23, 2026, SLB’s Board of Directors approved a quarterly cash dividend of $0.295 per share of outstanding common stock, payable on October 8, 2026, to stockholders of record on September 2, 2026.

Second-Quarter Revenue by Geographical Area

Second-quarter revenue of $8.97 billion increased 3% sequentially with international revenue increasing 3% and North America revenue increasing 4%. Sequential revenue growth was broad-based with revenue increases in North America, Latin America, Europe & Africa, and Asia more than offsetting the 13% revenue decline in the Middle East due to persistent disruptions related to the conflict.

The revenue growth was supported by higher offshore activity, a rebound in U.S. unconventionals, and strong demand for production and recovery solutions.

The ChampionX businesses, acquired in July 2025, contributed $870 million of revenue in the second quarter of 2026, consisting of $606 million in North America and $234 million in the international markets.

Excluding the impact of this acquisition, second-quarter 2026 revenue decreased 5% year on year. International second-quarter 2026 revenue decreased 6% and North America second-quarter 2026 revenue decreased 1% year on year.

The following table and commentary are presented on a pro forma basis assuming that ChampionX was acquired on January 1, 2025.

International

Latin America

Revenue in Latin America of $1.71 billion increased 12% sequentially driven by higher SLB OneSubsea™ revenue, increased digital exploration sales and stronger offshore drilling activity in Brazil. The sequential increase was further supported by robust production systems sales in Guyana and Mexico.

Year on year, revenue increased 9% reflecting higher SLB OneSubsea revenue, increased digital exploration sales in Brazil, and strong offshore and land drilling activity across the region.

Europe & Africa

Revenue in Europe & Africa of $2.39 billion increased 6% sequentially. The growth was driven by higher SLB OneSubsea revenue in Scandinavia and Nigeria, increased artificial lift sales in Libya, and stronger intervention and stimulation activity across the area.

Year on year, revenue decreased 3%, primarily due to lower production systems sales in Turkey and Libya, as well as a decline in SLB Capturi™ revenue due to completion of project milestones. These decreases were partially offset by higher stimulation, intervention and evaluation revenue in the UK North Sea, Eastern Europe, Azerbaijan and Turkmenistan.

Middle East & Asia

Revenue in the Middle East & Asia of $2.57 billion decreased 4% sequentially, reflecting a 13% decline in the Middle East, partially offset by a 17% increase in Asia. The Middle East accounted for approximately 65% of the area’s revenue in the second quarter of 2026.

The decline in the Middle East was driven by lower activity levels and operational disruptions related to the regional conflict. While activity began to recover in certain countries as conditions improved, operations in other markets remained constrained by production shut-ins and security challenges. In contrast, Asia delivered double-digit sequential growth, supported by higher drilling activity and increased production systems sales in China, stronger digital exploration sales in Indonesia, and robust SLB OneSubsea revenue in India and Australia.

Year on year, revenue declined 16%, primarily due to the impact of conflict-related disruptions in the Middle East, partially offset by strong growth across Asia.

North America

Revenue in North America of $2.24 billion increased 4% sequentially. The growth was driven by higher sales of production chemicals, artificial lift, and valves in U.S. land, as well as increased revenue from Data Center Solutions. These increases were partially offset by lower drilling activity in Canada due to the spring breakup and reduced digital exploration sales in the Gulf of America.

Year on year, revenue increased 1%, driven by higher offshore drilling in the Gulf of America and strong growth in Data Center Solutions revenue, which increased 80%. These increases were largely offset by the absence of $97 million in Asset Performance Solutions (APS) revenue in Canada following the divestiture of the Palliser project at the end of the second quarter of 2025.

Second-Quarter Results by Division

Digital revenue of $697 million increased 9% sequentially, driven by a 25% increase in Digital Exploration revenue resulting from higher sales of exploration data licenses and transfer fees in Brazil and Indonesia. Sequential growth also benefited from higher sales in Platforms & Applications, increased Professional Services and increased adoption of Digital Operations.

Year on year, revenue increased primarily due to growth in Digital Exploration, supported by strong sales in Brazil and Indonesia. Growth was also aided by an increase in Digital Operations revenue. The slight decline in Platforms & Applications was due to lower sales of perpetual licenses, partially offset by growth in SaaS-based revenue.

Annualized Recurring Revenue (ARR) for the Digital Division was $1.04 billion as of June 30, 2026, representing a 15% increase year on year compared with $904 million as of June 30, 2025.

Digital pretax operating margin was 28%, expanding 683 basis points (bps) sequentially, primarily due to higher sales of exploration data licenses and transfer fees, as well as improved profitability in Digital Operations and Platforms & Applications.

Year on year, pretax operating margin expanded 187 bps, reflecting higher sales of exploration data licenses and transfer fees, together with increased profitability in Digital Operations and Platforms & Applications.

For a description of the revenue categories comprising the Digital Division, please refer to Question 10 of the Supplementary Information. Revenue, pretax operating income, and adjusted EBITDA for the Digital Division for the first six months of 2026 and 2025 are provided in Question 11. For the definition of ARR, please refer to Question 12.

Reservoir Performance revenue of $1.56 billion decreased 2% sequentially, primarily due to lower evaluation, stimulation and intervention activity resulting from operational disruptions related to the Middle East conflict. While activity in the Middle East began to recover in certain countries as conditions improved, operations in some Middle East countries remained constrained by production shut-ins and ongoing security challenges. In North America, revenue increased, led by stronger U.S. land activity, despite the impact of the Canadian spring breakup. Revenue in Latin America was slightly lower, as strong growth in offshore Mexico was more than offset by reduced stimulation and intervention activity in Argentina. Revenue in Europe & Africa and Asia increased by double digits sequentially, driven by robust stimulation and intervention activity across the regions.

Year on year, revenue declined 8%, largely reflecting the impact of disruptions associated with the Middle East conflict. Revenue in Latin America was also lower, while revenue in Europe & Africa and Asia increased and North America revenue remained relatively stable.

Reservoir Performance pretax operating margin of 15% contracted 121 bps sequentially primarily due to lower profitability in evaluation and intervention activities, partially offset by improved margins in stimulation.

Year on year, pretax operating margin contracted 370 bps, largely due to the operational disruptions in the Middle East.

Well Construction revenue of $2.74 billion decreased 2% sequentially, reflecting the impact of disruptions associated with the Middle East conflict. The decline was partially offset by higher offshore drilling activity in Latin America, particularly in Guyana, Brazil and Mexico, as well as increased land drilling activity in Argentina and Ecuador. Revenue in North America was essentially flat, with stronger U.S. land activity being offset by the impact of the Canadian spring breakup. Revenue in Europe & Africa declined slightly, while Asia revenue increased modestly, supported by robust drilling activity in China.

Year on year, revenue declined 7%, primarily due to lower activity resulting from the Middle East conflict. This decrease was partially offset by higher offshore drilling activity in Latin America, Europe & Africa, and the Gulf of America.

Well Construction pretax operating margin of 15% was essentially flat sequentially, as lower profitability in the Middle East was offset by improved profitability in other areas.

Year on year, pretax operating margin contracted 338 bps, primarily due to lower profitability in the Middle East, partially offset by improved profitability in North America and Latin America.

Production Systems revenue of $3.77 billion increased 7% sequentially, driven by strong growth in Latin America, Europe & Africa, Asia and North America, despite a decline in the Middle East due to disruptions associated with the regional conflict. Sequential growth was supported by higher revenue from SLB OneSubsea, along with increased sales of artificial lift, valves, surface production systems and completions.

Year on year, revenue increased 29%, primarily reflecting the contribution from the acquired ChampionX production chemicals and artificial lift businesses. These acquired businesses contributed $865 million in revenue and $155 million in pretax operating income during the second quarter of 2026.

Excluding the impact of the acquisition, Production Systems second-quarter 2026 revenue decreased 1% year on year. Strong growth in SLB OneSubsea and valves was more than offset by lower sales of surface production systems, production chemicals, completions and artificial lift, primarily due to disruptions related to the Middle East conflict.

Investors
James R. McDonald — SVP, Investor Relations & Industry Affairs, SLB
Joy V. Domingo — Director of Investor Relations, SLB
Tel: +1 (713) 375-3535
investor-relations@slb.com

Media
Josh Byerly — SVP of Global Communications, SLB
Moira Duff — Director of External Communications, SLB
Tel: +1 (713) 375-3407
media@slb.com