SLB Limited Common Shares
SLB · NYSE
SLB · NYSE
Expected to report Jan 22, 2027 — estimated from last year’s reporting date.
Consensus is $0.73 EPS for Dec 2026 across 9 estimates, ranging $0.73 to $0.75.
SLB’s third quarter combined a sequential operating rebound with weaker year-on-year underlying earnings. Revenue of $9.45 billion increased 5% from Q2 and 6% from Q3 2025, while adjusted EPS of $0.64 exceeded the $0.62 consensus by 3.2%; it was up 16% sequentially but down 7% year on year. GAAP EPS fell to $0.49 from $0.52 in Q2 and $0.50 a year ago, including a $0.12 noncash pension settlement charge. Net income attributable to SLB was $735 million, down 6% sequentially and 1% year on year.
The defining operational feature was a broad recovery from Q2, led by a 13% Middle East rebound and growth across all regions and core divisions. However, acquisition contributions flatter reported comparisons: excluding ChampionX, revenue increased 2% year on year. Adjusted EBITDA rose 9% sequentially to $2.07 billion, lifting margin to 21.9%, although that margin remained 121 basis points below last year. Alongside the oilfield recovery, Data Center Solutions accelerated to $230 million of quarterly revenue, up 76% year on year. Management’s Q4 revenue outlook of about $10 billion and its mid-single-digit 2027 market-growth view point to continued expansion, contingent on Middle East activity stabilizing at second-half 2026 levels.
The gap between adjusted and GAAP earnings was primarily the $187 million noncash pension settlement charge, equivalent to $0.12 per share, plus $0.03 per share of merger and integration costs. Management said the pension transaction reduced plan assets and obligations by almost $900 million and left the plan well funded. Adjusted EPS of $0.64 compared with $0.55 in Q2 and $0.69 a year earlier. Adjusted EBITDA margin was 21.9%, up from 21.2% sequentially but down from 23.1% year on year; pretax segment operating margin rose 104 basis points sequentially to 16.7%, still 153 basis points below the prior-year level.
Core revenue—Reservoir Performance, Well Construction and Production Systems—was $8.52 billion, up 6% sequentially and 5% year on year as reported. Sequential gains reflected Middle East recovery and international offshore activity. Production Systems was the largest division at $4.00 billion, up 6% sequentially and 15% year on year; ChampionX contributed $950 million of that division’s revenue. On a pro forma basis assuming ChampionX was already owned, Production Systems revenue increased 6% year on year, while the company said growth excluding the acquisition was 5%. ChampionX contributed $956 million across SLB in the quarter, compared with $579 million in the year-ago quarter, which included only two months of its activity. Reservoir Performance and Well Construction each grew 5% sequentially, but their revenues remained 3% below year-ago levels. The three core divisions’ combined pretax operating margin was 16.3%, up 97 basis points sequentially and down 132 basis points year on year.
