SLB
SLB Ltd (SLB) Q2 2026 Earnings Call Highlights: Strong Digital Growth Amid Middle East Challenges
Article Summary
BUY- SLB Ltd. (NYSE: SXT) reported strong Q2 2026 revenue growth driven by production systems and digital growth, with production systems reaching 20% adjusted EBITDA margins and Digital reaching approximately 35% for the quarter.
- Data Center Solutions delivered strong growth, supported by hyperscaler expansion and expanded offerings, with revenue increasing 33% sequentially and 80% year-over-year.
- Schlumberger expects long-cycle project investment to grow by approximately 30% in 2026, with digital and data-center solutions expected to drive long-term growth.
- Middle East operations remain constrained by security challenges, particularly in Iraq, and the company anticipates a $150 million revenue shortfall and a $75 million adjusted EbitDA headwind in the third quarter due to ongoing geopolitical volatility.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 2.4% | 25% | 20.0 ptsMinimal (2.4%) - Very weak |
| EPS Growth Next 5Y ? | 9.2% | 25% | 20.0 ptsWeak (9.2%) - Low expectations |
| Target Price Upside ? | 16.9% | 20% | 60.0 ptsModerate Upside (16.9%) - Target: $61.29 vs Current: $52.42 |
| Gross Margin % ? | 16.7% | 15% | 20.0 ptsThin (16.7%) - Low-margin business |
| Drawdown from 52-Wk High ? | -10.9% | 15% | 40.0 ptsMild Pullback (-10.9%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About SLB
- SLB 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.
- SLB N.V. was formerly known as Schlumberger Limited and change its name to SLB N.V. in October 2025.
- The company was founded in 1926 and is based in Houston, Texas.