SLB · SLB N.V.

SLB's first-quarter 2026 results reflect a mixed performance shaped by geopolitical disruptions and strategic acquisitions. Revenue of $8.72 billion increased 3% year on year, primarily driven by the addition of ChampionX, which contributed $838 million in revenue and $199 million in adjusted EBITDA. Excluding ChampionX, global revenue declined 7%, with international revenue down 7% and North America down 8%. The Middle East conflict had a pronounced impact, causing a 13% year-on-year revenue decline in that region, particularly affecting Well Construction and Reservoir Performance divisions as SLB demobilized operations in several countries. GAAP net income attributable to SLB fell 6% to $752 million, and diluted GAAP EPS declined 14% to $0.50. Adjusted EPS, excluding charges and credits, dropped 28% to $0.52, reflecting lower operating margins and the impact of the conflict. Adjusted EBITDA margin contracted 346 basis points year on year to 20.3%, while pretax segment operating margin fell 318 bps to 15.2%. On a positive note, Digital revenue grew 9% year on year, supported by strong Digital Operations momentum and a 15% increase in annualized recurring revenue, which exceeded $1 billion. Data Center Solutions revenue surged 45%, highlighting SLB's modular manufacturing capabilities. Production Systems revenue increased 23% year on year, led by production chemicals and artificial lift from ChampionX. Management commentary emphasized that the Middle East disruptions accelerated global supply-demand rebalancing and that post-conflict commodity prices are expected to remain above pre-conflict levels, driving increased investment in short-cycle and deepwater projects. SLB repurchased 9.2 million shares for $451 million during the quarter and announced a quarterly dividend of $0.295 per share. The company also disclosed two acquisitions: the subsea business of Envirex Group AS (expected to close H1 2026) and the geoscience and petroleum engineering software portfolio of S&P Global Energy (expected to close H2 2026 or early 2027). SLB reiterated its commitment to returning over $4 billion to shareholders in 2026.