SLB (SLB) Q1 2026 earnings summary

Executive summary

• First-quarter 2026 revenue was $8.72 billion, up 3% year-over-year, driven by the ChampionX acquisition, but operational disruptions in the Middle East led to declines in net income and earnings, especially in Qatar and Iraq.

• Net income attributable to shareholders was $752 million, with GAAP EPS of $0.50 and adjusted EPS of $0.52, both down year-over-year.

• Production Systems and Digital divisions grew year-over-year, while Reservoir Performance and Well Construction declined due to the conflict.

• Strategic focus on production recovery, Digital, and data center solutions is delivering results and positioning for long-term growth.

• The company remains committed to supporting customers in the Middle East and anticipates a gradual recovery as the conflict eases.

Financial highlights

• Q1 2026 global revenue was $8.72 billion, up 3% year-over-year, but down 11% sequentially; excluding ChampionX, revenue declined 7% year-over-year.

• Adjusted EPS was $0.52, down $0.20 from the prior year; $0.02 in merger and integration charges recorded.

• Adjusted EBITDA was $1.77 billion, down 12% year-over-year, with margin contracting to 20.3%.

• Free cash flow was negative $23 million, impacted by incentive payments, working capital, and delayed collections in the Middle East.

• Net income was $752 million, down from $797 million year-over-year.

Outlook and guidance

• Expects post-conflict liquid commodity prices to remain above pre-conflict levels, supporting upstream investment through 2027-2028.

• Anticipates increased investment in supply diversification, exploration, and strategic reserves replenishment post-conflict.

• For Q2, expects Middle East disruptions to persist into mid-quarter, with sequential declines offset by growth in other international markets; North America revenue expected to be flat.

• Digital and Production Systems expected to grow globally in Q2; Reservoir Performance and Well Construction to decline.

• Capital investments for full year 2026 expected to be ~$2.5 billion.