SLB (SLB) Q1 2026 earnings summary

Executive summary

• First quarter 2026 revenue rose 3% year-over-year to $8.72 billion, driven by the ChampionX acquisition, but was down 11% sequentially due to operational disruptions in the Middle East, 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 due to Middle East disruptions and integration costs.

• Production Systems and Digital divisions achieved year-over-year growth, supported by ChampionX and strong digital adoption, while Reservoir Performance and Well Construction declined.

• Strategic focus on production recovery, Digital, and Data Center Solutions is positioning for long-term, technology-driven growth.

Financial highlights

• Revenue was $8.72 billion (+3% year-over-year, -11% sequentially); excluding ChampionX, revenue declined 7% year-over-year.

• Adjusted EPS was $0.52 (down $0.20 year-over-year); adjusted EBITDA was $1.77 billion (-12% year-over-year), with margin at 20.3% (down 346 basis points year-over-year).

• Net income was $752 million (-6% year-over-year); free cash flow was negative $23 million, impacted by working capital and delayed collections in the Middle East.

• Dividend increased to $0.295 per share; $451 million in share repurchases in Q1.

Outlook and guidance

• Oil prices are expected to remain above pre-conflict levels, supporting upstream investment through 2027-2028.

• Near-term recovery in the Middle East is expected to be gradual and uneven, with some countries resuming production quickly and others requiring more intervention.

• For Q2, Middle East disruptions are expected to persist into mid-quarter, with international growth offsetting regional declines; North America revenue expected to be flat.

• Full-year capital investment guidance is ~$2.5 billion; targeting over $4 billion in shareholder returns for 2026.