SLB (SLB) Q2 2026 earnings summary

Executive summary

• Q2 revenue reached $9 billion, up 3% sequentially and 5% year-over-year, driven by broad-based international growth and a rebound in North America, offsetting Middle East disruptions.

• Production Systems and Digital divisions showed strong momentum, with Production Systems adjusted EBITDA margin above 20% and Digital adjusted EBITDA margin at 35%.

• Data Center Solutions revenue grew 33% sequentially and 80% year-over-year, fueled by new hyperscaler customers and expanded offerings.

• ChampionX acquisition contributed significantly to Production Systems revenue and margin expansion.

• Strategic focus on digital operations, AI, and data center solutions positions the company for resilient, long-term growth.

Financial highlights

• Q2 revenue was $9 billion, up 3% sequentially, with net income of $815 million and adjusted EPS of $0.55, up $0.03 sequentially but down year-over-year.

• Adjusted EBITDA was $1.90 billion, up 7% sequentially, with margin at 21.2%, up 83 basis points sequentially.

• Free cash flow was $716 million, up $739 million sequentially.

• Net debt at quarter-end was $8.7 billion.

• Quarterly dividend increased to $0.295 per share.

Outlook and guidance

• Q3 global sequential revenue growth expected between 3% and 4%, with adjusted EBITDA margin expansion of ~75 basis points.

• Q4 revenue projected to surpass $10 billion, up ~5% year-over-year, with adjusted EBITDA margin around 24%.

• Data Center Solutions expected to exit 2027 at an annualized revenue run rate exceeding $2 billion.

• Capital investment for 2026 expected to be ~$2.5 billion.

• Sufficient liquidity is anticipated, supported by $4.1 billion in cash and $5.0 billion in available credit facilities.