SLB (SLB) Q4 2025 earnings summary

Executive summary

• Q4 revenue reached $9.75 billion, up 9% sequentially, with all geographies showing sequential growth for the first time since Q2 2024, driven by Production Systems, Digital, and Reservoir Performance.

• Digital and Production Systems divisions led growth, with digital annual recurring revenue surpassing $1 billion, up 15% year-over-year, and Data Center Solutions revenue up 121% year-over-year.

• The acquisition of ChampionX contributed $1.46 billion in 2025 and $300 million to Q4 revenue, with accretive margins, especially in Production Systems.

• Strategy focuses on production recovery, digital, and data center solutions as key growth drivers.

• Full-year 2025 revenue was $35.71 billion, down 2% year-over-year, reflecting industry headwinds such as lower commodity prices and reduced upstream spending.

Financial highlights

• Q4 adjusted EPS was $0.78, up $0.09 sequentially but down $0.14 year-over-year; GAAP EPS was $0.55, up 10% sequentially, down 29% year-over-year.

• Q4 adjusted EBITDA was $2.33 billion (up 13% sequentially, down 2% year-over-year); margin was 23.9%, up 83 bps sequentially, down 175 bps year-over-year.

• Q4 operating cash flow was $3.01 billion; free cash flow was $2.29 billion. Full-year free cash flow was $4.11 billion.

• Net debt reduced by $1.8 billion in Q4, ending at $7.4 billion at year-end 2025.

• Board approved a 3.5% increase in quarterly dividend to $0.295 per share.

Outlook and guidance

• 2026 revenue expected between $36.9–$37.7 billion, assuming oil prices in the high $50s to low $60s.

• Adjusted EBITDA guidance for 2026 is $8.6–$9.1 billion, with margins in line with 2025.

• Over $4 billion to be returned to shareholders in 2026 via increased dividends and share repurchases.

• Q1 2026 revenue expected to decline high single digits sequentially due to seasonality, with a rebound in Q2 and further expansion in H2, led by international markets.

• Capital investment for 2026 is guided at $2.5 billion, with capital intensity at the low end of the 5–7% of revenue range.