SLB (SLB) Q4 2025 earnings summary

Executive summary

• Achieved strong Q4 operational and financial performance with 9% sequential revenue growth, margin expansion, and robust cash flow generation, driven by international and North American markets, with all geographies showing sequential growth for the first time since Q2 2024.

• Fourth-quarter revenue reached $9.75 billion, up 9% sequentially and 5% year-over-year, led 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.

• Data Center Solutions business is scaling rapidly, with 2025 revenue up 121% year-over-year and targeting a $1 billion annual run rate by year-end.

• ChampionX acquisition contributed $1.46 billion in 2025 and $879 million in Q4, with accretive margins, especially in Production Systems.

Financial highlights

• Q4 revenue was $9.7 billion, up $817 million (9%) sequentially; $300 million from ChampionX acquisition.

• Q4 GAAP EPS was $0.55 (up 10% sequentially, down 29% year-over-year); adjusted EPS was $0.78 (up 13% sequentially, down 15% year-over-year), with net charges of $0.23 per share.

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

• Generated $3.01 billion in Q4 operating cash flow and $2.29 billion in free cash flow; full-year free cash flow was $4.11 billion.

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

Outlook and guidance

• 2026 revenue expected between $36.9 billion and $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.

• CapEx for 2026 set at $2.5 billion, supporting growth in digital, data centers, and production recovery.