Digital Growth
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SLB
FY2025 Q3
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SLB Limited Common Shares earnings call
Buzzberg read
SLB expects digital revenue to grow at double-digit pace above core business
SLB reported Q3 2025 revenue of $8.9B and EPS of $0.69, with strong performance from the newly acquired ChampionX and accelerating digital growth. Management maintained H2 revenue guidance and expects Q4 sequential improvement. The call highlighted the new digital segment structure and the expansion of data center solutions as a diversification play. ChampionX contributed $579M revenue and $108M pre-tax income in two months, exceeding expectations; full quarter in Q4 will boost results.
Buzzberg read SLB expects digital revenue to grow at double-digit pace above core business SLB reported Q3 2025 revenue of $8.9B and EPS of $0.69, with strong performance from the newly acquired ChampionX and accelerating digital growth. Management maintained H2 revenue guidance and expects Q4 sequential improvement. The call highlighted the new digital segment structure and the expansion of data center solutions as a diversification play. ChampionX contributed $579M revenue and $108M pre-tax income in two months, exceeding expectations; full quarter in Q4 will boost results. Read full analysisCollapse analysis
SLB reported Q3 2025 revenue of $8.9B and EPS of $0.69, with strong performance from the newly acquired ChampionX and accelerating digital growth. Management maintained H2 revenue guidance and expects Q4 sequential improvement. The call highlighted the new digital segment structure and the expansion of data center solutions as a diversification play. ChampionX contributed $579M revenue and $108M pre-tax income in two months, exceeding expectations; full quarter in Q4 will boost results.
- Digital division revenue grew 11% sequentially; automated drilling footage up >50% YoY; full-year EBITDA margin expected at 35%.
- Data center solutions revenue more than doubled YoY; expansion beyond US and to new customers is planned.
- Deepwater rig activity projected to bottom in Q4 2025 and gradually strengthen into 2026-2027.
Revenue$8.928BReported
EPS$0.69Reported
Gross margin17.45%Reported
Operating margin14.74%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Data Centers
Data center revenue more than doubled year-on-year, expanding beyond US
Strategy
Production recovery now a strategic focus; ChampionX integration ahead of expectations
Show 3 more callouts
Macro
International markets to lead future activity rebound, North America muted
International
Saudi Arabia activity expected to rebound in first half of 2026
Digital
Digital ARR to hit $1 billion next year; Q4 margins to reach 35%
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $8.928B | Reported |
| EPS | $0.69 | Reported |
| Gross margin | 17.45% | Reported |
| Operating margin | 14.74% | Reported |
| Free cash flow | $1.222B | Reported |
| Capex | $0.46B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Capex | FY2025 | $2.4B | $2.4B | Maintained |
| Operating marginDIGITAL | FY2025 | 35% | 35% | Guided |
| Revenue | FY2025 | $18.2B–$18.8B | $18.5B | Maintained |
AI, capex & demand read
Management read
Confident
Management expressed confidence in the resilience of their portfolio, the growth potential of digital and production recovery, and their positioning for a future market rebound.
Management AI read
Management emphasized AI as a transformative force in the industry, citing early adoption of its Lumi data and AI platform with over 50 customers in less than a year and a collaboration with AIQ to deploy agentic AI for AdNoc. They view AI as a key growth driver for their digital business, which they expect to continue outperforming the market.
Investment and capacity
Management reiterated full-year capital investments of approximately $2.4 billion, including ChampionX. They noted that the data center solutions business is low capex intensity, and emphasized that digital business has no capex except for exploration data.
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Companies
Supply chain
Supply chain
Stéphane Begay
ChampionX's contribution exceeded expectations, showing strong integration progress and margin accretion for SLB.
Evidence
“ChampionX contributed $579 million of revenue and $108 million of pre-tax income in the quarter.”
External signals
Supply-chain alpha · 2
Automated drilling footage increased more than 50% year-on-year, indicating rapid adoption of autonomous drilling capabilities.
Evidence
“automated drilling footage increased by more than 50% year-on-year.”
Data center solutions revenue more than doubled year-on-year, and management sees expansion beyond the US and to new customers.
Evidence
“This quarter marks the first time we have disclosed our data center revenue, which has more than doubled year on year Looking ahead, we foresee expansion beyond the US, along with the onboarding of new customers.”
Methodology & coverage
Management-only analysis. All 1 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.