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SLB
FY2025 Q4
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SLB Limited Common Shares earnings call
Buzzberg read
International markets stabilizing, rebound led by Middle East and Asia
SLB's Q4 2025 results beat expectations on revenue and cash flow, driven by strong digital and production systems sales. Management guided 2026 revenue of $36.9-37.7bn with flat EBITDA margins, a cautious tone that reflects lingering macro uncertainty but an expectation of gradual international recovery led by Middle East and offshore. Cross-company signal was limited, with only a geothermal partnership with Ormat and a bullish subsea tree award forecast. Q4 revenue $9.7bn (+9% qoq), adjusted EPS $0.78, free cash flow $2.3bn for the quarter and $4.1bn for the year.
Buzzberg read International markets stabilizing, rebound led by Middle East and Asia SLB's Q4 2025 results beat expectations on revenue and cash flow, driven by strong digital and production systems sales. Management guided 2026 revenue of $36.9-37.7bn with flat EBITDA margins, a cautious tone that reflects lingering macro uncertainty but an expectation of gradual international recovery led by Middle East and offshore. Cross-company signal was limited, with only a geothermal partnership with Ormat and a bullish subsea tree award forecast. Q4 revenue $9.7bn (+9% qoq), adjusted EPS $0.78, free cash flow $2.3bn for the quarter and $4.1bn for the year. Read full analysisCollapse analysis
SLB's Q4 2025 results beat expectations on revenue and cash flow, driven by strong digital and production systems sales. Management guided 2026 revenue of $36.9-37.7bn with flat EBITDA margins, a cautious tone that reflects lingering macro uncertainty but an expectation of gradual international recovery led by Middle East and offshore. Cross-company signal was limited, with only a geothermal partnership with Ormat and a bullish subsea tree award forecast. Q4 revenue $9.7bn (+9% qoq), adjusted EPS $0.78, free cash flow $2.3bn for the quarter and $4.1bn for the year.
- 2026 guidance: revenue $36.9-37.7bn, adjusted EBITDA $8.6-9.1bn, capex ~$2.5bn; margins seen flat year-on-year.
- International markets expected to recover gradually, with Saudi Arabia, UAE, and Asia leading; deepwater activity inflection seen in late 2026.
- Digital revenue hit $2.7bn for 2025, annual recurring revenue crossed $1bn; data center solutions on track for $1bn quarterly run rate by year-end.
Revenue$9.745B+9% QoQ
EPS$0.78+13% QoQ
Gross margin17.73%Reported
Operating margin14.95%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Data Centers
Data center solutions to exceed $1 billion annual revenue run rate by year-end
Subsea
OneSubsea bookings path to exceed $9 billion over next two years
Show 3 more callouts
Geopolitical
Venezuela offers upside as only international service company operating
Guidance
2026 EBITDA guided $8.6-9.1B, margins stable on ChampionX synergies
AI
Digital annual recurring revenue surpasses $1 billion, up 15%
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $9.745B | +9% QoQ |
| EPS | $0.78 | +13% QoQ |
| Gross margin | 17.73% | Reported |
| Operating margin | 14.95% | Reported |
| Free cash flow | $2.489B | Reported |
| Capex | $0.516B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Capex | FY2026 | $2.5B | $2.5B | Guided |
| Operating margin | FY2026 | $8.6B–$9.1B | $8.85B | Guided |
| Revenue | FY2026 | $36.9B–$37.7B | $37.3B | Guided |
AI, capex & demand read
Management read
Confident
Management expressed confidence in a cyclical recovery, citing stabilizing international markets, returning growth in Saudi Arabia, and new growth vectors like data centers and production recovery, while maintaining disciplined capital return.
Management AI read
Management highlighted AI as a core driver, noting the launch of Tela (an Atlantic AI system) and a partnership with AdNoc for AI-powered production optimization. Digital annual recurring revenue surpassed $1 billion, with strong adoption of Lumi (50+ customers) and Tela (a dozen customers). Management sees AI as key to industry transformation and growth.
Investment and capacity
Management guided 2026 capital investments to approximately $2.5 billion, up slightly from $2.4 billion in 2025, reflecting disciplined capital allocation. They emphasized improved capital efficiency, with capital intensity expected to remain at the low end of the 5-7% range, and noted that data center solutions and digital growth require less capital.
all 2 named companies below
Companiesreturns since call
Supply chain
Supply chain
Olivier Lepuche
More than 500 subsea trees expected to be awarded in 2026-2027, roughly 20% above the 2025 run rate, signalling a deepwater CapEx recovery. — This is a leading indicator of offshore project FIDs; subsea equipment suppliers will see an order book inflection, while SLB's OneSubsea unit will also compete for these awards.
Evidence
“more than 500 subsea trees are expected to be awarded across 2026 and 2027, about 20% higher than 2025 run rate”
External signals
Supply-chain alpha · 1returns since call
More than 500 subsea trees expected to be awarded in 2026-2027, roughly 20% above the 2025 run rate, signalling a deepwater CapEx recovery.
Methodology & coverage
Management-only analysis. All 2 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.