Guidance
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SLB
FY2026 Q2
Improving
SLB Limited Common Shares earnings call
Buzzberg read
Q4 revenue to surpass $10 billion
SLB reported a solid Q2 with revenue of $9B, despite Middle East disruptions. Management struck an optimistic tone, guiding Q4 revenue above $10B and EBITDA margin ~24%, driven by deepwater upcycle, Middle East recovery, and data center expansion. Cross-company signals emerged from new partnerships with Meta, Liberty Energy, and NVIDIA, and ongoing customer work with Chevron and BP. Q2 revenue $9B (+3% q/q), EPS $0.55, digital revenue $697M (+9% q/q).
Buzzberg read Q4 revenue to surpass $10 billion SLB reported a solid Q2 with revenue of $9B, despite Middle East disruptions. Management struck an optimistic tone, guiding Q4 revenue above $10B and EBITDA margin ~24%, driven by deepwater upcycle, Middle East recovery, and data center expansion. Cross-company signals emerged from new partnerships with Meta, Liberty Energy, and NVIDIA, and ongoing customer work with Chevron and BP. Q2 revenue $9B (+3% q/q), EPS $0.55, digital revenue $697M (+9% q/q). Read full analysisCollapse analysis
SLB reported a solid Q2 with revenue of $9B, despite Middle East disruptions. Management struck an optimistic tone, guiding Q4 revenue above $10B and EBITDA margin ~24%, driven by deepwater upcycle, Middle East recovery, and data center expansion. Cross-company signals emerged from new partnerships with Meta, Liberty Energy, and NVIDIA, and ongoing customer work with Chevron and BP. Q2 revenue $9B (+3% q/q), EPS $0.55, digital revenue $697M (+9% q/q).
- Q4 revenue guided to exceed $10B; EBITDA margin ~24%.
- Data center solutions run rate expected to surpass $2B annualized by 2027 exit.
- Deepwater FIDs up ~30% y/y in 2026, supporting a multi-year offshore growth cycle.
DIGITAL Revenue$0.697BReported
MIDDLE_EAST Revenue$1.66BReported
PRODUCTION_SYSTEMS Revenue$3.8BReported
RESERVOIR_PERFORMANCE Revenue$1.6BReported
6 grounded callouts
What matters now
The highest-signal changes from the call.
AI
Data center exit rate >$2 billion by 2027
Demand
Long-cycle FIDs up 30% year-on-year
Show 3 more callouts
Margins
Production Systems margins back above 20%
Capital return
Returning over $4 billion to shareholders in 2026
Risk
Downside risk: $150M revenue hit if Middle East flat
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| DIGITAL Revenue | $0.697B | Reported |
| MIDDLE_EAST Revenue | $1.66B | Reported |
| PRODUCTION_SYSTEMS Revenue | $3.8B | Reported |
| RESERVOIR_PERFORMANCE Revenue | $1.6B | Reported |
| Revenue | $8.972B | +3% QoQ |
| WELL_CONSTRUCTION Revenue | $2.7B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Capex | FY2026 | $2.5B | $2.5B | Maintained |
| Operating margin | FY2026 Q4 | 24% | 24% | Guided |
| Revenue | FY2026 Q4 | $10B | $10B | Guided |
| RevenueDATA_CENTER | FY2027 | $2B | $2B | Raised |
AI, capex & demand read
Management read
confident
Management conveyed a confident tone despite Middle East disruptions, driven by a compelling outlook for 2027 fueled by international growth, deepwater rebound, and data center expansion. No notable shift from prior calls.
Management AI read
Management discussed AI as a key growth driver, with digital operations and AI expected to build strong momentum across the industry, and data center solutions expanding into infrastructure for the AI economy, targeting an annualized revenue run rate exceeding $2 billion by end of 2027.
Investment and capacity
Stephane stated capital investments remain on track at approximately $2.5 billion for the full year, with no change in spend. The data center business is described as capital-light with strong free cash flow generation.
all 7 named companies below
Companiesreturns since call
Customers
Customers
Olivier Le Peuch
SLB is providing services to Chevron in Venezuela under a license, supporting production recovery and scaling up operations.
Evidence
“working under the Orphic License with an IOC, Chevron, and I think having a large scope to support them.”
Partners
Partners
Olivier Le Peuch
SLB is partnering with Meta on a gigawatt-scale data center in Canada, expanding SLB's role in design, engineering, and system integration.
Evidence
“exemplified by the recent announcement with Meta.”
Partners
Olivier Le Peuch
SLB and Liberty Energy are collaborating on power generation solutions for data centers, leveraging Liberty's behind-the-meter technology.
Evidence
“alliance with Liberty Energy that will combine SLB modular infrastructure solution and global market reach with Liberty behind the meter power generation system”
Partners
Olivier Le Peuch
SLB has an alliance with BP (and potentially others) for subsea development and early-stage design, aiming to optimize field architecture.
Evidence
“alliance with Econo and BP particularly to develop and to work side by side in early fit and design”
Partners
Olivier Le Peuch
SLB's data center solutions offering now includes design and engineering capabilities, as demonstrated by an announcement with NVIDIA.
Evidence
“as you have seen from the NVIDIA announcement”
Supply chain
Supply chain
Olivier Le Peuch
Data center solutions backlog is growing ahead of expectations, leading to confidence in a >$2 billion annualized exit run rate by 2027. — Signals accelerating demand for modular data center infrastructure, potentially straining supply chains and benefiting peers like Vertiv.
Evidence
“Our backlog growing ahead of expectations, with new contract awards, strong customer engagement, and international expansion.”
External signals
Supply-chain alpha · 2returns since call
Data center solutions backlog is growing ahead of expectations, leading to confidence in a >$2 billion annualized exit run rate by 2027.
Middle East conflict-related cost inflation in chemicals is pressuring ChampionX margins, but volume synergies are offsetting it.
Evidence
“despite some inflationary pressure we have on chemicals that mostly come from the Middle East conflict by the way”
Methodology & coverage
Management-only analysis. All 7 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.