Schlumberger Stock Earnings Reports

SLB reported Q1 2026 revenue of $8.7 billion (up 3% YoY; down 7% YoY ex-ChampionX) and adjusted EPS (ex-charges) of $0.52, a $0.20 decline versus prior year. Results were materially impacted by operational shutdowns and production curtailments in the Middle East due to the conflict, higher procurement/logistics costs, and unfavorable activity mix (notably in OneSubsea). Company-wide adjusted EBITDA margin was 20.3%, down ~346 bps YoY. Division highlights: Production Systems grew 23% YoY (benefiting from ChampionX acquisition and synergies), Digital grew 9% YoY with ARR at $1.02 billion, Reservoir Performance and Well Construction declined ~6% YoY. Data center solutions are a strategic growth area with modular design partnership announced with NVIDIA and a target to exit 2026 at roughly a $1 billion run-rate, accelerating in 2027. Liquidity: net debt increased to $8.2 billion; Q1 operating cash flow $487 million and slightly negative free cash flow ($23 million) due to incentives, seasonality and delayed collections in the Middle East. CapEx guidance remains ~ $2.5 billion for the year. Shareholder returns: $451 million of buybacks in Q1 and the company expects to repurchase at least $2.4 billion in 2026 and target total returns >$4 billion (dividends + buybacks). Q2 outlook: management provided a scenario where Middle East disruption eases mid-quarter — under that scenario international markets could fully offset the regional decline and North America would be flat; Stephane estimates an incremental Q2 EPS hit of ~$0.06–$0.08 versus Q1 if disruptions persist into mid-quarter. Strategic positioning: management emphasized production recovery, digital/AI, and data centers as key long-term growth levers and noted ChampionX is accretive and delivering synergies. OneSubsea margins were weak in Q1 due to project timing but management expects normalization and sees strong demand in deepwater/ offshore FIDs over 2026–2028.