SLB earnings analysis
What we found in SLB's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
SLB posted Q2 revenue of $8.972 billion, up 3% sequentially and about 5% year on year, while diluted EPS of $0.55 rose from $0.50 in Q1 but remained below $0.74 a year earlier. Growth in Production Systems, Digital, North America, and offshore international activity outweighed continued Middle East disruption, where revenue fell 13% sequentially to $1.66 billion. Liquidity is adequate, but first-half net debt increased by $1.303 billion to $8.727 billion and working capital consumed $1.344 billion; management maintained expected 2026 capital investments of approximately $2.5 billion.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue rose 3% sequentially and beat consensus
- Q2 revenue was $8.972 billion, up $251 million, or 3%, from $8.721 billion in Q1 2026 and up $422 million, or about 5%, from $8.550 billion in Q2 2025. The result exceeded the supplied consensus estimate of $8.688 billion by about $284 million.
- EPS improved sequentially but trailed prior year
- Diluted EPS of $0.55 increased 10% from $0.50 in Q1 2026, though it remained 26% below $0.74 in Q2 2025. EPS exceeded the supplied $0.52 estimate by $0.03.
- Production Systems led segment growth
- Production Systems revenue increased 7% sequentially to $3.771 billion, supported by OneSubsea, artificial lift, valves, surface production systems, and completions. Its pretax operating margin expanded 138 bps sequentially to 16%.
- Digital delivered strong growth and margin expansion
- Digital revenue increased 9% sequentially to $697 million and pretax operating margin expanded 683 bps to 28%. Digital Exploration revenue rose 25%, or $25 million, while Platforms & Applications sales increased $17 million.
- Operating cash flow grew despite investment needs
- First-half operating cash flow increased to $1.846 billion from $1.802 billion a year earlier. Capital investments were $1.153 billion ($802 million capex, $226 million APS investments, and $125 million exploration-data capitalization), implying $693 million of first-half free cash flow.
- Liquidity remains substantial and buybacks continued
- SLB had $4.071 billion of cash and short-term investments at June 30, 2026 and $5.0 billion of fully available committed facilities. The company also repurchased $1.099 billion of shares in the first half, while $3.028 billion remained under the authorization at quarter-end.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- No formal risk update; Middle East disruption persists
- Item 1A states there were no material changes to risk factors from the 2025 Form 10-K. Nevertheless, Middle East revenue fell 13% sequentially to $1.66 billion, showing the current operational effect of the regional conflict.
- Conflict pressure remains broad across core services
- Middle East disruptions drove a 2% sequential decline in Reservoir Performance revenue to $1.556 billion and a 2% decline in Well Construction revenue to $2.742 billion. Reservoir Performance margin contracted 121 bps to 15%.
- Debt and working-capital use increased
- Net debt increased to $8.727 billion at June 30, 2026 from $7.424 billion at December 31, 2025, following $2.0 billion of senior-note issuance during Q2. First-half working-capital investment consumed $1.344 billion of cash.
- Well Construction faces volume and pricing pressure
- On a six-month basis, Well Construction revenue declined 7% to $5.539 billion and its pretax operating margin contracted 401 bps to 15%, with management citing Middle East disruption and pricing headwinds in select markets.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.55
- Segment
- Digital: $697 million, up 9% sequentially
- Segment
- Reservoir Performance: $1.556 billion, down 2% sequentially
- Segment
- Well Construction: $2.742 billion, down 2% sequentially
- Segment
- Production Systems: $3.771 billion, up 7% sequentially
- Segment
- All Other: $505 million, up $63 million sequentially
What they said about what is next.
No revenue or EPS guidance was provided in the 10-Q. SLB expects full-year 2026 capital investments of approximately $2.5 billion and states that $4.1 billion of cash and short-term investments plus $5.0 billion of undrawn committed facilities are sufficient for the next 12 months and beyond.
The filing reads about the same as the one before it.
What came before.
- 10-Q · April 29, 2026
- SLB's Q1 2026 earnings report highlighted a modest 3% year-over-year revenue growth to $8.72 billion, exceeding expectations and prompting an EPS of $0.52, in line with estimates. However, key segments like Well…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing SLB makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever