SLB revenue rises 6% from a year earlier to $9.45 billion while adjusted EPS falls 7%

SLB reported third-quarter 2026 revenue of $9.45 billion, up 5% sequentially and 6% year on year, while GAAP diluted earnings of $0.49 a share fell 6% sequentially and 2% from a year earlier. Earnings excluding charges and credits were $0.64 a share, up 16% from the second quarter but down 7% year on year, as adjusted net income fell 6% to $962 million and average diluted shares (stated in millions) rose to 1,497 from 1,488 a year earlier.

Every reported region grew sequentially, yet reported earnings fell while the adjusted figure rose.

Middle East recovery lifts sequential revenue as North America grows

International revenue rose 5% sequentially and North America rose 7%, with the Middle East up 13% sequentially as activity recovered, though some countries saw renewed disruptions in the final weeks and Middle East revenue was still down 12% from a year earlier on the release's pro forma basis. Middle East & Asia revenue of $2.81 billion was still 7% below the prior year on the same basis (6% as reported), while North America revenue of $2.40 billion was 13% higher on that pro forma basis and 24% as reported.

ChampionX, acquired in July 2025, contributed $956 million of revenue against $579 million a year earlier, when SLB owned it for two months. Strip that out and revenue rose 2% from a year earlier, international revenue was essentially flat and North America rose 13%; the release's pro forma commentary credits stronger U.S. land activity and a 76% increase in Data Center Solutions revenue.

Higher amortization and a larger share count pull adjusted earnings lower

Net income attributable to SLB of $735 million fell 6% sequentially and 1% year on year. GAAP diluted earnings of $0.49 a share carried two items that the release adds back: a $187 million pretax pension settlement charge worth $0.12 a share and merger and integration costs worth $0.03 a share. Both are excluded from the adjusted figures, so the pension charge moves reported profit only. Excluding them, earnings were $0.64 a share, up 16% from the second quarter but down 7% from a year earlier.

Adjusted EBITDA of $2.07 billion was 9% higher sequentially and essentially flat year on year, yet pretax segment operating income fell 3% from a year earlier to $1.58 billion (up 12% sequentially). Depreciation and amortization included in expenses rose to $698 million from $638 million a year earlier, down from $712 million in the second quarter. The release's own component table puts the biggest part of that increase in amortization of APS investments, which rose from 60 to 88, with fixed-asset depreciation at 468 against 453 and intangible amortization at 113 against 101 (those components are stated in millions). The release does not attribute any of that depreciation and amortization to ChampionX. Adjusted net income fell 6% to $962 million while average diluted shares (amounts in millions) rose to 1,497 from 1,488 a year earlier, so per-share adjusted earnings fell faster than adjusted net income.

Buybacks, a higher dividend and the Kelvion purchase

SLB bought back 12.9 million shares for $656 million in the quarter; the nine-month total was 34.0 million shares for $1.76 billion. The board approved a quarterly dividend of $0.295 a share, payable January 7, 2027 to stockholders of record on December 2, 2026. Cash flow from operations was $1.51 billion and free cash flow was $828 million.

Capital investment for full-year 2026 is still expected at approximately $2.5 billion. On August 31 SLB agreed to acquire Kelvion, a heat-exchange and thermal-management company, for approximately $3.4 billion in cash while assuming approximately $700 million of debt; the transaction is expected to close in the first half of 2027. It completed the purchase of S&P Global Energy's geoscience and petroleum engineering software business on September 1.

Management's 2027 case rests on international and data-center demand

Chief executive Olivier Le Peuch called the quarter broad-based and tied the next year to offshore contract awards and a recovering Middle East.

“These results reflect broad-based sequential revenue growth across each of our geographical areas and Core divisions as the upcycle gains momentum,” he said.

He added that the company sees “a very compelling outlook for 2027, with further upside as Middle East activity recovers,” citing deepwater momentum in Latin America, Europe, Sub-Saharan Africa and Asia as well as significant activity increases in Venezuela.

Data Center Solutions revenue rose 23% sequentially, and Digital's annualized recurring revenue reached $1.04 billion, 13% above a year earlier. The release, filed as Exhibit 99 to a Form 8-K on October 23, 2026, gives no company-wide revenue or earnings guidance for the fourth quarter or for the full year; capital investment is the only 2026 figure it restates. SLB scheduled its earnings call for 9:30 a.m. U.S. Eastern time on October 23.