Investing.com -- SLB (NYSE: SLB) reported first-quarter results that met analyst expectations for earnings while revenue slightly exceeded forecasts, though shares fell 2.7% following the release as Middle East disruptions weighed.

The oilfield services giant posted adjusted earnings per share of $0.52, matching the analyst consensus, while revenue of $8.72 billion came in above the $8.66 billion estimate and represented a 3% increase from $8.49 billion in the prior-year quarter. However, the revenue growth was primarily driven by the ChampionX acquisition, which contributed $838 million. Excluding this acquisition, revenue declined 7% YoY as widespread disruptions in the Middle East impacted operations across multiple countries.

"It was a challenging start to the year as widespread disruptions in the Middle East impacted our business," said CEO Olivier Le Peuch. "The impact was most pronounced in Well Construction and Reservoir Performance, as SLB demobilized operations in a number of countries in response to customer actions to safeguard personnel and facilities."

Adjusted EBITDA fell 12% YoY to $1.77 billion, with margins contracting 346 basis points to 20.3%. The margin compression reflected lower profitability across core divisions due to the Middle East conflict and pricing pressures in select markets. Well Construction pretax operating margin contracted 463 basis points YoY to 15.2%, while Reservoir Performance margins declined 47 basis points to 16.1%.

The company's Production Systems division showed strength, with revenue increasing 23% YoY to $3.51 billion, driven by the ChampionX acquisition. Digital revenue grew 9% YoY to $640 million, with annualized recurring revenue exceeding $1 billion, up 15% YoY.

SLB's board approved a quarterly dividend of $0.295 per share. The company repurchased 9.2 million shares for $451 million during the quarter and remains committed to returning more than $4 billion to shareholders in 2026.