SLB beats estimates as production systems growth offsets Mideast; shares gain 

Investing.com -- SLB on Friday reported second-quarter adjusted earnings per share of $0.55, beating the analyst consensus of $0.51 by $0.04, as revenue of $8.97 billion exceeded expectations of $8.67 billion.

Revenue increased 5% YoY and 3% sequentially, driven by higher offshore activity in Latin America, Europe & Africa, and Asia, along with a rebound in U.S. unconventionals and strong demand for production and recovery solutions.

However, these gains were partially offset by a 13% sequential decline in Middle East revenue due to operational disruptions related to regional conflict. Excluding the ChampionX acquisition, which contributed $870 million in revenue, second-quarter revenue decreased 5% YoY.

Shares rose 2.3% following the results, reflecting investor approval of the company’s performance outside the Middle East and its expanding Data Center Solutions business.

Production Systems revenue grew 7% sequentially to $3.77 billion, supported by increased subsea activity and higher sales of artificial lift, valves, and production chemicals. Digital revenue increased 9% sequentially to $697 million, driven by strong sales of exploration data licenses in Brazil and Indonesia. Well Construction revenue declined 2% sequentially to $2.74 billion, while Reservoir Performance revenue fell 2% to $1.56 billion, both impacted by Middle East disruptions.

"SLB delivered solid second-quarter results, as broad-based sequential growth across international markets more than offset the impact of continued disruptions in the Middle East," said CEO Olivier Le Peuch.

The company’s Data Center Solutions business maintained strong momentum, with first-half 2026 revenue growing 63% YoY. Meta selected SLB as a delivery partner for a new 1GW data center in Canada. The business remains on track to exceed $1 billion annualized revenue by year-end 2026.

Cash flow from operations was $1.36 billion and free cash flow was $716 million. The board approved a quarterly dividend of $0.295 per share.

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