SLB is a global technology company that provides innovative solutions for the energy industry, focusing on exploration, development, and production of oil and gas, as well as new energy systems. The company operates through four main divisions: Digital, Reservoir Performance, Well Construction, and Production Systems, and is committed to driving energy innovation for a balanced planet and accelerating the energy transition.
Business segments
10-K
DigitalReservoir PerformanceWell ConstructionProduction Systems
Wall Street consensus — sourced weekly via public disclosures
Analyst coverage data sourced from public filings. Xavier analyst thesis summary available after weekly Perplexity scan completes.
Financial summary — Gemini analysis
Signal
Revenue
$35,708 million
-2% YoY
Operating margin
16.3%
Net income
$3,451 million
Free cash flow
$4,115 million
Dividend / share
$1.14
Total debt
$11,636 million
Cash: $3,036 million
CapEx guidance
$2.5 billion
Earnings quality:HIGH
Cash conversion:1.9x
Non-recurring items: Workforce reductions, Other merger and integration costs, Impairment of equity method investment, Amortization of inventory purchase accounting adjustment
SLB trades at a 19% discount to its 52-week high and a 23% discount to the consensus analyst price target, offering apparent valuation support bolstered by ChampionX acquisition accretion and digital segment growth. However, near-term earnings growth is negative (-13.8%), organic revenue growth is near-flat (2.7%), global upstream spending is guided to decline in 2025, and EBITDA margins are expected to remain flat in H2 2025 due to tariff headwinds of 20-40bps — limiting near-term upside catalysts within the 5-day window. The stock just reported Q2 earnings on July 18, meaning there is no imminent catalyst and the post-earnings move has already been absorbed.
Strongest bull case
Forward P/E of ~14.4x is materially cheap relative to the S&P 500, the ChampionX acquisition closes and adds ~$850M quarterly revenue starting Q3 2025, and 29 analyst buy ratings with a $61.45 target imply ~29% upside — a meaningful re-rating opportunity if oil prices stabilize.
Strongest bear case
Global upstream investment is expected to decline in 2025 per SLB's own management guidance, North American short-cycle activity is the steepest drag, OPEC+ supply increases are pressuring commodity prices, and earnings growth is already contracting -13.8% YoY — the near-term demand environment for oilfield services is deteriorating, not inflecting.
What the market may be missing
The market may be underweighting the dilution risk and integration complexity from ChampionX: former ChampionX shareholders now own ~9% of SLB, representing meaningful share count expansion, and the previously disclosed 'digital revenue' from ChampionX is being reclassified downward to align with SLB's stricter digital definition — which could disappoint investors who bought into the digital growth narrative from the deal.
Mr. Olivier Le Peuch (CEO) · Undisclosed industry event
Le Peuch and other oil CEOs discussed major transformations in the global energy landscape due to the Iran conflict, including the blockade of the Strait of Hormuz trapping nearly one billion barrels of oil and worsening supply shortages. The convers
Le Peuch warned that the Iran war will fundamentally alter global energy markets, signaling shifts in how nations approach energy production and supply chains. He discussed implications for SLB's operations alongside Baker Hughes leadership during th
Olivier Le Peuch highlighted Africa as one of the most compelling long-term opportunities due to its significant underdeveloped oil and gas resources. He emphasized that production and recovery efforts represent the most immediate path to incremental
“"Africa [represents] one of the most compelling long-term opportunities, with a significant base of underdeveloped oil and gas resources." "We expect portfolio allocation to shift more favorably towar”
CEO letter to shareholders
Signal
No shareholder letter on file for SLB
Some companies file their annual report without a separate CEO letter.
When available, Xavier extracts strategic themes, tone analysis, and
forward-looking statements to help you read between the lines.
Executive compensation
Signal
Name
Title
Total compensation
Olivier Le Peuch
Chief Executive Officer
$17,347,291
Stephane Biguet
EVP and Chief Financial Officer
$6,000,591
Abdellah Merad
EVP, Core Services and Equipment
$5,667,518
Dianne Ralston
Chief Legal Officer and Secretary
$5,198,980
Demosthenis Pafitis
Chief Technology Officer
$4,629,218
Khaled Al Mogharbel
Advisor to the CEO; former EVP, Geographies
$5,076,824
Source: DEF 14A proxy statement · 2026-02-26
Governance
Pro
Dual-class shares:No
Poison pill:No
Clawback policy:Yes
Stock ownership req.:Yes
Shareholder proposals
Advisory “say-on-pay” approval of executive compensation.
FOR
Pending
Approval of annual financial statements for the year ended December 31, 2025.
FOR
Pending
Ratification of the appointment of independent auditor, PricewaterhouseCoopers L
FOR
Pending
Approval of an amendment and restatement of the 2017 SLB Omnibus Stock Incentive
Risk increasing — Demand for SLB's products and services is substantially dependent on the levels
Mgmt narrative
Management tone: Cautiously optimistic
Analyst drift
Consensus Buy — targets stable
Insider sentiment
Pattern detection — 90 days needed
Signal history
Signal
Date
Direction
Conf.
Agree.
Thesis
Price
Type
Jul 12, 2026
NEUTRAL
5.8/10
100%
SLB trades at a 19% discount to its 52-week high and a 23% discount to the consensus analyst price t...
$47.76
Sched.
Jul 11, 2026
NEUTRAL
6.1/10
75%
SLB looks reasonably valued on forward earnings and still trades well below analyst targets, but the...
$47.76
Sched.
Jun 07, 2026
BEARISH
6.2/10
75%
SLB has suffered a sharp 5.41% single-day decline on oil price weakness, sits near its 52-week high ...
$54.87
Sched.
May 31, 2026
NEUTRAL
5.5/10
100%
SLB trades at ~24x TTM P/E with earnings growth of -13.8% YoY and revenue contraction, making the va...
$54.55
Sched.
May 24, 2026
NEUTRAL
5.6/10
100%
SLB is trading at 25x TTM P/E near its 52-week high with earnings growth of -13.8% and revenue growt...
$57.28
Sched.
May 17, 2026
NEUTRAL
5.8/10
100%
SLB trades at ~24x TTM P/E near its 52-week high ($55.38 vs. $57.20 high), with earnings growth nega...
$55.38
Sched.
May 10, 2026
BULLISH
6.2/10
50%
SLB trades at a compelling 15.96x forward P/E with multiple analysts recently raising price targets ...
$53.27
Sched.
May 03, 2026
NEUTRAL
6.0/10
75%
SLB is trading at its 52-week high (~$56.92 vs. $57.20 high) with a TTM P/E of 25x despite declining...
$56.92
Sched.
May 01, 2026
NEUTRAL
6.3/10
50%
SLB just beat Q1 2026 revenue estimates at $8.72B (+3% YoY) and triggered a broad wave of analyst pr...
$56.74
Sched.
Apr 12, 2026
BULLISH
6.9/10
75%
SLB trades at a compelling 15.6x forward P/E while sitting near its 52-week high, with all 28 coveri...
$51.92
Sched.
Showing last 10 signals
SLBSLB (Schlumberger)
Signal
FY2026 annual report (10-K filed 2026-01-23)
INCOME STATEMENT
?Revenue
$35,708 million-2% YoY
Total sales from selling oil, gas, and petrochemicals. Down 2% from last year. Management has guided capital spending of $2.5 billion.
?Operating income
$5,815 million
What remains after subtracting all operating costs — salaries, materials, rent, R&D — from revenue. This is the profit from actually running the business, before interest and taxes. Operating margin is 16.3%, meaning 16 cents of every dollar of revenue becomes operating profit.
?Net income
$3,451 million
The bottom line — what the company actually earned after all expenses, interest, and taxes. This is the number that gets divided by shares outstanding to calculate earnings per share (EPS), which directly affects the stock price. Net margin is 8.6%. Note: results include non-recurring items (workforce reductions, other merger and integration costs) that may not repeat.
?Free cash flow
$4,115 million
Operating cash flow minus capital expenditure. This is the money available for dividends, share buybacks, debt repayment, or acquisitions. Free cash flow is what many professional investors consider the truest measure of financial health.
?EPS (diluted)
$0.50
Earnings per share — net income divided by total shares outstanding (including stock options and convertible bonds that could become shares). This is the single number most investors watch because it directly connects company profits to your ownership stake.
?Dividend per share
$1.14
Cash paid to shareholders each year for every share they own. Energy companies typically pay steady dividends funded by commodity cash flows.
BALANCE SHEET
?Total assets
$54.5B
Everything the company owns — cash, factories, equipment, patents, inventory, investments. Includes oil reserves, refineries, pipelines, and chemical plants.
?Cash & equivalents
$3,036 million
Money available right now — bank accounts, money market funds, short-term government bonds. This is the company's financial cushion. More cash means more flexibility to invest, acquire, or survive a downturn without borrowing.
?Total debt
$11,636 million
All money the company owes — bonds, bank loans, credit facilities. Compare this to cash to understand the net debt position. The company holds $3,036 million in cash against this debt.
?Shares outstanding
1,495,331,485 shares
Total number of shares that exist — owned by all investors, insiders, and institutions combined. When the company reports EPS, this is the denominator. Share buybacks reduce this number, which increases EPS even without earnings growth.
?Debt-to-equity ratio
0.4%
How much debt the company uses for every dollar of shareholder equity. Under 100% means more equity than debt (conservative). Over 200% means heavy leverage. Banks and utilities naturally run higher ratios.
CASH FLOW
?Operating cash flow
$487M
Actual cash generated from running the business — not accounting profits, real money coming in the door. This is more trustworthy than net income because it's harder to manipulate. A company can report profits but still run out of cash.
?Capital expenditure
$343M
Money spent on long-term assets — drilling rigs, refineries, pipelines, and exploration. This is the cost of maintaining and growing the business. Management has guided $2.5 billion for capital spending.
?Free cash flow
$144M
Operating cash flow minus capital expenditure. This is the money available for dividends, share buybacks, debt repayment, or acquisitions. Free cash flow is what many professional investors consider the truest measure of a company's financial health.
?Interest expense
$116M
The cost of borrowing money — interest payments on bonds, loans, and credit facilities. Higher interest expense means more of the company's earnings go to lenders instead of shareholders.
?Interest coverage
14.2x
EBITDA divided by interest expense — how many times over the company can pay its interest bill from earnings. At 14.2x, coverage is very comfortable. Lenders typically want to see at least 3-4x.
?Depreciation & amortization
$685M
A non-cash expense that spreads the cost of oil wells, refineries, and pipeline infrastructure over their useful life. This reduces reported income but no cash actually leaves the company — that's why it gets added back to calculate EBITDA and operating cash flow.
EARNINGS QUALITY
?Accrual quality
HIGH
Measures how well reported earnings match actual cash generation. HIGH means earnings are backed by real cash. LOW means the company may be using accounting techniques to inflate reported numbers. Professional investors check this before trusting EPS.
?Cash conversion
1.9x
Operating cash flow divided by net income. Above 1.0x means the company generates more cash than it reports in profits — a sign of high-quality earnings. At 1.9x, the company is generating significantly more cash than reported profits — very healthy.
?Non-recurring items
8 identified
One-time items that affect the bottom line but won't repeat: workforce reductions, other merger and integration costs, impairment of equity method investment, amortization of inventory purchase accounting adjustment. When evaluating the company's true earning power, investors strip these out to see what the business earns on a normal basis.
?Management tone
Cautious Optimistic
How management sounds in their SEC filings — are they confident, cautious, or defensive? This is analyzed from the actual language used in the 10-K annual report. A shift in tone from prior years can signal changing conditions before the numbers reflect it.
?Top risk factor
Increasing
Demand for SLB's products and services is substantially dependent on the levels of expenditures by its customers, which can change based on many factors, including fluctuations in oil and gas prices. Risk trend: increasing. This is the single biggest threat to the company's future earnings as identified in their SEC filing.
Click any row to expand the plain-English explanation. Source: SEC EDGAR XBRL filings.
Capital intelligence
Signal
Weighted Average Cost of Capital · Return on Invested Capital · Economic Value Added
ROIC
9.96%
WACC
7.40%
🟢 VALUE CREATOR — EVA Spread: 2.56%
?WACC
7.40%
Weighted Average Cost of Capital — the minimum return SLB (Schlumberger) must earn on its investments to satisfy both debt holders and shareholders. Computed from a 88.02% equity / 11.98% debt capital structure. If the company earns less than 7.40% on its invested capital, it is destroying shareholder value.
?Cost of equity
8.28%
The return shareholders demand for holding SLB stock instead of a risk-free Treasury bond. Computed using the Capital Asset Pricing Model: Risk-Free Rate (4.25%) + Beta (0.73) × Equity Risk Premium (5.50%). A beta of 0.73 means SLB is less volatile than the overall market.
?Cost of debt (after-tax)
0.94%
What SLB (Schlumberger) effectively pays on its borrowed money after the tax deduction on interest. Interest is tax-deductible, so the true cost is lower than the stated rate. Effective tax rate used: 21.34%.
?Capital structure
E: 88.02% / D: 11.98%
How SLB (Schlumberger) finances its operations — the split between equity (stock market value: $71.1B) and debt (total borrowings: $9.7B). More debt means more leverage — higher potential returns but higher risk.
?ROIC
9.96%
Return on Invested Capital — how efficiently SLB (Schlumberger) turns its total invested capital into after-tax operating profit. NOPAT ($3.3B) ÷ Invested Capital ($33.0B). This exceeds WACC, meaning the company creates value for shareholders.
?EVA
$846M
Economic Value Added — the dollar amount of value SLB (Schlumberger) created (or destroyed) above its cost of capital. NOPAT ($3.3B) minus the capital charge (Invested Capital × WACC = $2.4B). Positive EVA means every dollar of capital is earning more than it costs.
?NOPAT
$3.3B
Net Operating Profit After Tax — operating income adjusted for taxes, ignoring how the company is financed. Operating Income ($4.2B) × (1 - Tax Rate 21.34%). This isolates the company's core business profitability from its financing decisions.
Xavier consensus signals are intelligence outputs, not investment advice. All signals are generated by a multi-model AI system and reflect public information at time of generation. Past signal accuracy does not guarantee future performance. Wall Street analyst consensus sourced from public disclosures, summarized weekly. Financial data sourced from SEC EDGAR and yfinance. Insider transactions sourced from SEC EDGAR Form 4 filings. Updated Jul 12, 2026.