SLB Q4 Earnings Beat on Digital Segment Growth, Revenues Rise Y/Y

SLB SLB has reported fourth-quarter 2025 earnings of 78 cents per share (excluding charges and credits), which beat the Zacks Consensus Estimate of 74 cents. The bottom line, however, decreased from the year-ago quarter’s level of 92 cents.

The oilfield services giant recorded total quarterly revenues of $9.75 billion, which topped the Zacks Consensus Estimate of $9.53 billion. The top line also increased from the year-ago quarter’s figure of $9.28 billion.

The better-than-expected quarterly results were primarily driven by stabilized upstream activity globally and revenue increases in the Digital segment. However, decreased revenues from the Reservoir Performance and the Well Construction segments partially offset the positives.

SLB Limited Price, Consensus and EPS Surprise

SLB Limited price-consensus-eps-surprise-chart | SLB Limited Quote

Segmental Performance

Revenues in the Digital unit totaled $825 million, up 17% from the year-ago quarter’s level of $705 million. Pre-tax operating income of $280 million was higher than $242 million a year ago. The unit's revenues increased year over year, primarily driven by growth in Digital Exploration from year-end sales in Brazil, Gulf of America and Angola.

Revenues in the Reservoir Performance unit decreased 3% year over year to $1.75 billion. Pre-tax operating income totaled $342 million, which declined 8% year over year. The figure beat the Zacks Consensus Estimate of $293 million. Reduced activity in Saudi Arabia, Mexico, Qatar, and Europe & Africa affected the segment’s revenues. The negatives were partially offset by higher activity levels in Argentina, Guyana, Kuwait and East Asia.

The Well Construction segment’s revenues fell 10% from the year-earlier quarter’s level to $2.95 billion. Pre-tax operating income decreased 19% to $550 million, and the Zacks Consensus Estimate for the same was pegged at $533 million. A decline in drilling activities across Mexico, Saudi Arabia, Sub-Saharan Africa, North America and Asia contributed to the revenue contraction. However, stronger results from Guyana, Iraq and Kuwait partially offset the decline.

Revenues in the Production Systems segment amounted to $4.08 billion, up from $3.13 billion a year ago. Pre-tax operating income improved 30% year over year to $664 million and beat the Zacks Consensus Estimate of $639 million. The segment benefited from the acquired ChampionX production chemicals and artificial lift businesses.

Cash Flow & Financials

SLB reported a free cash flow of $2.3 billion in the fourth quarter.

As of Dec. 31, 2025, the company had approximately $4.2 billion in cash and short-term investments. It registered a long-term debt of $9.7 billion at the end of the quarter.

Outlook

SLB, which carries a Zacks Rank #3 (Hold), announced that its capital investment (including capex, exploration data costs and APS investments) guidance for 2026 is approximately $2.5 billion. The projected figure is higher than the year-end 2025 level of $2.4 billion.

Stocks to Consider

Oceaneering International OII delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth. OII currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

W&T Offshore WTI benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s recent acquisition of six shallow-water fields in the Gulf of America boosts its production prospects in the future, which is expected to enhance its revenues. WTI currently carries a Zacks Rank #2 (Buy).

Cenovus Energy Inc. CVE is a Canadian integrated energy company with operations spanning the upstream, midstream and downstream sectors. The company is involved in exploration and production from its low-cost oil sands and heavy oil assets in Canada.  The strategic MEG Energy acquisition is expected to provide a boost to Cenovus Energy's production levels in 2026. CVE currently sports a Zacks Rank #3.

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This article originally published on Zacks Investment Research (zacks.com).

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