01—Abstract
Summary
Summary of the 10-Q filed April 29, 2026. Cited figures are marked; the original filing is the authoritative source.
SLB Limited/NV (SLB) reported total revenue of $8.72 billiona for the first quarter of 2026, a slight increase of 3% compared to $8.49 billion in the prior year period.
However, excluding the impact of the ChampionX acquisition, revenue declined by 7% year-over-year due to significant disruptions in the Middle East. Net income attributable to SLB was $752 millionb, or $0.50 per diluted share, compared to $797 million, or $0.58 per diluted share, in the first quarter of 2025. This decline in profitability reflects the challenges posed by geopolitical events and their impact on operational activity, particularly in the Well Construction and Reservoir Performance divisions.
The company generated $487 millionc in cash flow from operating activities, a decrease from $660 million in the prior year, impacted by higher inventory levels and a decrease in accounts payable. Despite a challenging operating environment, SLB continues to return capital to shareholders, with $426 million in dividends paid and $451 million used for share repurchases in the quarter, although the latter is a significant reduction from the $2.3 billion repurchased in the prior year period. The company ended the quarter with a solid liquidity position, emphasizing its ability to meet short-term obligations.
02—Key points
Key Highlights
- Total revenue for Q1 2026 was $8.72 billion, up 3% year-over-year, but down 7% excluding the ChampionX acquisition impact.
- Net income attributable to SLB decreased to $752 million ($0.50/share) from $797 million ($0.58/share) in Q1 2025.
- Middle East geopolitical disruptions significantly impacted revenue and profitability, especially in Well Construction and Reservoir Performance segments.
- Cash flow from operations decreased to $487 million from $660 million year-over-year, influenced by working capital changes.
- The company returned $426 million to shareholders through dividends and $451 million through share repurchases.
- SLB ended the quarter with $2.82 billion in cash and cash equivalents, maintaining a strong liquidity position.
- Production Systems revenue saw a substantial 23% increase driven by the ChampionX acquisition.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 29, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $8.72B$8.49B | +2.7% |
| R&D Expenses | $164.00M$172.00M | −4.7% |
| Interest Expense | $116.00M$147.00M | −21.1% |
| Net Income | $752.00M$797.00M | −5.6% |
| EPS (Basic) | $0.50$0.58 | −13.8% |
| EPS (Diluted) | $0.50$0.58 | −13.8% |
| Shares Outstanding (Basic) | 1.50B1.37B | +9.7% |
| Shares Outstanding (Diluted) | 1.51B1.38B | +9.8% |
05—Questions
Frequently Asked Questions
What was the primary driver of the year-over-year revenue decline when excluding the ChampionX acquisition?
The primary driver for the 7% year-over-year revenue decline, excluding the ChampionX acquisition, was the widespread geopolitical disruptions in the Middle East. These events led to significant operational impacts, causing demobilization of services in certain countries and reduced customer activity, particularly affecting the Well Construction and Reservoir Performance divisions.
How has the Middle East conflict affected SLB's financial performance?
The conflict in the Middle East has negatively impacted SLB's financial performance by causing revenue declines, especially in the Well Construction and Reservoir Performance segments. This is due to operational disruptions, customer actions to safeguard personnel and facilities, and a general slowdown in activity in the region. The company noted that this conflict has accelerated the rebalancing of global liquid supply and demand and expects post-conflict commodity prices to remain elevated.
What is SLB's outlook on the energy market, considering the current geopolitical situation?
SLB anticipates that post-conflict liquid commodity prices will remain above pre-conflict levels due to near-term supply disruptions and geopolitical risk premiums. The company believes countries will prioritize supply diversification, invest in exploration and domestic resources, and replenish strategic reserves. These trends, along with efforts to restore production capacity in the Middle East, are expected to drive increased investment in short-cycle projects in North America and Latin America, as well as long-cycle developments, particularly in deepwater offshore markets, supporting a broad-based recovery in upstream markets in 2027 and 2028, barring a prolonged conflict leading to economic slowdown.
How is SLB managing its capital and returning value to shareholders?
SLB continues to focus on capital discipline and returning value to shareholders. In Q1 2026, the company paid $426 million in dividends and repurchased $451 million of its stock. SLB also announced a 3.5% increase to its quarterly cash dividend. The company ended the quarter with substantial liquidity, comprising $2.82 billion in cash and short-term investments and $5.0 billion in available credit facilities, which it believes is sufficient for future business needs.
06—Continue