10-QPeriod: Q1 FY2026

SLB LIMITED/NV Quarterly Report for Q1 Ended Mar 31, 2026

Filed April 29, 2026For Securities:SLB

Summary

SLB Limited/NV (SLB) reported total revenue of $8.72 billion 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 million, 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 million 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.

Financial Highlights

47 data points
Beta

Revenue

$8.72B

Net Income

$752.00M

8.6% Net Margin

EPS (Diluted)

$0.50

Total Assets

$54.53B

Cash & Equivalents

$2.82B

Free Cash Flow

$144.00M

Financial Statements
Beta
Revenue$8.72B
R&D Expenses$164.00M
Interest Expense$116.00M
Net Income$752.00M
EPS (Basic)$0.50
EPS (Diluted)$0.50
Shares Outstanding (Basic)1.50B
Shares Outstanding (Diluted)1.51B

Key Highlights

  • 1Total revenue for Q1 2026 was $8.72 billion, up 3% year-over-year, but down 7% excluding the ChampionX acquisition impact.
  • 2Net income attributable to SLB decreased to $752 million ($0.50/share) from $797 million ($0.58/share) in Q1 2025.
  • 3Middle East geopolitical disruptions significantly impacted revenue and profitability, especially in Well Construction and Reservoir Performance segments.
  • 4Cash flow from operations decreased to $487 million from $660 million year-over-year, influenced by working capital changes.
  • 5The company returned $426 million to shareholders through dividends and $451 million through share repurchases.
  • 6SLB ended the quarter with $2.82 billion in cash and cash equivalents, maintaining a strong liquidity position.
  • 7Production Systems revenue saw a substantial 23% increase driven by the ChampionX acquisition.

Frequently Asked Questions

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.

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.

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.

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.