01—Abstract
Summary
Summary of the 8-K filed January 23, 2026. Cited figures are marked; the original filing is the authoritative source.
SLB reported fourth-quarter and full-year 2025 results that showed sequential recovery but continued year-over-year pressure.
Q4 2025 revenue was $9.75 billiona, up 9% sequentially and 5% year over year, and was the first sequential increase across all four geographies since Q2 2024. Q4 GAAP diluted EPS was $0.55 (down 29% YoY), while EPS excluding charges and credits was $0.78 (up 13% sequentially, down 15% YoY). Adjusted EBITDA was $2.33 billion (23.9% margin), up 13% sequentially but down 2% YoY.
Much of the sequential and YoY revenue growth was supported by the ChampionX acquisition, which closed in Q3 2025 and contributed $879 millionb of Q4 revenue. Excluding ChampionX, Q4 global revenue rose 6% sequentially but fell 4% year over year. For full-year 2025, revenue fell 2% to $35.71 billion, GAAP EPS fell 24% to $2.35, and EPS excluding charges and credits fell 14% to $2.93.
Adjusted EBITDA declined 7% to $8.46 billionc. Cash generation remained solid, with cash flow from operations of $6.49 billion and free cash flow of $4.11 billion. Net debt was reduced to $7.42 billion from $7.41 billion at year-end 2024, which was essentially flat, and SLB returned about $4.0 billion to shareholders through $2.41 billion of buybacks (60 million shares) and $1.6 billion of dividends.
Digital (ARR above $1 billiond, up 15%) and Data Center Solutions (up 121%) were the main growth drivers. Management stated that headwinds in key regions are behind it and expects Middle East rig activity to increase in 2026. The Board raised the quarterly dividend 3.5% to $0.295 per share, and SLB committed to returning more than $4 billion to shareholders in 2026 through dividends and buybacks.
Full-year 2026 capital investment is guided to about $2.5 billion. The release also notes that Saudi Arabia, Mexico and Sub-Saharan Africa were notable sources of 2025 revenue declines.
02—Key points
Key Highlights
- Q4 2025 revenue of $9.75B rose 9% sequentially and 5% YoY; the sequential gain was the first across all four geographies since Q2 2024, though ex-ChampionX YoY revenue fell 4%.
- Q4 GAAP EPS of $0.55 fell 29% YoY, while EPS excluding charges and credits of $0.78 rose 13% sequentially but fell 15% YoY.
- Full-year 2025 revenue of $35.71B fell 2%, GAAP EPS fell 24% to $2.35, and adjusted EBITDA fell 7% to $8.46B (23.7% margin).
- Free cash flow was $4.11B for FY2025 and $2.29B in Q4, with cash flow from operations of $6.49B; net debt was roughly flat at $7.42B.
- SLB returned about $4.0B to shareholders in 2025 ($2.41B buybacks, $1.6B dividends) and committed to more than $4B in 2026 returns.
- Quarterly dividend raised 3.5% to $0.295 per share, payable April 2, 2026.
- Digital ARR exceeded $1B (up 15% YoY) and Data Center Solutions revenue grew 121% to $460M, positioning them as key growth drivers; 2026 capital investment is guided to about $2.5B.
03—Questions
Frequently Asked Questions
How much did ChampionX contribute to SLB's results, and how did organic performance look?
ChampionX contributed $879 million of Q4 2025 revenue and $206 million of adjusted EBITDA, and $1.46 billion of revenue for full-year 2025 since the July 2025 close. Excluding the acquisition, Q4 global revenue rose 6% sequentially but fell 4% year over year, and full-year revenue fell 6% excluding ChampionX. The acquisition therefore masks underlying year-over-year weakness.
Why did GAAP EPS fall more sharply than EPS excluding charges and credits?
Q4 GAAP EPS of $0.55 included charges such as a $210 million goodwill impairment, $126 million of workforce reductions, $100 million of inventory fair-value amortization from the acquisition, and $75 million of merger and integration costs. Partly offsetting this was a $92 million tax benefit from reversing a deferred tax asset valuation allowance. Full-year charges and credits totaled $1.1 billion pre-tax, so GAAP EPS of $2.35 understates underlying earnings of $2.93.
What is SLB's capital return and balance sheet position?
In 2025 SLB generated $4.11 billion of free cash flow and returned about $4.0 billion to shareholders through $2.41 billion of share repurchases (60 million shares) and $1.6 billion of dividends. Net debt was $7.42 billion at year-end 2025, essentially unchanged from $7.41 billion a year earlier, despite the ChampionX acquisition and related debt. For 2026 SLB committed to more than $4 billion of shareholder returns.
What is the outlook for 2026?
Management said it believes the headwinds in key regions in 2025 are behind it and expects Middle East rig activity to increase from current levels. It expects activity to gradually improve through 2026 and anticipates strong cash flow, while ChampionX synergies and growth in Digital and Data Center Solutions are expected to accelerate. Capital investment is guided to about $2.5 billion for 2026, versus $2.4 billion in 2025. The release provides no quantitative revenue or EPS guidance.
Which business segments are driving growth and which are weakening?
Production Systems (up 30% YoY reported, 2% organic) and Digital (up 17% YoY in Q4, 9% for the year, with 35% full-year adjusted EBITDA margin) were the main growth drivers. Well Construction declined 10% YoY in Q4 on lower drilling activity across Mexico, Saudi Arabia, North America and other markets, and full-year pre-tax segment operating income fell 20%. Reservoir Performance declined 3% YoY in Q4 on reduced activity in Saudi Arabia, Mexico and Qatar.
04—Continue