Key Highlights

  • First-quarter net income decreased 6% to $752 million (50 cents per share), compared to $797 million in the prior year period
  • Regional conflicts in the Middle East resulted in operational pullbacks spanning several nations
  • Total revenue increased 2.7% to $8.72 billion, surpassing analyst projections of $8.63 billion
  • Adjusted earnings per share reached 52 cents, marginally exceeding the 51-cent consensus forecast
  • Adjusted EBITDA declined 12% to $1.77 billion; the company refrained from providing annual guidance

Shares of SLB tumbled 3.7% during Friday’s premarket session following the oilfield services provider’s disclosure of weakened first-quarter earnings, with continuing Middle East tensions significantly impacting operational activities.


SLB Stock Card
SLB N.V., SLB

Chief Executive Olivier Le Peuch characterized the period as “a challenging start to the year.” Regional instability compelled the organization to withdraw operations across multiple territories as clients prioritized safeguarding their workforce and infrastructure.

Net income contracted 6% on a year-over-year basis to $752 million, translating to 50 cents per share. The prior year’s first quarter delivered $797 million, equivalent to 58 cents per share.

Adjusted earnings per share totaled 52 cents — narrowly beating the 51-cent consensus among analysts surveyed by FactSet.

Revenue climbed 2.7% to $8.72 billion, exceeding Wall Street’s $8.63 billion projection. The revenue outperformance failed to alleviate investor concerns regarding margin compression.

Adjusted EBITDA contracted 12% to $1.77 billion, emerging as a primary catalyst for the premarket stock selloff.

North American Strength Contrasts With International Weakness

Revenue from North American operations surged 26% to $2.17 billion, delivering a robust performance that partially mitigated broader challenges.

International revenue, conversely, slipped 3.8% to $6.47 billion — illustrating the direct consequences of Middle Eastern disruptions on SLB’s worldwide operational network.

The company indicated that its well construction and reservoir performance segments experienced the most significant setbacks from regional conflicts.

SLB chose to withhold full-year financial projections. Management reconfirmed its capital expenditure plan of $2.5 billion for 2026, representing a slight increase from the $2.4 billion deployed in 2025.

Chief Executive Anticipates 2027 Market Rebound

Le Peuch noted that regional conflicts have “accelerated” the rebalancing dynamics between global liquid supply and demand while revealing weaknesses in energy infrastructure.

He anticipates that nations will emphasize supply chain diversification and increase investments in developing domestic energy resources following the resolution of current conflicts.

Le Peuch projected increased capital allocation toward short-cycle initiatives across North America and Latin America, alongside expanded deepwater offshore developments.

“Absent a prolonged conflict leading to an economic slowdown and demand destruction, these supply responses reinforce our conviction of a broad-based recovery in upstream markets in 2027 and 2028,” he said.

During January, SLB had indicated that its regional challenges were subsiding. Friday’s quarterly report revealed a more complex reality.

Premarket trading showed shares at $52.70, representing a decline from Thursday’s closing price.