SLB Guides Q4 Revenue Above $10B, Sees Margin In Line With Prior Year
SLB sits 63% above its 52-week low of $31.64.
Summary
On its Q2 earnings call, SLB provided bullish forward guidance: Q4 revenue is expected to surpass $10 billion, representing 5% year-over-year growth, with adjusted EBITDA margin in line with Q4 2025. The company sees a constructive upstream investment environment, with higher exploration spending and capex in the second half, led by Africa. Middle East activity is recovering gradually, though Iraq remains constrained; management noted increasing customer engagement and expects more contract awards in the coming weeks. The Iran war impact on Q2 EPS came in at the lower end of the previously guided 6-8 cents. Free cash flow is projected to be materially higher in the second half. This outlook, combined with a Q2 beat ($0.55 vs. $0.51 consensus), signals strong operational momentum and improving market conditions, particularly in international markets. The $150 million potential Q3 Middle East revenue downside from conflict escalation is a key risk to monitor.
At the time of this announcement, SLB was trading at $51.71 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $77.3B. The 52-week trading range was $31.64 to $58.82. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.