SLB lowered its first‑quarter 2026 revenue guidance, citing additional costs that will reduce earnings per diluted share by 6 to 9 cents. The company said the cut reflects disruptions in the Middle East, including suspended travel and demobilization of operations, which have increased operating expenses.
The guidance adjustment comes after analysts had projected Q1 2026 revenue of $8.88 billion and EPS of $0.61. In Q4 2025, SLB reported non‑GAAP EPS of $0.78, a 15 % year‑on‑year decline, while Q1 2025 EPS was $0.72, down $0.03 from Q1 2024. The new guidance therefore signals a short‑term earnings pressure that is expected to be offset by the company’s cost‑control measures and its focus on high‑margin digital and production recovery initiatives.
In the same announcement, SLB’s OneSubsea joint venture secured a new deep‑water engineering, procurement and construction contract from PTTEP Sabah Oil in Malaysia. The award, the third for the joint venture in a year, will be executed between 2026 and 2027 and underscores the company’s continued strength in complex subsea development projects.
Management emphasized that “SLB revenue for the first quarter will be lower than expected, and the company expects to incur additional costs resulting in an impact of approximately 6‑9 cents of earnings per diluted share for the first quarter. Given the dynamic nature of the environment, these factors could change, and we will continue to closely monitor developments and their impact.” The company also noted that “Despite these near‑term disruptions, SLB remains confident in the underlying resilience of its global business, including the Middle East.”
The deep‑water contract win highlights OneSubsea’s ability to secure large, multi‑year projects and reinforces SLB’s strategic focus on subsea, digital, and energy‑transition solutions. The company’s robust balance sheet, with a current ratio of 1.33 and a debt‑to‑equity ratio of 0.45, positions it to weather short‑term headwinds while pursuing growth opportunities.
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