SLB N.V. reported first‑quarter 2026 revenue of $8.72 billion, a 3% year‑over‑year increase from $8.49 billion in the same period last year, beating the consensus estimate of $8.63 billion. GAAP earnings per share were $0.50, matching analyst expectations, while adjusted EPS of $0.52 surpassed the $0.51 consensus by $0.01, a 1.96% beat.
The growth was driven by a 23% year‑over‑year rise in the Production Systems segment, largely attributable to the integration of ChampionX, which was completed in November 2025. The Digital division also expanded, with revenue up 9% to $640 million, supported by continued momentum in Digital Operations. These gains offset a 2% decline in consolidated revenue that the company attributed to disruptions in the Middle East.
Adjusted EBITDA margin contracted to 20.3% from 23.8% in Q1 2025, a decline of 346 basis points. The compression reflects pricing headwinds, increased tariffs, higher costs in the OneSubsea division, and the impact of Middle East disruptions on Well Construction and Reservoir Performance operations.
"It was a challenging start to the year as widespread disruptions in the Middle East impacted our business," said CEO Olivier Le Peuch. "The impact was most pronounced in Well Construction and Reservoir Performance, as SLB demobilized operations in a number of countries in response to customer actions to safeguard personnel and facilities." He added, "Overall, first‑quarter year‑on‑year revenue increased 3%. This was primarily driven by the addition of ChampionX, which continues to deliver revenue growth and progressive margin expansion." Le Peuch also noted, "Digital revenue increased 9% year on year, supported by continued momentum in Digital Operations."
Management reiterated its 2026 guidance, maintaining the same revenue and margin targets set earlier in the year. The company reaffirmed its commitment to returning more than $4 billion to shareholders in 2026, signaling confidence in its long‑term strategy despite short‑term headwinds.
Investor reaction was tempered by caution over the Middle East disruptions and margin compression. While the earnings beat and revenue growth were welcomed, analysts and investors focused on the sustained impact of geopolitical risks and the need for margin recovery in the coming quarters.
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