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SLB Reports Q1 2026 Earnings Amid Middle East Disruptions
SLB N.V. reported first-quarter earnings per share of $0.52, exceeding expectations despite revenue declines due to operational disruptions in the Middle East. The company highlighted growth in digital and production systems divisions, while anticipating gradual recovery in affected regions. Strategic focuses include production recovery, digital solutions, and data center expansions.
Apr 25, 5:26 PM·2m read2 sources
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SLB N.V. reported first-quarter 2026 earnings per share of $0.52, beating analyst expectations of $0.507. Revenue reached $8.7 billion, up 3% year-over-year but down 10.5% sequentially, primarily due to disruptions from conflict in the Middle East. The impacts were most significant in Qatar and Iraq, where operational shutdowns and security conditions halted activities.
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Adjusted EBITDA margin stood at 20.3%, down 346 basis points year-over-year, affected by high decrementals on lost revenue and additional logistics costs. No major cost adjustments were made to preserve capacity for future recovery. The company acquired ChampionX last year, contributing to accretive growth.
revenue increased 23% year-over-year, driven by the ChampionX acquisition and rising demand in production markets. On a pro forma basis, ChampionX also grew year-over-year. Digital revenue rose 9%, fueled by 87% growth in digital operations and 45% in data center solutions.
Reservoir Performance and Well Construction divisions declined, mainly from Middle East impacts. Automated footage reading in digital operations surged 145% year-over-year. Data center solutions backlog supports a projected $1 billion run rate by year-end, with acceleration expected in 2027.
Over 500 million barrels of production have been lost, altering global supply-demand balance. SLB anticipates oil prices settling above pre-conflict levels, boosting energy security efforts and upstream investments. Recovery is expected to be gradual, with orderly shut-ins resuming faster than abrupt ones.
