Recommended as Stock of the Week on December 28, 2025

SLB: Aramco deal and digital offensive in the headwind

TickerSLB.NYSE
Recommended Price38.46 USD
Current Price 38.46 USD
Schlumberger NV – stock chart

Scores at time of recommendation (December 28, 2025)

Leeway Score
66/100
Excellent
Business Rating
19/100
Fair
Market-Fit Rating
88/100
Excellent
Cycle Rating
91/100
Excellent

More about our scores in Help

5-year stock timeline

Schlumberger's journey over the past five years reveals a company that moved through distinct phases—each reshaping how investors understood its trajectory and potential.

In 2020, the pandemic obliterated demand. The company cut costs aggressively, slashed its dividend by roughly 75%, and restructured operations. Survival became the frame. By 2021–2022, activity returned and commodity prices climbed. Cash flow improved, margins expanded, and management began restoring shareholder returns. The narrative shifted from survival to recovery. Investors watched operational metrics normalize and rewarded the turnaround.

What's happened since 2023 tells a different story. SLB has deployed substantial capital on buybacks and dividend increases while pursuing meaningful M&A—the ChampionX transaction and related moves—that fundamentally altered the business composition. The company now tilts more heavily toward production systems and digital/transition technologies. By 2024 onward, the market's perception had shifted again: no longer a pure-play cyclical, but rather a services operator with software and production-systems capabilities positioned for energy transition opportunities. That blend of cyclical exposure and growth-quality characteristics created a different set of expectations.

The price action mirrors these phases. The 2020 crash bottomed as the shock hit hardest, then gradually recovered through 2021. A sustained uptrend took hold through 2022–2023, punctuated by rallies on strong results and capital-return announcements. From 2024 into 2026, the pattern became more episodic: breakouts tied to M&A and buyback news interspersed with sideways periods as the market digested what SLB's transformed business mix actually meant for durability and margin sustainability.

At 50.51, the stock reflects that ongoing re-pricing.

Key Points

From recommendation (December 28, 2025)

  • Five-year contract with Aramco for unconventional gas production secures order book and cash flow predictability
  • Digital solutions and ChampionX integration to drive EBITDA margin towards 25% - despite margin pressure
  • Analyst consensus sees fair value at USD 45.99 - almost 22% above the current price of USD 37.79
  • P/E ratio of 15.4 and operating margin of 15.5% signal solid profitability at a moderate valuation

Investment Thesis

From recommendation (December 28, 2025)

With the new Aramco contract for frac automation and digital services, SLB is positioning itself as a technology leader in the growing market for unconventional gas - an energy source that is considered a global bridge fuel. The strategic reorientation towards digital platforms, AI-supported drilling solutions and the ChampionX acquisition with a targeted EUR 400 million. USD synergies are aimed at reducing dependence on cyclical upstream budgets. At the same time, the business remains volatile: sales recently shrank by 2.5%, price pressure due to aggressive negotiations by large oil companies is weighing on margins, and insider sales of over 100. 000 shares indicate internally subdued expectations. The valuation appears favorable, but the ability to deliver on the ambitious margin targets is still pending.

Key risks and downside factors

Schlumberger operates in a tightly consolidated oilfield-services market alongside Halliburton, Baker Hughes, and Weatherford, competing across drilling, completion, seismic, and production technologies [2][1]. The company's top and bottom lines swing with upstream capital spending cycles and customer budget reallocations during commodity price moves, while competitive pricing pressure remains relentless [0]. Operational and geopolitical exposures—sanctions history, prior fines, environmental incidents, and ongoing workforce or legal matters—create material regulatory and reputational risk that warrant close attention [0].

  • Commodity cycles drive capital spending patterns that create meaningful swings in both SLB's revenue and margins.
  • Large integrated service providers like Halliburton, Baker Hughes, and Weatherford maintain enough scale to compress both pricing and market share for smaller competitors [2][1].
  • Geopolitical tensions and sanctions—particularly those affecting Russia operations and workforce—pose real risks to business continuity, alongside potential regulatory fines and operational constraints.
  • Regulatory, environmental, legal, and ESG liabilities—environmental incidents, litigation, workforce and harassment claims—carry material financial and reputational risk [0].

Competitive landscape

Schlumberger operates in a tightly held global oilfield-services market alongside Halliburton, Baker Hughes, NOV, TechnipFMC and Weatherford. Competition hinges on pricing, the breadth of integrated offerings, and the pace of technology advancement, while revenue tracks closely to upstream capital spending cycles. The business carries inherent exposure to regulatory and geopolitical shifts across its operating regions, plus the currency and credit volatility that comes with global operations.

CompanyTicker
HalliburtonHAL.NYSE
Baker HughesBKR.NYSE
NOV Inc.NOV.NYSE
TechnipFMCFTI.NYSE
Weatherford InternationalWFRD.NASDAQ

Get More Stock Analyses Like This

Receive hand-picked stock recommendations with detailed analyses every week

Start Free Trial

Catalysts

From recommendation (December 28, 2025)

  • Q4/FY 2025 figures on 23. January 2026 - Market awaits margin trends and ChampionX synergies
  • Ramp-up of the Aramco contract from 2025 - measurable sales and margin contributions expected
  • Growth in LNG exports and gas prices until 2026 according to EIA forecasts
  • Further progress with digital pipeline and Lumi platform as a margin lever

Analysis

From recommendation (December 28, 2025)

The Aramco contract not only provides SLB with predictable revenues over five years, but also underlines its technological leadership in a segment that, according to the EIA, is expected to grow massively by 2026 - US LNG exports are expected to rise to 16.3 bn cubic feet per day, while gas prices are expected to climb to USD 4.01 per million BTU. The ChampionX integration and double-digit growth in the digital division are rays of hope, but the recent decline in sales and ongoing price pressure show that the transformation is still in the middle of the process. The EBITDA margin target of 25% seems ambitious if offshore weakness and weak upstream spending persist - especially as insiders have recently sold off shares significantly. Although the operating margin improved from 14.8% (2022) to 15.5% (2024), the return on equity stagnated at around 15%. With a PER of 15.4 and a price-to-book value of 2.2, you are not paying an overprice, but you are also not getting a bargain price for a business model in transition. The valuation gap of 22% to the analysts' target is real, but its realization depends on whether digital services and synergies take effect faster than macroeconomic brakes.

Performance Figures of Schlumberger NV

in USD

1M High / Low
54.79 / 43.55
52W High / Low
54.79 / 31.11
5Y High / Low
62.12 / 24.52
1M
+0.23%
3M
+34.69%
6M
+52.08%
1Y
+25.50%
3Y
+12.97%
5Y
+103.85%

Relative Performance vs Benchmarks

PeriodSchlumberger NV vs DAX vs S&P 500 (SPY)
1M +0.23% +6.20% +5.22%
3M +34.69% +40.09% +39.06%
6M +52.08% +57.05% +54.35%
1Y +25.50% +22.72% +8.24%
3Y +12.97% -35.26% -52.11%
5Y +103.85% +50.50% +30.03%

Get More Stock Analyses Like This

Receive hand-picked stock recommendations with detailed analyses every week

Start Free Trial

Historical valuation trends

How the company’s key valuation ratios (P/E, P/S, P/B and P/CF) have evolved over time compared to today.

PeriodP/E RatioP/S RatioP/B RatioP/CF Ratio
Current22.82.12.911.8
1Y ago13.81.62.88.3
3Y ago18.42.43.918.1
5Y ago-13.61.83.014.9

Frequently Asked Questions

From recommendation (December 28, 2025)

Is SLB a good investment?

SLB has a Leeway Score of 65.9/100, which is rated as Excellent. The Leeway Score combines business quality, fundamental evaluation, and valuation cycle into a comprehensive assessment. A higher score indicates stronger investment quality based on AI-powered fundamental analysis.

What does SLB do?

SLB is a company characterized by the following investment thesis: SLB N.V. engages in the provision of technology for the energy industry worldwide. The company operates through four divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems. The company provides field development and hydrocarbon production, carbon management, and integration of adjacent energy systems; reservoir interpretation and data processing services for exploration data; and well construction and production improvement services and products. It also offers subsurface geology and fluids evaluation information; stimulation services to restore or enhance well productivity through hydraulic fracturing, matrix stimulation, and water treatment; and intervention services to oil and gas operators. In addition, the company offers mud logging, directional drilling, measurement-while-drilling, and logging-while-drilling services, as well as engineering support services; supplies drilling fluid systems; designs, manufactures, and markets roller cone and fixed cutter drill bits; bottom-hole-assembly and borehole enlargement technologies; well planning, well drilling, engineering, supervision, logistics, procurement, and contracting of third parties, as well as drilling rig management solutions; and drilling equipment and services, as well as land drilling rigs and related services. Further, it provides artificial lift; supplies packers, safety valves, sand control technology, and various intelligent systems; midstream production systems; valves, chokes, actuators, and surface trees; and OneSubsea, an integrated solutions, products, systems, and services, including wellheads, subsea trees, manifolds and flowline connectors, control systems, connectors, and services. SLB N.V. was formerly known as Schlumberger Limited and change its name to SLB N.V. in October 2025. The company was founded in 1926 and is based in Houston, Texas. Schlumberger NV operates in the Energy / Oil & Gas Equipment & Services industry is based in USA employs around 109,000 people. Schlumberger NV recently reported revenue of about 35.71B USD, a profit margin of 9.45%, return on equity of 13.90%, a market capitalisation around 77.35B USD, valuation multiples of roughly 21.9x earnings, 2.2x sales, 2.7x book value. Analyst consensus currently expects earnings per share of around 3.33 USD with year‑over‑year growth of 18.06%. Schlumberger NV has an ongoing dividend policy and pays around 1.14 USD per share (2.13% yield).

What are the key metrics for SLB.NYSE?

Key metrics for SLB.NYSE include valuation (P/E 15.4, P/S 1.6, P/B 2.2), profitability (profit margin 10.34%, ROE 15.18%), and growth (revenue -2.50%, earnings -39.80%). Market capitalization is — USD. These metrics give an overview of the company's financial performance and valuation.

How has SLB's stock price performed?

SLB's stock has returned — over 1 year, — over 3 years, and — over 5 years. Performance can vary depending on market conditions and company developments.

How is SLB.NYSE valued?

SLB.NYSE has the following valuation metrics: P/E Ratio: 15.4, P/S Ratio: 1.6, P/B Ratio: 2.2. These metrics help assess whether the stock is fairly valued compared to its fundamentals.

What are the growth catalysts for SLB?

The key growth catalysts for SLB are:
  • Q4/FY 2025 figures on 23. January 2026 - Market awaits margin trends and ChampionX synergies
  • Ramp-up of the Aramco contract from 2025 - measurable sales and margin contributions expected
  • Growth in LNG exports and gas prices until 2026 according to EIA forecasts
  • Further progress with digital pipeline and Lumi platform as a margin lever
These factors can positively influence the company's future growth and performance.

What are the key risks when investing in SLB.NYSE?

Key risks for SLB.NYSE include: Schlumberger operates in a tightly consolidated oilfield-services market alongside Halliburton, Baker Hughes, and Weatherford, competing across drilling, completion, seismic, and production technologies [web:2][web:1]. The company's top and bottom lines swing with upstream capital spending cycles and customer budget reallocations during commodity price moves, while competitive pricing pressure remains relentless [page:0]. Operational and geopolitical exposures—sanctions history, prior fines, environmental incidents, and ongoing workforce or legal matters—create material regulatory and reputational risk that warrant close attention [page:0].
  • Commodity cycles drive capital spending patterns that create meaningful swings in both SLB's revenue and margins.
  • Large integrated service providers like Halliburton, Baker Hughes, and Weatherford maintain enough scale to compress both pricing and market share for smaller competitors [web:2][web:1].
  • Geopolitical tensions and sanctions—particularly those affecting Russia operations and workforce—pose real risks to business continuity, alongside potential regulatory fines and operational constraints.
  • Regulatory, environmental, legal, and ESG liabilities—environmental incidents, litigation, workforce and harassment claims—carry material financial and reputational risk [page:0].
Investors should consider these risk factors carefully before making an investment decision.

Who are the main competitors of SLB?

SLB competes with several listed peers in its sector. Schlumberger operates in a tightly held global oilfield-services market alongside Halliburton, Baker Hughes, NOV, TechnipFMC and Weatherford. Competition hinges on pricing, the breadth of integrated offerings, and the pace of technology advancement, while revenue tracks closely to upstream capital spending cycles. The business carries inherent exposure to regulatory and geopolitical shifts across its operating regions, plus the currency and credit volatility that comes with global operations.
  • Halliburton (HAL.NYSE)
  • Baker Hughes (BKR.NYSE)
  • NOV Inc. (NOV.NYSE)
  • TechnipFMC (FTI.NYSE)
  • Weatherford International (WFRD.NASDAQ)
These competitors influence pricing power, growth opportunities and relative valuation.

When does SLB report earnings?

SLB's next earnings report date is April 24, 2026.

What is SLB's average dividend yield?

Across past payouts, SLB's average dividend yield at payment date has been 0.59%.

Key Metrics

From recommendation (December 28, 2025)

Market Capitalization
— USD
P/E Ratio
15.43
Analyst Target Price
45.99 USD

Valuation Metrics

P/S Ratio
1.59
P/B Ratio
2.19

Profitability Metrics

Profit Margin
10.34%
Operating Margin
15.48%
Return on Equity
15.18%
Return on Assets
6.86%

Growth Metrics

Revenue Growth
-2.50%
Earnings Growth
-39.80%

Dividend history

Long-term record of paid dividends (amount per share and dividend yield at the time of payment).

YearDividendYield at paymentAvg. yield
20260.30 USD0.59%0.59%
20250.29 USD0.78%
20250.29 USD0.79%
20250.29 USD0.84%
20250.29 USD0.69%
20240.28 USD0.63%
20240.28 USD0.65%
20240.28 USD0.63%
20240.28 USD0.57%
20230.25 USD0.48%
20230.25 USD0.42%
20230.25 USD0.54%
20230.25 USD0.47%
20220.18 USD0.34%
20220.18 USD0.46%

Earnings history & estimates

Historical earnings performance shows how consistently the company meets or exceeds analyst expectations. Forward estimates provide insight into expected profitability and growth trajectory.

Historical earnings performance

69.5%
Beat estimate
13.6%
Miss estimate
+14.12%
Avg surprise when beat
-5.53%
Avg surprise when miss

Reports analyzed: 118

Upcoming earnings report

April 24, 2026
Next earnings date

Analyst estimates for upcoming periods

Next year
December 31, 2027
Consensus3.33
Range2.90 – 4.13
26 analysts
Est. growth vs prior: 18.06%
Revisions: 7d ↑0 ↓0 · 30d ↑2 ↓9
Next quarter
June 30, 2026
Consensus0.64
Range0.49 – 0.72
21 analysts
Est. growth vs prior: -13.01%
Revisions: 7d ↑0 ↓0 · 30d ↑0 ↓8

Key financial figures

All figures in USD

Selected income statement, balance sheet and cash flow figures. Annual and quarterly, based on reported IFRS/GAAP financials.

20252024202320222021
Revenue35.71B36.29B33.13B28.09B22.93B
Operating income (EBIT)5.46B6.33B5.50B4.15B2.77B
Net income3.35B4.46B4.20B3.44B1.88B
Free cash flow4.79B4.47B4.54B2.00B3.47B
Total assets54.87B48.94B47.96B43.13B41.51B
Equity26.11B21.13B20.19B17.68B15.00B
Net debt9.27B8.53B9.06B10.57B12.44B

Unlock Premium

  • Weekly top picks
  • 25,000+ stock analyses
  • AI-powered ratings
Start Free Trial

Cancel anytime

Full Analysis

Detailed fundamental analysis of this stock

View Full Analysis

Want More of This?

Get a hand-picked stock recommendation with detailed analysis every week

View Stock of the Week
General Terms and Conditions
© Leeway
PWP Leeway UG (haftungsbeschränkt)
Leeway Icon