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

2026–07–24 (Q2 2026 results and guidance)

Reported Q2 2026 EPS $0.55 and revenue $8.97B, topping estimates with positive stock reaction. Reaffirmed full-year capex around $2.5B and committed to returning over $4B to shareholders with a minimum $2.4B buyback target. Guided Q4 revenue above $10B and adjusted EBITDA margin near 24% [13].

The market read this as SLB executing on integration and cash returns. The narrative shifted toward a cash-returning, diversified oilfield-services and production-systems company, with ChampionX and OneSubsea contributions showing operational resilience despite regional disruptions. Stock jumped on the beat and guidance, breaking out of a prior range into renewed uptrend momentum [13].

2026–04–23 to 2026–04–24 (M&A and Q1 2026 results)

Announced acquisition of S&P Global Energy's geoscience and petroleum engineering software portfolio (definitive agreement April 23, 2026). Reported Q1 2026 results with ChampionX contributing $838M revenue and $199M adjusted EBITDA. Raised quarterly dividend to $0.295 and repurchased 9.2M shares for $451M in Q1 [4][3].

Investors increasingly viewed SLB as transforming into an integrated digital, production systems, and services platform. The M&A strategy (ChampionX, software assets) aimed to build recurring revenue and margins, while the shareholder-friendly capital return policy reinforced a value orientation. Stock showed consolidation with positive reaction to the deal and cash returns, with modest rally on integration upside [3][4].

2025 Q3–Q4 (ChampionX acquisition and integration)

Closed acquisition of ChampionX in Q3 2025. Company signaled approximately $1.8B incremental revenue from ChampionX in 2026 and targeted around $400M synergies with half realized by end-2026 [8][3].

Market perception moved from pure oilfield services toward a broader energy technology and production systems compounder. Investors rewarded clearer revenue diversification but watched execution risk and synergy realization. Stock moved upward following the announcement and toward Q4 2025 results as the market priced in incremental revenue and margin accretion [3][8].

2024 (Post-pandemic recovery and strategic refocus)

Continued recovery in international offshore activity. Divestitures earlier in the cycle (rig business and select assets) narrowed focus onto higher-margin international and digital offerings. SLB accelerated digital and service deals and partnerships globally [11][8].

Investor view shifted from cyclical recovery to structural repositioning. SLB presented itself as shifting capital and talent into higher-value international offshore, OneSubsea, and digital technologies, reducing lower-margin North American fracking exposure. Multi-quarter uptrend occurred with periodic profit-taking—overall recovery from 2020–2021 lows punctuated by ranges as the market reassessed sustainable growth prospects [11].

2022 (Macro volatility and execution)

Global oil price volatility and supply dynamics affected E&P spending patterns. SLB's results showed sensitivity to North American activity while international offshore held steadier. Company continued cost discipline and prioritized cash flow and deleveraging.

Perception: still a cyclical services name but with improving operational discipline. Investors focused on margins, free cash flow, and balance-sheet repair rather than top-line growth alone. Trading was volatile with periods of weakness when North American activity slowed, but rallies occurred on signs of improving international demand and margin improvement.

2021 (Post-spin and early repositioning)

Period immediately after Schlumberger's corporate realignments (including prior divestitures and strategic moves started earlier) as the company emerged from pandemic troughs. Emphasis on digitalization and efficiency programs [11][8].

Market saw SLB as a turnaround and value recovery play—heavy cyclical exposure but with potential upside if oil services demand normalized and the company executed on cost and portfolio restructuring. Early recovery phase transitioned to a longer-term uptrend as global activity normalized and restructuring benefits began to show.

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 competes in a concentrated global market for oilfield services and equipment, where a handful of large, diversified competitors offer overlapping capabilities across drilling, evaluation, completions, production, and subsea work. The company faces material risks from oil price volatility and activity cycles, from its exposure to specific regions and geopolitical events, and from regulatory and compliance demands. Technology shifts and competition from both established rivals and specialized newcomers pose ongoing displacement risk. Financial exposure to foreign currency fluctuations, commodity price movements, and counterparty credit also merit attention [8], [3].

  • Oil prices and upstream spending drive cycles in demand for SLB services and their pricing, which translates into revenue volatility for the company.
  • Geopolitical and regional exposure presents a material risk when operations and revenue concentrate in politically sensitive jurisdictions. Sanctions, armed conflicts, or sudden loss of market access in these regions can disrupt business continuity and financial performance.
  • Large competitors like Halliburton and Baker Hughes maintain pricing pressure through scale, while specialized entrants offering electric-frac and other alternative technologies can erode market share by addressing specific customer needs that traditional providers don't serve as well.
  • Regulatory, compliance, and financial risks merit attention. Environmental or regulatory shifts, foreign-exchange and commodity exposures, and credit or counterparty risk on large contracts can each materially affect earnings and cash flow.

Competitive landscape

Schlumberger is the largest global provider of oilfield services and equipment, operating within a concentrated industry where a handful of integrated service companies set the competitive landscape. Its main public rivals offer similar capabilities across drilling, completions, production, subsea and reservoir services, while smaller private and regional contractors compete primarily on cost and local market knowledge. The company faces material risks from oil-price cycles, geopolitical and regulatory shifts, technological displacement, and the operational execution challenges inherent to large-scale service delivery.

CompanyTicker
Baker Hughes CompanyBKR.NYSE
Halliburton CompanyHAL.NYSE
NOV Inc.NOV.NYSE
TechnipFMC plcFTI.NYSE

Private competitors

  • KCA Deutag
  • KBR (Note: KBR is public in some jurisdictions; included as a private/regional competitor where applicable if not listed by user sources)

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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
53.99 / 45.18
52W High / Low
58.82 / 31.64
5Y High / Low
62.12 / 25.90
1M
+14.43%
3M
-5.42%
6M
+8.45%
1Y
+67.44%
3Y
+0.23%
5Y
+120.74%

Relative Performance vs Benchmarks

PeriodSchlumberger NV vs DAX vs S&P 500 (SPY)
1M +14.43% +7.95% +9.98%
3M -5.42% -14.19% -10.79%
6M +8.45% +2.68% -5.85%
1Y +67.44% +58.90% +45.45%
3Y +0.23% -68.43% -84.47%
5Y +120.74% +54.68% +33.67%

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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
Current26.52.23.112.5
1Y ago11.11.32.26.8
3Y ago21.82.84.516.8
5Y ago39.41.93.113.4

Frequently Asked Questions

From recommendation (December 28, 2025)

Is Schlumberger NV a good investment?

Schlumberger NV 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 Schlumberger NV do?

Schlumberger NV 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 36.37B USD, a profit margin of 8.53%, return on equity of 12.91%, a market capitalisation around 79.80B USD, valuation multiples of roughly 26.2x earnings, 2.2x sales, 3x book value. Analyst consensus currently expects earnings per share of around 3.25 USD with year‑over‑year growth of 29.66%. Schlumberger NV has an ongoing dividend policy and pays around 1.16 USD per share (2.23% 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 Schlumberger NV's stock price performed?

Schlumberger NV'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 Schlumberger NV?

The key growth catalysts for Schlumberger NV 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 competes in a concentrated global market for oilfield services and equipment, where a handful of large, diversified competitors offer overlapping capabilities across drilling, evaluation, completions, production, and subsea work. The company faces material risks from oil price volatility and activity cycles, from its exposure to specific regions and geopolitical events, and from regulatory and compliance demands. Technology shifts and competition from both established rivals and specialized newcomers pose ongoing displacement risk. Financial exposure to foreign currency fluctuations, commodity price movements, and counterparty credit also merit attention [8, 3, 21].
  • Oil prices and upstream spending drive cycles in demand for SLB services and their pricing, which translates into revenue volatility for the company.
  • Geopolitical and regional exposure presents a material risk when operations and revenue concentrate in politically sensitive jurisdictions. Sanctions, armed conflicts, or sudden loss of market access in these regions can disrupt business continuity and financial performance.
  • Large competitors like Halliburton and Baker Hughes maintain pricing pressure through scale, while specialized entrants offering electric-frac and other alternative technologies can erode market share by addressing specific customer needs that traditional providers don't serve as well.
  • Regulatory, compliance, and financial risks merit attention. Environmental or regulatory shifts, foreign-exchange and commodity exposures, and credit or counterparty risk on large contracts can each materially affect earnings and cash flow.
Investors should consider these risk factors carefully before making an investment decision.

Who are the main competitors of Schlumberger NV?

Schlumberger NV competes with several listed peers in its sector. Schlumberger is the largest global provider of oilfield services and equipment, operating within a concentrated industry where a handful of integrated service companies set the competitive landscape. Its main public rivals offer similar capabilities across drilling, completions, production, subsea and reservoir services, while smaller private and regional contractors compete primarily on cost and local market knowledge. The company faces material risks from oil-price cycles, geopolitical and regulatory shifts, technological displacement, and the operational execution challenges inherent to large-scale service delivery.
  • Baker Hughes Company (BKR.NYSE)
  • Halliburton Company (HAL.NYSE)
  • NOV Inc. (NOV.NYSE)
  • TechnipFMC plc (FTI.NYSE)
These competitors influence pricing power, growth opportunities and relative valuation.

When does Schlumberger NV report earnings?

Schlumberger NV's next earnings report date is October 23, 2026.

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 USD—0.61%
20260.30 USD0.52%
20260.30 USD0.59%
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%

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

70%
Beat estimate
13.3%
Miss estimate
+13.9%
Avg surprise when beat
-5.53%
Avg surprise when miss

Reports analyzed: 120

Upcoming earnings report

October 23, 2026
Next earnings date

Analyst estimates for upcoming periods

Next year
December 31, 2027
Consensus3.25
Range2.88 – 3.92
26 analysts
Est. growth vs prior: 29.66%
Revisions: 7d ↑1 ↓0 · 30d ↑2 ↓12

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

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