Recommended as Stock of the Week on June 22, 2026

SLB: The Oilfield Services Company Quietly Becoming a Software Business

TickerSLB.NYSE
Recommended Price47.58 USD
Current Price 47.58 USD
Schlumberger NV – stock chart

Scores at time of recommendation (June 22, 2026)

Leeway Score
66/100
Excellent
Business Rating
30/100
Fair
Market-Fit Rating
91/100
Excellent
Cycle Rating
77/100
Excellent

More about our scores in Help

5-year stock timeline

2021

SLB formalized an energy-transition strategy, committing to a 2050 net-zero target (including Scope 3) and launching Transition Technologies and New Energy initiatives, including hydrogen electrolyzer pilots, to complement core oilfield services [1].

Investors began viewing SLB not merely as a cyclical oil-services contractor but as a hybrid energy-technology platform combining digital and decarbonization capabilities, though early skepticism around execution persisted [1].

The post-COVID recovery drove industry-wide activity rebound. SLB moved from pandemic troughs into sustained recovery across multiple quarters [1].

2022

On 18 March, SLB suspended new investment and technology deployment in Russia following the Ukraine invasion [11].

On 24 October, SLB rebranded from "Schlumberger" to "SLB" with a new logo to underscore its energy-innovation strategy [23][1].

Employee and draft-related issues surfaced alongside Russia reputational scrutiny throughout the year [15][18].

The rebrand reinforced the energy-innovation and digital narrative, though continued operational presence and complexities in Russia introduced geopolitical and political-risk considerations into investor pricing [23][11][15].

Ukraine-driven volatility dominated the first half of 2022, producing sharp moves. Afterward, the tape turned choppy and sideways as markets balanced the transition narrative against geopolitical risk [1].

2023

On 2 October, SLB closed the OneSubsea joint venture with Aker Solutions and Subsea7 (SLB holding 70%), consolidating significant subsea scale and capability [36].

Mid-2023 saw SLB expand restrictions and halt shipments into Russia as sanctions widened, affecting operations and controls [19][11].

Investors rewarded the subsea scale and technology story alongside execution on portfolio reshaping, while monitoring sanction compliance and integration risk [36][19].

The chart formed a consolidation range with intermittent strength around JV and transaction headlines, establishing a base ahead of the 2024 earnings-driven move [36][1].

2024

On 2 April, SLB announced an all-stock agreement to acquire ChampionX (chemicals, artificial lift, and production technology) as a strategic bolt-on to Production Systems [1].

Full-year 2024 revenue reached approximately $36.29B (roughly 10% year-over-year growth), with solid free cash flow of approximately $4.0B and expanded margins [1].

Q4 2024 included asset impairments and merger-integration charges [1].

On 17 October, SLB entered an agreement to sell its Palliser APS interest for approximately $430M [1].

The 2024 narrative reinforced SLB as a cash-generative operator executing both capital returns (dividend increases and buybacks) and strategic M&A to shift the portfolio toward production-focused businesses. Impairment headlines created near-term sentiment headwinds but did not erode confidence in free cash flow generation [1].

A broad uptrend developed through Q3 driven by earnings and backlog conversion. Q4 impairments and charges created intraday and multi-week volatility, though overall price action reflected rotation back into stocks showing clear fundamental improvement [1].

2025

The ChampionX acquisition closed in 2025, with ChampionX shareholders becoming meaningful SLB holders—a milestone SLB described as defining for the year [5].

In mid-January, SLB reported Q4 results, raised the quarterly dividend, and announced accelerated share repurchases totaling approximately $2.3B, triggering an immediate positive market reaction with shares jumping roughly 7% [1][7].

Management signaled near-term oil oversupply and guided for largely flat 2025 revenue [7].

Investor sentiment split between total-return and income-focused buyers embracing the rising dividend and large ASR, and growth-cautious investors digesting oversupply guidance. The stock became positioned as a higher-quality cyclical operator with shareholder-friendly capital returns [7][5][1].

A sharp gap-up rally with high volume occurred in mid-January on the earnings beat and ASR/dividend announcement, followed by a multi-month range as markets balanced buyback-driven demand against cautious guidance [7][1].

2026 (year-to-date through 7 July)

SLB continued ChampionX integration and capital allocation discipline, announcing another dividend increase in January 2026—the fifth consecutive annual raise—and emphasizing continued buyback and dividend cadence in proxy filings [5].

The dominant investor view treats SLB as a hybrid: a cash-generative, cyclical oilfield and production-systems leader investing in digital and new-energy adjacencies, with valuation anchored on free cash flow yield, dividend growth, and successful M&A integration [1][5].

The chart pattern since the January 2025 ASR and earnings pop has shown range-to-gradual-up movement with renewed uptick interest around continued buybacks and dividend actions. Investors watch for confirmation of ChampionX synergies and next earnings beats to drive sustained breakout from the post-2025 trading band [5][1].

Key Points

From recommendation (June 22, 2026)

  • Stock price down roughly 15% from monthly highs after a strong start to the year – valuation gap to analyst consensus (~$62 USD) and DCF models has widened notably.
  • AI partnership with Nvidia deepens: joint AI Factory for Energy, digital ARR surpasses $1B USD, +15% YoY
  • ChampionX integration underway: $400M synergy target by 2027, revenue base shifting from pure exploration toward more stable production income.
  • Geopolitical pressures in Q1/2026 (Middle East, Red Sea) quantified: 6–9 cents EPS headwind, 150–200 bps margin compression – market has priced this in [1]
  • Share Buyback and Dividend Program Confirmed at $3 Billion – Structural Price Support Through Volatile Periods
  • P/E 22x, P/S 2x, PEG 1.65 – for an energy sector technology transformer, this doesn't look overvalued.
  • Strategic pivot toward international long-cycle projects (Brazil, Guyana, Middle East) reduces exposure to US shale volatility

Investment Thesis

From recommendation (June 22, 2026)

SLB is transitioning away from the valuation profile of a traditional oilfield services company. It's systematically building a software and AI business that delivers higher margins, recurring revenue, and structurally lower cyclicality than its traditional core operations. The Delfi platform, the Nvidia partnership, and the newly launched SLB Digital Marketplace aren't marketing exercises—they're operationally measurable: digital ARR exceeding $1 billion, autonomous drilling cutting well time in half on real projects. Meanwhile, ChampionX is diversifying its revenue base toward production chemicals and artificial lift, both less dependent on exploration capex cycles. The recent 15% pullback from monthly highs reads more tactically driven than fundamentally sound, given that near-term headwinds from the Middle East have already been quantified and communicated. Consensus analyst price targets of $62.36 imply nearly 30% upside without requiring an oil price boom.

Key risks and downside factors

Schlumberger stands as the world's largest oilfield services and technology provider, operating across drilling, well services, reservoir characterization, production and subsea engineering. It faces competition from integrated service and equipment firms—Halliburton, Baker Hughes, NOV, TechnipFMC, Weatherford—alongside specialist subsea contractors like Subsea 7, where the battleground centers on price, technology capability and project execution. The business carries real exposure: cyclicality tied to oil and gas capital spending, relentless pricing and technology pressure, execution risk on large projects, supply-chain vulnerability, and the lengthening shadow of regulatory tightening and energy transition dynamics.

  • Cyclical exposure to oil and gas capital expenditure creates a vulnerability: when oil prices remain depressed or exploration and production companies cut spending, revenue, backlog, and asset utilization can contract sharply.
  • Intense competition from integrated and specialist service providers creates persistent pricing pressure, eroding market share and compressing margins.
  • Execution and operational risk on large offshore and subsea integrated projects—cost overruns, delays, supply-chain disruption, impairments.
  • Regulatory, ESG, and energy-transition risk. Tightening emissions rules, litigation exposure, or structural decline in hydrocarbon demand could elevate compliance costs and force capital reallocation [8, 3, 21].

Competitive landscape

Schlumberger competes in a concentrated global oilfield-services market dominated by Halliburton and Baker Hughes, with meaningful secondary players including NOV, Weatherford, TechnipFMC and KBR. The competitive landscape spans drilling, completions, reservoir evaluation, subsea and digital services, though Schlumberger also contends with regional specialists and the in-house service operations of national oil companies. The business carries material headwinds: commodity price cyclicality that swings E&P capital spending, geopolitical and regulatory risk concentrated in key producing regions, persistent margin compression from competition, and the longer-term structural question of energy transition and ESG constraints on demand.

CompanyTicker
Halliburton CompanyHAL.NYSE
Baker Hughes CompanyBKR.NASDAQ
NOV Inc.NOV.NYSE
TechnipFMC plcFTI.NYSE
KBR Inc.KBR.NYSE
Weatherford International plcWFRD.NASDAQ

Private competitors

  • KCA Deutag
  • In‑house service arms of national oil companies (e.g., Aramco Services Company)

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Catalysts

From recommendation (June 22, 2026)

  • Q2 2026 Quarterly Results and Capex Guidance for International NOCs and Majors
  • New major contracts in the offshore segment, particularly in Brazil, Guyana, and the Middle East
  • Progress on ChampionX Synergy Realization and Initial Concrete Numbers on Margin Improvement
  • Further Announcements on SLB Digital Marketplace and Nvidia AI Factory for Energy – Customer Numbers and ARR Growth
  • Analyst Price Target Updates Following Digital Investor Day – Predominantly Buy/Strong Buy, Consensus at $62.36
  • Normalization of the geopolitical situation in the Middle East as a reduction in priced-in risk premium
  • Signals on OPEC Production Policy and Global E&P Budgets for H2 2026

Analysis

From recommendation (June 22, 2026)

SLB is structurally stronger than its stock price over recent weeks suggests, but it would be dishonest to brush aside the risks. On the positive side sits a technological moat that is genuinely real: customers like national oil companies and international majors are existentially dependent on SLB's core technologies for deepwater, HPHT, and tight oil projects—their internal competence for this complexity simply doesn't exist and won't develop given increasingly demanding reservoirs. The digital segment is growing at roughly 17% annually, substantially outpacing the core business and contributing disproportionately to margins, which positions the company more as a shaper of technological disruption than as its victim. The Nvidia partnership lends additional credibility and scalability to this transformation, particularly through industrializing the AI Factory for Energy across the Delfi and Lumi platforms. On the risk side, SLB remains a cyclical business in a regulatory minefield: geopolitical disruptions in the Middle East measurably compressed margin and EPS in the first quarter of 2026, and any escalation or new sanctions regimes could quickly darken the picture. EBIT margin compressed from 17.4% (2024) to 15.3% (2025)—a trend worth watching, even if ChampionX synergies and the digital mix should provide some offset medium-term. Decarbonization pressure structurally dampens investment appetite among fossil fuel customers, but is partially offset by SLB's growing involvement in CCUS and geothermal as well as regulatory tailwinds like the US IRA (45Q). Bottom line: anyone valuing SLB purely as an oilfield services vendor underestimates the company—anyone ignoring the cyclicality entirely overestimates it.

Performance Figures of Schlumberger NV

in USD

1M High / Low
57.36 / 44.59
52W High / Low
58.82 / 31.64
5Y High / Low
62.12 / 25.90
1M
-16.68%
3M
-11.41%
6M
+4.05%
1Y
+34.39%
3Y
-7.52%
5Y
+67.16%

Relative Performance vs Benchmarks

PeriodSchlumberger NV vs DAX vs S&P 500 (SPY)
1M -16.68% -19.53% -18.28%
3M -11.41% -17.16% -22.26%
6M +4.05% +2.71% -4.93%
1Y +34.39% +28.61% +12.63%
3Y -7.52% -70.72% -84.43%
5Y +67.16% +2.02% -18.43%

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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
Current21.01.92.611.0
1Y ago11.91.42.57.3
3Y ago18.02.33.713.8
5Y ago43.32.03.414.7

Frequently Asked Questions

From recommendation (June 22, 2026)

Is Schlumberger NV a good investment?

Schlumberger NV has a Leeway Score of 66/100, 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 35.94B USD, a profit margin of 9.26%, return on equity of 14.07%, a market capitalisation around 67.47B USD, valuation multiples of roughly 19.9x earnings, 1.9x sales, 2.6x book value. Analyst consensus currently expects earnings per share of around 3.32 USD with year‑over‑year growth of 29.34%. Schlumberger NV has an ongoing dividend policy and pays around 1.15 USD per share (2.55% yield).

What are the key metrics for SLB.NYSE?

Key metrics for SLB.NYSE include valuation (P/E 22, P/S 2, P/B 2.8), profitability (profit margin 9.26%, ROE 14.07%), and growth (revenue 2.70%, earnings -13.80%). Market capitalization is 72.86B 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: 22, P/S Ratio: 2, P/B Ratio: 2.8. 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:
  • Q2 2026 Quarterly Results and Capex Guidance for International NOCs and Majors
  • New major contracts in the offshore segment, particularly in Brazil, Guyana, and the Middle East
  • Progress on ChampionX Synergy Realization and Initial Concrete Numbers on Margin Improvement
  • Further Announcements on SLB Digital Marketplace and Nvidia AI Factory for Energy – Customer Numbers and ARR Growth
  • Analyst Price Target Updates Following Digital Investor Day – Predominantly Buy/Strong Buy, Consensus at $62.36
  • Normalization of the geopolitical situation in the Middle East as a reduction in priced-in risk premium
  • Signals on OPEC Production Policy and Global E&P Budgets for H2 2026
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 stands as the world's largest oilfield services and technology provider, operating across drilling, well services, reservoir characterization, production and subsea engineering. It faces competition from integrated service and equipment firms—Halliburton, Baker Hughes, NOV, TechnipFMC, Weatherford—alongside specialist subsea contractors like Subsea 7, where the battleground centers on price, technology capability and project execution. The business carries real exposure: cyclicality tied to oil and gas capital spending, relentless pricing and technology pressure, execution risk on large projects, supply-chain vulnerability, and the lengthening shadow of regulatory tightening and energy transition dynamics.
  • Cyclical exposure to oil and gas capital expenditure creates a vulnerability: when oil prices remain depressed or exploration and production companies cut spending, revenue, backlog, and asset utilization can contract sharply.
  • Intense competition from integrated and specialist service providers creates persistent pricing pressure, eroding market share and compressing margins.
  • Execution and operational risk on large offshore and subsea integrated projects—cost overruns, delays, supply-chain disruption, impairments.
  • Regulatory, ESG, and energy-transition risk. Tightening emissions rules, litigation exposure, or structural decline in hydrocarbon demand could elevate compliance costs and force capital reallocation [8, 3, 21].
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 competes in a concentrated global oilfield-services market dominated by Halliburton and Baker Hughes, with meaningful secondary players including NOV, Weatherford, TechnipFMC and KBR. The competitive landscape spans drilling, completions, reservoir evaluation, subsea and digital services, though Schlumberger also contends with regional specialists and the in-house service operations of national oil companies. The business carries material headwinds: commodity price cyclicality that swings E&P capital spending, geopolitical and regulatory risk concentrated in key producing regions, persistent margin compression from competition, and the longer-term structural question of energy transition and ESG constraints on demand.
  • Halliburton Company (HAL.NYSE)
  • Baker Hughes Company (BKR.NASDAQ)
  • NOV Inc. (NOV.NYSE)
  • TechnipFMC plc (FTI.NYSE)
  • KBR Inc. (KBR.NYSE)
  • Weatherford International plc (WFRD.NASDAQ)
These competitors influence pricing power, growth opportunities and relative valuation.

When does Schlumberger NV report earnings?

Schlumberger NV's next earnings report date is July 24, 2026.

Key Metrics

From recommendation (June 22, 2026)

Market Capitalization
72.86B USD
P/E Ratio
22.04
Analyst Target Price
62.36 USD

Valuation Metrics

P/S Ratio
2.03
P/B Ratio
2.78

Profitability Metrics

Profit Margin
9.26%
Operating Margin
12.27%
Return on Equity
14.07%
Return on Assets
6.47%

Growth Metrics

Revenue Growth
2.70%
Earnings Growth
-13.80%

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 USD0.52%0.6%
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%
20220.18 USD0.34%

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

69.7%
Beat estimate
13.4%
Miss estimate
+13.97%
Avg surprise when beat
-5.53%
Avg surprise when miss

Reports analyzed: 119

Upcoming earnings report

July 24, 2026
Next earnings date · USD

Analyst estimates for upcoming periods

Next year
December 31, 2027
Consensus3.32
Range2.45 – 4.13
26 analysts
Est. growth vs prior: 29.34%
Revisions: 7d ↑0 ↓0 · 30d ↑3 ↓3
Next quarter
September 30, 2026
Consensus0.67
Range0.55 – 0.80
22 analysts
Est. growth vs prior: -3.15%
Revisions: 7d ↑0 ↓0 · 30d ↑1 ↓4

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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