Oct 23, 2026 earnings call — Production recovery and international growth
SLB expects fourth quarter revenue to reach approximately $10 billion.
Revenue $9.4B (est $9.3B) · EPS $0.64 (est $0.62)
Key quotes
"Our production business encompassing all production systems and some of the offerings in Reservoir Performance now represents more than 50% of our portfolio, a leading position across every major basin and advanced mix of short, and long cycle activity including exposure to resilient OpEx spend."
"For SLB, this momentum is reflected in the continued flow of OneSubsea awards, further strengthening our backlog and increasing visibility into 2027 and beyond."
"Given the ongoing uncertainty our fourth quarter outlook assumes Middle East revenue remains flat sequentially at approximately $1.9 billion representing about 83% of revenue generated in the fourth quarter of 25."
Analyst Q&A 8
Which parts will grow fastest
Q (James West · Melius): The analyst asked which regions, product lines, or service lines will grow faster as the cycle inflects higher.
A: Management said the cycle has started and will benefit all divisions and basins. They pointed to deepwater exploration rebound, production recovery, development in places like Venezuela and Argentina, and digital and production-recovery technologies as growth drivers into 2027 and beyond.
"Thank you, James. We believe indeed that the cycle has started." — Olivier Le Peuch (CEO)
Resilience and Venezuela outlook
Q (Scott Gruber · Citi): The analyst asked how resilient growth would be outside the Middle East at mid-cycle oil prices, and how large Venezuela could become for SLB in 2–3 years.
A: Management said many barrels were lost and additional supply will be needed, so the up cycle has strong legs across long and short cycles; they expect mid-single-digit global activity growth assuming a flat Middle East and said SLB should visibly outperform that. On Venezuela, they said activity and customer CapEx are increasing now, they are signing contracts and executing work, and they view multi-fold growth next year with the historical $1 billion level a long-term ambition.
"The market is set for mid single digits global activity growth, assuming Middle East being flat on the 2026." — Olivier Le Peuch (CEO)
Middle East disruption and margins
Q (Saurabh Pant · BofA): The analyst asked for more color on the late-quarter disruption in the Middle East and whether it is continuing. He also asked if margins can normalize quickly in 2027 if Middle East revenue returns.
A: Olivier said several countries showed an activity pickup mid-quarter but late-quarter adjustments occurred; they see things stabilizing and assume fourth quarter will be in line with third quarter for planning. Stephane said the Middle East was dilutive this year, SLB kept resources in place so when activity returns they will get strong operating leverage, and they will give more margin detail in January.
"As a result, we will have very strong operating leverage, very few additional cost to bring in." — Stephane Biguet (CFO)
ChampionX trends and OneSubsea outlook
Q (Arun Jayaram · JPMorgan): The analyst asked about ChampionX's year-over-year trends, margin progress, and SLB's ability to scale it internationally. He also asked about OneSubsea visibility and whether 2027 will see many greenfield awards.
A: Management said they are very pleased with ChampionX: strong top-line growth, margin expansion, and synergies that offset inflation; international expansion, particularly in the Middle East and offshore, is optionality for 2027 upside. For OneSubsea they said awards are multi-year, bookings from prior years drive revenue into 2027–2029, and they expect to surpass their $9 billion booking target across 2 years, which should translate into visible revenue growth.
"I think we believe that we will surpass the $9 billion target booking that we have set across the 2 years." — Olivier Le Peuch (CEO)
North America growth and data centers abroad
Q (Sebastian Erskine · Rothschild and Co. Redburn): The analyst asked what drove the strong North America quarter and what to expect next year outside data centers. He also asked how large the data center opportunity outside the U.S. could become and how the customer base is broadening.
A: Management said North America growth was driven by production recovery (ChampionX, production chemicals, artificial lift), drilling tech, digital, North America offshore, and the new data center solutions leg. On data centers they said they can replicate the Americas setup in Asia using hyperscaler contracts and their Louisiana manufacturing hub plus satellite capabilities, and they remain on track to surpass a $2 billion run-rate for 2027.
"And we are still on track and very well on track to surpass $2 billion in its run-rate for 2027." — Olivier Le Peuch (CEO)
2027 regional outlook and digital
Q (Goldman Sachs): The analyst asked for regional color on the 2027 outlook and where customer spending is meaningfully trending. He also asked about the digital offering and customer opportunity.
A: Management declined to give detailed guidance but said they see growth opportunity in every basin and division in 2027, with deepwater in the Americas, Europe, Africa and Asia, and unconventional and production recovery in other regions. On digital they said digital operations, digital exploration, and data and AI (Lumi and AI teller) are key growth vectors, with drilling and production automation and digital exploration de-risking activity.
"I think as we commented earlier, I think digital operation, particularly, and data and AI are the 2 vectors of growth that I think we are the most excited about." — Olivier Le Peuch (CEO)
Digital growth and data center M&A plans
Q (Marc Bianchi · TD Cowen): The analyst asked if digital can keep double-digit growth in 2027 and whether SLB plans more M&A for data center content or will grow organically.
A: Management said the ambition is for digital at large to continue at double-digit growth, driven by digital exploration, digital operations, and AI as a disruptor. On data center M&A they said they will focus on closing and integrating Kelvion, increase share-of-wallet per gigawatt, and execute the strategy before deciding on further deals.
"I think digital at large, the ambition we have is to continue to operate at the level of double-digit or about or higher." — Olivier Le Peuch (CEO)
Production systems Q4 and Middle East upside
Q (Derek Podhaizer · Piper Sandler): The analyst asked what drove production systems' high-single-digit guidance for the fourth quarter across chemicals, artificial lift, subsea, and how to think about 2027. He also asked how much upside the market could see if the Middle East recovers.
A: Management said Production Systems performed well, with production-recovery strategy and backlog supporting the business; year-end product sales and OneSubsea product timing affect Q4 sequential performance. On 2027 they declined to give detailed guidance but said every division should grow and that an international-led upcycle is expected; Middle East recovery would be an additional catalyst but they would not quantify that upside now.
"So I think production system is resilient short cycle and long cycle." — Olivier Le Peuch (CEO)