SLB Restores Sequential Growth Across Regions

The Tip Desk · October 23, 2026 · 3 min read

Third-quarter revenue reached $9.45 billion, up 5% from the prior quarter, as the Middle East rebounded and ChampionX posted its highest quarterly sales since the July 2025 deal.

SLB (SLB) reported third-quarter revenue of $9.45 billion, up 5% sequentially and 6% year on year, after a 3% sequential increase in the second quarter. The oilfield-services company said all regions grew sequentially, led by a 13% rebound in the Middle East after conflict-related disruptions in the prior quarter, higher U.S. land activity, and stronger deepwater offshore work internationally.

GAAP earnings were $0.49 a share. Adjusted EBITDA was $2.07 billion, essentially unchanged from a year earlier. Pretax segment operating income was $1.58 billion. Net income attributable to SLB was $735 million.

The acquired ChampionX businesses contributed $956 million of revenue, $239 million of adjusted EBITDA and $190 million of pretax segment operating income. Third-quarter 2025 results included only two months of ChampionX. Excluding the acquisition, global revenue increased 2% year on year, with international sales essentially flat and North America up 13%.

Production Systems was the largest division, with revenue of $4.00 billion, up 6% sequentially and 15% year on year. Excluding ChampionX, that division’s revenue increased 5% year on year, which the company attributed to SLB OneSubsea, valves and completions. ChampionX contributed $950 million of Production Systems revenue. Pretax operating margin in the division was 16.1%, up 60 basis points sequentially. The company said ChampionX delivered sequential pretax operating margin expansion for a fourth consecutive quarter.

Well Construction revenue was $2.89 billion and Reservoir Performance revenue was $1.63 billion, each up 5% sequentially. Both divisions’ pretax operating margins rose sequentially, to 16.4% and 16.3%, as Middle East operations recovered. Digital revenue was $693 million. All Other revenue was $544 million.

North America revenue was $2.40 billion, up 7% sequentially. The company said U.S. unconventional activity, production chemicals, artificial lift and a 23% sequential increase in Data Center Solutions supported the rise. Data Center Solutions revenue was up 76% year on year.

Middle East & Asia revenue was $2.81 billion, up 9% sequentially. The Middle East accounted for 67% of that area’s revenue. Activity improved in Iraq, Kuwait, Oman, Saudi Arabia, Qatar and the United Arab Emirates, though the company said certain countries experienced renewed disruptions in the final weeks of the quarter. Latin America revenue was $1.75 billion. Europe & Africa revenue was $2.44 billion.

Digital annualized recurring revenue was $1.04 billion as of September 30, 2026, up 13% from $926 million a year earlier. Cash flow from operations was $1.51 billion and free cash flow was $828 million. The company repurchased 12.9 million shares for $656 million in the quarter.

On August 31, 2026, SLB agreed to acquire Kelvion, a thermal-management and heat-exchange technology provider, for approximately $3.4 billion in cash and about $0.7 billion of debt, with a close expected in the first half of 2027. On September 1 it completed the purchase of S&P Global Energy’s geoscience and petroleum engineering software portfolio.

Chief Executive Officer Olivier Le Peuch said the company’s view of supportive market fundamentals remains intact and that deepwater momentum, Venezuela activity and growth in Core, Digital and Data Center Solutions support a 2027 outlook, with further upside as Middle East activity recovers. The board approved a quarterly cash dividend of $0.295 a share.