SLB (NYSE:SLB) delivered stronger-than-expected third-quarter 2025 results as its acquisition of ChampionX and continued momentum in digital operations helped offset global headwinds in drilling and production markets.

• SLB is lagging behind market performance. See the full breakdown here.

The company reported revenue of $8.93 billion, up 4% sequentially and down 3% year over year, narrowly beating Wall Street's $8.93 billion estimate.

GAAP diluted EPS was 50 cents, down 32% sequentially and 40% year over year.

Adjusted EPS came in at 69 cents, topping the 66 cents estimate, though down 7% sequentially and 22% year over year.

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Net income attributable to SLB was $739 million, down 27% sequentially and 38% year-over-year. Adjusted EBITDA totaled $2.06 billion, flat from the previous quarter and 12% lower year over year.

The company's operating margin contracted to 11.2% from 15% in the prior quarter, reflecting acquisition-related expenses and regional mix shifts.

Cash flow from operations reached $1.68 billion, while free cash flow totaled $1.10 billion, including $153 million in acquisition-related payments.

The board approved a quarterly dividend of $0.285 per share, and SLB repurchased 3.2 million shares for $114 million during the quarter.

The completed acquisition of ChampionX contributed $579 million in revenue, $139 million in adjusted EBITDA, and $108 million in pretax segment operating income.

Excluding the acquisition, total revenue decreased 2% sequentially and 9% year-over-year. International sales slipped 1% sequentially and 9% annually, while North America revenue dropped 7% sequentially and 9% annually.

International revenue was $6.92 billion, up 1% sequentially but down 7% from a year ago. North America generated $1.93 billion, rising 17% sequentially and 14% year over year.

SLB cited a production interruption in Ecuador and the divestiture of its APS project in Canada as factors affecting comparisons.

Digital revenue rose 11% sequentially and 3% year over year to $658 million, with pretax operating income of $187 million and a 28.4% margin. Reservoir Performance revenue declined 1% sequentially and 8% year over year to $1.68 billion, producing $312 million in pretax income and an 18.5% margin.

Well Construction posted $2.97 billion in revenue, flat sequentially and 10% lower year over year, with $558 million in pretax income and an 18.8% margin.

Production Systems revenue jumped 18% sequentially and 14% year over year to $3.47 billion, generating $559 million in pretax income and a 16.1% margin.

ChampionX added $575 million of revenue and $106 million of pretax income. Excluding the acquisition, Production Systems' revenue fell 1% sequentially and 5% year-over-year.

"The third quarter played out in line with our expectations as our revenue increased sequentially supported by two months' additional ChampionX revenue, further growth in Digital and the resilient performance of our Core business," said CEO Olivier Le Peuch.

"SLB improved revenue despite the backdrop of a fully supplied oil market, an uncertain geopolitical environment and subdued commodity prices."

He voiced, "Digital continues to transform the oil and gas industry, and this has been our fastest-growing business in recent years."

Outlook

Looking ahead, he said SLB expects fourth-quarter revenue growth driven by international markets, Digital and a full quarter of ChampionX activity. The company also reaffirmed its $2.4 billion full-year capital investment guidance.

SLB Price Action: SLB shares were down 1.66% at $32.37 at the time of publication on Friday. The stock is near its 52-week low of $31.11, according to Benzinga Pro data.

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