Abstract

SLB Ltd will report its quarterly results on January 23, 2026 Pre-Market; this preview consolidates company guidance, segment trends, and recent institutional commentary to frame expectations and key drivers for the print.

Market Forecast

Consensus for the current quarter points to total revenue of USD 9.55 billion, an adjusted EPS of USD 0.74, and EBIT of USD 1.57 billion, with year-over-year growth of 3.96% for revenue, a 17.37% decline for adjusted EPS, and a 7.89% decline for EBIT. The company’s main businesses are expected to show steady activity across manufacturing, well construction, reservoir characterization, and drilling, with margin outcomes closely tied to mixed price and activity trends; the most promising segment is manufacturing, which remains the largest revenue contributor with USD 3.47 billion last quarter, supported by stable project execution and backlog momentum.

Last Quarter Review

SLB Ltd delivered last quarter revenue of USD 8.93 billion, a gross profit margin of 18.19%, GAAP net profit attributable to the parent company of USD 739.00 million, a net profit margin of 8.28%, and adjusted EPS of USD 0.69, with year-over-year changes of −2.52% for revenue and −22.47% for adjusted EPS. A key highlight was disciplined cost control that preserved double-digit operating performance despite a revenue dip, while main business contributions were led by manufacturing at USD 3.47 billion, well construction at USD 2.97 billion, reservoir characterization at USD 1.68 billion, and drilling at USD 0.66 billion, with other items at USD 0.40 billion and offsets of USD −0.25 billion.

Current Quarter Outlook

Main Business: Manufacturing

Manufacturing remains the anchor of SLB Ltd’s revenue mix, accounting for USD 3.47 billion last quarter, and it is positioned to benefit from ongoing delivery schedules across equipment and systems supporting offshore and onshore development. The backlog across complex hardware and integrated systems typically sustains revenue visibility, which aligns with the current quarter’s forecasted revenue expansion to USD 9.55 billion. Margins are sensitive to component cost dynamics and execution cadence; with the prior quarter gross margin at 18.19%, incremental margin progression this quarter will hinge on mix, supply-chain normalization, and pricing discipline on long-cycle orders. Tactical levers include project phasing and inventory turns, while risk factors include deferral of customer projects and exchange-rate movements impacting cross-border manufacturing input costs.

Most Promising Business: Digital-Enabled Production Optimization

Digital alliances aimed at optimizing offshore production, including the integration of AI-driven asset management for Floating Production Storage and Offloading systems, enhance SLB Ltd’s service mix with higher-attachment software and data solutions. This initiative improves uptime, reduces lifecycle costs, and creates a performance-linked revenue opportunity, reinforcing stickiness with operators and supporting medium-term growth embedded in service contracts. While the last quarter’s manufacturing revenue of USD 3.47 billion underscores scale, the digital-enabled production optimization pathway represents the most promising multi-year growth vector due to recurring features and outcome-based pricing. The near-term EPS pressure implied by the forecast (USD 0.74, −17.37% YoY) does not diminish the strategic margin potential of digital layers; adoption rates, deployment depth, and client integration timelines are the operative variables for this quarter’s contribution.

Stock Price Drivers This Quarter

The stock’s reaction will likely be driven by how reported margins compare to the prior quarter’s 18.19% gross margin and 8.28% net profit margin, and whether management can demonstrate sequential EBIT stability amid the forecasted YoY decline of 7.89%. Investors will gauge the trajectory of adjusted EPS against the USD 0.69 baseline from last quarter and the USD 0.74 estimate, focusing on operational levers that can offset mix and pricing headwinds. Segment commentary on manufacturing execution, well construction activity levels, and reservoir characterization bookings will be parsed for signals of demand durability and price capture. The quantification of backlog conversion, updates on digital-enabled performance offerings, and any guidance on capital intensity or working capital will shape views on cash generation. Any indication of customer project timing shifts could pressure revenue confidence; conversely, clarity on contract wins and integrated digital-service uptake would support the revenue and margin thesis.

Analyst Opinions

Recent institutional views skew bullish, with multiple Buy reiterations and constructive commentary on execution and capital discipline outweighing neutral tones. Analysts at Barclays reaffirmed Buy ratings with price targets in the USD 46.00–USD 48.00 range, emphasizing operational resilience and service mix quality. Bank of America Securities and Citi maintained Buy ratings, citing durable demand in core service lines and a supportive project pipeline that underpins the revenue acceleration to USD 9.55 billion. The majority opinion expects SLB Ltd to meet or slightly exceed top-line forecasts, with a focus on margin steadiness relative to the prior quarter and the implications of digital-enabled performance contracts for medium-term EBIT expansion. The consensus bullish stance highlights the company’s ability to navigate price and activity variability while protecting profitability through cost discipline and mix optimization, setting the stage for a constructive read-through if reported numbers align with the forecast and segment narratives confirm backlog conversion.