SLB 8-K
NegativeEarningsGuidance
ChampionX drove reported growth despite declining revenue excluding the deal; conflict disrupted Middle East activity
Filed 2026-07-24 07:02 ET
- 2.02 Results of Operations
- 7.01 Regulation FD Disclosure
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with FY2026 capital-investment and Data Center Solutions run-rate outlook. Revenue rose 5% Y/Y as reported, but fell 5% excluding ChampionX; broad sequential growth across international markets and North America more than offset a 13% sequential decline in the Middle East amid conflict-related disruptions. SLB said the timing of a full Middle East recovery remains uncertain and depends on a durable resolution.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Revenue | $8.97B | $8.55B | 5% |
| Income before taxes, GAAP | $1.02B | $1.29B | -21% |
| Adjusted EBITDA, non-GAAP | $1.90B | $2.05B | -7% |
| Net income attributable to SLB, GAAP | $786M | $1.01B | -22% |
| Net income attributable to SLB, excluding charges and credits, non-GAAP | $833M | $1.02B | -18% |
| Diluted EPS, GAAP | $0.52 | $0.74 | -30% |
| Diluted EPS, excluding charges and credits, non-GAAP | $0.55 | $0.74 | -26% |
| Cash flow from operations | $1.36B | — | — |
| Free cash flow, non-GAAP | $716M | — | — |
- ChampionX contributed $870M of revenue and $207M of adjusted EBITDA. Excluding the acquisition, revenue fell 5% Y/Y globally, 6% internationally and 1% in North America. Sequential growth was supported by offshore activity, a U.S. unconventionals rebound, and demand for production and recovery solutions.
- SLB repurchased 12M shares for $648M; shares outstanding fell to 1.484B from 1.495B at the end of Q1. Cash and short-term investments were $4.07B; net debt was $8.73B, up from $8.22B at March 31, 2026.
- The board approved a $0.295-per-share quarterly dividend, payable 10/08/2026 to holders of record on 9/2/2026.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Capital investment (capex, exploration data costs and APS investments) | FY2026 | ≈$2.5B | — | Reaffirmed |
| Data Center Solutions annualized revenue run rate | End of 2026 | Exceed $1B | — | — |
| Data Center Solutions annualized revenue run rate | Exit 2027 | Surpass $2B | — | — |
Investor Takeaways
- Watch for a durable resolution of the regional conflict and a sustained Middle East activity recovery; SLB said restoration to full production capacity will take time.
- Track Data Center Solutions’ progress toward its stated year-end 2026 and exit-2027 annualized revenue run-rate targets.
The summary is written by an AI model reading the filing.
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