SLB 8-K
EarningsGuidance reaffirmed
ChampionX drove revenue growth while GAAP earnings slipped; Data Center Solutions revenue rose 76% Y/Y.
Filed 2026-10-23 07:04 ET
- 2.02 Results of Operations
- 7.01 Regulation FD Disclosure
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results with FY2026 capital-investment guidance. Revenue grew year on year, while GAAP net income attributable to SLB and diluted EPS declined; sequential growth reflected a Middle East recovery, stronger North American activity and offshore work. SLB sees international deepwater activity and Data Center Solutions as important growth drivers, and described its 2027 outlook as compelling, with further upside if Middle East activity recovers. The pending Kelvion acquisition would add thermal-management technology to Data Center Solutions.
Key Figures
| Metric | Q3 2026 | 9M 2026 |
|---|---|---|
| Revenue | $9.45B, +6% Y/Y | $27.1B, +5% Y/Y |
| Net income attributable to SLB, GAAP | $735M, -1% Y/Y | $2.27B, -11% Y/Y |
| Diluted EPS, GAAP | $0.49, -2% Y/Y | $1.51, -16% Y/Y |
| Diluted EPS, non-GAAP, excluding charges and credits | $0.64, -7% Y/Y | $1.71, -20% Y/Y |
| Cash flow from operations | $1.51B | $3.36B, -4% Y/Y |
| Free cash flow | $828M | $1.52B, -17% Y/Y |
- Excluding ChampionX, revenue increased 2% Y/Y: North America grew 13%, while international revenue was flat. Production Systems revenue rose 15% as reported, including $950M from ChampionX; excluding the acquisition, it grew 5%.
- Data Center Solutions revenue was $230M, up 76% Y/Y and 23% sequentially. Digital annualized recurring revenue, based on recurring subscription, maintenance and certain Digital Operations revenue, was $1.04B, up 13% Y/Y. SLB OneSubsea awards increased backlog and revenue visibility into 2027.
- SLB repurchased 12.9M shares for $656M in Q3 and 34.0M shares for $1.76B in 9M 2026. Shares outstanding declined to 1.476B from 1.484B at 6/30/2026; net debt was $9.25B at 9/30/2026, up from $8.73B at 6/30/2026. The board approved a $0.295-per-share dividend payable 1/7/2027 to holders of record 12/2/2026. Kelvion consideration is approximately $3.4B in cash plus approximately $0.7B of debt assumed; closing is expected in H1 2027, subject to customary conditions and regulatory approvals.
Guidance
- FY2026 capital investment, consisting of capital expenditures, exploration data costs and APS investments: ≈$2.5B, still expected.
Investor Takeaways
- Track Data Center Solutions revenue against its Q3 growth and expanding service scope; sustained growth would support SLB’s view that it can become a meaningful contributor.
- Watch for the expected H1 2027 Kelvion closing and the planned H1 2027 opening of the facility intended to support Meta; delivery would advance SLB’s expansion in data-center infrastructure.
The summary is written by an AI model reading the filing.
Model 005 · prompt v109 · 2026-10-23 14:34:36Z