SLB NV

10/28/2026 | Press release | Distributed by Public on 10/28/2026 09:29

Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations.

Third Quarter 2026 Compared to Second Quarter 2026

(Stated in millions)

Third Quarter 2026

Second Quarter 2026

Income

Income

Revenue

Before Taxes

Revenue

Before Taxes

Digital

$

693

$

194

$

697

$

194

Reservoir Performance

1,634

266

1,556

232

Well Construction

2,888

475

2,742

417

Production Systems

4,000

646

3,771

586

All Other

544

136

505

142

Eliminations & other

(310

)

(141

)

(299

)

(167

)

Corporate & other (1)

(204

)

(211

)

Interest income (2)

22

23

Interest expense (3)

(133

)

(128

)

Charges and credits (4)

(242

)

(69

)

$

9,449

$

1,019

$

8,972

$

1,019

(1)
Comprised principally of certain corporate expenses not allocated to the segments, stock-based compensation costs, amortization expense associated with certain intangible assets, certain centrally managed initiatives and other nonoperating items.
(2)
Interest income excludes amounts that are included in the segments' income ($4 million in the third quarter of 2026; $5 million in the second quarter of 2026).
(3)
Interest expense excludes amounts that are included in the segments' income ($- million in the third quarter of 2026; $- million in the second quarter of 2026).
(4)
Charges and credits are described in detail in Note 2 to the Consolidated Financial Statements.

Third-quarter 2026 revenue of $9.4 billion increased 5% compared to the second quarter of 2026 with all geographic areas growing sequentially - led by a gradual recovery in the Middle East, growth in North America land and broadening international activity in deepwater offshore basins.

In the Middle East, revenue grew 13% sequentially despite late-quarter disruptions. Outside the region, growth was supported by higher activity in U.S. Land, highlighted by ChampionX achieving its highest quarterly revenue since the acquisition in July 2025.

Energy security and supply shocks continue to drive a quest for international supply diversification, reserve replacement and sustained production - driving a distinct upcycle, despite near-term uncertainty in the Middle East.

SLB's international outlook continues to strengthen, driven by deepwater momentum across Latin America, Europe, Sub-Saharan Africa and Asia, underscored by recent SLB OneSubsea contract awards. Furthermore, international diversification is accelerating as major U.S. shale operators expand abroad and partner with national oil companies across global basins.

Digital

Digital revenue of $693 million decreased 1% sequentially, primarily reflecting a $48 million decrease in Digital Exploration revenue following strong sales of exploration data licenses and transfer fees in Brazil and Indonesia in the prior quarter. This decline was largely offset by higher Platforms & Applications sales and continued growth in Digital Operations.

Digital pretax operating margin of 28% increased 27 basis points (bps) sequentially, primarily due to improved profitability in Platforms & Applications and Digital Operations, partially offset by lower profitability in Digital Exploration following reduced sales of exploration data licenses and transfer fees.

Reservoir Performance

Reservoir Performance revenue of $1.6 billion increased 5% sequentially, driven by higher intervention, evaluation and stimulation services, particularly in the Middle East.

Reservoir Performance pretax operating margin of 16% increased 140 bps sequentially, driven by improved profitability in the Middle East as operations recovered, particularly across evaluation, stimulation and intervention services.

Well Construction

Well Construction revenue of $2.9 billion increased 5% sequentially, driven by higher drilling activity in the Middle East, led by strong drilling fluids sales and increased drilling measurements activity.

Well Construction pretax operating margin of 16% increased 122 bps sequentially, driven primarily by improved profitability in the Middle East as operations recovered during the quarter.

Production Systems

Production Systems revenue of $4.0 billion increased 6% sequentially, driven by higher sales of completions, production chemicals and artificial lift in the Middle East, as well as stronger SLB OneSubsea revenue in Europe & Africa.

Production Systems pretax operating margin of 16%, increased 60 bps sequentially driven by improved profitability in SLB OneSubsea, artificial lift, completions and production chemicals, supported by the recovery in Middle East operations.

All Other

All Other revenue of $544 million increased $39 million sequentially driven by strong growth in Data Center Solutions, where revenue increased 23% or $44 million.

All Other pretax operating income of $136 million decreased $6 million sequentially as ramp-up costs associated with new Data Center Solutions projects impacted profitability.

Nine Months 2026 Compared to Nine Months 2025

(Stated in millions)

Nine Months 2026

Nine Months 2025

Income

Income

Revenue

Before Taxes

Revenue

Before Taxes

Digital

$

2,030

$

522

$

1,836

$

465

Reservoir Performance

4,783

754

5,072

908

Well Construction

8,427

1,315

8,908

1,698

Production Systems

11,278

1,728

9,247

1,520

All Other

1,492

391

1,542

414

Eliminations & other

(868

)

(409

)

(642

)

(239

)

Corporate & other (1)

(643

)

(550

)

Interest income (2)

65

103

Interest expense (3)

(377

)

(425

)

Charges and credits (4)

(352

)

(546

)

$

27,142

$

2,994

$

25,963

$

3,348

(1)
Comprised principally of certain corporate expenses not allocated to the segments, stock-based compensation costs, amortization expense associated with certain intangible assets, certain centrally managed initiatives and other nonoperating items.
(2)
Interest income excludes amounts that are included in the segments' income ($14 million in 2026; $1 million in 2025).
(3)
Interest expense excludes amounts that are included in the segments' income ($- million in 2026; $6 million in 2025).
(4)
Charges and credits are described in detail in Note 2 to the Consolidated Financial Statements.

Nine-month 2026 revenue of $27.1 billion increased 5% or $1.2 billion year on year. Excluding the impact of the ChampionX acquisition in the third quarter last year, revenue declined year on year by 4% or $0.9 billion. This decrease was largely attributable to a 16%, or $1.1 billion, decline in revenue in the Middle East due to operational disruptions related to the conflict in the region.

Digital

Digital revenue of $2.0 billion increased 11%, or $194 million, year on year driven by a $152 million increase in Digital Operations and $53 million of higher sales of exploration data licenses and transfer fees.

Digital pretax operating margin of 26% increased 41 bps year on year driven by higher Digital Exploration sales and improved profitability in Digital Operations.

Reservoir Performance

Reservoir Performance revenue of $4.8 billion decreased 6% year on year due to lower stimulation and intervention activity, primarily driven by operational disruptions caused by the Middle East conflict.

Reservoir Performance pretax operating margin of 16% contracted 212 bps year on year primarily due to the operational disruptions caused by the Middle East conflict.

Well Construction

Well Construction revenue of $8.4 billion decreased 5% year on year primarily due to lower activity resulting from the Middle East conflict.

Well Construction pretax operating margin of 16% contracted 346 bps year on year primarily due to lower profitability as a result of the Middle East conflict compounded by pricing headwinds in select markets.

Production Systems

Production Systems revenue of $11.3 billion increased 22% year on year from the acquired ChampionX production chemicals and artificial lift businesses. Excluding the impact of the acquisition, Production Systems revenue for the first nine months of 2026 was essentially flat year on year as the decline in the Middle East was offset by growth in other regions.

Production Systems pretax operating margin of 15% decreased 111 bps year on year primarily due to lower profitability in surface production systems, SLB OneSubsea and completions.

All Other

All Other revenue of $1.5 billion decreased $50 million year on year. The absence of $215 million in APS revenue following the divestiture of the Palliser asset in Canada in the second quarter of 2025 was offset by a $226 million increase in Data Center Solutions revenue. The remaining decrease was primarily attributable to reduced revenue in SLB Capturi.

All Other pretax operating income of $391 million decreased $23 million due to lower profitability in APS projects following the Palliser divestiture partially offset by higher profitability in Data Center Solutions as a result of the higher revenue.

Interest Expense

Interest expense of $377 million for the first nine months of 2026 decreased by $55 million as compared to the same period of 2025. This decrease was primarily driven by lower average outstanding commercial paper borrowings in the first nine months of 2026 as compared to the same period of 2025.

Interest & Other Income

Interest & other income consisted of the following:

(Stated in millions)

Third Quarter

Second Quarter

Nine Months

2026

2026

2026

2025

Earnings of equity method investments

$

43

$

48

$

80

$

155

Interest income

25

28

107

104

Gain on sale of Palliser APS project

-

-

-

149

$

68

$

76

$

187

$

408

The decrease in earnings of equity method investments for the first nine months of 2026 as compared to the same period of 2025 was primarily associated with equity investments in rig-related businesses.

Other

Research & engineering and General & administrative expenses, as a percentage of Revenue were as follows:

Third

Second

Quarter

Quarter

Nine Months

2026

2026

2026

2025

Research & engineering

1.7

%

1.9

%

1.8

%

2.0

%

General & administrative

0.9

%

0.9

%

1.0

%

1.0

%

The effective tax rate was 23% for the third quarter of 2026 as compared to 20% for the second quarter of 2026. The increase in the

effective tax rate was primarily due to the $187 million pension settlement charge recorded during the third quarter of 2026, described in Note 2 to the Consolidated Financial Statements, which is not tax deductible. The effective tax rate for both the first nine months of 2026 and 2025 was 21%.

Charges and Credits

SLB recorded charges and credits during the first nine months of 2026 and 2025. These charges and credits, which are summarized below, are more fully described in Note 2 to the Consolidated Financial Statements.

2026:

(Stated in millions)

Noncontrolling

Pretax Charge

Tax Benefit

Interests

Net

First quarter:

Merger and integration

$

41

$

8

$

2

$

31

Second quarter:

Merger and integration

69

19

3

47

Third quarter:

Pension settlement charge

187

-

-

187

Merger and integration

55

13

2

40

$

352

$

40

$

7

$

305

2025:

(Stated in millions)

Pretax Charge

Tax Benefit

Noncontrolling

(Credit)

(Expense)

Interests

Net

First quarter:

Workforce reductions

$

158

$

10

$

-

$

148

Other merger and integration

49

1

4

44

Second quarter:

-

Impairment of equity method investment

69

12

-

57

Workforce reductions

66

3

-

63

Other merger and integration

35

4

4

27

Gain on sale of Palliser APS project

(149

)

(4

)

-

(145

)

Third quarter:

Amortization of inventory fair value adjustment

66

15

-

51

Acquisition-related professional fees

61

-

-

61

Workforce reductions

57

4

-

53

Acquisition-related employee benefits

54

2

-

52

Impairment of equity-method investment

52

4

-

48

Other merger and integration

28

2

4

22

$

546

$

53

$

12

$

481

Liquidity and Capital Resources

Details of the components of liquidity as well as changes in liquidity are as follows:

(Stated in millions)

Sept. 30,

Sept. 30,

Dec. 31,

Components of Liquidity:

2026

2025

2025

Cash

$

2,621

$

3,014

$

3,036

Short-term investments

930

571

1,176

Short-term borrowings and current portion of long-term debt

(1,653

)

(1,923

)

(1,894

)

Long-term debt

(11,147

)

(10,843

)

(9,742

)

Net debt (1)

$

(9,249

)

$

(9,181

)

$

(7,424

)

Nine Months Ended Sept. 30,

Changes in Liquidity:

2026

2025

Net income

$

2,356

$

2,651

Depreciation and amortization (2)

2,095

1,911

Non-cash pension settlement expense

187

-

Gain on sale of Palliser APS project

-

(149

)

Impairment of equity method investment

-

121

Earnings of equity method investments, less dividends received

(25

)

(59

)

Deferred taxes

(27

)

(89

)

Stock-based compensation expense

251

257

Increase in working capital

(1,546

)

(1,273

)

Other

65

114

Cash flow from operations

3,356

3,484

Capital expenditures

(1,287

)

(1,178

)

APS investments

(340

)

(312

)

Exploration data costs capitalized

(208

)

(168

)

Free cash flow (3)

1,521

1,826

Stock repurchase program

(1,755

)

(2,414

)

Dividends paid

(1,305

)

(1,176

)

Proceeds from employee stock purchase plan

227

222

Proceeds from exercise of stock options

120

8

Net debt assumed in connection with ChampionX acquisition

-

(133

)

Business acquisitions and investments, net of cash acquired and debt assumed

(583

)

(144

)

Proceeds from the sale of Palliser APS project

-

338

Proceeds from sale of ChampionX Drilling Technologies business

-

286

Purchase of Blue Chip Swap securities

-

(167

)

Proceeds from sale of Blue Chip securities

-

144

Taxes paid on net settled stock-based compensation awards

(71

)

(61

)

Other

(99

)

(34

)

Increase in net debt before impact of changes in foreign exchange rates

(1,945

)

(1,305

)

Impact of changes in foreign exchange rates on net debt

120

(471

)

Increase in net debt

(1,825

)

(1,776

)

Net debt, beginning of period

(7,424

)

(7,405

)

Net debt, end of period

$

(9,249

)

$

(9,181

)

(1)
"Net debt" represents gross debt less cash and short-term investments. Management believes that net debt provides useful information to investors and management regarding the level of SLB's indebtedness by reflecting cash and investments that could be used to repay debt. Net debt is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, total debt.
(2)
Includes depreciation of fixed assets and amortization of intangible assets, exploration data costs, and APS investments.
(3)
"Free cash flow" represents cash flow from operations less capital expenditures, APS investments and exploration data costs capitalized. Management believes that free cash flow is an important liquidity measure for the company and that it is useful to investors and management as a measure of our ability to generate cash. Once business needs and obligations are met, this cash can be used to reinvest in the company for future growth or to return to shareholders through dividend payments or share repurchases. Free cash flow does not represent the residual cash flow available for discretionary expenditures. Free cash flow is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, cash flow from operations.

Key liquidity events during the first nine months of 2026 and 2025 included:

•
Capital investments (consisting of capital expenditures, APS investments and exploration data costs capitalized) were $1.8 billion during the first nine months of 2026 compared to $1.7 billion during the first nine months of 2025. Capital investments for the full year 2026 are expected to be approximately $2.5 billion.
•
In January 2026, SLB announced a 3.5% increase to its quarterly cash dividend from $0.285 per share of outstanding common stock to $0.295 per share, beginning with the dividend payable in April 2026. Dividends paid during the first nine months of 2026 and 2025 were $1.3 billion and $1.2 billion, respectively.
•
During the second quarter of 2026, SLB issued $500 million of 4.55% Senior Notes due 2031, $500 million of 4.80% Senior Notes due 2033, and $1.0 billion of 5.15% Senior Notes due 2036.
•
As of September 30, 2026, SLB had cumulatively repurchased approximately $7.6 billion of SLB common stock under its $10 billion share repurchase program.

The following table summarizes the activity under the share repurchase program:

(Stated in millions, except per share amounts)

Total cost

Total number

Average price

of shares

of shares

paid per

purchased

purchased

share

Nine months ended September 30, 2026

$

1,755

34.0

$

51.57

Nine months ended September 30, 2025

$

2,414

60.0

$

40.23

•
During the third quarter of 2025, SLB repaid its $0.5 billion 1.40% Senior Notes due 2025.
•
During the third quarter of 2025, SLB fully repaid all the $0.6 billion of debt assumed in connection with the acquisition of ChampionX.
•
During the third quarter of 2025 and concurrent with the close of the ChampionX acquisition, the ChampionX Drilling Technologies business was disposed of and SLB received $286 million of proceeds.
•
During the second quarter of 2025, SLB completed the sale of its interest in the Palliser APS project in Canada in exchange for net cash proceeds of $338 million, of which $22 million were received in the third quarter of 2025.

As of September 30, 2026, SLB had $3.6 billion of cash and short-term investments on hand and committed debt facility agreements with commercial banks aggregating $5.0 billion, all of which was available. SLB believes these amounts, along with cash generated by ongoing operations, are sufficient to meet future business requirements for the next 12 months and beyond.

SLB has a global footprint in more than 100 countries. As of September 30, 2026, only three of those countries individually accounted for greater than 5% of SLB's net receivable balance. Only one of those countries, the United States, represented greater than 10% of such receivables.

On August 31, 2026, SLB announced that it signed an agreement to acquire Kelvion, a global provider of thermal management and heat exchange technologies. The acquisition strengthens SLB's Data Center Solutions business with critical thermal management technologies and expands SLB's role in data center infrastructure, which is one of the world's fastest-growing industrial and technology markets. Under the terms of the agreement, SLB will acquire Kelvion for approximately $3.4 billion in cash and will assume approximately $0.7 billion of debt. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the first half of 2027.

FORWARD-LOOKING STATEMENTS

This third-quarter 2026 Form 10-Q, as well as other statements we make, contain "forward-looking statements" within the meaning of the federal securities laws, which include any statements that are not historical facts. Such statements often contain words such as "expect," "may," "can," "believe," "predict," "plan," "potential," "projected," "projections," "precursor," "forecast," "outlook," "expectations," "estimate," "intend," "anticipate," "ambition," "goal," "target," "scheduled," "think," "should," "could," "would," "will," "see," "likely," and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain, such as statements about SLB's financial and performance targets and other forecasts or expectations regarding, or dependent on, its business outlook; growth for SLB as a whole and for each of its Divisions (and for specified business lines, geographic areas, or technologies within each Division); the benefits of the ChampionX acquisition, including the ability of SLB to integrate the ChampionX business successfully and to achieve anticipated synergies and value creation from the acquisition; the benefits of the proposed transaction between SLB and Kelvion and the anticipated timing of such transaction; oil and natural gas demand and production growth; oil and natural gas prices; forecasts or expectations regarding energy transition and global climate change; improvements in operating procedures and technology; capital expenditures by SLB and the oil and gas industry; the business strategies of SLB, including digital and "fit for basin," as well as the strategies of SLB's customers; SLB's capital allocation plans, including dividend plans and share repurchase programs; SLB's APS projects, joint ventures, and other alliances; the impact of ongoing or escalating conflicts on global energy supply; access to raw materials; future global economic and geopolitical conditions; future liquidity, including free cash flow; and future results of operations, such as margin levels. These

statements are subject to risks and uncertainties, including, but not limited to, changing global economic and geopolitical conditions; changes in exploration and production spending by SLB's customers, and changes in the level of oil and natural gas exploration and development; the results of operations and financial condition of SLB's customers and suppliers; SLB's inability to achieve its financial and performance targets and other forecasts and expectations; SLB's inability to achieve net-zero carbon emissions goals or interim emissions reduction goals; general economic, geopolitical and business conditions in key regions of the world; foreign currency risk; inflation; changes in monetary policy by governments; tariffs; pricing pressure; weather and seasonal factors; unfavorable effects of health pandemics; availability and cost of raw materials; operational modifications, delays or cancellations; challenges in SLB's supply chain; production declines; the extent of future charges; SLB's inability to recognize efficiencies and other intended benefits from its business strategies and initiatives, such as digital or new energy, as well as its cost reduction strategies; changes in government regulations and regulatory requirements, including those related to offshore oil and gas exploration, radioactive sources, explosives, chemicals, and climate-related initiatives; the inability of technology to meet new challenges in exploration; the competitiveness of alternative energy sources or product substitutes; the terms and timing of the proposed transaction between SLB and Kelvion; the ability of SLB and Kelvion to integrate the business successfully and to achieve anticipated synergies and value creation from the proposed transaction; the ability to secure government regulatory approvals on the terms expected, at all or in a timely manner; and other risks and uncertainties detailed in this Form 10-Q and our most recent Form 10-K and Forms 8-K filed with or furnished to the SEC.

If one or more of these or other risks or uncertainties materialize (or the consequences of any such development changes), or should our underlying assumptions prove incorrect, actual results or outcomes may vary materially from those reflected in our forward-looking statements. Forward-looking and other statements in this Form 10-Q regarding our environmental, social, and other sustainability plans and goals are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the SEC. In addition, historical, current, and forward-looking environmental, social, and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. Statements in this Form 10-Q are made as of October 28, 2026, and SLB disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events, or otherwise.

SLB NV published this content on October 28, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on October 28, 2026 at 15:29 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]