SLB earnings exceeded analyst expectations in the third quarter of 2026, with adjusted earnings per share of $0.64 and revenue of $9.45 billion. The results, announced on October 23, showed improving activity compared with the previous quarter, although adjusted earnings remained below their year-earlier level.
Key Takeaways
- Adjusted EPS beat estimates by $0.03 but declined 7% from a year earlier.
- Revenue rose 6% year over year, or 2% excluding the impact of the ChampionX acquisition.
- SLB approved a $0.295 quarterly dividend, payable on January 7, 2027.
Table of Contents
- SLB earnings improve sequentially but trail last year
- ChampionX and production activity support revenue growth
- Cash generation accompanies dividends and buybacks
- Kelvion acquisition remains pending
- Conclusion
SLB earnings improve sequentially but trail last year
SLB’s third-quarter 2026 results announcement showed revenue increasing 5% from the second quarter and 6% from a year earlier. Revenue exceeded analyst estimates by $180 million, while earnings excluding charges and credits surpassed expectations by $0.03 per share.
The earnings beat did not mark a return to year-over-year profit growth. Adjusted diluted EPS rose 16% sequentially to $0.64 but fell from $0.69 in the third quarter of 2025. GAAP diluted EPS was $0.49, down from $0.50 a year earlier, while net income attributable to SLB declined 1% to $735 million.
Adjusted EBITDA increased 9% from the previous quarter to $2.07 billion and was essentially unchanged year over year. Its margin reached 21.9%, improving from 21.2% in the second quarter but remaining below the prior-year level of 23.1%. The comparison shows a sequential recovery rather than uniformly stronger annual profitability.
| Item | Details |
|---|---|
| Q3 operating cash flow | $1.51 billion. |
| Q3 free cash flow | $828 million. |
| Q3 share repurchases | 12.9 million shares for $656 million. |
| First nine months of 2026 repurchases | 34.0 million shares for $1.76 billion. |
ChampionX and production activity support revenue growth
ChampionX, acquired during the third quarter of 2025, contributed $956 million of revenue in the latest quarter, compared with $579 million from two months of ownership in the year-earlier period. Excluding the acquisition’s impact, SLB put global revenue growth at 2%, with international revenue flat and North America up 13%.
Production Systems revenue increased 15% year over year to $4.00 billion, supported by the acquisition and stronger activity. Excluding ChampionX’s impact, the division grew 5%. Well Construction and Reservoir Performance revenue each declined 3% from a year earlier, despite both improving sequentially.
Chief Executive Officer Olivier Le Peuch attributed the quarter-on-quarter expansion to a gradual Middle East recovery, North American land activity and international deepwater projects. Middle East revenue increased 13% sequentially, although the company said renewed disruptions affected some countries late in the quarter.
Cash generation accompanies dividends and buybacks
SLB generated positive operating and free cash flow while continuing to repurchase shares. The cash figures provide a more direct view of quarterly funding capacity than a dividend yield, which changes with the share price.
Kelvion acquisition remains pending
Beyond oilfield services, SLB said its Data Center Solutions revenue increased 23% sequentially. The company is seeking to expand that business through its planned acquisition of thermal-management and heat-exchange provider Kelvion.
Under the agreement signed on August 31, 2026, SLB would pay approximately $3.4 billion in cash and assume approximately $0.7 billion of debt. Completion is expected in the first half of 2027, subject to regulatory approvals and customary closing conditions; the transaction is not yet completed.
Separately, the board approved the quarterly dividend on October 22. Holders of record on December 2, 2026, will be eligible for the January 7, 2027 payment.
Conclusion
SLB earnings showed a sequential recovery, but annual profit comparisons remained weaker despite higher revenue. The next confirmed shareholder milestone is the December 2 dividend record date, while the planned Kelvion acquisition remains subject to approvals ahead of its expected first-half 2027 closing.
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