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SLB Q2 Earnings & Revenues Beat Estimates on Digital Strength
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Key Takeaways
SLB posted Q2 EPS of $0.74 and revenues of $8.55B, both topping consensus but down year over year.
International strength and digital demand offset weakness in drilling and simulation activities.
Production Systems saw higher income as digital and artificial lift demand outpaced subsea sales decline.
SLB (SLB - Free Report) reported second-quarter 2025 earnings of 74 cents per share (excluding charges and credits), which beat the Zacks Consensus Estimate of 73 cents. The bottom line decreased from the year-ago quarter’s level of 85 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
The oilfield service giant recorded total quarterly revenues of $8.55 billion, which beat the Zacks Consensus Estimate of $8.49 billion. The top line declined from the year-ago quarter’s figure of $9.14 billion.
The better-than-expected quarterly results were primarily driven by international growth, strong digital revenues and rising demand for production systems.
Schlumberger Limited Price, Consensus and EPS Surprise
Revenues in the Digital & Integration unit totaled $995 million, down 5% from the year-ago quarter’s level. Pre-tax operating income of $327 million was up from $325 million a year ago. The figure missed the Zacks Consensus Estimate of $330 million.
The unit's revenues decreased year over year, primarily due to lower APS revenues in Canada.
Revenues in the Reservoir Performance unit decreased 7% year over year to $1.69 billion. Pre-tax operating income totaled $314 million, which decreased 16% year over year. The figure beat the Zacks Consensus Estimate of $297 million. The revenues were affected due to a slowdown in evaluation and simulation activity across international markets, partially offset by strong intervention activity.
The Well Construction segment’s revenues fell 13% from the year-earlier quarter’s level to $2.96 billion. Pre-tax operating income decreased 26% to $551 million and the Zacks Consensus Estimate for the same was pegged at $551 million. This was due to lower drilling activity in Mexico, Namibia, Saudi Arabia, North America, Guyana and India. This was partially offset by stronger performance in the United Arab Emirates and North Africa.
Revenues in the Production Systems segment amounted to $3.04 billion, up from $3.03 billion a year ago. Pre-tax operating income improved 5% year over year to $499 million, which beat the Zacks Consensus Estimate of $488 million. The segment benefited from strong demand for data center infrastructure solutions, artificial lift and completions, largely offset by reduced sales of subsea production systems and valves.
Cash Flow & Financials
SLB reported a free cash flow of $622 million in the second quarter.
As of June 30, 2025, the company had approximately $3.75 billion in cash and short-term investments. It registered a long-term debt of $10.89 billion at the end of the quarter.
Outlook
SLB’s full-year 2025 capital investment (including capex, exploration data costs and APS investments) guidance is approximately $2.4 billion. The projected figure is lower than the 2024 level of $2.6 billion.
SLB’s Zacks Rank & Stocks to Consider
SLB currently carries a Zacks Rank #5 (Strong Sell).
MPLX appears to be a strong long-term investment, as it generates steady income from fixed-fee contracts rather than relying on fluctuating oil and gas prices. It owns and operates key pipelines and processing facilities, positioning it well to grow as U.S. oil and gas production increases, particularly in active regions such as the Permian, Marcellus and Utica.
The Zacks Consensus Estimate for MPLX’s 2025 EPS is pegged at $4.44. The company has a Value Score of B.
Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream’s higher dividend yield, compared to its sub-industry peers, reflects its commitment to generating shareholder returns.
The Zacks Consensus Estimate for AM’s 2025 EPS is pegged at 96 cents.
W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s acquisition of six shallow-water fields in the GoA added 18.7 million barrels of proved reserves and 60.6 million barrels of proved plus probable reserves. The firm is focused on strategically allocating capital toward organic projects, which should boost its production outlook. WTI has a Value Score of B.
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SLB Q2 Earnings & Revenues Beat Estimates on Digital Strength
Key Takeaways
SLB (SLB - Free Report) reported second-quarter 2025 earnings of 74 cents per share (excluding charges and credits), which beat the Zacks Consensus Estimate of 73 cents. The bottom line decreased from the year-ago quarter’s level of 85 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
The oilfield service giant recorded total quarterly revenues of $8.55 billion, which beat the Zacks Consensus Estimate of $8.49 billion. The top line declined from the year-ago quarter’s figure of $9.14 billion.
The better-than-expected quarterly results were primarily driven by international growth, strong digital revenues and rising demand for production systems.
Schlumberger Limited Price, Consensus and EPS Surprise
Schlumberger Limited price-consensus-eps-surprise-chart | Schlumberger Limited Quote
Segmental Performance
Revenues in the Digital & Integration unit totaled $995 million, down 5% from the year-ago quarter’s level. Pre-tax operating income of $327 million was up from $325 million a year ago. The figure missed the Zacks Consensus Estimate of $330 million.
The unit's revenues decreased year over year, primarily due to lower APS revenues in Canada.
Revenues in the Reservoir Performance unit decreased 7% year over year to $1.69 billion. Pre-tax operating income totaled $314 million, which decreased 16% year over year. The figure beat the Zacks Consensus Estimate of $297 million. The revenues were affected due to a slowdown in evaluation and simulation activity across international markets, partially offset by strong intervention activity.
The Well Construction segment’s revenues fell 13% from the year-earlier quarter’s level to $2.96 billion. Pre-tax operating income decreased 26% to $551 million and the Zacks Consensus Estimate for the same was pegged at $551 million. This was due to lower drilling activity in Mexico, Namibia, Saudi Arabia, North America, Guyana and India. This was partially offset by stronger performance in the United Arab Emirates and North Africa.
Revenues in the Production Systems segment amounted to $3.04 billion, up from $3.03 billion a year ago. Pre-tax operating income improved 5% year over year to $499 million, which beat the Zacks Consensus Estimate of $488 million. The segment benefited from strong demand for data center infrastructure solutions, artificial lift and completions, largely offset by reduced sales of subsea production systems and valves.
Cash Flow & Financials
SLB reported a free cash flow of $622 million in the second quarter.
As of June 30, 2025, the company had approximately $3.75 billion in cash and short-term investments. It registered a long-term debt of $10.89 billion at the end of the quarter.
Outlook
SLB’s full-year 2025 capital investment (including capex, exploration data costs and APS investments) guidance is approximately $2.4 billion. The projected figure is lower than the 2024 level of $2.6 billion.
SLB’s Zacks Rank & Stocks to Consider
SLB currently carries a Zacks Rank #5 (Strong Sell).
Investors interested in the energy sector may look at a few better-ranked stocks like MPLX LP (MPLX - Free Report) , Antero Midstream Corporation (AM - Free Report) and W&T Offshore, Inc. (WTI - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
MPLX appears to be a strong long-term investment, as it generates steady income from fixed-fee contracts rather than relying on fluctuating oil and gas prices. It owns and operates key pipelines and processing facilities, positioning it well to grow as U.S. oil and gas production increases, particularly in active regions such as the Permian, Marcellus and Utica.
The Zacks Consensus Estimate for MPLX’s 2025 EPS is pegged at $4.44. The company has a Value Score of B.
Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream’s higher dividend yield, compared to its sub-industry peers, reflects its commitment to generating shareholder returns.
The Zacks Consensus Estimate for AM’s 2025 EPS is pegged at 96 cents.
W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s acquisition of six shallow-water fields in the GoA added 18.7 million barrels of proved reserves and 60.6 million barrels of proved plus probable reserves. The firm is focused on strategically allocating capital toward organic projects, which should boost its production outlook. WTI has a Value Score of B.