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Understanding Schlumberger (SLB) Reliance on International Revenue

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Have you looked into how Schlumberger (SLB - Free Report) performed internationally during the quarter ending September 2025? Considering the widespread global presence of this world's largest oilfield services company, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.

In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.

Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.

Upon examining SLB's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.

The company's total revenue for the quarter stood at $8.93 billion, declining 2.5% year over year. Now, let's delve into SLB's international revenue breakdown to gain insights into the significance of its operations beyond home turf.

A Look into SLB's International Revenue Streams

Latin America accounted for 16.6% of the company's total revenue during the quarter, translating to $1.48 billion. Revenues from this region represented a surprise of -2.91%, with Wall Street analysts collectively expecting $1.53 billion. When compared to the preceding quarter and the same quarter in the previous year, Latin America contributed $1.49 billion (17.5%) and $1.69 billion (18.4%) to the total revenue, respectively.

Of the total revenue, $3 billion came from Middle East & Asia during the last fiscal quarter, accounting for 33.6%. This represented a surprise of -1.04% as analysts had expected the region to contribute $3.03 billion to the total revenue. In comparison, the region contributed $2.99 billion, or 34.9%, and $3.3 billion, or 36.1%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, Europe & Africa contributed $2.43 billion in revenue, making up 27.3% of the total revenue. When compared to the consensus estimate of $2.41 billion, this meant a surprise of +1.02%. Looking back, Europe & Africa contributed $2.37 billion, or 27.7%, in the previous quarter, and $2.43 billion, or 26.6%, in the same quarter of the previous year.

Prospective Revenues in International Markets

For the current fiscal quarter, it is anticipated by Wall Street analysts that Schlumberger will post revenues of $9.5 billion, which reflects an increase of 2.3% the same quarter in the previous year. The revenue contributions are expected to be 17.3% from Latin America ($1.65 billion), 34.4% from Middle East & Asia ($3.26 billion) and 27% from Europe & Africa ($2.56 billion).

Analysts expect the company to report a total annual revenue of $35.47 billion for the full year, marking a decrease of 2.3% compared to last year. The expected revenue contributions from Latin America, Middle East & Asia and Europe & Africa are projected to be 17.4% ($6.16 billion), 34.5% ($12.25 billion) and 27% ($9.58 billion) of the total revenue, in that order.

The Bottom Line

Relying on international markets for revenues, Schlumberger faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.

With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.

At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.

With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.

Schlumberger currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

A Look at Schlumberger's Recent Stock Price Performance

Over the past month, the stock has lost 1.4% versus the Zacks S&P 500 composite's 1.2% increase. The Zacks Business Services sector, of which Schlumberger is a part, has declined 7.9% over the same period. The company's shares have declined 7.1% over the past three months compared to the S&P 500's 7.3% increase. Over the same period, the sector has declined 7.2%


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