Core Viewpoint - SLB reported strong earnings and revenue for Q3 2025, driven by robust demand for oilfield services in North America, despite a warning for investors to remain cautious [2][3][6] Financial Performance - Earnings per share for SLB in Q3 2025 were $0.69, exceeding the estimated $0.66 [2][6] - Revenue for the third quarter was approximately $8.93 billion, slightly above the estimated $8.92 billion, marking a 4% increase from the previous quarter but a 3% decrease year-on-year [3][6] - Income before taxes on a GAAP basis was $1 billion, reflecting a significant decline of 22% sequentially and 34% year-on-year [3] Valuation Metrics - SLB has a price-to-earnings (P/E) ratio of approximately 10.88, indicating market valuation of its earnings [4][6] - The price-to-sales ratio stands at about 1.39, while the enterprise value to sales ratio is around 1.68 [4] - The enterprise value to operating cash flow ratio is approximately 8.98, providing insights into valuation and cash flow efficiency [4] Financial Health - The earnings yield for SLB is about 9.19%, indicating return on investment [5] - The debt-to-equity ratio is approximately 0.67, suggesting a moderate level of debt relative to equity [5] - SLB has a current ratio of about 1.31, indicating its ability to cover short-term liabilities with short-term assets [5]

Financial Data and Key Metrics Changes - The third quarter earnings per share, excluding charges and credits, was $0.69, representing a decrease of $0.05 sequentially and $0.20 compared to the first quarter of last year [23] - Revenue for the first quarter was $8.9 billion, an increase of $382 million or 4% sequentially [23] - Companywide adjusted EBITDA margin for the third quarter was 23.1%, representing a sequential decrease of 92 basis points [26] Business Line Data and Key Metrics Changes - Digital revenue increased 11% sequentially, driven by a 39% increase in digital operations [8][35] - Reservoir Performance revenue declined 1% sequentially, while Well Construction revenue was flat [36] - Production Systems revenue increased by $542 million or 18% sequentially, reflecting two months of activity from the acquired ChampionX [36] Market Data and Key Metrics Changes - Revenue in North America grew 17% sequentially, driven mainly by the contribution of ChampionX [6] - International Markets revenue rose 1% sequentially, with notable increases in several countries across the Middle East and Asia [5] - The digital business is expected to continue growing at a rate that visibly outperforms global upstream spending [11] Company Strategy and Development Direction - The company is focusing on production recovery solutions to unlock additional barrels at the lowest possible cost, positioning itself as a leader in this space [14] - The integration of ChampionX is expected to enhance the company's production recovery offerings and generate significant synergies [38] - The digital division is now reported as a standalone entity, highlighting its strategic value and growth potential [27] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the resilience of the oil and gas markets despite challenging commodity prices and uncertainties [16] - The fundamentals for oil and gas remain constructive, with global inventories at multiyear lows [17] - The company anticipates a sequential step-up in results in the fourth quarter, driven by a full quarter of ChampionX and higher year-end digital sales [21] Other Important Information - The company generated $1.7 billion of cash flow from operations and $1.1 billion of free cash flow during the quarter [38] - Capital investments for the full year are expected to be approximately $2.4 billion [39] - The company repurchased $114 million of its stock during the quarter, totaling $2.4 billion year-to-date [40] Q&A Session Summary Question: How does the company see the production-focused business growing? - The management highlighted the need for reinvestment in production and recovery solutions, emphasizing the importance of technology and innovation in this area [44][46] Question: Can you elaborate on the four segments of the digital business? - The management explained that the growth in the digital business is driven by customer adoption and the expansion of offerings, with expectations for continued growth in annual recurring revenue [47][49] Question: What is the outlook for deepwater markets? - The management expressed confidence in the deepwater market's resilience and anticipated a gradual strengthening of rig activity in the coming years [60][61] Question: How does the company view the addressable market in digital? - The management believes the digital solutions market is unconstrained and will continue to expand as the company leverages its capabilities [96]

Core Insights - Schlumberger reported quarterly earnings of $0.69 per share, exceeding the Zacks Consensus Estimate of $0.66 per share, but down from $0.89 per share a year ago, indicating an earnings surprise of +4.55% [1] - The company posted revenues of $8.93 billion for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.02% and down from $9.16 billion year-over-year [2] - Schlumberger shares have underperformed the market, losing about 14.1% since the beginning of the year compared to the S&P 500's gain of 12.7% [3] Earnings Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $0.74 on revenues of $9.51 billion, and for the current fiscal year, it is $2.86 on revenues of $35.46 billion [7] Industry Context - The Oil and Gas - Field Services industry, to which Schlumberger belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5]

Core Insights - SLB reported higher-than-expected earnings for Q3 2025, with North American revenue increasing by 17% from Q2 and 14% year-over-year [1][2] - Adjusted EPS for Q3 was $0.69, surpassing the analyst consensus estimate of $0.66, although lower than previous quarters [1] North American Revenue - North American revenue for Q3 2025 was significantly boosted by the acquisition of ChampionX, contributing $579 million, with $387 million from North America [2] - Pro forma analysis indicated that without the ChampionX acquisition, North American revenue would have declined by 5% due to the divestiture of the APS project and reduced U.S. land drilling activity [3] International Revenue Outlook - International revenue remained flat quarter-on-quarter and decreased by 7% year-over-year, but SLB views international markets as crucial for future growth [3][4] - The CEO highlighted that international markets are expected to lead a rebound in activity, supported by ongoing investments in oil capacity and gas expansion projects [4][5] Market Resilience - Despite challenges in some regions, international markets, particularly in the Middle East and Asia, are showing robust growth [5] - Anticipated OPEC+ production releases are expected to bolster investment in countries where SLB has a strong presence [5]

Market Overview - US stock index futures showed mixed performance, with Dow futures up by 0.18% while S&P 500 and Nasdaq futures down by 0.04% and 0.24% respectively [1] - European indices experienced declines, with Germany's DAX down 1.48%, UK's FTSE 100 down 1.05%, and France's CAC40 down 0.05% [2][3] - WTI crude oil increased by 0.21% to $57.58 per barrel, while Brent crude rose by 0.16% to $61.16 per barrel [3][4] Credit Market Concerns - Goldman Sachs President John Waldron warned of a potential systemic crisis due to a $5 trillion "credit time bomb," highlighting significant growth in high-yield bonds, leveraged loans, and private credit [5] - Recent fraudulent activities in the credit market have raised concerns about underlying risks, particularly involving Zion Bank and Western Alliance Bank [5] Liquidity Issues - US bank reserves fell below $3 trillion, with a decrease of approximately $45.7 billion reported, indicating potential implications for the Federal Reserve's quantitative tightening (QT) strategy [6] Earnings Season Insights - Analysts are optimistic about the upcoming earnings season, particularly for major tech companies and AI-related firms, which are expected to drive continued market highs despite macroeconomic uncertainties [7] - Notable companies reporting strong earnings include: - Schlumberger (SLB.US) reported Q3 profits exceeding expectations, driven by North American demand and acquisition benefits [9] - American Express (AXP.US) exceeded Q3 revenue expectations with a 10.8% year-over-year growth, driven by strong demand for its new Platinum card [10] - Interactive Brokers (IBKR.US) reported Q3 revenue of $1.66 billion, a 21% increase year-over-year, attributed to higher customer trading volumes [11] - Oracle (ORCL.US) projected a 35% gross margin for a $60 billion AI infrastructure project, easing concerns about profitability in this sector [12] Major Financing Developments - Meta (META.US) is finalizing a nearly $30 billion financing deal for a data center project, marking a significant private capital transaction [13]

Group 1 - The core viewpoint of the articles highlights Schlumberger's better-than-expected Q3 earnings, driven by stable demand in the North American market and contributions from the acquisition of ChampionX, which offset weakness in other regions [1][3] Group 2 - The North American oilfield market is stabilizing after months of spending cuts, while international market demand remains weak, which has historically been a major profit source for Schlumberger [1] - According to the EIA, U.S. crude oil production is expected to reach a record high of 13.41 million barrels per day by 2025, driven by improved production efficiency, which will continue to boost demand for drilling equipment and related services [1] - Baker Hughes' latest data shows a 3% quarter-over-quarter increase in the number of active drilling rigs in North America, reaching 718 rigs, while the international rig count remains at 1,080 [1] - International business revenue, which accounts for about 80% of Schlumberger's total revenue, decreased by 7% to $6.92 billion, while North American business revenue increased by 14% to $1.93 billion [1] - Adjusted earnings per share for the quarter reached $0.69, surpassing analysts' expectations of $0.66 [1] Group 3 - Schlumberger's CEO described the quarterly performance as "resilient" amid current oil market oversupply and geopolitical uncertainties [3] - The company anticipates a rebound in international business supported by ongoing investments in oil capacity, natural gas expansion projects, and positive prospects in deepwater operations as the oil and gas market rebalances [3] - The completion of the $7.75 billion acquisition of ChampionX provided new momentum for the quarterly earnings performance [3] - Total revenue decreased by 2.5% year-over-year to $8.928 billion, but increased by 4% quarter-over-quarter; excluding the acquisition's impact, global revenue actually declined by 9% year-over-year [3]

Core Insights - The company reported revenue growth in the quarter, indicating positive performance and potential for future growth [1] Financial Performance - Revenue increased during the quarter, showcasing the company's ability to generate higher sales [1]

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Third-Quarter 2025 Financial Highlights](index=1&type=section&id=Third-Quarter%202025%20Financial%20Highlights) SLB's Q3 2025 revenue increased sequentially but declined year-on-year, with GAAP EPS and Net Income down, and Adjusted EBITDA flat sequentially but lower year-on-year, impacted by ChampionX Financial Highlights (Million USD) | Metric | Sept. 30, 2025 (Million USD) | Jun. 30, 2025 (Million USD) | Sept. 30, 2024 (Million USD) | Sequential Change (%) | Year-on-year Change (%) | | :-------------------------------- | :------------- | :------------ | :------------- | :---------------- | :------------------ | | Revenue | $8,928M | $8,546M | $9,159M | **4%** | **-3%** | | Income before taxes - GAAP | $1,000M | $1,285M | $1,507M | **-22%** | **-34%** | | Net income attributable to SLB - GAAP | $739M | $1,014M | $1,186M | **-27%** | **-38%** | | Diluted EPS - GAAP | **$0.50** | **$0.74** | **$0.83** | **-32%** | **-40%** | | Adjusted EBITDA* | $2,061M | $2,051M | $2,343M | **0%** | **-12%** | | Cash flow from operations | $1,680M | N/A | N/A | N/A | N/A | | Free cash flow | $1,100M | N/A | N/A | N/A | N/A | | Quarterly cash dividend | **$0.285 per share** | N/A | N/A | N/A | N/A | [ChampionX Acquisition Impact](index=1&type=section&id=ChampionX%20Acquisition%20Impact) ChampionX added **$579 million** revenue to Q3 2025; excluding it, global revenue declined **2%** sequentially and **9%** year-on-year - **ChampionX acquisition** contributed **$579 million** of **revenue**, **$139 million** of **adjusted EBITDA**, and **$108 million** of **pretax segment operating income** to **Q3 2025** results[3](index=3&type=chunk) - Excluding **ChampionX**, **SLB's Q3 2025** global **revenue decreased 2%** sequentially and **9%** year-on-year[3](index=3&type=chunk) [Management Commentary & Strategic Outlook](index=2&type=section&id=Management%20Commentary%20%26%20Strategic%20Outlook) [Resilience Amidst Evolving Market Dynamics](index=2&type=section&id=Resilience%20Amidst%20Evolving%20Market%20Dynamics) **SLB's** **CEO** noted **Q3** **revenue increased sequentially**, supported by **ChampionX acquisition** and **Digital growth**, despite market challenges, with **International markets** showing **resilience** - **Q3 revenue increased sequentially**, supported by **ChampionX**, **Digital growth**, and **resilient Core business** performance, despite challenging market conditions[7](index=7&type=chunk) - **International markets** are demonstrating **resilience**, with **robust growth** in several **Middle East & Asia** countries, and **OPEC+** production releases expected to support future investment[8](index=8&type=chunk) [Production and Recovery Business Alignment](index=3&type=section&id=Production%20and%20Recovery%20Business%20Alignment) Customers prioritize **production and recovery solutions** for lower-cost decline offset, which **SLB** addresses by leveraging expertise, technology, and **ChampionX acquisition** to expand its presence in this less cyclical market - Customers are prioritizing **production and recovery solutions** to unlock incremental barrels at the lowest possible cost[9](index=9&type=chunk) - **SLB** is leveraging subsurface expertise, production technology, portfolio integration, and digital/AI capabilities to support customers in **production and recovery**[10](index=10&type=chunk) - **ChampionX acquisition** enhances **SLB's** portfolio and expands its presence in the less cyclical production market[11](index=11&type=chunk) [Digital Delivering Differentiated Growth and Margins](index=3&type=section&id=Digital%20Delivering%20Differentiated%20Growth%20and%20Margins) **Digital** is **SLB's fastest-growing business**, transforming the oil and gas industry through AI and data, now reported as a standalone division highlighting its high-margin growth and industry leadership - **Digital** is **SLB's fastest-growing business**, leveraging software, AI, data analytics, automation, and IoT for efficiency, safety, and sustainability[12](index=12&type=chunk)[13](index=13&type=chunk) - **SLB** is reporting **Digital** as a standalone division, emphasizing its high-margin growth and differentiation[14](index=14&type=chunk) [International Markets to Lead Future Activity Rebound](index=3&type=section&id=International%20Markets%20to%20Lead%20Future%20Activity%20Rebound) **SLB** anticipates **International markets** will drive future activity rebound as supply and demand rebalance, supported by sustained investment in oil capacity, gas expansion, and deepwater projects, leading **Q4** **revenue growth** - **International markets** are expected to lead an activity rebound, supported by sustained investment in oil capacity, gas expansion, and deepwater[15](index=15&type=chunk) - **SLB** forecasts **Q4 revenue growth** driven by **International markets**, **Digital**, and a full quarter of **ChampionX** operations[16](index=16&type=chunk) [Key Events & Corporate Actions](index=4&type=section&id=Key%20Events%20%26%20Corporate%20Actions) [Share Repurchase Program](index=4&type=section&id=Share%20Repurchase%20Program) During **Q3 2025**, **SLB** repurchased **3.2 million shares** for **$114 million**, bringing total repurchases for the first nine months of **2025** to **60.0 million shares** for **$2.41 billion** - **Q3 2025**: Repurchased **3.2 million shares** for **$114 million**[17](index=17&type=chunk) - **First nine months of 2025**: Repurchased **60.0 million shares** for **$2.41 billion**[17](index=17&type=chunk) [ChampionX Acquisition Completion](index=4&type=section&id=ChampionX%20Acquisition%20Completion) **SLB** completed the **ChampionX acquisition** on **July 16, 2025**, enhancing its portfolio, technology, and digital leadership, and increasing exposure to the **production and recovery market** - **Acquisition of ChampionX** completed on **July 16, 2025**[18](index=18&type=chunk) - The **acquisition** is expected to **increase SLB's** exposure to the **production and recovery market** and deliver best-in-class workflow integration[18](index=18&type=chunk) [Quarterly Cash Dividend](index=4&type=section&id=Quarterly%20Cash%20Dividend) **SLB's** Board of Directors approved a quarterly cash dividend of **$0.285 per share**, payable on **January 8, 2026**, to stockholders of record on **December 3, 2025** - Board approved a quarterly cash dividend of **$0.285 per share**[19](index=19&type=chunk) [Financial Performance by Geography](index=5&type=section&id=Financial%20Performance%20by%20Geography) [Overall Geographical Revenue](index=5&type=section&id=Overall%20Geographical%20Revenue) **SLB's Q3 2025** revenue of **$8.93 billion** increased **4%** sequentially, driven by **1%** international and **17%** **North America** growth, including **$579 million** from **ChampionX**, but excluding it, international revenue declined **1%** and **North America** revenue declined **7%** sequentially Overall Geographical Revenue (Million USD) | Geography | Sept. 30, 2025 (Million USD) | Jun. 30, 2025 (Million USD) | Sept. 30, 2024 (Million USD) | Sequential Change (%) | Year-on-year Change (%) | | :---------------- | :------------- | :------------ | :------------- | :---------------- | :------------------ | | North America | $1,930M | $1,655M | $1,687M | **17%** | **14%** | | Latin America | $1,482M | $1,492M | $1,689M | **-1%** | **-12%** | | Europe & Africa | $2,434M | $2,369M | $2,434M | **3%** | **0%** | | Middle East & Asia | $3,000M | $2,986M | $3,302M | **0%** | **-9%** | | International Total | $6,916M | $6,847M | $7,425M | **1%** | **-7%** | | North America Total | $1,930M | $1,655M | $1,687M | **17%** | **14%** | | Total Revenue | $8,928M | $8,546M | $9,159M | **4%** | **-3%** | - **ChampionX** contributed **$579 million** to **Q3 2025** **revenue** (**$387 million** in **North America**, **$171 million** in **International markets**)[20](index=20&type=chunk) - Excluding **ChampionX**, **International revenue declined 1%** sequentially and **North America revenue declined 7%** sequentially[20](index=20&

Group 1 - Schlumberger reported third-quarter revenue of $8.93 billion, exceeding the estimate of $8.9 billion [1] - The adjusted earnings per share for the third quarter were $0.69, surpassing the forecast of $0.66 [1] - The company continues to project capital investments of approximately $2.4 billion for the year 2025 [1]

Core Insights - SLB exceeded Wall Street profit estimates for the third quarter, driven by robust demand for its oilfield equipment and services in North America [1] Company Performance - SLB reported strong financial performance in the third quarter, indicating a positive trend in profitability [1] - The demand for oilfield equipment and services in North America significantly contributed to SLB's success during this period [1]