Core Insights - SLB has reorganized its Digital Solutions divisions into a distinct reporting entity, generating annual revenue at a run rate of $2.4 billion with a margin of 32.7%, expected to reach 35% [1][10] - The growth in SLB's Digital Solutions segment is driven by demand from hyperscalers responding to the AI boom and data center growth, with revenue from Data Center Solutions reaching $331 million for the quarter [3][10] - Major oilfield service companies are shifting focus from traditional oilfield services to digital and subscription-based revenue models, leveraging their expertise in remote operations [8][10] Digital Transformation - SLB's Digital Solutions includes Platform & Applications, Digital Operations, Digital Exploration, and Professional Services, aiming to integrate digital services across all offerings [1] - The company anticipates that revenue from Digital will eventually surpass that from core oilfield services [1] - The total addressable market (TAM) for digital solutions in this space shows significant growth potential through 2032 [2] Market Dynamics - The demand for data centers is increasing due to the rapid shift toward digital transformation and the adoption of cloud services for flexibility and cost efficiency [3] - Oilfield service companies are facing challenges in their core business due to declining markets, prompting a pivot towards AI-led digital subscription revenue sources [3][8] Strategic Partnerships - Halliburton has formed a joint venture with VoltaGrid to provide distributed power generation solutions for data centers, leveraging both companies' strengths [4][7] - The partnership aims to address the growing demand for microgrids as traditional power infrastructure struggles to keep pace with data center growth [4] Financial Performance - SLB's Digital Solutions segment is expected to enhance overall profitability, with an EBITDA margin of 32% projected to grow to 35% [10] - Both SLB and Halliburton are currently trading at single-digit EV/EBITDA multiples, indicating that the market has not fully recognized their revenue potential from new ventures [10]

Core Insights - SLB N.V. is identified as one of the best bargain stocks to buy in November, with analysts from Citi and Barclays raising their price targets to $47 and $48 respectively, while maintaining positive ratings [1][2] - The company's Q3 2025 results showed a revenue of $8.93 billion, reflecting a 4% sequential increase but a 3% year-over-year decline, attributed to additional revenue from ChampionX and growth in the digital segment [3] Financial Performance - SLB N.V. reported a sequential revenue increase due to two months of additional ChampionX revenue, growth in its digital segment, and resilient performance in its core business [3] - Despite challenges such as a fully supplied oil market and geopolitical uncertainties, SLB managed to improve its revenue [3] Market Context - The company derives approximately 80% of its revenue from international and offshore markets, which positions it favorably amidst OPEC+ production increases [4] - Concerns regarding tariffs and trade uncertainties have impacted the oilfield service sector, particularly in North America, where rig counts and drilling activity have declined [4]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The strategy emphasizes the importance of investing in 'pick and shovel' plays, which are companies that provide essential tools or services to other industries, particularly in the AI sector [2] Group 2 - NVIDIA is identified as a key player in the AI space, but its current valuation is considered too high for investment [2] - The article suggests a defensive investment approach with a medium- to long-term horizon [2]

Core Insights - Ormat Technologies and SLB have formed a partnership to accelerate the development and commercialization of integrated geothermal assets, particularly enhanced geothermal systems (EGS) [1][4] - The collaboration aims to streamline project deployment from concept to power generation, focusing on the design and construction of an EGS pilot project at an Ormat site [2][6] Company Overview - Ormat Technologies is a leading geothermal company with over six decades of experience, specializing in geothermal and recovered energy generation [6] - The company operates a total generating portfolio of 1,618 MW, which includes 1,268 MW from geothermal and solar generation across various countries [7] - SLB is a global technology company focused on energy innovation, with a presence in over 100 countries and a commitment to developing new energy systems [8] Project Details - The first joint demonstration project will develop new technologies and techniques for EGS, optimizing integration with surface facilities to enhance production and sustainability [4][5] - The U.S. Department of Energy estimates that next-generation geothermal could provide up to 90 GW by 2050, with a potential of 300 GW in the U.S. alone [5] Strategic Goals - The partnership aims to make both traditional hydrothermal and EGS technologies commercially viable and scalable to meet the growing global energy demand [5] - Following the pilot project, Ormat and SLB plan to pursue large-scale EGS commercialization for various customers, including independent power producers and data center operators [6]

Summary of Global Oil Services Conference Call Industry Overview - The report discusses the **Global Oil Services** industry, focusing on the outlook for 2H25 and FY26, highlighting both positive and negative signals in the market [1][2]. Key Insights 1. **Financial Strength**: The industry is currently in a strong financial position, although it is trading at historically low multiples. Many investors have not capitalized on the O&G capex recovery from 2022-24 [1][2]. 2. **Conflicting Signals**: There are concerns regarding oil supply and price stability, with questions about whether oil will remain oversupplied and if prices might decline. Additionally, there are indications of weakening International/Offshore activity, which could be exacerbated by high consensus expectations [1][2]. 3. **US Market Activity**: The Dallas Fed survey indicates a rapid deterioration in US activity expected in 4Q25, despite a stabilizing rig count. Current consensus expectations for the US market are low [1][2]. 4. **Optimism from Key Players**: Companies like GTT and Viridien express optimism ahead of 3Q25, contrasting with the overall cautious sentiment [1][2]. Regional Activity Recovery 1. **Diverging Opinions**: There are differing views on whether North America or international markets will lead the recovery. SLB suggests North America will remain constrained due to economic challenges, while Halliburton believes it is positioned for recovery [3][4]. 2. **Investment Implications**: The outlook for 2026-27 is more positive than generally perceived, with potential catalysts for the sector. The report suggests that 4Q25 may represent a low point for North America, and given the sector's low valuation (approximately 1.3x EV/Revenue), there is significant upside potential for various stocks [4][6]. Preferred Investment Calls - **Next 6 Months**: GTT (Target Price €193), Viridien (Target Price €94), SLB (Target Price $47.60) - **Next 12 Months**: SBM (Target Price €24), Rubis (Target Price €38.7), Vallourec (Target Price €22.6), Tenaris (Target Price €21) - **Next 18 Months**: Adnoc Drilling (Target Price AED6.76), Saipem (Target Price €3.54), Subsea (Target Price NOK240) - Notably, GTT, SBM, and Rubis are largely de-correlated from oil prices [6]. Conclusion - The Global Oil Services industry is at a critical juncture with mixed signals regarding future activity and investment opportunities. The financial strength of the sector, combined with low valuations, presents potential upside for select stocks, while regional disparities in recovery expectations highlight the complexity of the market landscape [1][4][6].

Market Overview - U.S. equities saw significant gains in Q3, driven by the Federal Reserve's first rate cut of the year, strong corporate earnings growth, and increased market participation [2] - Investor enthusiasm for artificial intelligence contributed to substantial gains in technology stocks, particularly among the "Magnificent Seven" [2] - Small-cap stocks outperformed as capital shifted into undervalued market segments, despite ongoing concerns about tariffs, inflation, and labor market softness [2] Company Highlights - Resideo Technologies, Inc. (REZI) was the top contributor in Q3, with organic revenue, EBITDA, and adjusted EPS exceeding expectations, and a positive outlook supported by demand for smart home solutions [3] - Barrick Mining Corporation (B) experienced a rise in shares due to strong financial results and rising gold prices, alongside a strategic divestiture of its Hemlo Gold Mine for $1.09 billion [4] - ZimVie, Inc. (ZIMV) advanced following an announcement of its acquisition by ARCHIMED, expected to close by year-end [5] - Mosaic Co. (MOS) was the biggest detractor from performance due to an earnings miss, with pressures from lower volumes and rising production costs, although phosphate markets are expected to remain tight through 2025 [6] - Prestige Consumer Healthcare Inc. (PBH) declined after mixed earnings results and a downward revision to guidance, but plans to strengthen supply through an acquisition of Pillar5 [7] - Schlumberger Limited (SLB) traded lower due to a challenging macroeconomic environment, with pressures from OPEC+ supply increases and geopolitical uncertainty impacting oil prices [8] New Positions and Exits - New positions included Arthur J. Gallagher & Co. (AJG), which faced pressure due to a delay in closing its $13.4 billion acquisition of AssuredPartners, but is expected to benefit from stronger synergies [10] - Fiserv, Inc. (FI) was also purchased, seen as a leading provider of payment processing and financial services technology, with a recent stock pullback providing an attractive entry point [11] - Exited positions included ZimVie, Inc., Core Laboratories, Inc. (CLB), and Bio-Rad Laboratories Inc. (BIO) to pursue more compelling opportunities [12] Economic Outlook - As Q4 approaches, U.S. markets are balancing elevated valuations against emerging macroeconomic headwinds, with the Federal Reserve's rate cut providing some support [13] - Investor sentiment remains positive, driven by AI momentum, although risks related to market concentration and policy uncertainty may lead to increased volatility [14] - There is a belief that small-cap equities may outperform large caps over the next two years, with small caps trading at historically attractive levels [14]

Core Viewpoint - SLB has been gaining attention as one of the most searched stocks, with its performance influenced by various fundamental factors [1][2]. Earnings Estimates - SLB is expected to report earnings of $0.74 per share for the current quarter, reflecting a year-over-year decline of -19.6% [5]. - The consensus earnings estimate for the current fiscal year is $2.89, indicating a year-over-year change of -15.3% [5]. - For the next fiscal year, the consensus estimate is $2.95, showing a slight increase of +1.9% compared to the previous year [6]. - The Zacks Rank for SLB is 3 (Hold), indicating a neutral outlook based on earnings estimate revisions [7]. Revenue Growth Forecast - The consensus sales estimate for SLB is $9.53 billion for the current quarter, representing a year-over-year increase of +2.7% [11]. - Revenue estimates for the current and next fiscal years are $35.53 billion (a decrease of -2.1%) and $37.44 billion (an increase of +5.4%), respectively [11]. Last Reported Results and Surprise History - In the last reported quarter, SLB generated revenues of $8.93 billion, down -2.5% year-over-year, with an EPS of $0.69 compared to $0.89 a year ago [12]. - The company surpassed consensus EPS estimates three times and revenue estimates two times over the last four quarters [13]. Valuation - SLB is graded B on the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [17]. - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether SLB's stock is fairly valued [15][16]. Conclusion - The information presented suggests that SLB may perform in line with the broader market in the near term, as indicated by its Zacks Rank [18].

Group 1 - Schlumberger, ConocoPhillips, and Halliburton saw pre-market gains exceeding 2% [1] - Chevron and ExxonMobil experienced pre-market increases of over 1% [1]

Group 1 - The discussion includes a reference to a recent 20% retracement in a stock's movement, indicating a potential buying opportunity [1] - There is a mention of various companies and sectors, including Coinbase and SLB Corp, suggesting interest in these stocks [1] - The conversation reflects a casual tone, indicating a focus on market sentiment and trading strategies rather than detailed financial analysis [1]

Revenue Performance - Third-quarter 2025 revenue was $8.9 billion, an increase of $382 million, or 4%, compared to the second quarter of 2025[103] - Digital revenue reached $658 million, growing 11% sequentially, with a 22% increase in Digital Operations and a 28% increase in Digital Exploration[106] - Production Systems revenue increased 18% sequentially to $3.5 billion, primarily due to the acquisition of ChampionX, which contributed $575 million[111] - Reservoir Performance revenue was $1.68 billion, a decline of 1% sequentially, impacted by lower activity in the Middle East & Asia[108] - Well Construction revenue remained flat at $3.0 billion, with higher revenue in offshore Guyana and North America offset by lower activity in Saudi Arabia and Argentina[109] - Nine-month 2025 revenue totaled $25.96 billion, a decrease of 4% year-on-year, primarily due to activity reductions in Saudi Arabia, Mexico, and key offshore markets[115] - Digital revenue for the nine months of 2025 was $1.84 billion, a 6% year-on-year increase, driven by growth in Digital Operations and Platforms & Applications[117] - Production Systems revenue for the nine months of 2025 was $9.25 billion, reflecting a 5% year-on-year increase, aided by the acquisition of ChampionX[120] Financial Position - As of September 30, 2025, SLB reported cash and short-term investments totaling $3.6 billion, with committed debt facility agreements of $5.0 billion available[133] - Net debt increased to $9.181 billion as of September 30, 2025, compared to $8.461 billion at the end of 2024, reflecting a net debt increase of $1.776 billion during the nine months[130] - Free cash flow for the first nine months of 2025 was $1.826 billion, down from $2.359 billion in the same period of 2024[130] - Capital investments for the first nine months of 2025 were $1.7 billion, a decrease from $1.9 billion in the same period of 2024, with full-year expectations of approximately $2.4 billion[136] Shareholder Returns - Dividends paid during the first nine months of 2025 were $1.2 billion, compared to $1.1 billion in 2024, reflecting a 9% increase[136] - SLB repurchased $2.414 billion worth of shares at an average price of $40.23 per share during the first nine months of 2025, compared to $1.236 billion at an average price of $46.47 in 2024[132] - The company announced a 3.6% increase in its quarterly cash dividend from $0.275 to $0.285 per share, effective from April 2025[136] Future Outlook - SLB expects revenue growth in the fourth quarter driven by international markets and a full quarter of activity from the acquired ChampionX businesses[105] Taxation - The effective tax rate for the third quarter of 2025 was 23%, up from 18% in the second quarter of 2025[126] Other Transactions - The company disposed of the ChampionX Drilling Technologies business for proceeds of $286 million during the third quarter of 2025[136] - SLB recorded a net cash inflow of $338 million from the sale of its interest in the Palliser APS project during the second quarter of 2025[137] Accounts Receivable - SLB's net accounts receivable balance as of September 30, 2025, was significantly influenced by the United States and Mexico, each accounting for 11%[134]