Core Insights - Schlumberger's total revenue for the quarter ending September 2025 was $8.93 billion, reflecting a year-over-year decline of 2.5% [4] - The company's international revenue streams are crucial for assessing its financial resilience and growth prospects [2][3] International Revenue Breakdown - Latin America contributed $1.48 billion, accounting for 16.6% of total revenue, with a surprise decline of -2.91% compared to analyst expectations of $1.53 billion [5] - Middle East & Asia generated $3 billion, representing 33.6% of total revenue, with a surprise decline of -1.04% against expectations of $3.03 billion [6] - Europe & Africa provided $2.43 billion, making up 27.3% of total revenue, exceeding the consensus estimate of $2.41 billion by +1.02% [7] Future Revenue Expectations - Analysts project Schlumberger's revenues for the current fiscal quarter to reach $9.5 billion, an increase of 2.3% year-over-year, with expected contributions of 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) [8] - For the full year, total annual revenue is expected to be $35.47 billion, a decrease of 2.3% compared to the previous year, with projected contributions of 17.4% ($6.16 billion) from Latin America, 34.5% ($12.25 billion) from Middle East & Asia, and 27% ($9.58 billion) from Europe & Africa [9] Market Performance and Outlook - The reliance on international markets presents both opportunities and challenges for Schlumberger, making it essential to track international revenue trends for future projections [10] - The company's current Zacks Rank is 4 (Sell), indicating potential underperformance in the near term [12] - Over the past month, Schlumberger's stock has declined by 1.4%, while the Zacks S&P 500 composite increased by 1.2% [13]

Core Viewpoint - SLB reported third-quarter earnings that exceeded expectations, reflecting cautious optimism for future growth despite current market challenges [2][3] Financial Performance - Revenue for the third quarter was $8.93 billion, slightly above the expected $8.92 billion [2] - Earnings per share (EPS) were 69 cents, surpassing estimates of 66 cents by 3.95% [2] Market Context - SLB's stock has declined over 1% following the earnings report and is down approximately 14% in 2025, correlating with crude oil price movements [1] - Crude oil prices recently fell below $60 per barrel, but structural trends suggest potential for higher demand and pricing power in the future [4][5] Growth Catalysts - North American infrastructure investment and onshoring efforts are expected to drive energy demand, potentially tightening supply and supporting oil prices [5][6] - International markets, particularly in the Middle East and Asia, are showing resilience, with 80% of SLB's revenue derived from these regions [8] Strategic Initiatives - SLB is focusing on long-cycle projects and anticipates OPEC+ will gradually increase production quotas, which aligns with the company's investment strategy [9] - The company is also advancing in digital and transition technologies, with its SLB New Energy division targeting carbon capture and lithium extraction [10] Financial Outlook - Analysts project a 12-month stock price forecast of $52.00, indicating a potential upside of 59.61% from the current price of $32.58 [12] - SLB is trading at a discount to historical valuation multiples and industrial peers, with a forward earnings multiple around 9x [13][14]

Group 1 - SLB N.V. is considered one of the most profitable energy stocks currently available for investment, with an 'Outperform' rating from SocGen analyst Guillaume Delaby, although the price target has been reduced to $47.60 from $63 [1][2] - Concerns have been raised regarding the company's slow transition towards New Energies, which is viewed as a medium-term negative impacting stock sentiment and valuation [2] - SocGen has adjusted its long-term growth rate assumption for SLB from 3.5% to 2% due to revised expectations for the ChampionX consolidation, which will now be included for only 5 months in 2025 instead of 9 months [3] Group 2 - SLB N.V. operates as a global technology company providing services and technology for the energy industry, focusing on oil and gas production and recovery, as well as the transition to new energy sources [4]

Core Insights - SLB reported third-quarter 2025 earnings of 69 cents per share, exceeding the Zacks Consensus Estimate of 66 cents, but down from 89 cents in the same quarter last year [1][10] - Total quarterly revenues were $8,928 million, slightly missing the Zacks Consensus Estimate of $8,930 million and declining from $9,159 million year-over-year [1][10] Financial Performance - The Digital segment's revenues reached $658 million, a 3% increase year-over-year, while pre-tax operating income decreased to $187 million from $190 million [3] - Reservoir Performance unit revenues fell 8% to $1.68 billion, with pre-tax operating income down 15% to $312 million, surpassing the Zacks Consensus Estimate of $295 million [4] - Well Construction segment revenues decreased 10% to $2.97 billion, with pre-tax operating income down 22% to $558 million, exceeding the Zacks Consensus Estimate of $525 million [5] - Production Systems segment revenues increased to $3.47 billion from $3.04 billion a year ago, with pre-tax operating income improving 8% to $559 million, though it missed the Zacks Consensus Estimate of $565 million [6] Cash Flow & Financials - SLB reported free cash flow of $1.1 billion for the third quarter [7] - As of September 30, 2025, the company had approximately $3.59 billion in cash and short-term investments, with long-term debt at $10.84 billion [7] Outlook - SLB reiterated its full-year 2025 capital investment guidance at approximately $2.4 billion, lower than the 2024 level of $2.6 billion, including the impact of the ChampionX acquisition [8]

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]