Core Viewpoint - Schlumberger reported fourth-quarter revenue of $9.75 billion, exceeding expectations of $9.55 billion [1] - The adjusted earnings per share for the fourth quarter were $0.78, surpassing the forecast of $0.74 [1] - Adjusted EBITDA for the fourth quarter was $2.33 billion, slightly above the expected $2.31 billion [1] - Capital expenditures for the fourth quarter amounted to $516 million, lower than the anticipated $576.3 million [1]

Financial Performance - Fourth-quarter revenue of $9.75 billion increased 9% sequentially and 5% year on year[2] - Fourth-quarter GAAP EPS of $0.55 increased 10% sequentially but decreased 29% year on year[2] - Fourth-quarter net income attributable to SLB of $824 million increased 12% sequentially but decreased 25% year on year[2] - Full-year revenue of $35.71 billion decreased 2% year on year[2] - Full-year net income attributable to SLB of $3.37 billion decreased 24% year on year[2] - Total revenue for SLB in 2025 was $35.7 billion, a decrease of 2% compared to $36.3 billion in 2024[10] - SLB reported Q4 2025 revenue of $9,745 million, a 5% increase from $9,284 million in Q4 2024[57] - Net income attributable to SLB for Q4 2025 was $824 million, down 25% from $1,095 million in Q4 2024[57] - SLB's total revenue for the twelve months ended December 31, 2025, was $35,708 million, a decrease of 1.6% compared to $36,289 million in 2024[57] - Net income for the twelve months ended December 31, 2025, was $4,291 million, a decrease from $5,672 million in the previous year, representing a decline of 24.4%[66] Cash Flow and Dividends - Full-year cash flow from operations was $6.49 billion and free cash flow was $4.11 billion[2] - SLB generated $6.5 billion in cash flow from operations and $4.1 billion in free cash flow in 2025, returning $4.0 billion to shareholders[16][22] - Free cash flow for the fourth quarter of 2025 was $2,289 million, compared to $3,005 million in the previous quarter, reflecting a decrease of 23.8%[62] - Cash flow from operations for the twelve months ended December 31, 2025, was $6,489 million, slightly down from $6,602 million in the previous year[62] - The board approved a 3.5% increase in quarterly cash dividend to $0.295 per share[2] - The company paid dividends totaling $426 million in the fourth quarter of 2025, compared to $1,602 million in the previous quarter[62] Revenue Segmentation - Digital segment revenue increased 25% sequentially and 13% year on year, reflecting strong growth[6] - Digital revenue increased by 9% year-on-year to $2.66 billion, with an adjusted EBITDA margin of 34.9%[10][20] - Production Systems revenue grew by 12% year-on-year to $13.33 billion, with a pretax segment operating income of $2.18 billion, reflecting a 15% increase[10] - North America revenue increased by 12% year-on-year to $7.52 billion, while international revenue decreased by 5% to $27.94 billion[12] - Digital revenue reached $825 million, increasing 25% sequentially and 17% year-over-year, driven by strong growth in Digital Exploration and Digital Operations[35] - Reservoir Performance revenue was $1.75 billion, a 4% sequential increase, but a 3% year-over-year decline primarily due to reduced activity in Saudi Arabia and Europe[39] - Well Construction revenue decreased 1% sequentially to $2.95 billion and declined 10% year-over-year, impacted by reduced drilling activity across multiple regions[42] - Production Systems revenue increased 17% sequentially to $4.08 billion and 30% year-over-year, significantly boosted by the acquisition of ChampionX, which contributed $874 million in revenue[44] - Digital Division revenue increased by 9% year-on-year to $2.660 billion in 2025, with pretax operating income rising 22% to $745 million[97] - Data Center Solutions revenue surged 121% year-on-year to $460 million in 2025, compared to $208 million in 2024[102] Acquisitions and Strategic Initiatives - SLB acquired ChampionX, contributing $879 million in revenue and $206 million in adjusted EBITDA in the fourth quarter[3] - The acquisition of ChampionX contributed $1.46 billion in revenue during 2025, with $879 million in the fourth quarter alone[10][19][25] - The company anticipates benefits from the ChampionX acquisition, focusing on successful integration and achieving anticipated synergies[107] - SLB's partnership with Shell aims to develop AI solutions to enhance upstream operations, focusing on performance and efficiency gains[55] Operational Highlights - The company secured a five-year contract with Aramco for stimulation services in Saudi Arabia, part of a multi-billion dollar contract[53] - SLB's new technology, the OnWave™ platform, was deployed in Italy, enhancing data acquisition and well control, significantly improving fracture characterization[54] - The Reda Agile™ pump system installed in Libya achieved an initial flow rate of approximately 2,000 barrels of fluid per day[54] - SLB's cumulative incremental oil recovery in Oman exceeded 580,000 barrels over 33 jobs within 7 years[54] - The company expanded its operations in Shreveport, Louisiana, nearly doubling its facility footprint to meet growing data center demand[56] Future Outlook and Strategic Goals - SLB expects to return over $4 billion to shareholders in 2026, with a 3.5% increase in quarterly dividends starting April 2026[23][24] - The company is committed to achieving net-zero carbon emissions goals and interim emissions reduction goals, although these are subject to various risks and uncertainties[108] - SLB's business strategies include digital initiatives and "fit for basin" approaches, aimed at improving operational efficiencies and adapting to market conditions[107] - The company acknowledges potential impacts from global economic and geopolitical conditions on energy supply and operational performance[107] - SLB is focused on enhancing its technology to meet new challenges in exploration and addressing competitiveness from alternative energy sources[108] - The company is monitoring changes in exploration and production spending by customers, which could affect its financial performance[108] - SLB's operational modifications and supply chain challenges may influence its ability to achieve intended benefits from business strategies[108] - The company disclaims any obligation to update forward-looking statements, emphasizing the evolving nature of its sustainability-related goals[108]

Core Insights - SLB exceeded Wall Street profit estimates for the fourth quarter, driven by consistent demand for its oilfield equipment and services in North America [1] Company Performance - SLB reported a strong performance in the fourth quarter, indicating robust operational efficiency and market positioning [1] Industry Demand - The demand for oilfield equipment and services in North America remains steady, contributing positively to SLB's financial results [1]

Core Viewpoint - SLB reported its fourth-quarter and full-year 2025 financial results, showing a mixed performance with revenue growth but a decline in net income and income before taxes compared to the previous year [1] Financial Performance - Revenue for the fourth quarter of 2025 was $9,745 million, representing a 9% increase from $8,928 million in the third quarter of 2025 and a 5% increase from $9,284 million in the fourth quarter of 2024 [1] - Income before taxes on a GAAP basis for the fourth quarter was $943 million, down 6% from $1,000 million in the previous quarter and down 32% from $1,387 million in the same quarter last year [1] - The income before taxes margin on a GAAP basis decreased to 9.7%, a decline of 153 basis points sequentially and 526 basis points year-on-year [1] - Net income attributable to SLB on a GAAP basis for the fourth quarter was $824 million, an increase from $739 million in the previous quarter [1]

Core Viewpoint - U.S. stock futures are showing a cautious tone as investors react to mixed corporate earnings and await key economic data, following a recent rally in the broader markets [1][2] Premarket Trading and Futures Movements - U.S. stock futures are trending modestly lower, with Nasdaq 100 futures down 0.15%, S&P 500 futures down 0.04%, and Dow Jones Industrial Average futures down 0.05% [2] - Global markets are mixed, with GIFT Nifty futures indicating a soft start for domestic indices, down 0.22% [2] Commodity Markets - Crude oil prices are up 0.66%, gold futures have risen 0.62%, and silver futures surged 3.25%, indicating ongoing inflation concerns or a flight to safety [3] Major Market Indexes Performance - U.S. stock indices closed positively, with the Dow Jones Industrial Average up 0.62% to 49,405.00 points, S&P 500 up 0.55% to 6,916 points, and Nasdaq Composite up 0.91% [4] - Despite recent gains, S&P 500 and Nasdaq are poised for their second consecutive weekly loss, with S&P 500 down 0.23% over the past month but up 13.35% year-over-year [5] Upcoming Market Events - Key economic data releases include S&P Global Composite PMI, Manufacturing PMI, and Services PMI for January at 09:45 AM ET, followed by Michigan inflation expectations and consumer sentiment at 10:00 AM ET [6] Corporate Earnings Reports - Notable companies reporting earnings include Schlumberger Limited, Ericsson, First Citizens BancShares, Booz Allen Hamilton, and Webster Financial, which may influence stock movements [7] Federal Reserve's Monetary Policy - Market participants are monitoring signals regarding future interest rate adjustments, with expectations of two quarter-point rate cuts in 2026, though the median projection suggests only one cut this year [8] Major Stock News - Intel Corporation shares fell over 10% after issuing weaker-than-expected guidance, impacting other semiconductor stocks [9] - Meta Platforms, Inc. surged 5.7%, while GE Aerospace shares fell 7.4% despite positive profit guidance [10] Other Corporate Developments - TikTok has finalized a deal to continue operating in the U.S. through a majority American-led joint venture [12] - CSX Corporation reported a decline in profit and revenue due to subdued industrial demand, while Alcoa Corporation posted higher profits [12] - Tesla's CEO set an ambitious target for Optimus robots, potentially adding $20 trillion to Tesla's valuation [13]

Core Viewpoint - SLB N.V. is expected to report a decline in fourth-quarter earnings and revenue compared to the previous year, despite securing a significant contract with Aramco [1]. Financial Performance - Analysts predict SLB will report fourth-quarter earnings of 74 cents per share, down from 92 cents per share in the same period last year [1]. - The consensus estimate for SLB's quarterly revenue is $9.55 billion, an increase from $9.28 billion reported last year [1]. Stock Performance - SLB shares rose 1.7% to close at $49.32 on Thursday [2]. Analyst Ratings - Stifel analyst Stephen Gengaro maintained a Buy rating and raised the price target from $48 to $52 [3]. - Susquehanna analyst Bascome Majors maintained a Positive rating and increased the price target from $42 to $52 [3]. - Evercore ISI Group analyst James West upgraded the stock from In-Line to Outperform [3]. - Piper Sandler analyst Derek Podhaizer maintained an Overweight rating and raised the price target from $42 to $45 [3]. - Barclays analyst David Anderson maintained an Overweight rating but cut the price target from $48 to $47 [3].

Market Sentiment - The CNN Money Fear and Greed index improved to a reading of 54.3, remaining in the "Neutral" zone, up from 52.3 [6] - U.S. stocks experienced a positive session, with the Dow Jones index gaining over 300 points amid easing geopolitical concerns [1] Company Performance - Meta Platforms Inc. saw a jump of more than 5% due to Jefferies highlighting an attractive valuation discount [2] - Procter & Gamble surged around 3% after reporting stronger-than-expected earnings [2] - General Aerospace experienced a decline of over 7% despite exceeding earnings estimates [2] Economic Data - U.S. initial jobless claims rose by 1,000 to 200,000 for the week ending Jan. 17 [3] - The U.S. economy grew at an annualized rate of 4.4% in Q3, surpassing the preliminary estimate of 4.3% and marking the strongest growth since Q3 2023 [3] - The PCE price index increased by 0.2% month-over-month in November, consistent with the previous month and market estimates [3] Sector Performance - Most sectors on the S&P 500 closed positively, with communication services, consumer discretionary, and information technology stocks showing the largest gains [4] - Real estate and utilities stocks closed lower, bucking the overall market trend [4] - The Dow Jones closed at 49,384.01, up around 307 points, while the S&P 500 rose 0.55% to 6,913.35, and the Nasdaq Composite gained 0.91% to 23,436.02 [4] Upcoming Earnings - Investors are anticipating earnings results from Booz Allen Hamilton Holding Corp., Webster Financial Corp., and Slb NV [5]

Core Viewpoint - SLB N.V. is a leading provider of technology and services in the energy industry, specializing in digital integration, reservoir performance, well construction, and production systems, competing with major players like Halliburton and Baker Hughes [1] Price Target Trends - The consensus price target for SLB has increased over the past year, rising from $49.13 last year to $50.48 last quarter, and reaching $51.20 last month, indicating growing analyst optimism [2] - Barclays analyst David Anderson has set a price target of $59 for SLB, reflecting strong confidence in the company's growth potential [2][4] Earnings and Market Performance - SLB is scheduled to release its fourth-quarter earnings on January 23, with investors closely monitoring the situation due to challenges from reduced demand for oilfield services [3] - Despite these challenges, SLB's stock has appreciated by approximately 16% over the past year, driven by geopolitical dynamics and global upstream expectations [3] - The company's strategic positioning in the energy sector is considered a key factor in its stock performance, with analysts suggesting that price targets may evolve as SLB continues to innovate and expand its offerings [4]

Earnings Report - SLB N.V. is set to release its fourth-quarter earnings on January 23, with analysts expecting earnings of 74 cents per share, a decrease from 92 cents per share in the same period last year [1] - The consensus estimate for SLB's quarterly revenue is $9.55 billion, up from $9.28 billion reported last year [1] Analyst Ratings - Stifel analyst Stephen Gengaro has maintained a Buy rating for SLB and raised the price target from $48 to $52 [1] Dividend Information - SLB currently has an annual dividend yield of 2.35%, translating to a quarterly dividend of 28.5 cents per share, or $1.14 annually [2] - To achieve a monthly income of $500 from dividends, an investor would need to own approximately 5,263 shares of SLB, equating to a total investment of about $255,361 [3] - For a more conservative monthly income goal of $100, an investor would need 1,053 shares, or an investment of around $51,092 [3] Dividend Yield Dynamics - The dividend yield is calculated by dividing the annual dividend payment by the current stock price, which means it fluctuates with changes in stock price [4] - If SLB's stock price increases, the dividend yield decreases, and vice versa [4] - Changes in the dividend payment itself can also affect the dividend yield; an increase in the dividend payment raises the yield, while a decrease lowers it [5] Stock Performance - SLB shares increased by 4.5%, closing at $48.52 on Wednesday [5]

Core Viewpoint - SLB is a leading provider of technology and services to the energy industry, with upcoming quarterly earnings expected to show a decline in EPS but a slight increase in revenue, indicating resilience in its business model [1][2]. Financial Performance - The anticipated EPS for the fourth quarter of 2025 is $0.74, representing a 19.6% decrease from the previous year due to lower oil prices and reduced drilling activity [2]. - SLB reported adjusted earnings of $0.69 per share in the previous quarter, exceeding the Zacks Consensus Estimate of $0.66, driven by growth in its Digital segment and contributions from the ChampionX acquisition [3]. - Over the last four quarters, SLB has exceeded earnings expectations three times, with an average surprise of 1.36% [3][6]. Revenue and Valuation Metrics - Projected revenue for the upcoming quarter is $9.55 billion, reflecting a 2.72% increase compared to the previous year [2]. - The company has a price-to-earnings (P/E) ratio of approximately 19.58, a price-to-sales ratio of about 2.06, and an enterprise value to sales ratio of around 2.33 [4][6]. Financial Health - SLB's enterprise value to operating cash flow ratio is approximately 14.00, indicating how its cash flow is valued in relation to its enterprise value [5]. - The company maintains a moderate debt-to-equity ratio of roughly 0.50, suggesting a balanced approach to leveraging [5]. - A current ratio of approximately 1.39 indicates SLB's ability to cover short-term liabilities with short-term assets, ensuring financial stability [5].