SLB (SLB) 2Q26 First Take EBITDA Beat on Stronger Revenue and Margins vs GS

Equity Research 24 July 2026 | 7:56AM EDT

SLB (SLB): 2Q26 First Take: EBITDA Beat on Stronger Revenue and Margins vs GS; Focus on International Commentary on Call

SLB reported adjusted EBITDA of $1,899 mil, +6% vs GS estimate of $1,783 mil Neil Mehta | and FactSet consensus of $1,785 mil. The company reported adjusted EPS of $0.55, Goldman Sachs & Co. LLC

above GS estimate of $0.50 and Consensus estimate of $0.52. EBITDA margins of Caitlin Donohue | 21.2% were above GS of 20.5% and Consensus of 20.6%. Operating margins of Goldman Sachs & Co. LLC 13.3% (vs GS 11.9% and Consensus 12.5%) were driven by Reservoir Performance (+238 bps vs GS), Well Construction (+201 bps vs GS), Production Systems (+122 bps vs GS), partially offset by Digital (-256 bps vs GS). Overall revenue of $8,972 mil was 3% above GS estimate of $8,688 mil and Consensus estimate of $8,667 mil. Revenue was a result of Well Construction (+6% vs GS), Production Systems (+5% vs GS), and Reservoir Performance (+3% vs GS), partially offset by Digital (-1% vs GS). Free cash flow for the quarter was $716 mil (vs GS $428 mil and Consensus $479 mil). The free cash flow beat vs GS was driven by higher cash flow from operations ($1,359 mil vs GS $1,022 mil), partially offset by higher capex ($643 mil vs GS $594 mil).

Geographic revenue mix. SLB reported North America revenue at $2,244 mil (+2% vs GS) and International revenue at $6,671 mil (+10% vs GS). North America revenue was a result of Reservoir Performance (+6% vs GS) and Production Systems (+1% vs GS), partially offset by Well Construction (-2% vs GS) and Digital. The beat in International revenue was a result of Digital (+19% vs GS), Well Construction (+6% vs GS), Production Systems (+5% vs GS), and Reservoir Performance (+2% vs GS).

What are the key questions for the 9:30 AM ET conference call?

1. How do you view disruption in the Middle East impacting SLB’s operations in the third quarter?

2. What are you seeing for North America activity amid a higher commodity price environment?

3. How are you thinking through drivers for the data center and Digital businesses?

4. What do you see as drivers of margin expansion within each of the businesses?

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Exhibit 1: 2Q26 Actual vs GS 2Q26 Sequential Y-o-Y Actual GS Estimate Variance (%) 1Q26A Variance (%) 2Q25A Variance (%) Segment Revenues Digital* 697 $704 (1.0%) $640 8.9% $995 (29.9%) Reservoir Performance 1,556 1,515 2.7% 1,594 (2.4%) 1,691 (8.0%) Well Construction 2,742 2,593 5.8% 2,797 (2.0%) 2,963 (7.5%) Production Systems* 3,771 3,604 4.6% 3,508 7.5% 3,036 24.2% All Other* 505 474 6.5% 443 14.0% -- Eliminations & Other (299) (201) n/a (261) (14.6%) (139) (115.1%) Total Revenue $8,972 $8,688 3.3% $8,721 2.9% $8,546 5.0% Operating Income Digital* 194 214 (9.3%) 134 44.8% 327 (40.7%) Reservoir Performance % 257 (9.7%) 314 (26.1%) Well Construction % 424 (1.7%) 551 (24.3%) Production Systems* % 497 17.9% 499 17.4% All Other* 142 132 n/a 113 25.7% -- Eliminations & Other (167) (83) n/a (104) (60.6%) (107) (56.1%) Total Segment Operating Income $1,404 $1,311 7.1% $1,321 6.3% $1,584 (11.4%) Corporate & Other ( % (228) 7.5% (169) (24.9%) Total Operating Income $1,193 $1,032 15.6% $1,093 9.1% $1,415 (15.7%) Operating Margins Digital* 27.8% 30.4% -256 bps 20.9% 690 bps 32.9% -503 bps Reservoir Performance 14.9% 12.5% 238 bps 16.1% -121 bps 18.6% -366 bps Well Construction 15.2% 13.2% 201 bps 15.2% 5 bps 18.6% -339 bps Production Systems* 15.5% 14.3% 122 bps 14.2% 137 bps 16.4% -90 bps All Other* 28.1% -- n/a -- n/a -- n.a Total Operating Margins 13.3% 11.9% 142 bps 12.5% 76 bps 16.6% -326 bps

EBITDA 1,899 1,783 6.5% 1,773 7.1% 2,051 (7.4%) Margin,% 21.2% 20.5%…