SLB (SLB) Remain Constructive Given Leverage to International Activity Resumptions and Idiosyncratic Opportunities, Contribu...

Equity Research 27 July 2026 | 8:41PM EDT

SLB (SLB) Remain Constructive Given Leverage to International Activity Resumptions and Idiosyncratic Opportunities, Contributing to Long-term Growth; Buy

SLB 12m Price Target: $62.00 Price: $51.53 Upside: 20.3% BUY Neil Mehta We remain constructive on SLB within our OFS coverage given the | Goldman Sachs & Co. LLC company’s leverage to a resumption in international activity. We Alexa Petrick Breno estimate SLB to achieve international y/y revenue growth of ~10% | Goldman Sachs & Co. LLC between 2026 and 2027, as we highlight leverage to incremental intervention work and return to activity in the Middle East, as well as Caitlin Donohue | Goldman Sachs & Co. LLC increasing offshore activity, with the potential acceleration of exploration activity in multiple geographies. Additionally, we remain constructive on SLB’s data center business over the long-term, as Key Data _____________________________________ Market cap: $77.6bn the company sees a path to over $2 bil in annual run-rate revenue by Enterprise value: $86.9bn 3m ADTV: $732.8mn year-end 2027, with the opportunity to grow the customer base and United States offerings. Lastly, we continue to expect SLB to generate significant Americas Energy Services M&A Rank: 3 free cash flow and return of capital for shareholders in 2026 as the GS Forecast __________________________________ company continues to have key exposure to activity growth and 12/25 12/26E 12/27E 12/28E

idiosyncratic business lines. Given SLB’s position within international Revenue ($ mn) New Revenue ($ mn) Old 35,709.0 35,709.0 36,945.6 36,409.6 40,695.9 39,414.4 42,626.6 41,251.2 OFS, we reiterate our Buy rating and see forward activity EBITDA ($ mn) 8,463.0 8,116.6 9,678.5 10,507.0 EBIT ($ mn) 5,818.0 5,210.6 6,668.6 7,500.9 expectations as a driver of earnings. EPS ($) New EPS ($) Old Estimate Changes and Valuation. We are adjusting our EBITDA P/E (X) Dividend yield (%) 3.0 2.3 2.6 3.0 estimates for 2026/2027/2028 by +1%/+1%/+1% respectively, to Net debt/EBITDA (X) 1.0 1.0 0.8 0.7 reflect updated activity expectations, particularly in the Middle East 6/26 9/26E 12/26E 3/27E and offshore. We value the shares on the basis of an average of two EPS ($) methods between a target free cash flow yield (7.0%, unchanged) GS Factor Profile ______________________________ and a target EV/EBITDA (9.0x, unchanged) on a through cycle basis, Growth

between 2027-31. As a result, we are maintaining our target price of Financial Returns $62. Multiple

Key Takeaways from 2Q26 Earnings Call Percentile 20th 40th 60th 80th 100th

SLB relative to Americas Coverage See potential growth from Middle East as the region looks to SLB relative to Americas Energy Services restore production. SLB continues to see operations and activity Source: Company data, Goldman Sachs Research estimates. resuming in areas of the Middle East, which we anticipate to drive See disclosures for details. future earnings momentum over the next several quarters. Amid the

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

SLB (SLB) Balance Sheet ($ mn) _______________________________________ BUY Rating since May 13, 2021 12/25 12/26E 12/27E 12/28E Cash & cash equivalents 3,036.0 3,454.1 3,990.2 4,626.0 Accounts receivable 8,689.0 9,815.2 11,133.9 12,196.3 Inventory 5,032.0 5,640.9 5,823.2 5,921.7 Ratios & Valuation __________________________________________ Other current assets 2,756.0 2,205.0 2,205.0 2,205.0 12/25 12/26E 12/27E 12/28E Total current assets 19,513.0 21,115.2 23,152.3 24,948.9 P/E (X) Net PP&E 7,894.0 7,445.0 6,869.8 6,395.0 EV/EBITDA (X) Net intangibles 21,782.0 21,753.0 21,753.0 21,753.0 EV/sales (X) 1.7 2.3 2.0 1.9 Total investments…