| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 50 | 27.1x | 17.8x | Around median | |
Growth | 32 | 2.5% | 7.1% | Bottom tier | |
Quality | 65 | 12.0% | 4.5% | Around median | |
Safety | 76 | 1.0x | 2.6x | Top tier | |
Capital Return | 66 | 2.02% | 2.12% | Top tier | |
Momentum | 86 | 41.1% | 2.9% | Top tier | |
Sentiment | 66 | 17 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Slb N.V. is an energy technology and services provider, with its business concentrated in four divisions: Production Systems, Well Construction, Reservoir Performance, and Digital Solutions. The company generates revenue from drilling, completion, artificial lift, valve, subsea system, and production chemicals equipment and services, alongside exploration data licenses and digital platforms and applications; it is also expanding its data center solutions business from modular manufacturing into design, engineering, and systems integration.
In Q2 FY2026, revenue reached $9.0 billion, up 3% sequentially, while net income according to EDGAR was approximately $786 million and earnings per share were $0.52. Adjusted earnings per share, excluding the impact of charges and credits, were $0.55, up $0.03 sequentially and down $0.19 year over year; the adjusted earnings before interest, taxes, depreciation, and amortization margin also expanded by 83 basis points sequentially.
Production Systems led the operating mix with revenue of $3.8 billion, up 7% sequentially, followed by Well Construction at $2.7 billion, down 2%, Reservoir Performance at $1.6 billion, down 2%, and Digital Solutions at $697 million, up 9%. Pretax operating margin was 15.5% in Production Systems, 15.2% in Well Construction, 14.9% in Reservoir Performance, and 27.8% in Digital Solutions, while the adjusted earnings before interest, taxes, depreciation, and amortization margin for Digital Solutions reached 34.7%.
The average analyst price target is $63.83, within a wide range of $54 to $71, and the consensus rating is Buy. The average is approximately 8.5% above the 52-week range high of $58.82, while the highest target exceeds that high by approximately 20.7%; however, the wide spread between the lowest and highest targets reflects the valuation's sensitivity to the Middle East recovery, deepwater growth, and the ability of Digital Solutions and data centers to convert growth into margins and earnings.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
SLB's revenue reached approximately $9.0 billion, up 3% sequentially, while net income according to EDGAR reached $786 million. Growth was led by Production Systems, whose revenue rose 7% to $3.8 billion, and Digital Solutions, which rose 9% to $697 million. Stronger activity in Latin America, Europe, Africa, U.S. land, and Asia offset a 13% sequential decline in Middle East revenue. Adjusted earnings per share were $0.55, compared with earnings per share of $0.52 according to EDGAR.
Management expects sequential revenue growth of between 3% and 4% in Q3 FY2026 and an expansion of approximately 75 basis points in the adjusted earnings before interest, taxes, depreciation, and amortization margin. This scenario assumes a gradual recovery in Middle East activity, while renewed escalation could reduce revenue by approximately $150 million and adjusted earnings before interest, taxes, depreciation, and amortization by approximately $75 million compared with the base case. For Q4 FY2026, management expects revenue to exceed $10 billion and year-over-year growth of approximately 5%. It also targets a margin of approximately 24% if Middle East revenue reaches between $2.1 billion and $2.2 billion.
Automated analysis for informational purposes only — not investment advice.
Data center solutions revenue in Q2 FY2026 rose 33% sequentially and 80% year over year. The business expanded from modular unit manufacturing into design, engineering, and systems integration, with a project in Canada for Meta and the addition of hyperscale computing operator customers. Management said the existing backlog supports an annualized revenue run rate exceeding $2 billion upon exiting FY2027. Although the business is not currently accretive to the company's overall margin, the chief financial officer described it as an asset-light model with strong free cash flow generation.
Third-party reports expect final investment decisions for long-cycle projects to increase by approximately 30% year over year in 2026, supporting spending on exploration and offshore activity. SLB benefits through OneSubsea, Well Construction and Reservoir Performance technologies, and exploration data licenses, which helped Digital Solutions achieve an adjusted earnings before interest, taxes, depreciation, and amortization margin of 34.7% in Q2 FY2026. According to management, there is typically no less than 12 months between a final investment decision and drilling the first well. Deepwater project phases may extend for more than five or six years, giving the company a multiyear revenue path if it wins the contracts and the projects are executed according to planned schedules.
On August 19, 2026, the agreements with Venezuela included a framework for SLB to conduct nationwide integrated reservoir studies, alongside plans with Formentera Partners to reactivate idled rigs or import additional rigs. On August 25, 2026, SLB signed a contract with PDVSA providing access to vital oilfield data. Management said on the July 24, 2026 call that it was mobilizing resources and securing contracts with multiple customers, supporting increased activity entering FY2027. However, it did not specify when it would return to the historical peak at which the company's revenue in Venezuela exceeded $1 billion, making the speed of execution a critical factor.
SLB ended Q2 FY2026 with net debt of $8.7 billion, operating cash flow of $1.4 billion, and free cash flow of $716 million. Capital investments, including capital expenditure, APS projects, and exploration data, totaled approximately $643 million, with an annual expectation of approximately $2.5 billion. The company plans to return more than $4 billion to shareholders during FY2026, including a minimum of $2.4 billion for share repurchases. Investors should also monitor the restoration of a 24% margin in Q4 FY2026, the 15% growth in annual recurring revenue for Digital Solutions, and the trajectory of the Middle East revenue recovery.
