Schlumberger N.V.

Schlumberger N.V. (NYSE: SLB) operates across more than 120 countries as a leading technology company, delivering digital solutions and advanced innovations designed to enhance performance and promote sustainability within the global energy sector.

Key Business and Financial Updates:

• Revenue and Profitability Trends: SLB posted second-quarter 2025 revenue of USD 8.55 billion, marking a modest 1% sequential increase but a 6% decline year on year. Income before taxes on a GAAP basis rose 21% sequentially to USD 1.29 billion, although this remained 10% lower than the prior year. Net income attributable to SLB reached USD 1.01 billion, up 27% sequentially, while diluted EPS stood at USD 0.74, reflecting a 28% increase from Q1 2025 but still 4% below Q2 2024.
• Margin Performance and Profitability Metrics: Profitability showed resilience despite softer industry conditions. The pretax margin improved 251 basis points sequentially to 15.0%, though down slightly year on year. Adjusted EBITDA increased 2% sequentially to USD 2.05 billion, with margins expanding to 24%, while pretax segment operating income rose 2% to USD 1.58 billion. On a year-over-year basis, however, both adjusted EBITDA and segment operating margins contracted, highlighting a challenging demand backdrop.
• Geographic Revenue Performance: International markets continued to anchor results, generating USD 6.85 billion in revenue, up 2% sequentially but down 8% year on year. Growth in the Middle East, Asia, Europe, and North Africa offset localized slowdowns. North America revenue of USD 1.65 billion declined 4% sequentially due to the divestiture of the Palliser block in Canada and seasonal drilling slowdowns, though it edged up 1% year on year on strong digital and production system demand. Regionally, Europe & Africa led sequential gains with a 6% increase, while Latin America and Middle East & Asia remained flat.
• Divisional Performance Overview: Across its divisions, results were mixed. Digital & Integration revenue fell 1% sequentially due to weaker Canadian APS sales, though margins strengthened to 32.8%. Reservoir Performance revenue also slipped 1% sequentially, yet operating margins expanded by 203 bps to 18.6% on stronger intervention activity. Well Construction remained flat sequentially but saw a 13% year-on-year decline, with margins pressured to 18.6% amid global drilling softness. Production Systems stood out, growing 3% sequentially and maintaining steady margins at 16.4%, supported by strong artificial lift and midstream solutions demand.
• Operational Highlights and Market Dynamics: CEO Olivier Le Peuch emphasized SLB’s resilience in navigating global uncertainty, citing steady upstream activity despite OPEC+ supply shifts, geopolitical tensions, and trade negotiations. Production Systems marked its 17th consecutive quarter of year-on-year growth, reflecting customers’ increasing focus on maximizing production and recovery efficiency in a capital-disciplined environment. The company noted rising demand for artificial lift, midstream production systems, and digital solutions, with growth strongest in the U.S. and mature basins.
• Strategic Acquisitions and Portfolio Diversification: The quarter was marked by strategic moves to strengthen SLB’s portfolio. On July 16, 2025, the company closed its acquisition of ChampionX, significantly enhancing its exposure to production chemicals and artificial lift — a less cyclical, growing segment of the energy services market. This builds on SLB’s efforts to diversify beyond traditional upstream services. Additionally, the sale of its Palliser Block interests in Canada underscored disciplined portfolio optimization.
• Technology Leadership and Contract Wins: SLB advanced its technology agenda with new product launches and contract awards. The introduction of Electris completions technologies and the Retina at-bit imaging system showcased innovation aimed at boosting production efficiency and drilling precision. Significant contracts were secured globally, including subsea systems for bp’s Trinidad & Tobago project, CO₂ injection systems for Equinor’s Northern Lights project in Norway, and completion services in Oman. Meanwhile, digital partnerships with Shell, Cactus Drilling, and Mistral AI reinforced SLB’s role in deploying AI, automation, and cloud-enabled solutions at scale.

Valuation Methodology (using P/E Multiple):  

SLB delivered a resilient Q2 2025 performance, highlighted by sequential growth in revenue, net income, and margins, supported by strong contributions from international markets and Production Systems. The company’s 17th straight quarter of growth in Production Systems, expanding digital adoption, and the ChampionX acquisition strengthen its positioning in the less cyclical production and recovery space. These factors, combined with SLB’s diversified global portfolio and technology leadership, underpin a constructive outlook despite softer upstream spending. 

As per the above-mentioned price action, important financial updates, momentum in the stock over the last three months, and technical indicators analysis, a ‘BUY’ rating has been given for Schlumberger N.V. (NYSE: SLB) at the current price of USD 35.66, as of September 04,2025 at 8:25 am PDT. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is September 04, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.