SLB Q3 Revenue Rises 6% to $9.45 Billion on North America Growth

SLB reported third-quarter 2026 revenue of $9.45 billion on October 23, 2026, an increase of 5% sequentially and 6% year on year, as activity recovered in the Middle East and grew in North America. GAAP diluted earnings per share were $0.49, down 6% sequentially and 2% year on year, while earnings per share excluding charges and credits were $0.64, up 16% sequentially and down 7% from the prior-year quarter, according to the company’s third-quarter 2026 earnings release.

Net income attributable to SLB was $735 million, down 6% sequentially and 1% year on year. Adjusted EBITDA was $2.07 billion, up 9% sequentially and essentially flat year on year, at a 21.9% margin. Cash flow from operations was $1.51 billion and free cash flow was $828 million.

The quarter included $242 million of pretax charges and credits, consisting of a $187 million non-cash pension settlement charge and $55 million of merger and integration costs. The GAAP effective tax rate was 23.5%, compared with 20.0% in the second quarter of 2026; excluding charges and credits, the rate was 20.0%.

Geographic and Division Results

International revenue was $6.993 billion, up 5% sequentially and 1% year on year, while North America revenue was $2.401 billion, up 7% sequentially and 24% year on year. Middle East & Asia revenue of $2.807 billion rose 9% sequentially, including 13% growth in the Middle East as activity rebounded from conflict-related disruptions in the prior quarter, although certain countries experienced renewed disruptions during the final weeks of the quarter. Latin America revenue of $1.749 billion rose 2% sequentially on higher SLB OneSubsea sales and increased drilling activity in Guyana and Brazil, and Europe & Africa revenue of $2.437 billion also rose 2% sequentially.

ChampionX, acquired in July 2025, contributed $956 million of revenue, $239 million of adjusted EBITDA and $190 million of pretax segment operating income in the quarter. Third-quarter 2025 results reflected two months of ChampionX activity, which contributed $579 million of revenue. Excluding the acquisition, SLB’s global revenue rose 2% year on year, international revenue was essentially flat and North America revenue rose 13%.

Production Systems revenue of $4.00 billion rose 6% sequentially and 15% year on year; ChampionX production chemicals and artificial lift contributed $950 million of that revenue, and excluding the acquisition the division’s revenue rose 5% year on year. Well Construction revenue of $2.888 billion and Reservoir Performance revenue of $1.634 billion each rose 5% sequentially and fell 3% year on year, declines the company said reflected the lingering impact of Middle East conflict-related disruptions. Digital revenue of $693 million fell 1% sequentially and rose 5% year on year; the division’s annualized recurring revenue was $1.04 billion as of September 30, 2026, up 13% from $926 million a year earlier.

Data Center Solutions, reported within All Other, generated $230 million of revenue, up 23% sequentially and 76% year on year, and $557 million in the first nine months of 2026, up 68% from the prior-year period. Overall pretax segment operating income was $1.576 billion, up 12% sequentially and down 3% year on year, at a 16.7% margin.

“SLB delivered solid third-quarter results with all regions growing sequentially — led by a gradual recovery in the Middle East, growth in North America land and broadening international activity in deepwater offshore basins,” said SLB Chief Executive Officer Olivier Le Peuch. He said SLB OneSubsea contract awards increased backlog and enhanced revenue visibility into 2027, and that the previously announced Kelvion acquisition will further strengthen the Data Center Solutions technology portfolio. Citing significant activity increases in Venezuela and expanding momentum across the Core, Digital and Data Center Solutions businesses, Le Peuch said the company sees “a very compelling outlook for 2027, with further upside as Middle East activity recovers.”

Capital Returns and Quarterly Awards

On October 22, 2026, SLB’s Board of Directors approved a quarterly cash dividend of $0.295 per share of outstanding common stock, payable on January 7, 2027, to stockholders of record on December 2, 2026. During the quarter the company repurchased 12.9 million shares of common stock for a total purchase price of $656 million; over the first nine months of 2026 it repurchased 34.0 million shares for $1.76 billion. Shares outstanding were 1.476 billion as of September 30, 2026.

Net debt stood at $9.249 billion at September 30, 2026, with cash and short-term investments of $3.551 billion and long-term debt of $11.147 billion. Full-year 2026 capital investment, consisting of capital expenditures, exploration data costs and APS investments, is still expected to be approximately $2.5 billion, according to the release’s supplementary information; capital investment for full-year 2025 was $2.4 billion.

On August 31, 2026, SLB signed an agreement to acquire Kelvion, a global provider of thermal management and heat exchange technologies, from Apollo-managed funds, the majority owner, and funds advised by Triton, which holds a minority interest, for approximately $3.4 billion in cash plus approximately $0.7 billion of assumed debt. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the first half of 2027. On September 1, 2026, SLB completed its acquisition of S&P Global Energy’s geoscience and petroleum engineering software business portfolio (SPGI ).

Quarterly contract awards included four integrated well construction contracts from Aramco covering more than 450 wells over a three-year term, with an optional extension of up to two years; an SLB OneSubsea joint venture contract from ExxonMobil Moçambique, on behalf of its Area 4 partners, to deliver subsea production systems for the first phase of the Rovuma LNG project offshore Mozambique; a multi-year agreement with Equinor for advanced reservoir stimulation services across the Norwegian Continental Shelf; a five-year integrated fracturing services contract from Petroleum Development Oman for onshore Block-6; and a five-year reservoir characterization technology contract from Kuwait Oil Company.

In digital, Chevron Technical Center joined the long-term digital subsurface collaboration established by SLB and TotalEnergies in 2024, and TotalEnergies (TTE ) signed a 15-year agreement to use SLB’s DrillPlan well planning and engineering solution. In Canada, following a recent contract award from Meta, SLB is establishing a facility to assemble and test data center infrastructure, expected to open in the first half of 2027.