SLB revenue rises 6% to $9.45 billion in third quarter; GAAP EPS falls 2% to $0.49

SLB (NYSE: SLB), the oilfield services company, reported third-quarter 2026 revenue of $9.45 billion, up 5% from the second quarter and 6% from a year earlier, according to its earnings release dated October 23.

What happened

Net income attributable to SLB was $735 million, down 6% from the second quarter and 1% from a year earlier, the company said. GAAP diluted earnings per share were $0.49, down 6% on the quarter and 2% on the year. Excluding charges and credits, a non-GAAP measure, earnings per share were $0.64, up 16% from the second quarter and down 7% from a year earlier.

Adjusted EBITDA, another non-GAAP measure, was $2.07 billion, up 9% from the second quarter and essentially flat from a year earlier. The company said cash flow from operations was $1.51 billion and free cash flow was $828 million.

The GAAP figures include a non-cash pension settlement charge of $187 million before tax, or $0.12 per share, and merger and integration costs of $55 million before tax, the release shows.

Revenue growth was broad, the company said. It was driven by 5% growth internationally and 7% growth in North America, with the Middle East up 13% from the second quarter as activity continued to recover despite late-quarter disruptions. Revenue in North America rose 24% from a year earlier, helped by the ChampionX businesses that SLB acquired in July 2025. Excluding that acquisition, SLB said, global revenue rose 2% from a year earlier, international revenue was flat and North America revenue rose 13%.

Chief Executive Officer Olivier Le Peuch said in the release: "SLB delivered solid third-quarter results with all regions growing sequentially".

Why it matters

SLB reported that revenue from its Data Center Solutions business increased 23% from the second quarter. The company said the business "continued to accelerate, with revenue increasing 23% sequentially." SLB also said it is setting up a facility in Canada, expected to open in the first half of 2027, to assemble and test data center infrastructure as a delivery partner for Meta.

On August 31, SLB signed an agreement to acquire Kelvion, a maker of thermal management and heat exchange equipment, from Apollo-managed funds and funds advised by Triton. The price is approximately $3.4 billion in cash, and SLB will assume approximately $0.7 billion of debt. The deal is expected to close in the first half of 2027, subject to regulatory approvals and customary closing conditions.

SLB repurchased 12.9 million of its shares for $656 million in the third quarter. Over the first nine months of 2026 it repurchased 34.0 million shares for $1.76 billion, the release says. SLB also said it completed its acquisition of S&P Global Energy's geoscience and petroleum engineering software business on September 1.

The board approved a quarterly cash dividend of $0.295 per share on October 22. It is payable on January 7, 2027, to stockholders of record on December 2, 2026.

What to watch

The Kelvion purchase is subject to customary closing conditions and regulatory approvals and is expected to close in the first half of 2027, the company said. The next dividend is payable on January 7, 2027, to stockholders of record on December 2, 2026.