SLB (NYSE: SLB), the global leader in oilfield services, reported third-quarter 2025 earnings that surpassed analyst expectations, driven by resilient international performance, growth in its Digital segment, and contributions from the recently acquired ChampionX business. The company announced revenue of $8.93 billion for the quarter ending September 30, 2025, marking a 4% sequential increase from Q2 but a 3% decline year-over-year.
Adjusted earnings per share (EPS), excluding charges and credits, came in at $0.69, beating the Zacks Consensus Estimate and highlighting the company’s ability to navigate a challenging market environment characterized by subdued commodity prices and a fully supplied oil market.
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Q3 2025 Financial SummarySLB’s Q3 results reflect a mixed performance amid ongoing industry headwinds, including geopolitical uncertainties and moderated activity in key regions. Key highlights include:
Revenue Breakdown by Geography:
International revenue reached $6.92 billion, up 1% sequentially but down 7% year-over-year. North America revenue surged 17% sequentially to $1.93 billion, reflecting a 14% year-over-year increase, bolstered by offshore growth despite declines in U.S. land activity.
Division Performance:Digital: Revenue grew 11% sequentially to $658 million, with a pretax operating margin of 28.4%. This segment, now reported standalone, includes Platforms & Applications ($273 million), Digital Operations ($131 million), Digital Exploration ($80 million), and Professional Services ($174 million). Annual recurring revenue stood at $926 million, underscoring SLB’s leadership in digital transformation.
Reservoir Performance: Revenue dipped 1% sequentially to $1.68 billion, with an 18.5% margin, affected by lower activity in Saudi Arabia and Mexico but offset by gains in Argentina and the Middle East.
Well Construction: Flat sequentially at $2.97 billion, with an improved margin of 18.8%, driven by growth in Guyana and North America but hampered by declines in Saudi Arabia and other areas.
Production Systems: Revenue jumped 18% sequentially to $3.47 billion, largely due to ChampionX’s $575 million contribution, with a 16.1% margin.
Other Metrics: GAAP EPS was $0.50, down 32% sequentially, while net income attributable to SLB was $739 million. Adjusted EBITDA held steady at $2.06 billion, with cash flow from operations at $1.68 billion and free cash flow at $1.10 billion. The company also repurchased 3.2 million shares for $114 million during the quarter.
The acquisition of ChampionX, completed on July 16, 2025, played a pivotal role in the quarter’s results, adding $579 million in revenue and enhancing SLB’s exposure to production chemicals and artificial lift solutions. Excluding ChampionX, global revenue would have decreased 2% sequentially.
SLB CEO Olivier Le Peuch commented on the results, stating, “The third quarter played out in line with our expectations as our revenue increased sequentially supported by two months’ additional ChampionX revenue, further growth in Digital and the resilient performance of our Core business.” He emphasized the company’s focus on production and recovery solutions to unlock incremental barrels at lower costs, adding, “I am confident in the position we are taking in the production and recovery market, and I look forward to deepening our collaboration with our customers to unlock more barrels.”
Le Peuch also highlighted the Digital segment’s role in driving efficiency, safety, and sustainability through AI, automation, and data analytics.
Outlook for Q4 2025
Looking ahead, SLB anticipates revenue growth in the fourth quarter, propelled by strengthening international markets, continued expansion in Digital, and a full quarter of contributions from ChampionX. The company expects international activity to rebound as oil supply and demand rebalance, with sustained investments in oil capacity and gas projects. Deepwater outlook remains constructive, positioning SLB to capitalize on these trends.
For the full year 2025, SLB has guided capital investments, including capex, exploration data costs, and APS investments, to approximately $2.4 billion, adjusted for the ChampionX acquisition.
No specific revenue or earnings guidance was provided beyond these qualitative expectations, but the emphasis on production optimization and digital innovation suggests a strategic shift toward less cyclical segments amid ongoing market volatility.SLB’s Q3 performance demonstrates its adaptability in a dynamic energy landscape, with the ChampionX integration and digital advancements setting the stage for potential growth in Q4 and beyond. Investors will watch closely for updates on international recovery and commodity price movements.
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