SLB third-quarter revenue rises 5% sequentially to $9.45 billion as Middle East recovers

SLB N.V. (SLB) said in a filing on Friday that third-quarter revenue rose to $9.45 billion, up 5% from the second quarter and 6% from a year earlier.

The results include the ChampionX businesses, which SLB acquired in July 2025. The company said those businesses contributed $956 million of revenue in the quarter.

Here's how the company did:

• Revenue: $9.45 billion vs. $8.97 billion in the second quarter and $8.93 billion a year earlier
• GAAP diluted EPS: $0.49 vs. $0.52 in the second quarter and $0.50 a year earlier
• EPS, excluding charges and credits: $0.64 vs. $0.55 in the second quarter and $0.69 a year earlier
• Net income attributable to SLB: $735 million vs. $786 million in the second quarter and $739 million a year earlier
• Adjusted EBITDA: $2,067 million vs. $1,899 million in the second quarter and $2,061 million a year earlier
• Cash flow from operations: $1.51 billion
• Free cash flow: $828 million

Pretax segment operating income was $1.58 billion, up 12% from the second quarter and down 3% from a year earlier.

Here's how the company's segments did during the quarter:

• Production Systems: $4.00 billion, up 6% sequentially and 15% year on year
• Well Construction: $2.89 billion, up 5% sequentially and down 3% year on year
• Reservoir Performance: $1.63 billion, up 5% sequentially and down 3% year on year
• Digital: $693 million, down 1% sequentially and up 5% year on year
• All Other: $544 million, up 8% sequentially and 37% year on year

Excluding the ChampionX acquisition, global revenue rose 2% year on year. North America revenue increased 13%, and international revenue was flat.

International growth was led by a 13% sequential increase in the Middle East, despite what the company described as late-quarter disruptions in some countries.

CEO Olivier Le Peuch said the quarter was "solid" in his own words: "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.

Data Center Solutions revenue rose 23% from the second quarter to $230 million. It was up 76% from $131 million a year earlier. The business is reported within All Other.

"AI is driving unprecedented investment in data center infrastructure, and customers are looking for partners who can deploy quickly, reliably and at scale," Le Peuch said in the release.

The company said on Aug. 31 it signed an agreement to acquire Kelvion, a provider of thermal management and heat exchange technologies, 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 subject to customary closing conditions and regulatory approvals and is expected to close in the first half of 2027.

On Sept. 1, SLB completed its acquisition of S&P Global Energy's geoscience and petroleum engineering software business portfolio. The filing did not disclose the purchase price.

SLB repurchased 12.9 million shares for $656 million in the quarter. In the first nine months of 2026, it repurchased 34.0 million shares for $1.76 billion.

On Oct. 22, the board approved a quarterly cash dividend of $0.295 per share, payable Jan. 7, 2027, to holders of record on Dec. 2, 2026. The filing did not say whether the rate changed.

Charges and credits reduced pretax income by $242 million in the quarter. The total was mainly a $187 million pension settlement charge and $55 million of merger and integration costs.

SLB still expects full-year 2026 capital investment of approximately $2.5 billion, covering capex, exploration data costs and APS investments. Capital investment for full-year 2025 was $2.4 billion.

Net debt, or gross debt less cash and short-term investments, was $9.25 billion at Sept. 30, up from $8.73 billion at June 30. Cash and short-term investments were $3.55 billion.

SLB said Aramco awarded it four integrated well construction contracts to deliver more than 450 wells over a three-year term, with an optional extension of up to two years.

In Canada, SLB is establishing a facility to assemble and test data center infrastructure following a recent contract award from Meta. The facility is expected to open in the first half of 2027.

The release gave no quantified full-year 2026 revenue or earnings guidance and no 2027 figures. Le Peuch described the 2027 outlook in general terms only.

Le Peuch said he sees "a very compelling outlook for 2027, with further upside as Middle East activity recovers."