SLB (NYSE:SLB) reported second-quarter results ahead of Wall Street expectations on Friday, with higher revenue and earnings driven by strong international activity and continued momentum in its Production Systems and digital businesses.
Shares rose 2.3% after the results, as investors looked beyond ongoing disruption in the Middle East and focused on the company’s diversified sources of growth.
Earnings and revenue exceed expectations
SLB posted adjusted earnings of $0.55 per share for the second quarter, outperforming analysts’ consensus estimate of $0.51 per share.
Revenue reached $8.97 billion, exceeding the expected $8.67 billion.
Sales increased 5% compared with the same period last year and rose 3% from the previous quarter, supported by stronger offshore activity across Latin America, Europe, Africa and Asia, together with a recovery in U.S. unconventional operations and healthy demand for production and recovery technologies.
Middle East disruptions weigh on performance
The company’s overall growth was partially offset by a 13% sequential decline in revenue from the Middle East, reflecting operational disruption linked to regional conflict.
Excluding the contribution from the ChampionX acquisition, which added approximately $870 million in quarterly revenue, total revenue would have declined 5% year-on-year.
Production Systems and Digital businesses lead growth
Production Systems delivered the strongest performance during the quarter, with revenue rising 7% sequentially to $3.77 billion.
Growth was supported by increased subsea activity, along with stronger demand for artificial lift equipment, valves and production chemicals.
The Digital division also performed well, with revenue increasing 9% quarter-on-quarter to $697 million, driven by robust sales of exploration data licences in Brazil and Indonesia.
Meanwhile, Well Construction revenue declined 2% to $2.74 billion, while Reservoir Performance revenue also fell 2% to $1.56 billion, as both businesses were affected by weaker activity in the Middle East.
“SLB delivered solid second-quarter results, as broad-based sequential growth across international markets more than offset the impact of continued disruptions in the Middle East,” said CEO Olivier Le Peuch.
Data centre business continues rapid expansion
SLB’s Data Center Solutions business maintained strong growth during the first half of 2026, with revenue increasing 63% compared with the previous year.
The company also announced that Meta had selected SLB as a delivery partner for a new 1GW data centre project in Canada.
Management said the business remains on track to generate more than $1 billion in annualised revenue by the end of 2026.
Cash flow remains solid
Cash flow from operating activities totaled $1.36 billion during the quarter, while free cash flow reached $716 million.
SLB also announced a quarterly dividend of $0.295 per share, reflecting continued confidence in the company’s financial position and cash generation.