SLB · Q2 2026 Earnings

Neutral

Schlumberger

Reported July 24, 2026

30-second summary

Schlumberger printed $8.972B revenue (+5% YoY, +3% QoQ) and $0.55 non-GAAP EPS (+6% sequentially vs Q1's $0.52), with adjusted EBITDA margin recovering to 21.2% from Q1's 20.3% (+83bps QoQ), consistent with the watch-list floor. The strategic tell is management's new multi-year Data Center Solutions guide — $2B+ annualized run rate by exit-2027, doubling the prior $1B end-2026 target — alongside a sharpened commitment to exceed the $1B run rate by year-end.

Headline numbers

EPS

Q2 FY2026

$0.55

0.0% vs est.

Revenue

Q2 FY2026

$8.97B

+5.0% YoY

+3.2% vs est.

Free cash flow

Q2 FY2026

$0.72B

Operating margin

Q2 FY2026

15.6%

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
Revenue	$8.97B	$8.55B	+5.0%	$8.72B	+2.9%
EPS	$0.55	$0.74	-25.7%	$0.52	+5.8%
Operating margin	15.6%	18.5%	-290bps	15.2%	+40bps
Free cash flow	$0.72B	$0.62B	+15.1%	$-0.02B	+3213.0%

Guidance

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q2 FY2026	Not explicitly quantified; qualitative guidance on sequential trends	$8.972B	+3.2% above consensus estimate ($8.69B)	Beat
Digital segment revenue	Q2 FY2026	Expected to grow globally	$0.697B	in-line with qualitative guidance	Met
Production Systems segment revenue	Q2 FY2026	Expected to grow globally	$3.771B	in-line with qualitative guidance	Met
Reservoir Performance segment revenue	Q2 FY2026	Expected to decline globally	$1.556B	in-line with qualitative guidance	Met
Well Construction segment revenue	Q2 FY2026	Expected to decline globally	$2.742B	in-line with qualitative guidance	Met
Adjusted EBITDA margin	Q2 FY2026	Not explicitly quantified; qualitative guidance on margin recovery	21.2%	in-line with operational expectations	Met
EPS (non-GAAP)	Q2 FY2026	6-8 cents negative incremental impact vs. Q1	$0.55	in-line with Middle East impact guidance	Met

New guidance

Metric	Period	Guide	YoY
Data Center Solutions annualized revenue run rate	FY 2027	Surpass $2 billion by exit of 2027	—

Reaffirmed unchanged this quarter: Data Center Solutions annualized revenue run rate (Exceed $1 billion by end of 2026), Digital adjusted EBITDA margin (At least equivalent to last year's level of 35%), Capital investments (Approximately $2.5 billion), Stock repurchase (Minimum of $2.4 billion)

Segment KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Digital	$0.697B	—	+18.0%
Reservoir Performance	$1.556B	$1.691B	-8.0%
Well Construction	$2.742B	$2.963B	-7.5%
Production Systems	$3.771B	$3.036B	+24.2%
ChampionX contribution to revenue	$870M	—	—

Other KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
International	$6.671B	$6.847B	-2.6%
North America	$2.244B	$1.655B	+35.6%
Latin America	$1.714B	—	+15.0%
Middle East & Asia	$2.572B	$2.986B	-13.9%
Adjusted EBITDA	$1.90B	$2.051 billion	—
Adjusted EBITDA margin	21.2%	—	—
Pretax segment operating margin	15.6%	—	—
Digital ARR	$1.04B	—	—
Digital ARR YoY growth	15%	—	—
Data Center Solutions YTD revenue growth	63%	—	—
Operating cash flow	$1.36B	—	—

Answers to last quarter's watch list

Q2 FY2026 EPS vs the 6–8 cent guide — Q2 came in at $0.55 non-GAAP, roughly $0.09–$0.11 above the implied $0.44–$0.46 band. Either the Middle East disruption absorbed faster than guided or offsetting international/North America growth exceeded expectation — the press release language suggests both. Status: Resolved positively

FY2026 framing at Q2 — Prior-quarter qualitative FY items were not restated in the press release, other than the DCS $1B exit-rate commitment (sharpened to "exceed"). Absent a transcript, this is neither a reaffirmation nor a withdrawal of the other items. Status: Continue monitoring

Digital revenue growth sustaining above 9% — Digital reaccelerated to +18% YoY from Q1's +9%, clearing the credibility threshold with substantial room. Status: Resolved positively

Data Center Solutions Q2 growth rate — DCS YTD growth of +63% comfortably clears the +40% watch bar. The bigger news: management doubled the multi-year target, committing to $2B+ annualized run rate by exit-2027. Meta's 1GW Alberta data center was announced as a new named project with SLB as delivery partner. Status: Resolved positively

Middle East quantification — Middle East & Asia geographic revenue was disclosed at $2.572B (-14% YoY), giving the region-level dollar impact for the first time. The recovery path to pre-conflict levels was not quantified. Status: Resolved positively (on disclosure), Continue monitoring (on recovery path)

EBITDA margin in Q2 — 21.2% cleared the 21% floor with +83bps of QoQ recovery from Q1's 20.3%. The trough thesis holds. Status: Resolved positively

ChampionX organic disclosure — ChampionX contribution ($865M in Production Systems, $34M in Digital) is now disclosed alongside pro-forma tables showing Production Systems essentially flat YoY on a pro-forma basis. This is a step up in disclosure vs prior quarters. Status: Resolved

What to watch into next quarter

FY2026 qualitative items at Q3 — watch whether Q3 restates Digital margin ≥35%, capex ~$2.5B, buybacks ≥$2.4B, and >$4B total shareholder returns, or whether the pattern of press-release silence continues.

Middle East & Asia YoY trajectory — deteriorated from -9% (Q1) to -14% (Q2). Watch whether Q3 marks the trough (management's original conflict framing implied recovery starts in H2) or whether -14% persists. A third consecutive worsening print reopens the Saudi V-shape thesis.

Data Center Solutions Q4-exit run rate and named customers — the $1B exit rate needs quarterly revenue of ~$250M by Q4. Watch for either the explicit Q3 DCS revenue disclosure or new named anchor customer announcements beyond Meta and NVIDIA; both are required to underwrite the doubled 2027 target.

Digital revenue growth sustaining above 15% — Q2's +18% was a clean reacceleration. Watch whether Digital sustains double-digit growth in Q3, which is seasonally weaker before Q4 year-end product/digital sales; a Digital deceleration below 12% would revive the sub-10% concern.

Adj. EBITDA margin trajectory — 21.2% in Q2 vs Q1's 20.3%. Watch for continued 50–100 bps of QoQ recovery in Q3; a stall or reversal reopens the trough thesis.

Q3 FY2026 revenue trajectory — management's forward tone will be tested against whether Q3 FY2026 shows YoY growth (implying the international recovery is real) or flat-to-down (implying the ChampionX inorganic uplift is doing all the work).

Sources

SLB Q2 FY2026 Press Release (SEC filing): https://www.sec.gov/Archives/edgar/data/87347/000119312526315068/d122193dex99.htm
SLB Q1 FY2026, Q4 FY2025, Q3 FY2025, and Q2 FY2025 Tapebrief briefs (prior-quarter watch list, guidance baseline, and multi-quarter arc).

Get the next brief, free.

We publish analyst-grade earnings briefs the same day or morning after every call — headline numbers, segment KPIs, Q&A highlights, and tone analysis. Free during beta.

This is not investment advice.