SLB Limited (NYSE: SLB) Q2 2026 income falls as revenue grows
Rhea-AI Filing Summary
SLB Limited reported second-quarter 2026 revenue of $8,972 million, up from $8,546 million a year earlier, driven mainly by higher product sales. Net income attributable to SLB declined to $786 million from $1,014 million, and diluted EPS fell to $0.52 from $0.74. For the first six months, revenue was $17,693 million and net income attributable to SLB was $1,538 million, versus $17,035 million and $1,811 million in 2025.
Production Systems revenue rose to $3,771 million from $2,932 million, while Reservoir Performance revenue eased to $1,556 million from $1,691 million. Operating cash flow for the first half was $1,846 million, slightly above $1,802 million last year. SLB used $1,522 million in net investing cash, including capital spending and acquisitions, repurchased $1,099 million of stock, and paid $866 million of dividends. Cash ended at $2,743 million, with long-term debt of $11,140 million and $5.0 billion of committed credit facilities undrawn.
Positive
- None.
Negative
- Profitability weakened: net income attributable to SLB fell to $786 million in Q2 2026 from $1,014 million in Q2 2025, and six-month net income decreased to $1,538 million from $1,811 million, with diluted EPS dropping to $0.52 from $0.74 in the quarter.
Filing Explained
Existing holders’ percentage ownership was reduced by SLB-share consideration in the completed ChampionX acquisition; 1,484,143,231 shares were outstanding on June 30, 2026.
This Form 10-Q is SLB’s unaudited quarterly report. It states that the ChampionX acquisition closed on
ChampionX shareholders received 0.735 shares of SLB common stock for each ChampionX share. Because the consideration was SLB stock, the completed transaction added shares to SLB’s ownership base and reduced existing holders’ percentage ownership absent offsetting changes.
SLB reported 1,484,143,231 common shares outstanding at
A named line item to monitor is the filing’s estimate of
Key Figures
Key Terms
Asset Performance Solutions financial
cross-currency interest rate swaps financial
cash flow hedges financial
Accumulated other comprehensive loss financial
noncontrolling interests financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did SLB (SLB) revenue perform in the second quarter of 2026?
What were SLB (SLB) earnings and EPS in Q2 2026?
How much cash did SLB (SLB) generate from operations in the first half of 2026?
What is SLB (SLB) total debt and liquidity position at June 30, 2026?
How did SLB (SLB) segments perform in Q2 2026?
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission file No.:
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of |
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42 rue Saint-Dominique |
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Paris, France |
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Parkstraat 83 |
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The Hague, The Netherlands |
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2514 JG |
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Registrant’s telephone number in the United States, including area code, is: (
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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Smaller reporting company |
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Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class |
Outstanding at June 30, 2026 |
COMMON STOCK, $0.01 PAR VALUE PER SHARE |
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SLB Limited
Second Quarter 2026 Form 10-Q
Table of Contents
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PART I |
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Financial Information |
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Item 1. |
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Financial Statements |
3 |
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Item 2. |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. |
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Quantitative and Qualitative Disclosures About Market Risk |
25 |
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Item 4. |
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Controls and Procedures |
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PART II |
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Other Information |
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Item 1. |
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Legal Proceedings |
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Item 1A. |
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Risk Factors |
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Item 2. |
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Unregistered Sales of Equity Securities and Use of Proceeds |
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Item 3. |
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Defaults Upon Senior Securities |
27 |
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Item 4. |
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Mine Safety Disclosures |
27 |
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Item 5. |
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Other Information |
27 |
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Item 6. |
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Exhibits |
28 |
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
SLB LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
(Stated in millions, except per share amounts) |
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Second Quarter |
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Six Months |
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2026 |
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2025 |
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2026 |
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2025 |
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Revenue |
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Services |
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Product sales |
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Total Revenue |
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Interest & other income |
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Expenses |
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Cost of services |
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Cost of sales |
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Research & engineering |
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General & administrative |
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Restructuring & other |
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Merger & integration |
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Interest |
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Income before taxes |
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Tax expense |
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Net income |
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Net income attributable to noncontrolling interests |
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Net income attributable to SLB |
$ |
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$ |
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$ |
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Basic income per share of SLB |
$ |
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$ |
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Diluted income per share of SLB |
$ |
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$ |
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Average shares outstanding: |
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Basic |
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Assuming dilution |
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See Notes to Consolidated Financial Statements
3
SLB LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(Unaudited)
(Stated in millions) |
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Second Quarter |
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Six Months |
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2026 |
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2025 |
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2026 |
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2025 |
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Net income |
$ |
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$ |
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$ |
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Currency translation adjustments |
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Unrealized net change arising during the period |
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Cash flow hedges |
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Net gain (loss) on cash flow hedges |
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Reclassification to net income of net realized loss (gain) |
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Pension and other postretirement benefit plans |
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Amortization to net income of net actuarial loss |
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Amortization to net income of net prior service credit |
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Income taxes on pension and other postretirement benefit plans |
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Other |
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Comprehensive income |
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Comprehensive income attributable to noncontrolling interests |
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Comprehensive income attributable to SLB |
$ |
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$ |
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$ |
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$ |
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See Notes to Consolidated Financial Statements
4
SLB LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Stated in millions) |
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Jun. 30, |
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2026 |
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Dec. 31, |
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(Unaudited) |
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2025 |
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ASSETS |
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Current Assets |
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Cash |
$ |
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$ |
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Short-term investments |
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Receivables less allowance for doubtful accounts (2026 - $ |
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Inventories |
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Other current assets |
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Investments in Affiliated Companies |
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Fixed Assets less accumulated depreciation |
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Goodwill |
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Intangible Assets |
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Other Assets |
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$ |
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$ |
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LIABILITIES AND EQUITY |
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Current Liabilities |
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Accounts payable and accrued liabilities |
$ |
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$ |
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Estimated liability for taxes on income |
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Short-term borrowings and current portion of long-term debt |
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Dividends payable |
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Long-term Debt |
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Postretirement Benefits |
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Deferred Taxes |
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Other Liabilities |
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Equity |
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Treasury stock |
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Retained earnings |
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Accumulated other comprehensive loss |
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SLB stockholders’ equity |
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Noncontrolling interests |
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$ |
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$ |
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See Notes to Consolidated Financial Statements
5
SLB LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
(Stated in millions) |
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Six Months Ended June 30, |
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2026 |
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2025 |
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Cash flows from operating activities: |
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Net income |
$ |
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$ |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization (1) |
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Gain on sale of APS project |
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Impairment of equity method investment |
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Deferred taxes |
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Stock-based compensation expense |
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Earnings of equity method investments, less dividends received |
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Change in assets and liabilities: (2) |
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Increase in receivables |
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Increase in inventories |
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(Increase) decrease in other current assets |
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Decrease (increase) in other assets |
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Decrease in accounts payable and accrued liabilities |
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Decrease in estimated liability for taxes on income |
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Increase in other liabilities |
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Other |
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NET CASH PROVIDED BY OPERATING ACTIVITIES |
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Cash flows from investing activities: |
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Capital expenditures |
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APS investments |
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Exploration data costs capitalized |
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Business acquisitions and investments, net of cash acquired |
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(Purchase) sales of short-term investments, net |
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Proceeds from sale of APS investment |
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Other |
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NET CASH USED IN INVESTING ACTIVITIES |
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Cash flows from financing activities: |
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Stock repurchase program |
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Dividends paid |
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Proceeds from employee stock purchase plan |
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Proceeds from exercise of stock options |
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Taxes paid on net settled stock-based compensation awards |
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Proceeds from issuance of long-term debt |
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Repayment of long-term debt |
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Net increase (decrease) in short-term borrowings |
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Other |
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NET CASH USED IN FINANCING ACTIVITIES |
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Net decrease in cash before translation effect |
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Translation effect on cash |
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Cash, beginning of period |
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Cash, end of period |
$ |
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$ |
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See Notes to Consolidated Financial Statements
6
SLB LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
(Unaudited)
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(Stated in millions, except per share amounts) |
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Accumulated |
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Other |
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Common Stock |
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Retained |
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Comprehensive |
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Noncontrolling |
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January 1, 2026 – June 30, 2026 |
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Issued |
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In Treasury |
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Earnings |
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Loss |
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Interests |
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Total |
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Balance, January 1, 2026 |
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$ |
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Net income |
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Currency translation adjustments |
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Changes in fair value of cash flow hedges |
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Pension and other postretirement benefit plans |
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Shares sold to optionees, less shares exchanged |
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Vesting of restricted stock, net of taxes withheld |
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Employee stock purchase plan |
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Stock repurchase program |
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Stock-based compensation expense |
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Dividends declared ($ |
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Dividends paid to noncontrolling interests |
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Other |
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Balance, June 30, 2026 |
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$ |
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$ |
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$ |
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$ |
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$ |
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$ |
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|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
|
||||||
|
|
Common Stock |
|
|
Retained |
|
|
Comprehensive |
|
|
Noncontrolling |
|
|
|
|
|||||||||
January 1, 2025 – June 30, 2025 |
|
Issued |
|
|
In Treasury |
|
|
Earnings |
|
|
Loss |
|
|
Interests |
|
|
Total |
|
||||||
Balance, January 1, 2025 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
||||
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Currency translation adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Changes in fair value of cash flow hedges |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Pension and other postretirement benefit plans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Shares sold to optionees, less shares exchanged |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Vesting of restricted stock, net of taxes withheld |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
||||
Employee stock purchase plan |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Stock repurchase program |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
||||
Stock-based compensation expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Dividends declared ($ |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||||
Dividends paid to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
||||
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance, June 30, 2025 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
||||
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
|
||||||
|
|
Common Stock |
|
|
Retained |
|
|
Comprehensive |
|
|
Noncontrolling |
|
|
|
|
|||||||||
April 1, 2026 – June 30, 2026 |
|
Issued |
|
|
In Treasury |
|
|
Earnings |
|
|
Loss |
|
|
Interests |
|
|
Total |
|
||||||
Balance, April 1, 2026 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
||||
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Currency translation adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Changes in fair value of cash flow hedges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pension and other postretirement benefit plans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Shares sold to optionees, less shares exchanged |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Vesting of restricted stock, net of taxes withheld |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
||||
Employee stock purchase plan |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Stock repurchase program |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
||||
Stock-based compensation expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Dividends declared ($ |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||||
Dividends paid to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
||||
Other |
|
|
- |
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|||
Balance, June 30, 2026 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
||||
|
|
(Stated in millions, except per share amounts) |
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
|
||||||
|
|
Common Stock |
|
|
Retained |
|
|
Comprehensive |
|
|
Noncontrolling |
|
|
|
|
|||||||||
April 1, 2025 – June 30, 2025 |
|
Issued |
|
|
In Treasury |
|
|
Earnings |
|
|
Loss |
|
|
Interests |
|
|
Total |
|
||||||
Balance, April 1, 2025 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
||||
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Currency translation adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Changes in fair value of cash flow hedges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pension and other postretirement benefit plans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Shares sold to optionees, less shares exchanged |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Vesting of restricted stock, net of taxes withheld |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
||||
Stock repurchase program |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Stock-based compensation expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Dividends declared ($ |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||||
Dividends paid to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
||||
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance, June 30, 2025 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
||||
SHARES OF COMMON STOCK
(Unaudited)
|
|
|
|
(Stated in millions) |
|
||||||
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
Shares |
|
|||
|
Issued |
|
|
In Treasury |
|
|
Outstanding |
|
|||
Balance, January 1, 2026 |
|
|
|
|
( |
) |
|
|
|
||
Shares sold to optionees, less shares exchanged |
|
- |
|
|
|
|
|
|
|
||
Vesting of restricted stock |
|
- |
|
|
|
|
|
|
|
||
Shares issued under employee stock purchase plan |
|
- |
|
|
|
|
|
|
|
||
Stock repurchase program |
|
- |
|
|
|
( |
) |
|
|
( |
) |
Balance, June 30, 2026 |
|
|
|
|
( |
) |
|
|
|
||
See Notes to Consolidated Financial Statements
8
SLB LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation
The accompanying unaudited consolidated financial statements of SLB Limited and its subsidiaries (“SLB”) have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of SLB management, all adjustments considered necessary for a fair statement have been included in the accompanying unaudited financial statements. All intercompany transactions and balances have been eliminated in consolidation. Operating results for the three-month period ended June 30, 2026 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2026. The December 31, 2025 balance sheet information has been derived from the SLB 2025 audited financial statements. For further information, refer to the Consolidated Financial Statements and notes thereto included in the SLB Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission on January 23, 2026.
2. Charges and Credits
2026
SLB recorded charges of $
|
(Stated in millions) |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
Noncontrolling |
|
|
|
|
||||
|
Pretax Charge |
|
|
Tax Benefit |
|
|
Interests |
|
|
Net |
|
||||
First quarter: |
|
|
|
|
|
|
|
|
|
|
|
||||
Merger and integration |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Second quarter: |
|
|
|
|
|
|
|
|
|
|
|
||||
Merger and integration |
|
|
|
|
|
|
|
|
|
|
|
||||
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
2025
First quarter
During the first quarter of 2025, SLB recorded a $
During the first quarter of 2025, SLB recorded $
Second quarter
During the second quarter of 2025, SLB recorded a $
During the second quarter of 2025, SLB recorded a charge of $
During the second quarter of 2025, in connection with the ChampionX transaction and the October 2023 acquisition of the Aker Solutions subsea business, SLB recorded $
During the second quarter of 2025, SLB completed the sale of its interest in the Palliser Asset Performance Solutions ("APS") project in Canada in exchange for net cash proceeds of $
9
|
(Stated in millions) |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
Noncontrolling |
|
|
|
|
||||
|
Pretax Charge |
|
|
Tax Benefit |
|
|
Interests |
|
|
Net |
|
||||
First quarter: |
|
|
|
|
|
|
|
|
|
|
|
||||
Workforce reductions |
$ |
|
|
$ |
|
|
$ |
- |
|
|
$ |
|
|||
Merger and integration |
|
|
|
|
|
|
|
|
|
|
|
||||
Second quarter: |
|
|
|
|
|
|
|
|
|
|
- |
|
|||
Impairment of equity method investment |
|
|
|
|
|
|
|
- |
|
|
|
|
|||
Workforce reductions |
|
|
|
|
|
|
|
- |
|
|
|
|
|||
Merger and integration |
|
|
|
|
|
|
|
|
|
|
|
||||
Gain on sale of Palliser APS project |
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
3. Earnings per Share
The following is a reconciliation from basic earnings per share of SLB to diluted earnings per share of SLB:
|
(Stated in millions, except per share amounts) |
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
2026 |
|
|
2025 |
|
||||||||||||||||||
|
Net Income |
|
|
Average |
|
|
Earnings per |
|
|
Net Income |
|
|
Average |
|
|
Earnings per |
|
||||||
Second Quarter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic |
$ |
|
|
|
|
|
$ |
|
|
$ |
|
|
|
|
|
$ |
|
||||||
Assumed exercise of stock options |
|
- |
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|||
Unvested restricted stock |
|
- |
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
||||
Diluted |
$ |
|
|
|
|
|
$ |
|
|
$ |
|
|
|
|
|
$ |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
2026 |
|
|
2025 |
|
||||||||||||||||||
|
Net Income |
|
|
Average |
|
|
Earnings per |
|
|
Net Income |
|
|
Average |
|
|
Earnings per |
|
||||||
Six Months |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic |
$ |
|
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Assumed exercise of stock options |
|
- |
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|||
Unvested restricted stock |
|
- |
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
||||
Diluted |
$ |
|
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
The number of outstanding options to purchase shares of SLB common stock that were not included in the computation of diluted income per share, because to do so would have had an antidilutive effect, was as follows:
(Stated in millions) |
|
||||||||||||||
|
|
|
|
|
|||||||||||
|
Second Quarter |
|
|
Six Months |
|
||||||||||
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Employee stock options |
|
|
|
|
|
|
|
|
|
|
|
||||
4. Acquisition
On July 16, 2025, SLB acquired all of the outstanding shares of ChampionX in an all-stock transaction. ChampionX is a global leader in production chemistry solutions, artificial lift systems, and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely, effectively, and sustainably across the world. The acquisition strengthens SLB's leadership in the
10
production and recovery space. Under the terms of the agreement, ChampionX shareholders received
Excluding its Drilling Technologies business, which was disposed of concurrently with the closing of the acquisition, ChampionX recorded revenue of approximately $
5. Inventories
A summary of inventories, which are stated at the lower of average cost or net realizable value, is as follows:
(Stated in millions) |
|
||||||
|
|
|
|
|
|
||
|
Jun. 30, |
|
|
Dec. 31, |
|
||
|
2026 |
|
|
2025 |
|
||
Raw materials & field materials |
$ |
|
|
$ |
|
||
Work in progress |
|
|
|
|
|
||
Finished goods |
|
|
|
|
|
||
|
$ |
|
|
$ |
|
||
6. Fixed Assets
Fixed assets consist of the following:
(Stated in millions) |
|
||||||
|
|
|
|
|
|
||
|
Jun. 30, |
|
|
Dec. 31, |
|
||
|
2026 |
|
|
2025 |
|
||
Property, plant & equipment |
$ |
|
|
$ |
|
||
Less: Accumulated depreciation |
|
|
|
|
|
||
|
$ |
|
|
$ |
|
||
Depreciation expense relating to fixed assets was as follows:
(Stated in millions) |
|
||||||
|
|
|
|
|
|
||
|
2026 |
|
|
2025 |
|
||
Second Quarter |
$ |
|
|
$ |
|
||
Six Months |
$ |
|
|
$ |
|
||
7. Goodwill
The changes in the carrying amount of goodwill by segment were as follows:
|
(Stated in millions) |
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
Reservoir |
|
|
Well |
|
|
Production |
|
|
|
|
|
|
||||||
|
Digital |
|
|
Performance |
|
|
Construction |
|
|
Systems |
|
All Other |
|
|
Total |
|
||||||
Balance at December 31, 2025 |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
$ |
|
|
$ |
|
||||||
Acquisitions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other |
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
( |
) |
||||
Balance at June 30, 2026 |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
$ |
|
|
$ |
|
||||||
11
8. Intangible Assets
Intangible assets consist of the following:
|
(Stated in millions) |
|
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
Jun. 30, 2026 |
|
|
Dec. 31, 2025 |
|
||||||||||||||||||
|
Gross |
|
|
Accumulated |
|
|
Net Book |
|
|
Gross |
|
|
Accumulated |
|
|
Net Book |
|
||||||
|
Book Value |
|
|
Amortization |
|
|
Value |
|
|
Book Value |
|
|
Amortization |
|
|
Value |
|
||||||
Customer relationships |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Technology/technical know-how |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Tradenames |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
Amortization expense charged to income was as follows:
(Stated in millions) |
|
||||||
|
|
|
|
|
|
||
|
2026 |
|
|
2025 |
|
||
Second Quarter |
$ |
|
|
$ |
|
||
Six Months |
$ |
|
|
$ |
|
||
Based on the carrying value of intangible assets at June 30, 2026, amortization expense for the subsequent five years is estimated to be: remaining two quarters of 2026: $
9. Long-term Debt
Long-term Debt consists of the following:
(Stated in millions) |
|
||||||
|
|
|
|
|
|
||
|
Jun. 30, |
|
|
Dec. 31, |
|
||
|
2026 |
|
|
2025 |
|
||
$ |
|
|
$ |
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
|
|
|
|
|
|||
Other |
|
|
|
|
|
||
|
$ |
|
|
$ |
|
||
The estimated fair value of SLB’s Long-term Debt, based on quoted market prices at June 30, 2026 and December 31, 2025, was $
At June 30, 2026, SLB had committed credit facility agreements with commercial banks aggregating $
12
Commercial paper borrowings are classified as long-term debt to the extent they are backed up by available and unused committed credit facilities maturing in more than one year and to the extent it is SLB’s intent to maintain these obligations for longer than one year. There were
SLB Limited fully and unconditionally guarantees the publicly-held debt securities issued by Schlumberger Investment S.A., an indirect wholly-owned subsidiary of SLB Limited.
10. Derivative Instruments and Hedging Activities
SLB’s functional currency is primarily the US dollar. However, outside the United States, a significant portion of SLB’s expenses is incurred in foreign currencies. Therefore, when the US dollar weakens (strengthens) in relation to the foreign currencies of the countries in which SLB conducts business, the US dollar-reported expenses will increase (decrease).
Changes in foreign currency exchange rates expose SLB to risks on future cash flows relating to its fixed rate debt denominated in currencies other than the functional currency. SLB uses cross-currency interest rate swaps to provide a hedge against these risks. These contracts are accounted for as cash flow hedges, with the fair value of the derivative recorded on the Consolidated Balance Sheet and in Accumulated other comprehensive loss. Amounts recorded in Accumulated other comprehensive loss are reclassified into earnings in the same period or periods that the hedged item is recognized in earnings.
Details regarding SLB’s outstanding cross-currency interest rate swaps as of June 30, 2026, were as follows:
A summary of the amounts included in the Consolidated Balance Sheet relating to cross-currency interest rate swaps was as follows:
|
(Stated in millions) |
|
|||||
|
|
|
|
|
|
||
|
Jun. 30, 2026 |
|
|
Dec. 31, 2025 |
|
||
$ |
|
|
$ |
|
|||
$ |
|
|
$ |
|
|||
$ |
|
|
$ |
|
|||
The fair values were determined using a model with inputs that are observable in the market or can be derived or corroborated by observable data.
SLB is exposed to risks on future cash flows to the extent that the local currency is not the functional currency and expenses denominated in local currency are not equal to revenues denominated in local currency. SLB uses foreign currency forward contracts to provide a hedge against a portion of these cash flow risks. These contracts are accounted for as cash flow hedges.
SLB is also exposed to changes in the fair value of assets and liabilities denominated in currencies other than the functional currency. While SLB uses foreign currency forward contracts to economically hedge this exposure as it relates to certain currencies, these contracts are not designated as hedges for accounting purposes. Instead, the fair value of the derivative is recorded on the Consolidated Balance Sheet and changes in the fair value are recognized in the Consolidated Statement of Income, as are changes in the fair value of the hedged item.
Foreign currency forward contracts were outstanding for the US dollar equivalent of $
Other than the previously mentioned cross-currency interest rate swaps, the fair value of the other outstanding derivatives was
13
The effect of derivative instruments designated as cash flow hedges, and those not designated as hedges, on the Consolidated Statement of Income was as follows:
|
|
|
|
|
|
|
(Stated in millions) |
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Gain (Loss) Recognized in Income |
|
|
|
|||||||||||||
|
Second Quarter |
|
|
Six Months |
|
|
|
||||||||||
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|
Consolidated Statement of Income Classification |
||||
Derivatives designated as cash flow hedges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
Cost of services/sales |
|||
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Interest expense |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
Cost of services/sales |
||
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|||||
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
|
||
Derivatives not designated as hedges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
Cost of services/sales |
||||
11. Contingencies
14
12. Segment Information
Financial information by segment is as follows:
|
|
|
|
(Stated in millions) |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Second Quarter 2026 |
|
|||||||||||||
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
||||
|
|
|
|
Income |
|
|
and |
|
|
Capital |
|
||||
|
Revenue |
|
|
Before Taxes |
|
|
Amortization |
|
|
Investments (5) |
|
||||
Digital |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Reservoir Performance |
|
|
|
|
|
|
|
|
|
|
|
||||
Well Construction |
|
|
|
|
|
|
|
|
|
|
|
||||
Production Systems |
|
|
|
|
|
|
|
|
|
|
|
||||
All Other |
|
|
|
|
|
|
|
|
|
|
|
||||
Eliminations & other |
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
||
Corporate & other (1) |
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
Interest income (2) |
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense (3) |
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
Charges and credits (4) |
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
(Stated in millions) |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Second Quarter 2025 |
|
|||||||||||||
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
||||
|
|
|
|
Income |
|
|
and |
|
|
Capital |
|
||||
|
Revenue |
|
|
Before Taxes |
|
|
Amortization |
|
|
Investments (5) |
|
||||
Digital |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Reservoir Performance |
|
|
|
|
|
|
|
|
|
|
|
||||
Well Construction |
|
|
|
|
|
|
|
|
|
|
|
||||
Production Systems |
|
|
|
|
|
|
|
|
|
|
|
||||
All Other |
|
|
|
|
|
|
|
|
|
|
|
||||
Eliminations & other |
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
||
Corporate & other (1) |
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
Interest income (2) |
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense (3) |
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
Charges and credits (4) |
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
15
|
|
|
|
(Stated in millions) |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Six Months 2026 |
|
|||||||||||||
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
||||
|
|
|
|
Income |
|
and |
|
|
Capital |
|
|||||
|
Revenue |
|
|
Before Taxes |
|
Amortization |
|
|
Investments (5) |
|
|||||
Digital |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Reservoir Performance |
|
|
|
|
|
|
|
|
|
|
|
||||
Well Construction |
|
|
|
|
|
|
|
|
|
|
|
||||
Production Systems |
|
|
|
|
|
|
|
|
|
|
|
||||
All Other |
|
|
|
|
|
|
|
|
|
|
|
||||
Eliminations & other |
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
||
Corporate & other (1) |
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
Interest income (2) |
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense (3) |
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
Charges and credits (4) |
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
(Stated in millions) |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Six Months 2025 |
|
|||||||||||||
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
||||
|
|
|
|
Income |
|
and |
|
|
Capital |
|
|||||
|
Revenue |
|
|
Before Taxes |
|
Amortization |
|
|
Investments (5) |
|
|||||
Digital |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Reservoir Performance |
|
|
|
|
|
|
|
|
|
|
|
||||
Well Construction |
|
|
|
|
|
|
|
|
|
|
|
||||
Production Systems |
|
|
|
|
|
|
|
|
|
|
|
||||
All Other |
|
|
|
|
|
|
|
|
|
|
|
||||
Eliminations & other |
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
||
Corporate & other (1) |
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
Interest income (2) |
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense (3) |
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
Charges and credits (4) |
|
|
|
|
( |
) |
|
|
|
|
|
|
|||
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Total assets by segment are as follows:
|
(Stated in millions) |
|
||||||
|
|
|
|
|
|
|
||
|
|
Jun. 30, |
|
|
Dec. 31, |
|
||
|
|
2026 |
|
|
2025 |
|
||
Digital |
|
$ |
|
|
$ |
|
||
Reservoir Performance |
|
|
|
|
|
|
||
Well Construction |
|
|
|
|
|
|
||
Production Systems |
|
|
|
|
|
|
||
All Other |
|
|
|
|
|
|
||
Eliminations and other |
|
|
|
|
|
|
||
Goodwill and intangibles |
|
|
|
|
|
|
||
Cash and short-term investments |
|
|
|
|
|
|
||
All other assets |
|
|
|
|
|
|
||
|
|
$ |
|
|
$ |
|
||
16
Segment assets consist of receivables, inventories, fixed assets, exploration data costs capitalized, and APS investments.
Revenue by geographic area was as follows:
|
|
|
|
|
|
|
(Stated in millions) |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Second Quarter |
|
|
Six Months |
|
||||||||||
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
North America |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Latin America |
|
|
|
|
|
|
|
|
|
|
|
||||
Europe & Africa (1) |
|
|
|
|
|
|
|
|
|
|
|
||||
Middle East & Asia |
|
|
|
|
|
|
|
|
|
|
|
||||
Other |
|
|
|
|
|
|
|
|
|
|
|
||||
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
North America and International revenue disaggregated by segment was as follows:
|
|
|
|
|
|
|
(Stated in millions) |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Second Quarter 2026 |
|
|||||||||||||
|
North |
|
|
|
|
|
|
|
|
|
|
||||
America |
|
|
International |
|
|
Other |
|
|
Total |
|
|||||
Digital |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Reservoir Performance |
|
|
|
|
|
|
|
|
|
|
|
||||
Well Construction |
|
|
|
|
|
|
|
|
|
|
|
||||
Production Systems |
|
|
|
|
|
|
|
|
|
|
|
||||
All Other |
|
|
|
|
|
|
|
|
|
|
|
||||
Eliminations & other |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
(Stated in millions) |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Second Quarter 2025 |
|
|||||||||||||
|
North |
|
|
|
|
|
|
|
|
|
|
||||
|
America |
|
|
International |
|
|
Other |
|
|
Total |
|
||||
Digital |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Reservoir Performance |
|
|
|
|
|
|
|
|
|
|
|
||||
Well Construction |
|
|
|
|
|
|
|
|
|
|
|
||||
Production Systems |
|
|
|
|
|
|
|
|
|
|
|
||||
All Other |
|
|
|
|
|
|
|
|
|
|
|
||||
Eliminations & other |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
17
|
|
|
|
(Stated in millions) |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Six Months 2026 |
|
|||||||||||||
|
North |
|
|
|
|
|
|
|
|
|
|
||||
America |
|
|
International |
|
|
Other |
|
|
Total |
|
|||||
Digital |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Reservoir Performance |
|
|
|
|
|
|
|
|
|
|
|
||||
Well Construction |
|
|
|
|
|
|
|
|
|
|
|
||||
Production Systems |
|
|
|
|
|
|
|
|
|
|
|
||||
All Other |
|
|
|
|
|
|
|
|
|
|
|
||||
Eliminations & other |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
(Stated in millions) |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Six Months 2025 |
|
|||||||||||||
|
North |
|
|
|
|
|
|
|
|
|
|
||||
|
America |
|
|
International |
|
|
Other |
|
|
Total |
|
||||
Digital |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Reservoir Performance |
|
|
|
|
|
|
|
|
|
|
|
||||
Well Construction |
|
|
|
|
|
|
|
|
|
|
|
||||
Production Systems |
|
|
|
|
|
|
|
|
|
|
|
||||
All Other |
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Eliminations & other |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Significant segment expenses, which represent the difference between segment revenue and pretax segment income, consist of the following:
(Stated in millions) |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Second Quarter 2026 |
|
|||||||||||||
|
|
|
|
Reservoir |
|
|
Well |
|
|
Production |
|
||||
|
Digital |
|
|
Performance |
|
|
Construction |
|
|
Systems |
|
||||
Compensation |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Cost of products, materials, and supplies |
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
||||
Allocations |
|
|
|
|
|
|
|
|
|
|
|
||||
Other |
|
|
|
|
|
|
|
|
|
|
|
||||
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
(Stated in millions) |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Second Quarter 2025 |
|
|||||||||||||
|
|
|
|
Reservoir |
|
|
Well |
|
|
Production |
|
||||
|
Digital |
|
|
Performance |
|
|
Construction |
|
|
Systems |
|
||||
Compensation |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Cost of products, materials, and supplies |
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
||||
Allocations |
|
|
|
|
|
|
|
|
|
|
|
||||
Other |
|
|
|
|
|
|
|
|
|
|
|
||||
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
18
(Stated in millions) |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Six Months 2026 |
|
|||||||||||||
|
|
|
|
Reservoir |
|
|
Well |
|
|
Production |
|
||||
|
Digital |
|
|
Performance |
|
|
Construction |
|
|
Systems |
|
||||
Compensation |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Cost of products, materials, and supplies |
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
||||
Allocations |
|
|
|
|
|
|
|
|
|
|
|
||||
Other |
|
|
|
|
|
|
|
|
|
|
|
||||
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
(Stated in millions) |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Six Months 2025 |
|
|||||||||||||
|
|
|
|
Reservoir |
|
|
Well |
|
|
Production |
|
||||
|
Digital |
|
|
Performance |
|
|
Construction |
|
|
Systems |
|
||||
Compensation |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Cost of products, materials, and supplies |
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
||||
Allocations |
|
|
|
|
|
|
|
|
|
|
|
||||
Other |
|
|
|
|
|
|
|
|
|
|
|
||||
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Other segment expenses include transportation, mobilization, lease, professional fees, and other costs.
Revenue in excess of billings related to
Total backlog was $
Billings and cash collections in excess of revenue was $
19
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Second Quarter 2026 Compared to First Quarter 2026
|
|
|
|
(Stated in millions) |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Second Quarter 2026 |
|
|
First Quarter 2026 |
|
||||||||||
|
|
|
|
Income |
|
|
|
|
|
Income |
|
||||
Revenue |
|
|
Before Taxes |
|
|
Revenue |
|
|
Before Taxes |
|
|||||
Digital |
$ |
697 |
|
|
$ |
194 |
|
|
$ |
640 |
|
|
$ |
134 |
|
Reservoir Performance |
|
1,556 |
|
|
|
232 |
|
|
|
1,594 |
|
|
|
257 |
|
Well Construction |
|
2,742 |
|
|
|
417 |
|
|
|
2,797 |
|
|
|
424 |
|
Production Systems |
|
3,771 |
|
|
|
586 |
|
|
|
3,508 |
|
|
|
497 |
|
All Other |
|
505 |
|
|
|
142 |
|
|
|
443 |
|
|
|
113 |
|
Eliminations & other |
|
(299 |
) |
|
|
(167 |
) |
|
|
(261 |
) |
|
|
(104 |
) |
Corporate & other (1) |
|
|
|
|
(211 |
) |
|
|
|
|
|
(228 |
) |
||
Interest income (2) |
|
|
|
|
23 |
|
|
|
|
|
|
20 |
|
||
Interest expense (3) |
|
|
|
|
(128 |
) |
|
|
|
|
|
(116 |
) |
||
Charges and credits (4) |
|
|
|
|
(69 |
) |
|
|
|
|
|
(41 |
) |
||
|
$ |
8,972 |
|
|
$ |
1,019 |
|
|
$ |
8,721 |
|
|
$ |
956 |
|
Second-quarter 2026 revenue of $9.0 billion increased 3% compared to the first quarter of 2026 as broad-based growth across international markets—led by offshore activity in Latin America, Europe & Africa, and Asia—more than offset the impact of continued disruptions in the Middle East.
Excluding the Middle East, revenue grew sequentially across all Divisions, supported by higher offshore activity, a rebound in U.S. unconventionals, and strong demand for production and recovery solutions.
International revenue increased 3% sequentially despite the severe disruptions in the Middle East. Strong performances in Latin America, Europe & Africa and Asia more than offset the decline in the Middle East where revenue fell 13% sequentially to $1.66 billion.
North America revenue increased 4% sequentially driven by higher sales of production chemicals, artificial lift, and valves in U.S. land, as well as increased revenue from Data Center Solutions.
Digital
Digital revenue of $697 million increased 9% sequentially, driven by a 25%, or $25 million, increase in Digital Exploration revenue resulting from higher sales of exploration data licenses and transfer fees. Sequential growth also benefited from $17 million in higher sales in Platforms & Applications.
Digital pretax operating margin of 28%, expanded 683 basis points (“bps”) sequentially, primarily due to higher sales of exploration data licenses and transfer fees, as well as improved profitability in Digital Operations and Platforms & Applications.
Reservoir Performance
Reservoir Performance revenue of $1.6 billion decreased 2% sequentially, primarily due to lower evaluation, stimulation, and intervention activity resulting from operational disruptions related to the Middle East conflict. While activity in the Middle East began to recover in certain countries as conditions improved, operations in other markets remained constrained by production shut-ins and ongoing security challenges.
Reservoir Performance pretax operating margin of 15% contracted 121 bps sequentially primarily due to lower profitability in evaluation and intervention activities.
20
Well Construction
Well Construction revenue of $2.7 billion decreased 2% sequentially, reflecting the impact of disruptions associated with the Middle East conflict. The decline was partially offset by higher offshore drilling activity in Latin America.
Well Construction pretax operating margin of 15% was essentially flat sequentially, as lower profitability in the Middle East was offset by improved profitability in other areas.
Production Systems
Production Systems revenue of $3.8 billion increased 7% sequentially, driven by strong growth in Latin America, Europe & Africa, Asia, and North America, despite a decline in the Middle East due to disruptions associated with the regional conflict. Sequential growth was supported by higher revenue from SLB OneSubsea, along with increased sales of artificial lift, valves, surface production systems, and completions.
Production Systems pretax operating margin was 16%, expanding 138 basis points sequentially, driven by improved profitability in SLB OneSubsea and artificial lift.
All Other
All Other revenue of $505 million increased $63 million sequentially primarily due to 33%, or $46 million, higher revenue in Data Center Solutions.
All Other pretax operating income of $142 million increased $29 million sequentially due to improved profitability in Data Center Solutions and Asset Performance Solutions (“APS”).
Six Months 2026 Compared to Six Months 2025
|
|
|
|
|
(Stated in millions) |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Six Months 2026 |
|
|
Six Months 2025 |
|
||||||||||
|
|
|
|
|
Income |
|
|
|
|
|
Income |
|
||||
|
Revenue |
|
|
Before Taxes |
|
|
Revenue |
|
|
Before Taxes |
|
|||||
Digital |
|
$ |
1,337 |
|
|
$ |
328 |
|
|
$ |
1,177 |
|
|
$ |
278 |
|
Reservoir Performance |
|
|
3,150 |
|
|
|
489 |
|
|
|
3,391 |
|
|
|
596 |
|
Well Construction |
|
|
5,539 |
|
|
|
841 |
|
|
|
5,940 |
|
|
|
1,140 |
|
Production Systems |
|
|
7,279 |
|
|
|
1,083 |
|
|
|
5,773 |
|
|
|
962 |
|
All Other |
|
|
948 |
|
|
|
255 |
|
|
|
1,145 |
|
|
|
317 |
|
Eliminations & other |
|
|
(560 |
) |
|
|
(271 |
) |
|
|
(391 |
) |
|
|
(153 |
) |
Corporate & other (1) |
|
|
|
|
|
(439 |
) |
|
|
|
|
|
(347 |
) |
||
Interest income (2) |
|
|
|
|
|
43 |
|
|
|
|
|
|
66 |
|
||
Interest expense (3) |
|
|
|
|
|
(244 |
) |
|
|
|
|
|
(283 |
) |
||
Charges and credits (4) |
|
|
|
|
|
(110 |
) |
|
|
|
|
|
(228 |
) |
||
|
|
$ |
17,693 |
|
|
$ |
1,975 |
|
|
$ |
17,035 |
|
|
$ |
2,348 |
|
Six-month 2026 revenue of $17.7 billion increased 4%, or $658 million, year on year. Excluding the impact of the ChampionX acquisition in the third quarter last year, revenue declined year on year by 6%, or $1.05 billion. This decrease was largely attributable to a 12%, or $0.7 billion, decline in revenue in the Middle East due to operational disruptions related to the conflict in the region.
Digital
Digital revenue of $1.3 billion increased 14%, or $160 million, year on year, driven by a $120 million increase in Digital Operations and $55 million of higher sales of exploration data licenses and transfer fees.
Digital pretax operating margin of 25% increased 93 bps year on year driven by the higher Digital Exploration sales and improved profitability in Digital Operations.
21
Reservoir Performance
Reservoir Performance revenue of $3.1 billion decreased 7% year on year due to lower stimulation and intervention activity primarily driven by operational disruptions caused by the Middle East conflict.
Reservoir Performance pretax operating margin of 16% contracted 208 bps year on year primarily due to the operational disruption in the Middle East.
Well Construction
Well Construction revenue of $5.5 billion decreased 7% year on year primarily due to lower activity resulting from the Middle East conflict.
Well Construction pretax operating margin of 15% contracted 401 bps year on year primarily due to lower profitability as a result of the Middle East conflict compounded by pricing headwinds in select markets.
Production Systems
Production Systems revenue of $7.3 billion increased 26% year on year from the acquired ChampionX production chemicals and artificial lift businesses, which contributed $1.7 billion of revenue and $307 million in pretax operating income during the first six months of 2026.
Excluding the impact of the acquisition, Production Systems revenue for the first six months of 2026 decreased 3% year on year primarily due to the disruptions from the Middle East conflict.
Production Systems pretax operating margin of 15% contracted 178 bps year on year due to lower profitability in surface production systems, SLB OneSubsea and completions.
All Other
All Other revenue of $948 million decreased $197 million year on year driven by the absence of $215 million in APS revenue following the divestiture of the Palliser asset in Canada in the second quarter of 2025 coupled with reduced revenue in SLB Capturi.
All Other pretax operating income of $255 million decreased $62 million year on year largely due to lower profitability in APS projects following the Palliser divestiture.
Interest & Other Income
Interest & other income consisted of the following:
(Stated in millions) |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Second Quarter |
|
|
First Quarter |
|
|
Six Months |
|
|||||||
|
2026 |
|
|
2026 |
|
|
2026 |
|
|
2025 |
|
||||
Earnings of equity method investments |
$ |
48 |
|
|
$ |
18 |
|
|
$ |
65 |
|
|
$ |
115 |
|
Interest income |
|
28 |
|
|
|
25 |
|
|
|
54 |
|
|
|
66 |
|
Gain on sale of Palliser APS project |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
149 |
|
|
$ |
76 |
|
|
$ |
43 |
|
|
$ |
119 |
|
|
$ |
330 |
|
Other
Research & engineering and General & administrative expenses, as a percentage of Revenue were as follows:
|
Second |
|
|
First |
|
|
|
|
|||||||
|
Quarter |
|
|
Quarter |
|
|
Six Months |
|
|||||||
|
2026 |
|
|
2026 |
|
|
2026 |
|
|
2025 |
|
||||
Research & engineering |
|
1.9 |
% |
|
|
1.9 |
% |
|
|
1.9 |
% |
|
|
2.1 |
% |
General & administrative |
|
0.9 |
% |
|
|
1.1 |
% |
|
|
1.0 |
% |
|
|
1.1 |
% |
Charges and Credits
SLB recorded charges and credits during the first six months of 2026 and 2025. These charges and credits, which are summarized below, are more fully described in Note 2 to the Consolidated Financial Statements.
2026:
22
|
(Stated in millions) |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
Noncontrolling |
|
|
|
|
||||
|
Pretax Charge |
|
|
Tax Benefit |
|
|
Interests |
|
|
Net |
|
||||
First quarter: |
|
|
|
|
|
|
|
|
|
|
|
||||
Merger and integration |
$ |
41 |
|
|
$ |
8 |
|
|
$ |
2 |
|
|
$ |
31 |
|
Second quarter: |
|
|
|
|
|
|
|
|
|
|
|
||||
Merger and integration |
|
69 |
|
|
|
19 |
|
|
|
3 |
|
|
|
47 |
|
|
$ |
110 |
|
|
$ |
27 |
|
|
$ |
5 |
|
|
$ |
78 |
|
2025:
|
(Stated in millions) |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
Noncontrolling |
|
|
|
|
||||
|
Pretax Charge |
|
|
Tax Benefit |
|
|
Interests |
|
|
Net |
|
||||
First quarter: |
|
|
|
|
|
|
|
|
|
|
|
||||
Workforce reductions |
$ |
158 |
|
|
$ |
10 |
|
|
$ |
- |
|
|
$ |
148 |
|
Merger and integration |
|
49 |
|
|
|
1 |
|
|
|
4 |
|
|
|
44 |
|
Second quarter: |
|
|
|
|
|
|
|
|
|
|
- |
|
|||
Impairment of equity method investment |
|
69 |
|
|
|
12 |
|
|
|
- |
|
|
|
57 |
|
Workforce reductions |
|
66 |
|
|
|
3 |
|
|
|
- |
|
|
|
63 |
|
Merger and integration |
|
35 |
|
|
|
4 |
|
|
|
4 |
|
|
|
27 |
|
Gain on sale of Palliser APS project |
|
(149 |
) |
|
|
(4 |
) |
|
|
- |
|
|
|
(145 |
) |
|
$ |
228 |
|
|
$ |
26 |
|
|
$ |
8 |
|
|
$ |
194 |
|
Liquidity and Capital Resources
Details of the components of liquidity as well as changes in liquidity are as follows:
|
(Stated in millions) |
|
|||||||||
|
|
|
|
|
|
|
|
|
|||
|
Jun. 30, |
|
|
Jun. 30, |
|
|
Dec. 31, |
|
|||
Components of Liquidity: |
2026 |
|
|
2025 |
|
|
2025 |
|
|||
Cash |
$ |
2,743 |
|
|
$ |
3,236 |
|
|
$ |
3,036 |
|
Short-term investments |
|
1,328 |
|
|
|
511 |
|
|
|
1,176 |
|
Short-term borrowings and current portion of long-term debt |
|
(1,658 |
) |
|
|
(2,807 |
) |
|
|
(1,894 |
) |
Long-term debt |
|
(11,140 |
) |
|
|
(10,891 |
) |
|
|
(9,742 |
) |
Net debt (1) |
$ |
(8,727 |
) |
|
$ |
(9,951 |
) |
|
$ |
(7,424 |
) |
23
|
Six Months Ended Jun. 30, |
|
|||||
Changes in Liquidity: |
2026 |
|
|
2025 |
|
||
Net income |
$ |
1,576 |
|
|
$ |
1,877 |
|
Depreciation and amortization (2) |
|
1,397 |
|
|
|
1,273 |
|
Gain on sale of Palliser APS project |
|
- |
|
|
|
(149 |
) |
Impairment of equity method investment |
|
- |
|
|
|
69 |
|
Earnings of equity method investments, less dividends received |
|
(21 |
) |
|
|
(47 |
) |
Deferred taxes |
|
(5 |
) |
|
|
(60 |
) |
Stock-based compensation expense |
|
179 |
|
|
|
168 |
|
Increase in working capital |
|
(1,344 |
) |
|
|
(1,401 |
) |
Other |
|
64 |
|
|
|
72 |
|
Cash flow from operations |
|
1,846 |
|
|
|
1,802 |
|
Capital expenditures |
|
(802 |
) |
|
|
(769 |
) |
APS investments |
|
(226 |
) |
|
|
(225 |
) |
Exploration data costs capitalized |
|
(125 |
) |
|
|
(83 |
) |
Free cash flow (3) |
|
693 |
|
|
|
725 |
|
Stock repurchase program |
|
(1,099 |
) |
|
|
(2,300 |
) |
Dividends paid |
|
(866 |
) |
|
|
(773 |
) |
Proceeds from employee stock purchase plan |
|
105 |
|
|
|
105 |
|
Proceeds from exercise of stock options |
|
106 |
|
|
|
8 |
|
Business acquisitions and investments, net of cash acquired and debt assumed |
|
(249 |
) |
|
|
(47 |
) |
Proceeds from the sale of Palliser APS project |
|
- |
|
|
|
316 |
|
Taxes paid on net settled stock-based compensation awards |
|
(63 |
) |
|
|
(55 |
) |
Other |
|
(42 |
) |
|
|
(30 |
) |
Increase in net debt before impact of changes in foreign exchange rates |
|
(1,415 |
) |
|
|
(2,051 |
) |
Impact of changes in foreign exchange rates on net debt |
|
112 |
|
|
|
(495 |
) |
Increase in net debt |
|
(1,303 |
) |
|
|
(2,546 |
) |
Net debt, beginning of period |
|
(7,424 |
) |
|
|
(7,405 |
) |
Net debt, end of period |
$ |
(8,727 |
) |
|
$ |
(9,951 |
) |
Key liquidity events during the first six months of 2026 and 2025 included:
The following table summarizes the activity under the share repurchase program:
24
(Stated in millions, except per share amounts) |
|
||||||||||
|
|
|
|
|
|
|
|
|
|||
|
Total cost |
|
|
Total number |
|
|
Average price |
|
|||
|
of shares |
|
|
of shares |
|
|
paid per |
|
|||
|
purchased |
|
|
purchased |
|
|
share |
|
|||
Six months ended June 30, 2026 |
$ |
1,099 |
|
|
|
21.2 |
|
|
$ |
51.92 |
|
Six months ended June 30, 2025 |
$ |
2,300 |
|
|
|
56.8 |
|
|
$ |
40.51 |
|
As of June 30, 2026, SLB had $4.1 billion of cash and short-term investments on hand and committed debt facility agreements with commercial banks aggregating $5.0 billion, all of which was available. SLB believes these amounts, along with cash generated by ongoing operations, are sufficient to meet future business requirements for the next 12 months and beyond.
SLB has a global footprint in more than 100 countries. As of June 30, 2026, only three of those countries individually accounted for greater than 5% of SLB’s net receivable balance. Only one of those countries, the United States, represented greater than 10% of such receivables.
FORWARD-LOOKING STATEMENTS
This second-quarter 2026 Form 10-Q, as well as other statements we make, contain “forward-looking statements” within the meaning of the federal securities laws, which include any statements that are not historical facts. Such statements often contain words such as “expect,” “may,” “can,” “believe,” “predict,” “plan,” “potential,” “projected,” “projections,” “precursor,” “forecast,” “outlook,” “expectations,” “estimate,” “intend,” “anticipate,” “ambition,” “goal,” “target,” “scheduled,” “think,” “should,” “could,” “would,” “will,” “see,” “likely,” and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain, such as statements about SLB’s financial and performance targets and other forecasts or expectations regarding, or dependent on, its business outlook; growth for SLB as a whole and for each of its Divisions (and for specified business lines, geographic areas, or technologies within each Division); the benefits of the ChampionX acquisition, including the ability of SLB to integrate the ChampionX business successfully and to achieve anticipated synergies and value creation from the acquisition; oil and natural gas demand and production growth; oil and natural gas prices; forecasts or expectations regarding energy transition and global climate change; improvements in operating procedures and technology; capital expenditures by SLB and the oil and gas industry; the business strategies of SLB, including digital and “fit for basin,” as well as the strategies of SLB’s customers; SLB’s capital allocation plans, including dividend plans and share repurchase programs; SLB’s APS projects, joint ventures, and other alliances; the impact of ongoing or escalating conflicts on global energy supply; access to raw materials; future global economic and geopolitical conditions; future liquidity, including free cash flow; and future results of operations, such as margin levels. These statements are subject to risks and uncertainties, including, but not limited to, changing global economic and geopolitical conditions; changes in exploration and production spending by SLB’s customers, and changes in the level of oil and natural gas exploration and development; the results of operations and financial condition of SLB’s customers and suppliers; SLB’s inability to achieve its financial and performance targets and other forecasts and expectations; SLB’s inability to achieve net-zero carbon emissions goals or interim emissions reduction goals; general economic, geopolitical and business conditions in key regions of the world; foreign currency risk; inflation; changes in monetary policy by governments; tariffs; pricing pressure; weather and seasonal factors; unfavorable effects of health pandemics; availability and cost of raw materials; operational modifications, delays or cancellations; challenges in SLB’s supply chain; production declines; the extent of future charges; SLB’s inability to recognize efficiencies and other intended benefits from its business strategies and initiatives, such as digital or new energy, as well as its cost reduction strategies; changes in government regulations and regulatory requirements, including those related to offshore oil and gas exploration, radioactive sources, explosives, chemicals, and climate-related initiatives; the inability of technology to meet new challenges in exploration; the competitiveness of alternative energy sources or product substitutes; and other risks and uncertainties detailed in this Form 10-Q and our most recent Form 10-K and Forms 8-K filed with or furnished to the SEC.
If one or more of these or other risks or uncertainties materialize (or the consequences of any such development changes), or should our underlying assumptions prove incorrect, actual results or outcomes may vary materially from those reflected in our forward-looking statements. Forward-looking and other statements in this Form 10-Q regarding our environmental, social, and other sustainability plans and goals are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the SEC. In addition, historical, current, and forward-looking environmental, social, and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. Statements in this Form 10-Q are made as of July 29, 2026, and SLB disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events, or otherwise.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
For quantitative and qualitative disclosures about market risk affecting SLB, see Item 7A, “Quantitative and Qualitative Disclosures about Market Risk,” of the SLB Annual Report on Form 10-K for the fiscal year ended December 31, 2025. SLB’s exposure to market risk has not changed materially since December 31, 2025.
Item 4. Controls and Procedures.
SLB has carried out an evaluation under the supervision and with the participation of SLB’s management, including the Chief Executive Officer (“CEO”) and the Chief Financial Officer (“CFO”), of the effectiveness of SLB’s “disclosure controls and procedures” (as such term
25
is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) as of the end of the period covered by this report. Based on this evaluation, the CEO and the CFO have concluded that, as of the end of the period covered by this report, SLB’s disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed in the reports that SLB files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. SLB’s disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is accumulated and communicated to its management, including the CEO and the CFO, as appropriate, to allow timely decisions regarding required disclosure. There was no change in SLB’s internal control over financial reporting during the quarter to which this report relates that has materially affected, or is reasonably likely to materially affect, SLB’s internal control over financial reporting.
26
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
The information with respect to this Item 1 is set forth under Note 11—Contingencies, in the accompanying Consolidated Financial Statements.
Item 1A. Risk Factors.
As of the date of this filing, there have been no material changes from the risk factors disclosed in Part I, Item 1A, of SLB’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Unregistered Sales of Equity Securities
None.
Issuer Repurchases of Equity Securities
On January 21, 2016, the SLB Board of Directors approved a $10 billion share repurchase program for SLB common stock. As of June 30, 2026, SLB had repurchased approximately $7.0 billion of SLB common stock under this program.
SLB's common stock repurchase activity for the three months ended June 30, 2026 was as follows:
|
(Stated in thousands, except per share amounts) |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Total number |
|
|
Average price |
|
|
Total number |
|
|
Maximum |
|
||||
April 2026 |
|
4,169.1 |
|
|
$ |
52.56 |
|
|
|
4,169.1 |
|
|
$ |
3,457,076 |
|
May 2026 |
|
3,659.1 |
|
|
$ |
55.93 |
|
|
|
3,659.1 |
|
|
$ |
3,252,436 |
|
June 2026 |
|
4,138.4 |
|
|
$ |
54.12 |
|
|
|
4,138.4 |
|
|
$ |
3,028,458 |
|
|
|
11,966.6 |
|
|
$ |
54.13 |
|
|
|
11,966.6 |
|
|
|
|
|
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Mine Safety Disclosures.
Our mining operations are subject to regulation by the federal Mine Safety and Health Administration under the Federal Mine Safety and Health Act of 1977. Information concerning mine safety violations or other regulatory matters required by section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95 to this report.
Item 5. Other
In 2013, SLB completed the wind down of its service operations in Iran. Prior to this, certain non-US subsidiaries provided oilfield services to the National Iranian Oil Company and certain of its affiliates (“NIOC”).
SLB’s residual transactions or dealings with the government of Iran during the second quarter of 2026 consisted of payments of taxes and other typical governmental charges. Certain non-US subsidiaries of SLB maintain depository accounts at the Dubai branch of Bank Saderat Iran (“Saderat”), and at Bank Tejarat (“Tejarat”) in Tehran and in Kish for the deposit by NIOC of amounts owed to non-US subsidiaries of SLB for prior services rendered in Iran and for the maintenance of such amounts previously received. One non-US subsidiary also maintained an account at Tejarat for payment of local expenses such as taxes. SLB anticipates that it will discontinue dealings with Saderat and Tejarat following the receipt of all amounts owed to SLB for prior services rendered in Iran.
On
27
Item 6. Exhibits.
Exhibit 3.1—Articles of Incorporation of SLB N.V. (SLB Limited) (incorporated by reference to Exhibit 3.1 to SLB’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025) |
|
Exhibit 3.2—Amended and Restated By-Laws of SLB N.V. (SLB Limited) (incorporated by reference to Exhibit 3.2 to SLB’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025) |
|
Exhibit 4.1—Indenture dated as of December 3, 2013, by and among Schlumberger Investment S.A., as issuer, Schlumberger Limited, as guarantor, and The Bank of New York Mellon, as trustee (incorporated by reference to Exhibit 4.1 to SLB’s Current Report on Form 8-K filed on December 3, 2013) |
|
Exhibit 4.2—Second Supplemental Indenture dated as of June 26, 2020, by and among Schlumberger Investment S.A., as issuer, Schlumberger Limited, as guarantor, and The Bank of New York Mellon, as trustee (including form of global notes representing 2.650% Senior Notes due 2030) (incorporated by reference to Exhibit 4.1 to SLB’s Current Report on Form 8-K filed on June 26, 2020) |
|
* Exhibit 4.3—Fourth Supplemental Indenture dated as of May 29, 2024, among Schlumberger Investment S.A., as issuer, Schlumberger Limited, as guarantor, and The Bank of New York Mellon, as trustee (including form of global notes representing 5.000% Senior Notes due 2034) |
|
Exhibit 4.4—Sixth Supplemental Indenture dated as of May 7, 2026, among Schlumberger Investment S.A., as issuer, SLB Limited, as guarantor, and The Bank of New York Mellon, as trustee (including form of global notes representing 4.550% Senior Notes due 2031, 4.800% Senior Notes due 2033, and 5.150% Senior Notes due 2036) (incorporated by reference to Exhibit 4.1 to SLB’s Current Report on Form 8-K filed on May 12, 2026) |
|
* Exhibit 22—Issuers of Registered Guaranteed Debt Securities |
|
* Exhibit 31.1—Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|
* Exhibit 31.2—Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|
** Exhibit 32.1—Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|
** Exhibit 32.2—Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|
* Exhibit 95—Mine Safety Disclosures |
|
* Exhibit 101.INS—Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document |
|
* Exhibit 101.SCH—Inline XBRL Taxonomy Extension Schema Document |
|
* Exhibit 104—Cover Page Interactive Data File (embedded within the Inline XBRL document) |
* Filed with this Form 10-Q.
** Furnished with this Form 10-Q.
28
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
|
|
SLB LIMITED |
Date: |
July 29, 2026 |
|
/s/ Howard Guild |
|
|
|
Howard Guild |
|
|
|
Chief Accounting Officer and Duly Authorized Signatory |
29