SLB Sees Broad-Based Growth Amidst Global Headwinds
In a strong showing for the second quarter of 2026, SLB (Schlumberger Limited) has reported broad-based growth across its divisions, despite navigating challenging global conditions.
According to the company's Q2 earnings call transcript, released on July 24th, Olivier Le Peuch, CEO of SLB, highlighted a solid quarter marked by international growth and a rebound in North America. Revenue increased sequentially across all divisions, excluding the Middle East, with higher offshore activity reported in Latin America, Europe, Africa, Scandinavia, Nigeria, China, Indonesia, India, and Australia.
The company also noted a rebound in U.S. lands, driven by strong demand for production and recovery solutions. In the Middle East, SLB continued to navigate the conflict while maintaining its focus on protecting people and facilities across the region. Operations resumed in several countries, although activities in Iraq remained constrained due to security challenges.
SLB's Production Systems and Digital divisions demonstrated notable momentum, with growth supported by higher demand for artificial lift, valves, surface production systems, and production chemicals, as well as stronger service activity in North America and Latin America. This reflects customer priorities focused on improving production, enhancing recovery, and extending the life of existing assets.
The Production Systems division saw adjusted EBITDA margins return to above 20%, supported by strong execution, while ChampionX continued to provide accretive margins despite facing cost inflation in chemicals. Digital also delivered very strong results, with higher exploration data licenses and transfer fees contributing to a 35% adjusted EBITDA margin for the quarter.
SLB's Well Construction and Reservoir Performance division declined slightly due to activity disruption in the Middle East, but this was largely offset by stronger activity in North America and other international markets. The company remains confident in its ability to navigate global headwinds and deliver long-term growth.
