Q2 2026 Earnings

Reported July 24, 2026

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

Free Cash Flow

Income Statement

Cash Flow Statement

Balance Sheet

Operating metrics disclosed this quarter

Read from the filing itself — XBRL does not carry these, so no standard financial dataset has them.

Backlog Expected as Revenue Within 12 Months
70.0%
Revenue in excess of billings related to contracts where revenue is recognized over time was $ 0.5 billion at June 30 , 2026 and $ 0.4 billion at December 31, 2025. Such amounts are included within Receivables less allowance for doubtful accounts in the Consolidated Balance Sheet . Total backlog was $ 6.4 billion at June 30, 2026, of which approximately 70 % is expected to be recognized as revenue over the next 12 months. Billings and cash collections in excess of revenue was $ 2.3 billion at both June 30, 2026 and December 31, 2025. Such amounts are included within Accounts payable and accrued liabilities in the Consolidated Balance Sheet .
Total Backlog
$6.40B
Revenue in excess of billings related to contracts where revenue is recognized over time was $ 0.5 billion at June 30 , 2026 and $ 0.4 billion at December 31, 2025. Such amounts are included within Receivables less allowance for doubtful accounts in the Consolidated Balance Sheet . Total backlog was $ 6.4 billion at June 30, 2026, of which approximately 70 % is expected to be recognized as revenue over the next 12 months. Billings and cash collections in excess of revenue was $ 2.3 billion at both June 30, 2026 and December 31, 2025. Such amounts are included within Accounts payable and accrued liabilities in the Consolidated Balance Sheet .
Free Cash Flow
$693.0M
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 ) (1) “Net debt” represents gross debt less cash and short-term investments. Management believes that Net debt provides useful information to investors and management regarding the level of SLB’s indebtedness by reflecting cash and investments that could be used to repay debt. Net debt is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, total debt. (2) Includes depreciation of fixed assets and amortization of intangible assets, exploration data costs, and APS investments. (3) “Free cash flow” represents cash flow from operations less capital expenditures, APS investments and exploration data costs capitalized. Management believes that free cash flow is an important liquidity measure for the company and that it is useful to investors and management as a measure of our ability to generate cash. Once business needs and obligations are met, this cash can be used to reinvest in the company for future growth or to return to shareholders through dividend payments or share repurchases. Free cash flow does not represent the residual cash flow available for discretionary expenditures. Free cash flow is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, cash flow from operations.

Net Debt

$8.73B

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 ) (1) “Net debt” represents gross debt less cash and short-term investments. Management believes that Net debt provides useful information to investors and management regarding the level of SLB’s indebtedness by reflecting cash and investments that could be used to repay debt. Net debt is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, total debt. (2) Includes depreciation of fixed assets and amortization of intangible assets, exploration data costs, and APS investments. (3) “Free cash flow” represents cash flow from operations less capital expenditures, APS investments and exploration data costs capitalized. Management believes that free cash flow is an important liquidity measure for the company and that it is useful to investors and management as a measure of our ability to generate cash. Once business needs and obligations are met, this cash can be used to reinvest in the company for future growth or to return to shareholders through dividend payments or share repurchases. Free cash flow does not represent the residual cash flow available for discretionary expenditures. Free cash flow is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, cash flow from operations.

Digital Pretax Operating Margin

28.0%

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.

Production Systems Pretax Operating Margin

16.0%

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.

Reservoir Performance Pretax Operating Margin

15.0%

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.

Well Construction Pretax Operating Margin

15.0%

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.