SLB LTD (NYSE:SLB) Reports Mixed Q3 2025 Results with Revenue Miss and EPS Beat

SLB LTD (NYSE:SLB) reported its third-quarter 2025 financial results, presenting a mixed performance against analyst expectations. The global technology provider for the energy industry navigated a challenging market environment, delivering revenue that fell short of forecasts while exceeding profit estimates on an adjusted basis.

Quarterly Performance Versus Estimates

The company reported revenue of $8.93 billion for the quarter, which fell below the analyst consensus estimate of $9.01 billion. This represents a 4% sequential increase but a 3% decline compared to the same quarter last year. The sequential growth was largely attributed to the inclusion of two months of activity from the recently acquired ChampionX business.

On the profitability front, SLB reported adjusted earnings per share (EPS) of $0.69, surpassing the analyst estimate of $0.6655. This performance demonstrates the company's ability to maintain profitability despite revenue headwinds, though it marks a 7% sequential decrease and a 22% decline year-on-year.

Key financial metrics from the quarter include:

• GAAP Diluted EPS: $0.50, a 32% sequential decrease
• Pretax Segment Operating Income: $1.63 billion, up 3% sequentially
• Adjusted EBITDA: $2.06 billion, flat sequentially
• North America Revenue: $1.93 billion, up 17% sequentially (boosted by ChampionX)
• International Revenue: $6.92 billion, up 1% sequentially

Market Reaction and Price Action

The market responded negatively to the earnings release, with SLB shares trading down approximately 2.55% in pre-market activity. This reaction appears to be driven by the revenue miss and the broader context of declining year-over-year profitability metrics, overshadowing the EPS beat. The stock has faced pressure in recent periods, declining over 5% in the past month.

Strategic Highlights and Business Segment Performance

CEO Olivier Le Peuch characterized the quarter as playing out "in line with our expectations," highlighting resilience amidst a "fully supplied oil market, an uncertain geopolitical environment and subdued commodity prices." A significant development was the reporting of the Digital business as a standalone division for the first time, underscoring its strategic importance.

Division-level performance was varied:

• Digital Division revenue grew 11% sequentially to $658 million, with pretax operating margin expanding 250 basis points to 28.4%.
• Production Systems revenue increased 18% sequentially to $3.47 billion, heavily influenced by the ChampionX acquisition.
• Well Construction revenue was flat sequentially at $2.97 billion.
• Reservoir Performance revenue declined 1% sequentially to $1.68 billion.

The $7.1 billion acquisition of ChampionX, completed in July, was a central theme, contributing $579 million in revenue during the quarter. Le Peuch emphasized that ChampionX "enhances our portfolio and underscores the value of expanding our presence in the less cyclical production market."

Outlook and Future Expectations

Looking ahead, management expressed confidence that "international markets will lead an activity rebound when supply and demand rebalance." For the near term, they foresee "revenue growth in the fourth quarter driven by the international markets, Digital and a full quarter of activity from the acquired ChampionX businesses."

This outlook will be measured against analyst expectations for the fourth quarter, which include:

• Q4 2025 Revenue Estimate: $9.58 billion
• Q4 2025 EPS Estimate: $0.75
• Full-Year 2025 EPS Estimate: $2.91
• Full-Year 2025 Sales Estimate: $35.74 billion

The company's ability to meet these forecasts while integrating ChampionX and navigating volatile energy markets will be closely watched by investors.

For a detailed breakdown of historical earnings performance and future estimates, view the complete earnings analysis for SLB.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.