SLB reported a slight increase in first-quarter revenue, but the world’s largest oilfield services provider saw its earnings retreat as production disruptions in the Middle East pressured operational margins and dampened bottom-line performance.
The Houston-based energy technology firm (NYSE:SLB) posted first-quarter 2026 revenue of $8.72 billion, a 3% increase compared to the same period last year.
However, net income attributable to SLB fell 6% to $752 million.
Earnings per share (EPS) on a GAAP basis was $0.50, down 14% year-over-year, while adjusted EPS—which excludes certain charges and credits—dropped 28% to $0.52.
The results highlight a bifurcated start to the year for the global energy sector.
While SLB benefited from resilient international demand and the ongoing integration of recent acquisitions, the company faced significant headwinds from the late-February conflict in the Middle East.
Analysts noted that production halts in the region forced a downward revision in activity levels, leading to a 12% decline in adjusted EBITDA, which came in at $1.77 billion for the quarter.
Despite the localized disruptions, CEO Olivier Le Peuch pointed to the company’s digital and subsea segments as areas of continued strength.
During the quarter, SLB secured several major contracts, including an integrated development deal for the Mutriba Field in Kuwait and an EPC contract for deepwater development through its OneSubsea joint venture.
The company also continued its push into "agentic" AI for the energy industry through its collaboration with NVIDIA, aimed at optimizing subsurface evaluation and drilling performance.
Meanwhile, cash flow from operations for the quarter was $487 million.
Maintaining its commitment to shareholder returns, the Board of Directors approved a quarterly cash dividend of $0.295 per share, payable in July.