UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
☑
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2026
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file No.: 1-4601
SLB N.V. (SLB Limited)
(Exact name of registrant as specified in its charter)
Curaçao
52-0684746
(State or other jurisdiction ofincorporation or organization)
(IRS EmployerIdentification No.)
42 rue Saint-Dominique
Paris, France
75007
5599 San Felipe
Houston, Texas, United States of America
77056
Parkstraat 83
The Hague, The Netherlands
2514 JG
(Addresses of principal executive offices)
(Zip Codes)
Registrant’s telephone number in the United States, including area code, is: (713) 513-2000
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
common stock, par value $0.01 per share
SLB
New York Stock Exchange
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. Yes ☒ No ☐
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). Yes ☒ No ☐
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.
Large accelerated filer
☒
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
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
1,484,143,231
SLB Limited
Second Quarter 2026 Form 10-Q
Table of Contents
Page
PART I
Financial Information
Item 1.
Financial Statements
3
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
20
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
25
Item 4.
Controls and Procedures
PART II
Other Information
Legal Proceedings
27
Item 1A.
Risk Factors
Unregistered Sales of Equity Securities and Use of Proceeds
Defaults Upon Senior Securities
Mine Safety Disclosures
Item 5.
Item 6.
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)
Second Quarter
Six Months
2026
2025
Revenue
Services
$
5,200
5,327
10,119
10,692
Product sales
3,772
3,219
7,574
6,343
Total Revenue
8,972
8,546
17,693
17,035
Interest & other income
76
252
119
330
Expenses
Cost of services
4,340
4,227
8,389
8,480
Cost of sales
3,237
2,707
6,578
5,335
Research & engineering
171
180
335
352
General & administrative
84
87
181
184
Restructuring & other
-
135
293
Merger & integration
69
35
110
Interest
128
142
244
289
Income before taxes
1,019
1,285
1,975
2,348
Tax expense
204
237
399
471
Net income
815
1,048
1,576
1,877
Net income attributable to noncontrolling interests
29
34
38
66
Net income attributable to SLB
786
1,014
1,538
1,811
Basic income per share of SLB
0.53
0.75
1.03
1.33
Diluted income per share of SLB
0.52
0.74
1.02
1.32
Average shares outstanding:
Basic
1,490
1,352
1,494
1,359
Assuming dilution
1,506
1,366
1,511
1,373
See Notes to Consolidated Financial Statements
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(Stated in millions)
Currency translation adjustments
Unrealized net change arising during the period
54
33
226
Cash flow hedges
Net gain (loss) on cash flow hedges
50
26
36
(39
)
Reclassification to net income of net realized loss (gain)
5
(5
7
Pension and other postretirement benefit plans
Amortization to net income of net actuarial loss
14
8
16
Amortization to net income of net prior service credit
(3
(6
Income taxes on pension and other postretirement benefit plans
(2
(1
Other
2
11
Comprehensive income
912
1,129
1,669
2,084
Comprehensive income attributable to noncontrolling interests
Comprehensive income attributable to SLB
883
1,095
1,631
2,018
4
CONSOLIDATED BALANCE SHEET
Jun. 30,
Dec. 31,
ASSETS
Current Assets
Cash
2,743
3,036
Short-term investments
1,328
1,176
Receivables less allowance for doubtful accounts (2026 - $322; 2025 - $335)
9,132
8,689
Inventories
5,436
5,032
Other current assets
1,605
1,580
20,244
19,513
Investments in Affiliated Companies
1,691
1,783
Fixed Assets less accumulated depreciation
7,745
7,894
Goodwill
17,001
16,794
Intangible Assets
4,876
4,988
Other Assets
3,975
3,896
55,532
54,868
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities
11,210
11,490
Estimated liability for taxes on income
742
894
Short-term borrowings and current portion of long-term debt
1,658
1,894
Dividends payable
456
443
14,066
14,721
Long-term Debt
11,140
9,742
Postretirement Benefits
475
479
Deferred Taxes
669
644
Other Liabilities
1,928
1,991
28,278
27,577
Equity
Common stock
16,260
16,354
Treasury stock
(4,253
(3,576
Retained earnings
18,710
18,067
Accumulated other comprehensive loss
(4,643
(4,736
SLB stockholders’ equity
26,074
26,109
Noncontrolling interests
1,180
1,182
27,254
27,291
CONSOLIDATED STATEMENT OF CASH FLOWS
Six Months Ended June 30,
Cash flows from operating activities:
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (1)
1,397
1,273
Gain on sale of APS project
(149
Impairment of equity method investment
Deferred taxes
(60
Stock-based compensation expense
179
168
Earnings of equity method investments, less dividends received
(21
(47
Change in assets and liabilities: (2)
Increase in receivables
(307
(480
Increase in inventories
(362
(288
(Increase) decrease in other current assets
(30
86
Decrease (increase) in other assets
6
(44
Decrease in accounts payable and accrued liabilities
(406
(557
Decrease in estimated liability for taxes on income
(239
(162
Increase in other liabilities
73
58
43
NET CASH PROVIDED BY OPERATING ACTIVITIES
1,846
1,802
Cash flows from investing activities:
Capital expenditures
(802
(769
APS investments
(226
(225
Exploration data costs capitalized
(125
(83
Business acquisitions and investments, net of cash acquired
(236
(Purchase) sales of short-term investments, net
(158
632
Proceeds from sale of APS investment
316
(10
NET CASH USED IN INVESTING ACTIVITIES
(1,522
(186
Cash flows from financing activities:
Stock repurchase program
(1,099
(2,300
Dividends paid
(866
(773
Proceeds from employee stock purchase plan
105
Proceeds from exercise of stock options
106
Taxes paid on net settled stock-based compensation awards
(63
(55
Proceeds from issuance of long-term debt
1,985
1,081
Repayment of long-term debt
(729
Net increase (decrease) in short-term borrowings
10
(28
(27
NET CASH USED IN FINANCING ACTIVITIES
(606
(1,989
Net decrease in cash before translation effect
(282
(373
Translation effect on cash
(11
65
Cash, beginning of period
3,544
Cash, end of period
3,236
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
Accumulated
Common Stock
Retained
Comprehensive
Noncontrolling
January 1, 2026 – June 30, 2026
Issued
In Treasury
Earnings
Loss
Interests
Total
Balance, January 1, 2026
Changes in fair value of cash flow hedges
22
Shares sold to optionees, less shares exchanged
(18
124
Vesting of restricted stock, net of taxes withheld
(210
147
Employee stock purchase plan
(45
150
Dividends declared ($0.59 per share)
(880
Dividends paid to noncontrolling interests
1
(15
15
(4
Balance, June 30, 2026
January 1, 2025 – June 30, 2025
Balance, January 1, 2025
11,458
(1,773
16,395
(4,950
1,220
22,350
9
149
Dividends declared ($0.57 per share)
(43
18
Balance, June 30, 2025
11,354
(3,742
17,433
(4,743
1,249
21,551
April 1, 2026 – June 30, 2026
Balance, April 1, 2026
16,198
(3,650
18,369
(4,740
27,353
55
32
(13
(648
78
Dividends declared ($0.295 per share)
(437
(32
(8
April 1, 2025 – June 30, 2025
Balance, April 1, 2025
10,827
(3,292
16,804
(4,824
1,233
20,748
21
(9
460
(460
77
Dividends declared ($0.285 per share)
(385
(22
SHARES OF COMMON STOCK
Shares
Outstanding
(85
1,495
Vesting of restricted stock
Shares issued under employee stock purchase plan
(96
1,484
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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
SLB recorded charges of $41 million and $69 million during the first and second quarters of 2026, respectively, primarily in connection with the July 2025 acquisition of ChampionX Corporation ("ChampionX") (see Note 4 - Acquisition). These costs are classified in Merger & integration in the Consolidated Statement of Income.
Pretax Charge
Tax Benefit
Net
First quarter:
Merger and integration
41
31
Second quarter:
19
47
First quarter
During the first quarter of 2025, SLB recorded a $158 million charge relating to workforce reductions to realign and optimize its support and service delivery structure. This charge is classified in Restructuring & other in the Consolidated Statement of Income.
During the first quarter of 2025, SLB recorded $49 million of charges in connection with the July 2025 acquisition of ChampionX and the October 2023 acquisition of the Aker Solutions subsea business. These costs are classified in Merger & integration in the Consolidated Statement of Income.
Second quarter
During the second quarter of 2025, SLB recorded a $69 million impairment charge relating to an equity method investment that was determined to be other-than-temporarily impaired. This charge is classified in Restructuring & other in the Consolidated Statement of Income.
During the second quarter of 2025, SLB recorded a charge of $66 million relating to workforce reductions to align its resources with activity levels. This charge is classified in Restructuring & other in the Consolidated Statement of Income.
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 $35 million of charges related to merger and integration-related costs. These costs are classified in Merger & integration in the Consolidated Statement of Income.
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 $338 million, of which $22 million were received in the third quarter of 2025. SLB recorded a gain of $149 million as a result of this transaction. This gain is classified in Interest & other income in the Consolidated Statement of Income.
Workforce reductions
158
148
49
44
12
57
63
Gain on sale of Palliser APS project
(145
228
194
3. Earnings per Share
The following is a reconciliation from basic earnings per share of SLB to diluted earnings per share of SLB:
Net IncomeAttributableto SLB
Average SharesOutstanding
Earnings perShare
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:
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
production and recovery space. Under the terms of the agreement, ChampionX shareholders received 0.735 shares of SLB common stock in exchange for each ChampionX share.
Excluding its Drilling Technologies business, which was disposed of concurrently with the closing of the acquisition, ChampionX recorded revenue of approximately $0.9 billion and $1.7 billion during the second quarter and the first six months of 2025, respectively.
5. Inventories
A summary of inventories, which are stated at the lower of average cost or net realizable value, is as follows:
Raw materials & field materials
2,720
2,550
Work in progress
887
797
Finished goods
1,829
1,685
6. Fixed Assets
Fixed assets consist of the following:
Property, plant & equipment
32,105
32,045
Less: Accumulated depreciation
24,360
24,151
Depreciation expense relating to fixed assets was as follows:
473
408
937
805
7. Goodwill
The changes in the carrying amount of goodwill by segment were as follows:
Reservoir
Well
Production
Digital
Performance
Construction
Systems
All Other
Balance at December 31, 2025
2,060
4,111
6,598
3,699
326
Acquisitions
45
24
143
212
Balance at June 30, 2026
2,105
4,135
6,585
3,842
334
8. Intangible Assets
Intangible assets consist of the following:
Jun. 30, 2026
Dec. 31, 2025
Gross
Net Book
Book Value
Amortization
Value
Customer relationships
2,782
910
1,872
2,783
849
1,934
Technology/technical know-how
2,736
1,075
1,661
2,635
998
1,637
Tradenames
1,067
308
759
283
784
1,639
1,055
584
1,004
633
8,224
3,348
8,122
3,134
Amortization expense charged to income was as follows:
111
82
221
164
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: $226 million; 2027: $449 million; 2028: $439 million; 2029: $422 million; 2030: $414 million; and 2031: $390 million.
9. Long-term Debt
Long-term Debt consists of the following:
3.90% Senior Notes due 2028
1,488
2.65% Senior Notes due 2030
1,247
2.00% Guaranteed Notes due 2032
1,134
1,172
0.25% Notes due 2027
1,026
1,059
0.50% Notes due 2031
1,024
1,058
5.15% Senior Notes due 2036
992
4.30% Senior Notes due 2029
848
4.50% Senior Notes due 2028
498
497
4.55% Senior Notes due 2031
4.80% Senior Notes due 2033
496
4.85% Senior Notes due 2033
495
5.00% Senior Notes due 2029
494
5.00% Senior Notes due 2034
488
487
7.00% Notes due 2038
195
5.95% Notes due 2041
5.13% Notes due 2043
98
5.00% Senior Notes due 2027
The estimated fair value of SLB’s Long-term Debt, based on quoted market prices at June 30, 2026 and December 31, 2025, was $10.7 billion and $9.4 billion, respectively.
At June 30, 2026, SLB had committed credit facility agreements with commercial banks aggregating $5.0 billion, of which $2.0 billion matures in February 2029 and $3.0 billion matures in December 2030. These committed facilities support commercial paper programs in the United States and Europe. There were no borrowings under these facilities at June 30, 2026 or December 31, 2025.
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 no borrowings under the commercial paper programs at June 30, 2026 and December 31, 2025.
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:
53
93
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 $5.5 billion and $6.3 billion in various foreign currencies as of June 30, 2026 and December 31, 2025, respectively.
Other than the previously mentioned cross-currency interest rate swaps, the fair value of the other outstanding derivatives was not material as of June 30, 2026 and December 31, 2025.
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:
Gain (Loss) Recognized in Income
Consolidated Statement of Income Classification
Derivatives designated as cash flow hedges:
Cross-currency interest rate swaps
(40
(143
467
Cost of services/sales
(35
(37
Interest expense
Foreign currency forward contracts
(19
(185
429
Derivatives not designated as hedges:
(17
42
11. Contingencies
SLB is party to various legal proceedings from time to time. A liability is accrued when a loss is both probable and can be reasonably estimated. Management believes that the probability of a material loss with respect to any currently pending legal proceeding is remote. However, litigation is inherently uncertain, and it is not possible to predict the ultimate disposition of any of these proceedings.
12. Segment Information
Financial information by segment is as follows:
Second Quarter 2026
Depreciation
Income
and
Capital
Before Taxes
Investments (5)
697
48
62
Reservoir Performance
1,556
232
118
125
Well Construction
2,742
417
161
136
Production Systems
3,771
586
152
165
505
85
Eliminations & other
(299
(167
71
30
Corporate & other (1)
(211
Interest income (2)
23
Interest expense (3)
(128
Charges and credits (4)
(69
712
643
Second Quarter 2025
591
153
314
107
2,963
551
169
2,932
491
91
583
155
117
(214
(80
(169
(139
520
Six Months 2026
1,337
328
81
127
3,150
489
231
214
5,539
841
322
7,279
1,083
304
294
948
255
(560
(271
140
(439
(244
(110
1,153
Six Months 2025
1,177
278
89
3,391
596
211
261
5,940
1,140
333
247
5,773
962
201
1,145
317
227
229
(391
(153
(347
90
(283
(228
1,077
Total assets by segment are as follows:
918
925
4,087
3,947
6,365
6,167
9,753
9,373
2,315
2,249
Eliminations and other
1,069
1,033
Goodwill and intangibles
21,877
21,783
Cash and short-term investments
4,071
4,212
All other assets
5,077
5,179
Segment assets consist of receivables, inventories, fixed assets, exploration data costs capitalized, and APS investments.
Revenue by geographic area was as follows:
North America
2,244
1,655
4,412
3,373
Latin America
1,714
1,492
3,243
2,986
Europe & Africa (1)
2,385
2,369
4,642
4,604
Middle East & Asia
2,572
5,257
5,983
139
North America and International revenue disaggregated by segment was as follows:
North
America
International
170
526
1,409
549
2,156
37
1,259
2,478
188
(215
6,671
126
462
1,541
512
2,394
685
2,243
203
380
(173
6,847
17
367
969
290
2,854
1,097
4,351
2,465
4,750
64
331
617
(138
(399
(23
13,142
297
877
3,097
1,054
4,775
1,356
4,410
419
727
(313
13,573
Significant segment expenses, which represent the difference between segment revenue and pretax segment income, consist of the following:
Compensation
193
390
579
481
Cost of products, materials, and supplies
751
2,154
Depreciation and amortization
Allocations
92
137
411
602
503
1,324
2,325
3,185
182
407
592
233
279
818
1,790
163
240
421
593
438
1,377
2,412
2,441
376
776
1,161
514
1,519
4,144
323
461
273
373
817
1,235
527
1,009
2,661
4,698
6,196
372
814
1,195
587
1,620
3,521
162
327
490
276
856
1,162
360
899
2,795
4,800
4,811
Other segment expenses include transportation, mobilization, lease, professional fees, and other costs.
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.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Second Quarter 2026 Compared to First Quarter 2026
First Quarter 2026
640
134
1,594
257
2,797
424
3,508
113
(261
(104
(116
(41
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 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 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 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 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 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
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 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.
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 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 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 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:
First Quarter
Earnings of equity method investments
115
Interest income
Research & engineering and General & administrative expenses, as a percentage of Revenue were as follows:
Second
First
Quarter
1.9
%
2.1
0.9
1.1
1.0
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:
2025:
Liquidity and Capital Resources
Details of the components of liquidity as well as changes in liquidity are as follows:
Components of Liquidity:
511
(1,658
(2,807
(1,894
Long-term debt
(11,140
(10,891
(9,742
Net debt (1)
(8,727
(9,951
(7,424
Six Months Ended Jun. 30,
Changes in Liquidity:
Depreciation and amortization (2)
Increase in working capital
(1,344
(1,401
72
Cash flow from operations
Free cash flow (3)
693
725
Business acquisitions and investments, net of cash acquired and debt assumed
(249
Proceeds from the sale of Palliser APS project
(42
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
(7,405
Net debt, end of period
Key liquidity events during the first six months of 2026 and 2025 included:
The following table summarizes the activity under the share repurchase program:
Total cost
Total number
Average price
of shares
paid per
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
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.
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 numberof sharespurchased
Average pricepaid per share
Total numberof sharespurchased aspart of publiclyannounced plans or programs
Maximumvalue of sharesthat may yet bepurchasedunder the plansor programs
April 2026
4,169.1
52.56
3,457,076
May 2026
3,659.1
55.93
3,252,436
June 2026
4,138.4
54.12
3,028,458
11,966.6
54.13
Item 3. Defaults Upon Senior Securities.
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 Information.
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 May 27, 2026, Olivier Le Peuch, CEO and a member of the SLB Board of Directors, adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 435,000 shares of SLB’s common stock, including shares obtained through the exercise of vested stock options, between August 26, 2026 and July 27, 2027, for a duration of 426 days.
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.
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