SLB N.V. (NYSE: SLB) experienced a slight decline in stock value, dipping 1.15% to $32.54 after revealing mixed results for the third quarter of 2025. The energy services giant faced challenges with profitability; however, it showcased strong revenue figures and impressive digital growth, indicating resilience in a fluctuating energy market.
For the third quarter, SLB reported revenue of $8.93 billion, marking a 4% increase sequentially, yet reflecting a 3% decrease year-over-year. The company’s GAAP earnings per share fell to $0.50, a substantial drop of 32% from the prior quarter and a 40% decline compared to last year. In contrast, the adjusted EPS stood at $0.69, demonstrating a 7% sequential and a 22% yearly decrease.
Net income attributable to SLB was recorded at $739 million, down 27% sequentially and 38% year-over-year, primarily due to diminishing margins. Adjusted EBITDA remained stable at $2.06 billion, while cash flow from operations reached $1.68 billion. Notably, the company generated $1.10 billion in free cash flow, which included $153 million related to acquisitions.
Despite facing pressure on profitability, SLB’s board of directors reaffirmed their commitment to shareholders by approving a quarterly dividend of $0.285 per share. This decision signals confidence in the company’s underlying fundamentals, even as global oil markets remain well-supplied and commodity prices fluctuate.
In a significant highlight, SLB’s Digital Division reported quarterly revenues of $658 million, an 11% sequential increase and a 3% rise year-over-year. This growth was bolstered by enhanced performance in Digital Operations and Platforms & Applications, alongside an additional $20 million contribution from ChampionX. The segment’s pretax operating margin expanded by 250 basis points to 28%, reflecting improved profitability and operational efficiency.
The annual recurring revenue for SLB’s Digital segment climbed to $926 million from $869 million the previous year, showcasing sustained demand for data-driven solutions. Recognizing the growing significance of digital services, SLB began reporting this division separately in the third quarter.
The integration of ChampionX further strengthened SLB’s position in the production and recovery markets, contributing $575 million in Production Systems revenue. Excluding this acquisition, Digital revenue still rose by 8% sequentially, underscoring strong organic growth and aligning with SLB’s strategy to harness value throughout the production lifecycle.
Regionally, SLB’s international operations exhibited resilience despite ongoing geopolitical uncertainties and subdued oil prices. Revenue from the Middle East and Asia experienced a slight 1% decline sequentially, balanced by notable growth in Iraq, Oman, and the United Arab Emirates. Conversely, Latin America saw a 4% revenue decrease, mainly due to production disruptions in Ecuador and reduced activity in Argentina.
Revenue in Europe and Africa remained stable, as gains in Sub-Saharan Africa offset declines in Europe and North Africa. In North America, revenue fell by 4% due to the divestiture of the Palliser project in Canada and weakened land activity in the U.S., although demand for offshore digital exploration and data centers provided some relief.
Looking ahead, SLB anticipates ongoing strength in its international markets, supported by potential future OPEC+ production releases. With a firm cash position and a focus on digital transformation, the company is well-prepared to navigate near-term challenges while expanding its technological presence globally.
