SLB Reports 13% Q2 EPS Decline Amid Global Drilling Slowdown

SLB, formerly Schlumberger, reported its Q2 2025 earnings with a year-over-year decline in EPS to $0.74 and revenue falling 6% to $8.55 billion, although both metrics showed slight sequential improvements. The company’s net income was $1.01 billion, down 9% year-on-year but up 27% sequentially, reflecting challenges from weaker drilling activity, particularly in Saudi Arabia and Latin America. North American revenue grew modestly in Q2, while international revenue increased sequentially, driven by regions such as the Middle East, Asia, Europe, and North Africa. SLB’s acquisition of ChampionX, finalized with UK regulatory approval in July, is expected to bolster its portfolio by enhancing exposure to less cyclical production and recovery markets. Despite ongoing headwinds from geopolitical factors, OPEC+ supply dynamics, and trade negotiations, SLB remains optimistic about stability in commodity prices and growth prospects in the second half of 2025. Market analysts maintain an 'Outperform' consensus rating on SLB, with a significant potential upside reflected in price targets and valuation estimates.