2Q26 Post Mortem and Model Update: Signs of an Upstream Spending Growth Cycle Percolating

Research evidence excerpt

2Q26 Post Mortem and Model Update: Signs of an Upstream Spending Growth Cycle Percolating

J P M O R G A N North America Equity Research

27 July 2026

SLB Overweight

SLB, SLB US

2Q26 Post Mortem and Model Update: Signs of an Price (24 Jul 26):$52.42

Upstream Spending Growth Cycle Percolating ▲Price Target (Dec-26):$62.00 Prior (Dec-26):$61.00

JPM View: SLB’s 2Q26 print delivered the confirmation the market had been

waiting for since Middle East conflict erupted in 1Q26, validating an international Oil & Gas Exploration & Production

growth story broadening across geographies outside the Middle East and spanning Arun Jayaram AC

both short- and long-cycle resource plays. SLB’s stock finished up 11.01% (1-212) 622-8541

(+809bp vs. OSX) on Friday on observable momentum across all core segments, arun.jayaram@jpmchase.com

with guidance that frames the Middle East disruption as transitory rather than a Jason Kim

structural impairment. The company posted 2Q26 revenue of $8.97bn (+3% (1-212) 622-1408

jason.b.kim@jpmchase.com

sequential) despite a 13% decline in Middle East revenue, and adjusted EBITDA

Sowmya Vemulapalli

of $1.90bn (+7% sequential) reflecting a +83bps sequential EBITDA margin

(1-212) 270-4660

expansion to 21.2%. While numerous OFS players have flagged early upcycle sowmya.vemulapalli@jpmchase.com

signals, SLB’s strong print, return to YoY revenue growth outside the Middle East, J.P. Morgan Securities LLC

and a constructive base case for the region read as genuine signs of life for SLB

shares following a downside setup into the quarter. We believe this earnings print

validates SLB’s ability to shine in an OFSE-intensive environment with its Key Changes (FYE Dec)

regional scale and technology leadership position the company as a major winner Prev Cur Δ

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