2Q26 Earnings Review - Recovery Taking Shape, Growth Drivers Intact

Research evidence excerpt

2Q26 Earnings Review - Recovery Taking Shape, Growth Drivers Intact

0.55 6 0.55

levels. Combined with production recovery work and a regional activity upcycle as Q3E 0.65 0.64 -2 0.64

producers look to increase productive capacity, we see the potential for Middle Q4E 0.84 0.82 -2 0.81

East revenues to return to Y/Y growth in early-27, driving the increase to our FY27 12/26E 2.53 2.53 -0 2.52

forecasts. 12/27E 3.49 3.48 -0 3.30

12/28E 4.04 4.09 1 3.85

Data Center Growth. SLB continues to execute within its Data Center Solutions

Josh Silverstein

business, growing to quarterly revenue of $186mm in 2Q26. Looking Analyst

ahead, SLB remains on track to reach its >$1Bn runrate by YE26, and expects this josh.silverstein@ubs.com

to expand further to >$2Bn by YE27. With this, we see SLB's "All Other" segment +1-212-713 3513

revenue growing to $570mm in 4Q26 and $706mm in 4Q27. While the venture is William Barber

currently margin dilutive, it has the ability to drive margin enhancements over time Associate Analyst

through scaling the business, working up the technology stack, and adding william.barber@ubs.com

aftermarket maintenance/service agreements. We also note the strong FCF profile +1-212-713 5553

of the venture supporting SLB at the corp level. Peyton Dorne

Updating Estimates. We increase our FY26/FY27 Adj. EBITDA estimates by Analyst

peyton.dorne@ubs.com

2%/1% to $8.16/$9.66Bn. We maintain our 11x multiple and $66 PT.

+1-212-713 4359

Highlights (US$m) 12/23 12/24 12/25 12/26E 12/27E 12/28E 12/29E 12/30E

Revenues 33,135 36,289 35,709 37,241 41,278 43,581 45,907 48,391

EBIT (UBS) 5,795 6,551 5,820 5,242 6,741 7,603 8,363 9,188

Net earnings (UBS) 4,305 4,888 4,210 3,808 5,116 5,861 6,525 7,243

EPS (UBS, diluted) (US$) 2.98 3.40 2.93 2.53 3.48 4.09 4.68 5.33