First Read SLB Ltd 2Q26 Earnings Recap - Earnings Beat on Strong Top Line and Margin Performance

研报英文原文证据摘录

First Read SLB Ltd 2Q26 Earnings Recap - Earnings Beat on Strong Top Line and Margin Performance

Forecast returns

Forecast price appreciation 39.8%

Forecast dividend yield 2.6%

Forecast stock return 42.3%

Market return assumption 9.4%

Forecast excess return 33.0%

Company Description

Schlumberger is the largest oilfield services company globally, with a top three market share

across most of its product lines, and earnings that are almost double its closest competitor.

SLB has the largest international footprint, generating about two-thirds of its revenue outside

of North America, versus about 50-60% for peers. The company operates in more than 120

countries through four business divisions: 1) Digital and Integration, 2) Reservoir

Performance, 3) Well Construction, and 4) Production Systems.

Valuation Method and Risk Statement

Our price target is based on a 2027E 11.0x EV/EBITDA multiple, a premium to the 8.5x FY2

EV/EBITDA multiple SLB has traded at over the last five years in order to reflect Venezuela

growth potential and the return of Saudi activity.

Risks for the oil service and contract drilling stocks include: 1) Weakness in macroeconomic

conditions; 2) Volatility in oil and/or gas prices; 3) Weather conditions, including hurricanes; 4)

Overcapacity in drilling or service equipment due to new construction; 5) Operational risks,

including equipment related issues; 6) Environmental risk associated with hydrocarbons or

chemicals; 7) Geopolitical risks; and 8) Inherent stock price volatility associated with this

sector. In addition to the general risks related to the oilfield services industry, SLB bears

specific risks related to some of the geographic regions.

First Read: SLB Ltd 24 July 2026 ab 2