2026 07 24 Earnings SLB Q2 Fy2026
SLB beats (EPS $0.55, rev ~$9B). Data Center Solutions +80% YoY / +33% sequential, on track to exceed $2B annualized run-rate by end-2027 on new hyperscaler customers — the load-bearing corroboration of the oilfield→data-center pivot. Middle East -13% sequential on Iraq security constraints.
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SLB's Q2 2026 beat (adjusted EPS $0.55, revenue ~$9.0B, +3% sequential / +5% YoY; FCF $716M, up $739M QoQ) but the causal signal for this project is in the mix, not the headline. Data Center Solutions revenue grew +33% sequentially and +80% year-over-year, and management guided it to exceed a $2 billion annualized run-rate by end-2027, driven by new hyperscaler customers — first-party corroboration of the slb-oilfield-pivot-to-dc-infrastructure chain (an oilfield-services major redeploying subsurface/thermal-management/power competence into AI-datacenter infrastructure). Digital revenue $697M (+9% sequential), adjusted EBITDA margin 34.7% (+860 bps). Offsetting: Middle East revenue −13% sequential to $1.66B on Iraq security constraints, with a flagged Q3 downside of ~$150M revenue / ~$75M EBITDA.
Transcript
(Extracted, speaker-attributed. Verbatim quotes where captured; figures per management. Full Motley Fool transcript not yet published at fetch time and investing.com refuses verbatim reproduction — sourced from the Yahoo/GuruFocus call-highlights digest. Call date 2026-07-24.)
Olivier Le Peuch (CEO) — on Data Center Solutions / the AI-infrastructure pivot: the business is "on track to exceed a $2 billion annualized revenue run rate by the end of 2027," driven by new hyperscaler customers and expanded service offerings. Revenue +33% sequentially, +80% YoY. Framed the company as positioning "into critical infrastructure for the AI economy" as a strategic growth area.
Olivier Le Peuch — on the exploration cycle: the recovery is "driven by energy security and the need to replace reserves, not just higher crude prices," positioning it as a durable long-term trend. Long-cycle project final investment decisions anticipated to grow ~30% YoY in 2026.
Olivier Le Peuch — on Digital: Digital revenue reached $697M (+9% sequential) with adjusted EBITDA margins expanding to 34.7%, up 860 bps.
Olivier Le Peuch — on Q4 outlook: Q4 to feature "Middle East recovery, year-end sales in Digital and Production Systems, and Data Center growth," with Middle East revenue expected to reach ~95% of prior-year Q4 levels.
Middle East challenge / admitted risk: Middle East revenue fell 13% sequentially to $1.66B on security constraints, particularly in Iraq. Management flagged a potential downside scenario of a ~$150M revenue shortfall and ~$75M adjusted-EBITDA headwind in Q3.
Key metrics: total revenue ~$9.0B (+3% sequential); adjusted EPS $0.55; FCF $716M (+$739M QoQ); Production Systems adjusted EBITDA margins above 20%; Digital ~35%.