New York, January 23, 2026, 14:49 EST — Regular session underway.
- After a choppy session, SLB shares ended the afternoon nearly flat.
- The company topped a major quarterly profit forecast and boosted its dividend, though it warned of a weaker first quarter ahead.
- Executives noted SLB is ready to increase operations in Venezuela once U.S. licensing and payment terms are finalized.
SLB (NYSE: SLB) shares held steady near $49.33 Friday afternoon, after earlier fluctuating between $48.65 and $51.66. Trading volume was notably high as investors digested an earnings beat offset by a cautious short-term outlook.
This update is key since SLB is at the heart of worldwide oilfield spending. Traders view its data and forecasts as a gauge for activity spanning U.S. shale, deepwater, and national oil companies.
This comes as service companies shift focus toward production work and digital services, sectors that tend to hold steady when drilling tapers off. A reopening of Venezuela to major international operations could create fresh demand, though that hinges on political developments and permit approvals.
SLB surpassed Wall Street’s fourth-quarter profit forecasts, buoyed by a full quarter of ChampionX following last year’s acquisition. Adjusted earnings, stripping out one-off items, came in at 78 cents per share, above the 74-cent consensus, Reuters reported. North America revenue jumped roughly 26%. Looking ahead, SLB expects first-quarter revenue to slide by high single digits sequentially, with adjusted core profit forecast to drop 15% to 20% due to seasonal weakness. The company also set 2026 revenue guidance between $36.9 billion and $37.7 billion, assuming oil prices stay in the $50 to low-$60 range per barrel. (Reuters)
CEO Olivier Le Peuch said in the earnings release that the “headwinds” in key regions last year “are behind us,” highlighting a possible rebound in Middle East rig activity. SLB reported its Digital annualized recurring revenue surpassed $1 billion by quarter’s end, while its Data Center Solutions business surged 121% year-over-year. The company generated $2.29 billion in free cash flow, a cash-after-capex figure, and raised its quarterly dividend by 3.5% to $0.295 per share, payable April 2 to shareholders of record Feb. 11. (SEC)
Venezuela is now a key variable. Le Peuch told a post-earnings call the company was “already receiving a lot of inquiries” from customers and could quickly scale up operations there if licensing, payment terms, and permits fall into place, Reuters reported. SLB met with White House officials after the U.S. ousted President Nicolas Maduro in early January. Rival Halliburton has also expressed interest in returning once commercial and legal conditions are sorted. SLB said it remains the only international service company actively working in Venezuela, providing services to Chevron under the oil major’s license. (Reuters)
The possibility has sparked a strong rally in oilfield-services stocks this month, though the trade remains mixed. Investors are working to distinguish between deals likely to be finalized and those still stuck in the realm of discussion and preliminary proposals.
The downside scenario is clear: Venezuela’s operations hit a wall if licenses, safety regulations, or payment guarantees falter, and the first-quarter slump turns out worse than SLB suggests. Another red flag is the oil price range factored into SLB’s 2026 revenue forecast—drop below that band, and clients usually cut spending sharply.
Traders are now focused on any firm updates regarding U.S. licensing and contract details in Venezuela, while also looking for indications of a pickup in Middle East activity heading into Q2. The closest firm date ahead is the raised dividend’s record date on Feb. 11, with payments scheduled for April 2.
