NEW YORK, Jan 23, 2026, 15:37 (EST) — Regular session
- SLB shares edged up roughly 0.3% to $49.47, having fluctuated between $48.65 and $51.66 earlier.
- Q4 adjusted EPS came in at 78 cents, surpassing expectations; SLB raised its dividend and projected shareholder returns topping $4 billion in 2026
- CEO reports a surge in customer inquiries about Venezuela, though any significant expansion hinges on securing licenses and agreeable payment terms
SLB shares gained roughly 0.3% to $49.47 in Friday afternoon trading, after jumping as much as 4.7% earlier. The oilfield services company’s quarterly update sparked early buying but momentum faded as investors digested guidance and news around Venezuela.
This shift is significant as oilfield service stocks juggle two narratives: will upstream activity hold steady after a sluggish 2025, and can Venezuela shift from just headlines to actual projects? SLB finds itself caught between these two forces.
Investors are watching to see if service firms can sustain cash flow even as drilling budgets fluctuate. That’s reflected in dividends, buybacks, and margins—not just catchy slogans.
SLB posted fourth-quarter revenue of $9.75 billion with adjusted earnings at 78 cents per share, while GAAP earnings came in at 55 cents. The company generated $2.29 billion in free cash flow after capital expenditures, and boosted its quarterly dividend by 3.5% to $0.295 per share, payable April 2 to shareholders on record as of Feb. 11. CEO Olivier Le Peuch said SLB is “committed to returning more than $4 billion to shareholders in 2026” through dividends and buybacks. The AI Journal
On the post-earnings call, management set 2026 revenue guidance between $36.9 billion and $37.7 billion, with adjusted EBITDA projected from $8.6 billion to $9.1 billion. For Q1, they expect a high single-digit sequential revenue drop and a 150 to 200 basis point decline in adjusted EBITDA margin — a basis point equals 0.01 percentage point — reflecting typical year-end seasonality.
Behind the numbers, SLB has been pushing more into production-focused work, along with digital products and a small yet rapidly expanding data center solutions segment. This blend offers some cushion when new drilling activity dips, but it also means there’s less margin for error if prices take a hit.
Venezuela remains a wildcard. “We are already receiving a lot of inquiries from our customers,” Le Peuch said, but stressed the need for proper licensing and compliance before any growth. SLB claims it’s the only international service company currently operating in Venezuela, doing work for Chevron under the oil giant’s license. The company also pointed out that it once pulled in over $1 billion annually there, about ten years ago. Reuters
The broader picture remains uneven. U.S. drillers increased the oil and gas rig count by one this week, pushing the total to 544, according to Baker Hughes data. It’s a modest uptick, but traders keep a close eye on it as an indicator of short-term service demand.
Peers are pushing the same message on cash flow and discipline. Halliburton reported Q4 revenue of $5.7 billion this week and flagged $1 billion in share buybacks planned for 2025, highlighting how much the company is relying on returns to retain investor interest.
Still, a few factors could push in the opposite direction. Venezuela’s ramp-up hinges on securing licenses and reliable payments, while a plunge in oil prices could swiftly curb customer spending. SLB itself acknowledges that the first quarter tends to be seasonally weaker.
Traders will soon weigh SLB’s outlook against other oilfield services firms as earnings season progresses. Baker Hughes is set to release results after the market closes on Jan. 25, followed by a conference call on Jan. 26.
