January 26, 2026
Finance

SLB Limited Sees Analyst Upgrade After Q4 Performance Surpasses Expectations

Despite Industry Challenges, SLB Advances Strategic Initiatives and Raises Prospects for 2025

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Summary

SLB Limited's fourth-quarter results displayed a 5% year-over-year revenue increase and a sequential improvement amid global upstream activity stabilization. Analysts responded positively by raising price targets, reflecting confidence in SLB's strategic focus on production efficiency, AI deployment, and data center expansion despite a challenging macro environment.

Key Points

SLB Limited's Q4 revenue increased 5% year-over-year to $9.745 billion, exceeding analyst expectations of $9.547 billion.
Adjusted diluted EPS was 78 cents, beating the estimated 74 cents, despite a decline from 92 cents in the prior year.
CEO Olivier Le Peuch highlights the company's strategic focus on production optimization, AI integration, and data center growth amid market challenges.
Multiple analysts raised their price targets post-earnings, maintaining buy and outperform ratings with targets now ranging from $49 to $58.

SLB Limited (NYSE: SLB) announced its financial results for the fourth quarter, illustrating sustained sequential progress as global upstream industry activities exhibited signs of stabilization. The company reported revenue reaching $9.745 billion, marking a 5% increase compared to the previous year and surpassing analyst projections estimated at $9.547 billion.

Despite the revenue growth, diluted GAAP earnings per share (EPS) declined to 55 cents from 77 cents reported a year earlier. However, adjusted diluted EPS, which excludes specific charges and credits, stood at 78 cents, down from 92 cents year-over-year, yet above the consensus estimate of 74 cents.

Chief Executive Officer Olivier Le Peuch commented on the challenging context of 2025 characterized by diminished commodity prices, geopolitical tensions, and an oil market experiencing oversupply. Amid these adverse conditions, SLB emphasized building resilience throughout its portfolio by accelerating its strategic directives. This approach involved an intensified focus on enhancing production and recovery, broader integration of artificial intelligence solutions, and rapidly expanding efforts in its Data Center Solutions segment.

The market reacted favorably to these developments, with SLB shares appreciating 1.5%, trading at approximately $49.89 on the Monday following the earnings release.


In response to SLB's earnings announcement, several influential analysts adjusted their price targets upward, maintaining positive stances on the stock:

  • B of A Securities’ Chase Mulvehill retained a Buy rating and elevated the price target from $50 to $55.
  • BMO Capital’s Phillip Jungwirth held an Outperform rating and increased the target price from $53 to $55.
  • Susquehanna’s Bascome Majors maintained a Positive rating and adjusted the target upwards from $52 to $58.
  • RBC Capital’s Keith Mackey reaffirmed an Outperform rating, raising the price target from $51 to $54.
  • JP Morgan’s Arun Jayaram continued with an Overweight rating and significantly increased the target from $43 to $54.
  • Barclays’ David Anderson sustained an Overweight rating and nudged the price target from $47 to $49.
  • Citigroup’s Scott Gruber held a Buy rating and advanced the price target from $53 to $56.

The collective sentiment among these analysts suggests confidence in SLB’s operational strategy and positioning despite the prevailing industry headwinds. Investors weighing opportunities in SLB may consider these positive endorsements as indicators of the company’s potential trajectory.

As of the latest trading session, SLB's stock closed near $49.52, reflecting market optimism about its prospects as articulated in these analyst assessments.

Risks
  • The oil industry faces significant uncertainty in 2025 due to lower commodity prices.
  • Geopolitical instability presents challenges for SLB's operating environment.
  • An oversupplied oil market may pressure demand and earnings potential.
  • Diluted GAAP earnings per share declined year-over-year, signaling potential margin pressures.
Disclosure
Education only / not financial advice
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