SLB Beats Q3 Estimates With $9.45B Revenue and Announces $4.1B Kelvion Acquisition

SLB N.V. reported third-quarter 2026 results that topped Wall Street expectations across all major metrics, posting revenue of $9.45 billion against analyst estimates of $9.3 billion, a 2% gain on a pro forma basis. Adjusted EPS came in at $0.64, two cents above the $0.62 consensus, while adjusted EBITDA reached $2.07 billion versus estimates of $2.03 billion. GAAP net income slipped 1% year over year to $735 million, with GAAP EPS of $0.49 down 2%, as increased expenses weighed on the bottom line.

Production Systems was the strongest segment, generating $4.0 billion in revenue, up 6% pro forma, while North America revenue rose 13% pro forma to $2.40 billion. Well Construction fell 3% to $2.89 billion and Reservoir Performance dropped 3% to $1.63 billion year over year. International revenue of $6.99 billion was flat pro forma. The Digital division grew 5% to $693 million, with annual recurring revenue up 13% to $1.04 billion, and Data Center Solutions revenue surged 76% to $230 million. Adjusted EBITDA margin contracted 121 basis points to 21.9%, and pretax segment operating margin fell 153 basis points to 16.7%.

The company generated $1.51 billion in operating cash flow and $828 million in free cash flow during the quarter, and repurchased 12.9 million shares for $656 million. The quarter included $242 million in pretax charges, comprising a $187 million pension settlement charge and $55 million in merger and integration costs. SLB maintained its full-year capital investment guidance of approximately $2.5 billion.

The headline strategic announcement was a signed agreement to acquire German heat exchanger manufacturer Kelvion for approximately $3.4 billion in cash, plus the assumption of roughly $700 million in debt, with closing expected in the first half of 2027. Management said the company sees a very compelling outlook for 2027, with further upside as Middle East activity continues to recover. Shares rose approximately 1.9% in premarket trading following the results.