SLP Today
- 52 week range
- $31.11
▼
$44.97
- Dividend yield
- 3.42%
- P/E ratio
- 12.80
- Price target
- $52.06
SLB shares New York Stock Exchange: plundered The stock fell just over 1% after the oilfield services company reported its third-quarter earnings report. The stock is down roughly 14% in 2025, which is in sympathy with the price of crude oil.
The company had wins on the top and bottom lines. Revenues of $8.93 billion were well above the $8.92 billion expected. Bottom line, SLB generated 69 cents in earnings per share (EPS), which was 3.95% above estimates of 66 cents.
Commenting on the results, CEO Olivier Le Bouche noted that the results met the company’s expectations. Le Peuch noted that this revenue growth occurred “despite the backdrop of a fully supplied oil market, an uncertain geopolitical environment and low commodity prices.”
The oilfield services giant is ready for its next recycling
Despite the immediate reaction to the earnings report, SLB’s results reflect cautious optimism. Given that SLB stock is trading at an attractive valuation and pays a dividend with an attractive 3.5% yield, the company could be a quiet winner among energy stocks in the next oil cycle.
Crude oil prices recently fell below $60 per barrel, but keep in mind that oil prices are often a lagging indicator. Several structural trends point toward increased demand and stronger pricing power in the future. Between infrastructure investment in North America, inland transportation, and a potential increase in OPEC+ production, SLB may be entering a new growth phase.
Energy demand in North America may raise oil prices
One reason we believe higher oil prices are inevitable is the boom in infrastructure and manufacturing investment in the United States. Many companies are taking steps to strengthen their industrial supply chains. Additionally, the ongoing construction of AI infrastructure is creating large-scale infrastructure projects that create essential demand for energy and refined products.
Over time, this combination could tighten supply and support oil prices. As one of the world’s largest oilfield service providers, SLB will directly benefit from renewable exploration and production (E&P) activity in North America. However, this is where SLB’s earnings results act as a leading indicator. When oil prices rise to $80 or $90 per barrel, SLB’s revenue and earnings growth will be priced in.
International growth and OPEC+ production are motivating factors
Le Bush noted that international markets are showing resilience, and specifically pointed to strong growth in several countries across the Middle East and Asia. This is important because approximately 80% of SLB’s revenue comes from international markets, with longer project cycles and higher margins.
The company believes that OPEC+ countries will gradually increase production quotas, supporting the company’s investments in long-cycle projects such as offshore oil fields, showcasing SLB’s expertise.
The technology and energy transition adds a layer of growth
Beyond traditional oilfield services, SLB has become a pioneer in digital and transitional technologies. The company’s SLB New Energy division focuses on carbon capture, geothermal energy and lithium extraction. Analysts believe that these sectors can effectively contribute to revenues over the next ten years.
SLB’s digital platforms, AI tools and remote operations technology improve client efficiency while generating higher margin recurring revenue. In fact, the company’s sum was completed at $7.75 billion Acquisition of ChampionX Added to the company’s profits. SLB expects the acquisition to add $400 million to annual pre-tax costs.
Financial strength and valuation support the bullish case
SLB stock forecast today
$52.00
59.61% upModerate purchase
Based on 20 analyst ratings
| Current price | $32.58 |
|---|---|
| High expectations | $82.00 |
| Average expectations | $52.00 |
| Low expectations | $41.00 |
SLB stock forecast details
Since the recent energy downturn, SLB has prioritized free cash flow, balance sheet optimization, and capital discipline.
With lower debt and higher profitability, the company has room to increase dividends and buy back stock.
Despite its strong fundamentals and improving global outlook, SLB stock is trading below historical valuation multiples and at a discount to its industry peers. SLB stock is trading 59% below the analyst consensus target price. This discrepancy exists despite the negative sentiment in SLB stock in the past month.
Analysts expect modest earnings growth of 5.9% in the next 12 months.
However, if oil prices stabilize in the $80-90 range, earnings could expand at a double-digit rate through 2026, supporting the stock’s upside. The stock trades at a discount multiple of about 9 times forward earnings.
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