Schlumberger (SLB)
NYSEEnergyOil & Gas Equipment & ServicesSnapshot 2026-09-04
$57.51+0.17%
Close 2026-09-04 · 1-day change
NYSEEnergyOil & Gas Equipment & ServicesSnapshot 2026-09-04
Broken: Recent financial performance freshly dropped to the bottom half of its industry.
Schlumberger beats earnings estimates with 3-5% revenue growth. It announced a $4 billion buyback and maintains solid free cash flow yield near 7%. The stock trades at a low PE of 17 versus peers at 33. Analysts expect 6% revenue growth next year.
The recent 20% selloff signals market doubts on growth durability. EPS guidance for 2026 Q1 is weak at $0.07 versus $0.52 reported. Oilfield services face sector headwinds and volatile demand. Revenue growth could fall below 3%.
The price is about 25% below our fair value near $62, reflecting justified caution. The market expects about 6% revenue growth, close to consensus. Our fair value aligns with the Street median near $64.
Breaks if: Buyback is canceled or materially reduced
Breaks if: EPS falls below $2.0 in FY26
Breaks if: YoY revenue growth falls below 3% next year
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a stable management team. However, the current thesis is weakened due to recent financial performance and execution quality concerns.
The market appears to have priced in a neutral valuation, reflecting a cheap stance compared to peers. There is a slight expectations gap, indicating that investors are not anticipating significant changes in performance.
Management is on track with growth in digital and data center solutions, and the integration of ChampionX is progressing well. However, the fragility of earnings quality and a moderate risk profile suggest that performance may remain inconsistent in the near term.
The thesis hinges on inflation trends, guidance updates from management, and performance of sector peers like BKR, FTI, and HAL. Any negative guidance from SLB could lead to a significant downturn.
The most important moves since the prior daily snapshot.
Yes, our read has weakened. Recent financial performance dropped from the top half to the bottom half of its industry. This change indicates a weakened reason to own the stock. The latest earnings beat does not offset this decline in standing.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: PE rises above 25 without earnings growth
In the next 1 to 3 years, SLB's performance will depend on effective management execution and favorable sector conditions. Not investment advice.