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Get filing alertsSLB reports Q2 revenue $8.97B (+5% YoY), Middle East conflict disrupts operations
Filed July 24, 2026 · Period ending July 24, 2026 · ~2 min read
Key Changes
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high
Middle East revenue fell 13% sequentially due to operational disruptions and lower activity from regional conflict; recovery timing uncertain and depends on durable conflict resolution.
Exhibit 99 view on EDGAR → -
high
Q2 revenue $8.97B (+3% seq, +5% YoY); GAAP EPS $0.52 (+4% seq, -30% YoY); adjusted EPS $0.55 (+6% seq, -26% YoY); operating cash flow $1.36B, free cash flow $716M.
Exhibit 99 view on EDGAR → -
high
Data Center Solutions revenue $186M (+33% seq, +80% YoY); on track to exceed $1B annualized run rate by year-end 2026, targeting $2B by end of 2027; selected as delivery partner for Meta's 1GW Canada data center.
Exhibit 99 view on EDGAR → -
medium
Board declared quarterly dividend $0.295/share, payable October 8, 2026 to holders of record September 2, 2026.
Exhibit 99 view on EDGAR → -
medium
Repurchased 12M shares for $648M during quarter; completed acquisition of Tachyus Corp. to strengthen digital portfolio with physics-based reservoir modeling capabilities.
Exhibit 99 view on EDGAR →
Summary
SLB reported second-quarter 2026 results showing revenue growth to $8.97 billion (up 3% sequentially and 5% year-over-year), but profitability declined year-over-year with GAAP EPS of $0.52 (down 30%) and adjusted EPS of $0.55 (down 26%).
The year-over-year earnings compression reflects operational headwinds, particularly in the Middle East where revenue fell 13% sequentially due to conflict-related disruptions including production shut-ins and security challenges. While activity began recovering in certain countries during the quarter, management stated the timing of full recovery remains uncertain and depends on a durable resolution of the conflict.
The Middle East represents approximately 65% of the company's Middle East & Asia area revenue, making this a material operational constraint. A bright spot is the Data Center Solutions business, which generated $186 million in Q2 revenue (up 80% year-over-year) and is on track to exceed $1 billion annualized run rate by year-end 2026. The company was selected as a delivery partner for Meta's new 1GW data center in Canada, supporting management's target of $2 billion annualized run rate by end of 2027. SLB returned capital to shareholders through a $0.295/share quarterly dividend and $648 million in share repurchases during the quarter. The company also completed the acquisition of Tachyus Corp. to enhance its digital reservoir modeling capabilities. Investors should monitor Middle East conflict developments and their impact on operations, as well as the Data Center Solutions growth trajectory as a potential offset to traditional oilfield services headwinds.
Section-by-Section Diff
Event · Exhibit 99
Added in current filing · view on EDGAR → · paraphrased
Revenue of $8.97 billion increased 3% sequentially and 5% year on year
GAAP EPS of $0.52 increased 4% sequentially and decreased 30% year on year
EPS, excluding charges and credits, of $0.55 increased 6% sequentially and decreased 26% year on year
Net income attributable to SLB of $786 million increased 5% sequentially and decreased 22% year on year
Adjusted EBITDA of $1.90 billion increased 7% sequentially and decreased 7% year on year
Cash flow from operations was $1.36 billion and free cash flow was $716 million
SLB disclosed second-quarter 2026 results showing sequential revenue growth of 3% to $8.97 billion and year-over-year growth of 5%. GAAP earnings per share were $0.52, up 4% sequentially but down 30% year-over-year. Adjusted EPS (excluding charges and credits) was $0.55, up 6% sequentially but down 26% year-over-year. Net income attributable to SLB was $786 million, up 5% sequentially but down 22% year-over-year. Adjusted EBITDA reached $1.90 billion, up 7% sequentially but down 7% year-over-year. The company generated $1.36 billion in operating cash flow and $716 million in free cash flow during the quarter.
Added in current filing · view on EDGAR → · paraphrased
In the Middle East, the first-half revenue decline reflected lower activity and operational disruptions associated with the conflict. While activity began to recover in certain countries during the second quarter, the timing of a full recovery remains uncertain and will depend on a durable resolution of the conflict.
The decline in the Middle East was driven by lower activity levels and operational disruptions related to the regional conflict. While activity began to recover in certain countries as conditions improved, operations in other markets remained constrained by production shut-ins and security challenges.
Revenue in the Middle East & Asia of $2.57 billion decreased 4% sequentially, reflecting a 13% decline in the Middle East, partially offset by a 17% increase in Asia. The Middle East accounted for approximately 65% of the area's revenue in the second quarter of 2026.
SLB disclosed that Middle East revenue declined 13% sequentially due to operational disruptions and lower activity associated with the regional conflict. While activity began recovering in certain countries during Q2, operations in other markets remained constrained by production shut-ins and security challenges. The Middle East represented approximately 65% of the Middle East & Asia area's revenue. Management stated that the timing of a full recovery remains uncertain and depends on a durable resolution of the conflict.
Added in current filing · view on EDGAR → · paraphrased
Our Data Center Solutions business maintained its strong growth trajectory during the second quarter, supported by rising demand and customer expansion. Data Center Solutions revenue in the first six months of 2026 grew 63% year on year.
During the quarter, Meta announced plans for a new 1GW data center in Canada, and we are proud to have been selected as a delivery partner for this project.
The Data Center Solutions business remains on track to exceed $1 billion annualized revenue run rate by the end of this year. As we broaden our offering and further diversify our customer base and geographic footprint, we expect to surpass $2 billion annualized revenue run rate as we exit 2027.
Data Center Solutions revenue was $186 million in the second quarter of 2026, $141 million in the first quarter of 2026, and $104 million in the second quarter of 2025, resulting in a 33% increase sequentially and 80% increase year on year.
SLB's Data Center Solutions business generated $186 million in Q2 2026 revenue, up 33% sequentially and 80% year-over-year. First-half 2026 revenue grew 63% year-over-year. The company was selected as a delivery partner for Meta's new 1GW data center in Canada. Management stated the business remains on track to exceed $1 billion annualized revenue run rate by year-end 2026 and expects to surpass $2 billion annualized revenue run rate by the end of 2027.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 27, 2026 · How we verify