ChampionX Acquisition Boosts Revenue Amid Challenges
SLB announced its financial results for the first quarter of 2026, reporting a revenue increase of 3% year-on-year, reaching $8.72 billion as of 31st March 2026. This growth was primarily attributed to the acquisition of ChampionX, which contributed $838 million in revenue.
Despite the revenue growth, SLB’s GAAP EPS fell by 14% year-on-year to $0.50, while net income attributable to the company decreased by 6% to $752 million. the adjusted EBITDA saw a decline, decreasing 12% to $1.77 billion.
ChampionX’s acquisition played a crucial role, driving a 23% increase in Production Systems revenue. This acquisition added $199 million in adjusted EBITDA and $149 million in pretax segment operating income.
Geopolitical disruptions in the Middle East presented challenges for SLB, significantly affecting Well Construction and Reservoir Performance operations. The company demobilised operations in several countries to ensure the safety of personnel and facilities.
CEO Olivier Le Peuch commented, “It was a challenging start to the year as widespread disruptions in the Middle East impacted our business.” he highlighted that revenue increased in other regions beyond the Middle East.
SLB’s Digital and Data Centre Solutions divisions experienced growth, with digital revenue increasing by 9% year-on-year. This growth was supported by ongoing momentum in Digital Operations and a 15% rise in annualized recurring revenue.
North America experienced a significant 26% increase year-on-year, with revenue reaching $2.17 billion. Meanwhile, international revenue decreased by 4% to $6.47 billion.
During the quarter, SLB repurchased 9.2 million shares of its common stock for $451 million. A definitive agreement was also announced to acquire the geoscience and petroleum engineering software business of S&P Global Energy.
The board approved a quarterly cash dividend of $0.295 per share, payable on 9th July 2026 to stockholders of record on 3rd June 2026. Cash flow from operations was recorded at $487 million.
Revenue by division revealed that Digital saw a 9% increase, reaching $640 million, while Reservoir Performance decreased by 6% to $1.59 billion. Well Construction revenue declined by 6% to $2.80 billion. Production Systems, however, increased by 23% to $3.51 billion.
