SLB set to report 51-cent EPS as oil price tailwinds face analyst skepticism

SLB N.V. (NYSE: SLB) is scheduled to report second-quarter earnings before the opening bell on Friday, July 24, with analysts projecting earnings of 51 cents per share on revenue of $8.71 billion.

"The macro environment for oilfield services has improved significantly with WTI crude averaging above $95 a barrel in the quarter, but SLB's earnings trajectory remains pressured by operational disruptions in the Middle East," said Luke Thompson, senior oilfield services analyst at Tudor Pickering Holt & Co.

The Zacks Consensus Estimate for second-quarter EPS of 51 cents implies a 31.1 percent decline from the year-ago period, when the company reported 74 cents per share. Revenue of $8.71 billion would represent a 1.9 percent increase from $8.55 billion a year earlier. The company has beaten consensus estimates in each of the past four quarters, delivering an average surprise of 3.32 percent.

The earnings miss risk is elevated heading into the print. SLB carries a Zacks Rank of 4 (Sell), and its Earnings ESP — which measures the divergence between the most recent estimate and the consensus — stands at negative 1.96 percent, a historically bearish signal for a beat. Analysts have revised estimates downward over the past seven days.

Oil Prices Provide a Tailwind, but Headwinds Remain

WTI crude oil prices averaged $100.32 a barrel in April, $102.13 in May and $84.81 in June, well above the $63.54, $62.17 and $68.17 recorded in the same months of 2025. The year-over-year improvement of roughly 50 percent in the second quarter has boosted drilling activity, creating a favorable backdrop for SLB's North American and international operations.

However, the company's Reservoir Performance and Well Construction segments faced operational disruptions during the first quarter due to the ongoing Middle East conflict, a dynamic that likely persisted into the second quarter. The ChampionX acquisition, completed earlier this year, contributed to first-quarter revenue growth and is expected to provide a similar lift in the June quarter.

What to Watch in the Print

Investors will focus on SLB's Digital segment revenue, which drove the first-quarter beat, and any update on Middle East operations. The company's international revenue mix and margin trajectory will also be in focus, given the elevated commodity price environment.

A miss on earnings would mark the first time SLB has fallen short of consensus in five quarters. The stock has gained more than 2 percent this week alongside a broader rally in energy shares, with WTI crude climbing to a six-week high amid escalating US-Iran tensions that threaten shipping through the Strait of Hormuz.

The report carries implications for the broader oilfield services sector. A weak print could pressure peers including Halliburton Co. (NYSE: HAL) and Baker Hughes Co. (NASDAQ: BKR), both of which report later in the earnings cycle. Investors will watch SLB's forward guidance for signs that management expects the operational headwinds to persist into the second half of 2026.

This article is for informational purposes only and does not constitute investment advice.