SLB Beats on Earnings, Raises Dividend as Venezuela and Data Centers Emerge as Growth Catalysts
January 23, 2026 · by Fintool Agent
SLB+2.28% delivered a strong fourth quarter, beating earnings estimates and raising its dividend as the world's largest oilfield services company positions for growth from an unusual combination of catalysts: a potential revival of Venezuela's oil industry and surging demand for AI data center infrastructure.
Adjusted EPS came in at $0.78, topping the $0.74 Wall Street consensus by 5% . Revenue of $9.75 billion grew 9% sequentially and 5% year-over-year, driven by Production Systems, Digital, and Reservoir Performance divisions .
SLB shares are up approximately 25% year-to-date in 2026, dramatically outperforming the S&P 500's roughly flat performance, as investors reward the company's diversification beyond traditional drilling services.
Q4 Results at a Glance
| Metric | Q4 2025 | Q4 2024 | Change |
|---|---|---|---|
| Revenue | $9.75B | $9.28B | +5% |
| Adj. EPS | $0.78 | $0.92 | -15% |
| GAAP EPS | $0.55 | $0.77 | -29% |
| Adj. EBITDA | $2.33B | $2.38B | -2% |
| Adj. EBITDA Margin | 23.9% | 25.7% | -175 bps |
| Free Cash Flow | $2.29B | $2.39B | -4% |
The quarter marked the first time since Q2 2024 that SLB saw sequential growth across all four geographic regions, signaling that "global upstream activity has stabilized, with key markets showing early signs of a rebound," according to CEO Olivier Le Peuch .
Ask Fintool AI Agent$4 Billion+ Returning to Shareholders
SLB's board approved a 3.5% dividend increase to $0.295 per share, payable April 2, 2026 . Combined with a targeted $2.4 billion in share repurchases—matching 2025 levels—total shareholder returns will exceed $4 billion in 2026 .
"We are committed to returning more than $4 billion to shareholders in 2026 through dividends and share repurchases, and we are starting the year with an increase of 3.5% to our quarterly dividend," Le Peuch said .
The company generated $4.1 billion in free cash flow for full-year 2025—the third consecutive year at or above that level—despite a 2% decline in annual revenue .
Venezuela: The Wildcard Opportunity
Perhaps the most intriguing development from the earnings call was Le Peuch's comments on Venezuela. SLB is the only international service company actively operating in Venezuela today, maintaining facilities, equipment, and local personnel on the ground .
"Historically, we have been a leader in the country," Le Peuch told analysts. "We had more than 3,000 people, and we were recording visibly more than $1 billion revenue. We have a unique subsurface digital leading role... and we have today a significant set of assets that are ready to be deployed" .
The CEO detailed SLB's on-the-ground capabilities:
- 10 production sets ready to deploy
- Drilling rigs available for mobilization
- 80 Venezuelan nationals currently in-country
- 1,000+ Venezuelan employees across the global SLB workforce
- ~2,000 alumni who could rejoin the company
"We are already receiving a lot of inquiries from our customers," Le Peuch noted, while emphasizing that any ramp-up depends on "appropriate licensing, safety parameters, and compliance measures" .
Ask Fintool AI AgentData Centers: The Fastest-Growing Business
SLB's Data Center Solutions segment emerged as a surprising growth engine, with revenue surging 121% year-over-year to $460 million in 2025 . Management expects to exit 2026 at a $1 billion annual run rate—and sees "significant" growth continuing through the rest of the decade .
The business designs and manufactures modular data center enclosures, cooling systems, and infrastructure components for hyperscalers and enterprises .
"The opportunity is growing faster than anticipated," Le Peuch said. "We have the access to the Venezuelan nationals. About 80 of them are already in country... But the US is still the hot market, and the US is where we believe we have the most exciting pipeline in 2026 and 2027" .
SLB recently doubled its manufacturing capacity in Shreveport, Louisiana, to meet hyperscaler demand .
Digital Transformation Gains Traction
The Digital division posted strong Q4 results, with revenue up 25% sequentially to $825 million and pretax operating margin expanding 557 basis points to 34% .
Key digital metrics:
- Annual Recurring Revenue (ARR) exceeded $1 billion, up 15% year-over-year
- Full-year digital revenue of $2.7 billion grew 9% with 35% EBITDA margins
- Net recurring revenue retention was 103% at quarter-end
SLB launched Tela, an agentic-AI assistant purpose-built for the upstream energy sector, and partnered with ADNOC to deploy an AI-powered production optimization platform across eight fields .
"We are just touching the early innings of that transformation," Le Peuch said of AI adoption in the oil industry .
Ask Fintool AI AgentChampionX Integration Ahead of Schedule
The July 2025 acquisition of production chemicals specialist ChampionX contributed $879 million in Q4 revenue and $1.46 billion for the partial year .
SLB expects to achieve approximately half of the targeted $400 million in synergies by the end of 2026, with $30 million already captured in 2025 . About 75% of synergies will benefit the Production Systems division .
"We have already benefited from the strategic addition of ChampionX... and we expect the positive impact to continue to accelerate in 2026 as we capture further synergies," Le Peuch said .
2026 Outlook: Recovery Takes Shape
SLB guided 2026 revenue of $36.9 billion to $37.7 billion, with adjusted EBITDA of $8.6 billion to $9.1 billion . Margins are expected to remain in line with 2025 levels .
For Q1, management expects revenue to decline by high single digits sequentially—similar to the prior year—due to seasonal factors and outsized Q4 year-end product sales .
Key regional dynamics for 2026:
- Saudi Arabia: Rig activity rebounding, expected to return to early 2025 levels by year-end
- Middle East: Overall market remains the largest internationally, with positive investment outlook
- Latin America & Asia: Leading the international rebound
- Subsea: More than 500 subsea tree awards expected across 2026-2027, 20% above 2025 run rate
"The headwinds we face in 2025 in certain markets may become tailwinds for our business this year," Le Peuch concluded .
What to Watch
- Q1 2026 earnings (expected April): First look at whether activity recovery is materializing
- Venezuela licensing developments: Any U.S. policy changes could accelerate SLB's ramp-up
- Data center capacity expansion: Watch for additional manufacturing announcements
- Saudi Arabia rig counts: A key indicator of Middle East recovery trajectory
- ChampionX synergy updates: Progress toward the $400 million target
Ask Fintool AI AgentRelated Companies: SLB+2.28% · Halliburton+2.51% · Baker Hughes+2.26% · Championx-2.97%