Schlumberger 2025 Q2 Earnings Net Income Falls 8.5%

Schlumberger (SLB) reported its fiscal 2025 Q2 earnings on July 18th, 2025. The company posted total revenue of $8.55 billion, reflecting a 6.5% decrease from the previous year. Earnings per share (EPS) declined to $0.75, missing analyst expectations, while net income also fell to $1.05 billion. Schlumberger's guidance for the second half of 2025 anticipates revenue between $18.2 billion and $18.8 billion. The company expects steady performance from its legacy businesses and benefits from the integration of ChampionX, although EBITDA margins are projected to remain flat compared to Q2.

Revenue

The total revenue of Schlumberger decreased by 6.5% to $8.55 billion in 2025 Q2, down from $9.14 billion in 2024 Q2.

Earnings/Net Income

Schlumberger's EPS declined 4.8% to $0.75 in 2025 Q2 from $0.78 in 2024 Q2. Meanwhile, the company's net income declined to $1.05 billion in 2025 Q2, down 8.5% from $1.15 billion reported in 2024 Q2. The EPS performance was below expectations, indicating weaker profitability.

Price Action

The stock price of Schlumberger has edged down 2.86% during the latest trading day, has tumbled 10.69% during the most recent full trading week, and has dropped 7.21% month-to-date.

Post-Earnings Price Action Review

Schlumberger's strategy of buying shares post-earnings when revenue increases quarter-over-quarter has historically yielded strong returns. Over the past three years, this approach has generated a 115.72% return, exceeding the benchmark of 85.48% by 30.24%. With a compound annual growth rate (CAGR) of 16.72%, the strategy has demonstrated significant profitability while maintaining effective risk management. The maximum drawdown of 0.00% highlights its resilience, making it an attractive option for investors seeking reliable gains. This consistent performance underscores Schlumberger's proven ability to capitalize on positive revenue trends, reinforcing confidence in its strategic framework.

CEO Commentary

Olivier Le Peuch, CEO & Director, remarked on Schlumberger's solid performance in Q2 2025, highlighting revenue growth in international markets driven by strong activity in the Middle East, Asia, and North Africa. He noted the challenges faced, particularly in North America due to seasonal impacts and project delays. Le Peuch emphasized the strategic importance of the ChampionX acquisition, stating it enhances SLB's portfolio and positions the company to capture growth in the production recovery market. He expressed optimism about the resilience of the oil and gas market, indicating that SLB is well-prepared to leverage its strengths and deliver value for customers.

Guidance

Le Peuch provided guidance for the second half of 2025, expecting revenue between $18.2 billion and $18.8 billion, supported by the incorporation of ChampionX and steady performance in legacy SLB businesses. He indicated that the fourth quarter would benefit from a full quarter of ChampionX and seasonal increases in digital and product sales, resulting in anticipated flat EBITDA margins compared to Q2.

Additional News

In recent developments, Schlumberger has completed its acquisition of ChampionX, with the transaction finalizing on July 17, 2025. This strategic move aims to enhance SLB's portfolio, particularly in the production recovery market. Additionally, Schlumberger announced a new partnership with Shell on April 7, 2025, to expand the deployment of subsurface digital technology, which is expected to drive operating cost efficiencies. Furthermore, the company has been awarded a major drilling contract by Woodside Energy for the ultra-deepwater Trion development project offshore Mexico, highlighting SLB's continued expansion and strengthening its market presence in key regions.