Wall Street Analysts Maintain Bullish Stance on Schlumberger Stock Despite Q2 Earnings Miss

Schlumberger's stock has underperformed the broader market over the past year, plunging 10.9% YTD and 28.2% over the past 52 weeks. The company's Q2 results showed a slight improvement from Q1, but its topline dropped 6.5% YoY to $8.5 billion. Analysts expect a 15.5% YoY decline in adjusted EPS for FY 2025. The stock holds a "Strong Buy" rating overall, with 15 "Strong Buy" and 4 "Moderate Buy" recommendations. The mean price target of $46.56 represents a 36.3% premium to current price levels.

Title: Schlumberger's Stock Performance: A Mixed Bag of Results and Analyst Recommendations

Schlumberger's stock has underperformed the broader market over the past year, plunging 10.9% year-to-date (YTD) and 28.2% over the past 52 weeks. The company's second-quarter (Q2) 2025 results showed a slight improvement from the first quarter, but its top-line revenue dropped 6.5% year-over-year (YoY) to $8.5 billion. Analysts expect a 15.5% YoY decline in adjusted earnings per share (EPS) for the fiscal year 2025. Despite these challenges, Schlumberger holds a "Strong Buy" rating overall, with 15 "Strong Buy" and 4 "Moderate Buy" recommendations. The mean price target of $46.56 represents a 36.3% premium to current price levels [1].

Schlumberger's recent earnings call highlighted mixed results. While the company reported better-than-expected second-quarter results, the overall performance was marred by weaker drilling activity in Saudi Arabia and Latin America. The company's CEO, Olivier Le Peuch, expressed confidence in the resilience of the oil market, suggesting that the company is positioning itself for long-term growth despite near-term cyclical headwinds [2].

Analysts have been generally optimistic about Schlumberger's future prospects. The company's strong financials, robust cash flow, and growing dividends make it an attractive option for value and income investors. Additionally, the company's technological advancements in digital and artificial intelligence (AI) position it well for future growth in the energy sector [3].

Schlumberger's recent acquisition of ChampionX Corporation and its strategic collaboration with ZEDEDA for edge orchestration further underscore the company's commitment to innovation and growth. These moves suggest that Schlumberger is not just weathering the current downturn but is actively positioning itself for future opportunities [4].

Investors should monitor Schlumberger's earnings closely, as the company is expected to report its Q2 results on July 18, 2025. The market's reaction to these results will provide further insight into the company's performance and potential future growth prospects. Despite the recent underperformance, the "Strong Buy" rating and the premium valuation suggest that many analysts believe in Schlumberger's long-term potential [5].

References

[1] https://stockanalysis.com/stocks/slb/
[2] https://seekingalpha.com/article/4452133-optimistic-confident-that-oil-market-will-remain-resilient-says-slb-ceo-olivier-le-peuch
[3] https://seekingalpha.com/article/4452133-schlumberger-is-undervalued-with-a-low-11x-pe-and-a-33-dividend-yield-making-it-attractive-for-value-and-income-investors
[4] https://www.businesswire.com/news/home/20250714005503/en/ZEDEDA-to-Orchestrate-Data-Driven-Services-at-the-Distributed-Edge-for-SLB
[5] https://seekingalpha.com/article/4452133-schlumberger-is-undervalued-with-a-low-11x-pe-and-a-33-dividend-yield-making-it-attractive-for-value-and-income-investors