AI Takeaway
SLB reported Q1 2026 revenue of $8.72B (+2.7% YoY), but net income declined 5.6% to $752M as margin pressures and lower operating cash flow of $487M weighed on profitability despite a significant strengthening of stockholders' equity to $26.18B.
Revenue
$8.72B
++2.72% YoY
EPS (Basic)
$0.50
-13.79% YoY
Filed · Source: SEC EDGAR 10-Q filing
SLB grew Q1 2026 revenue to $8.72B, up 2.7% from $8.49B in Q1 2025, demonstrating continued top-line momentum. However, net income fell 5.6% to $752M, suggesting cost pressures or mix shifts are compressing profitability faster than revenue is growing.
Source: Source: 10-Q Financial Data, Income Statement
Total assets surged 11.3% YoY to $54.53B, while stockholders' equity jumped 34.1% to $26.18B from $19.52B, indicating a major equity event such as an acquisition-related issuance or revaluation. Total liabilities declined 3.8% to $27.17B, improving the overall leverage profile.
Source: Source: 10-Q Financial Data, Balance Sheet
Operating cash flow fell 26.2% YoY to $487M from $660M, a notable decline that may reflect working capital build-up or timing of collections in the quarter. This is a key metric to monitor as it affects the company's ability to fund dividends and capital expenditures organically.
Source: Source: 10-Q Financial Data, Cash Flow Statement
2 more insights available
Upgrade to unlockOperating cash flow dropped 26.2% YoY to $487M in Q1 2026, significantly below the prior year's $660M. If this trend persists, SLB may face constraints in funding its $426M quarterly dividend and capital investment programs without drawing on external financing.
Source: Source: 10-Q Financial Data, Cash Flow Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.52 versus the $0.52 analyst consensus — a -0.2% miss for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $8.72B | $8.49B | +2.72% |
Net Income | $752M | $797M | -5.65% |
EPS (Basic) | $0.50 | $0.58 | -13.79% |
EPS (Diluted) | $0.50 | $0.58 | -13.79% |
R&D Expense | $164M | $172M | -4.65% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $54.53B | $49B | +11.27% |
Current Assets | $19.34B | $18.59B | +3.98% |
Total Liabilities | $27.17B | $28.25B | -3.83% |
Current Liabilities | $14.41B | $15.04B | -4.14% |
Stockholders' Equity | $26.18B | $19.52B | +34.14% |
Long-Term Debt | $9.67B | $10.53B | -8.14% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $487M | $660M | -26.21% |
Investing Cash Flow | $33M | $-432M | +107.64% |
Financing Cash Flow | $-734M | $-878M | +16.40% |
Dividends Paid | $426M | $386M | +10.36% |
D&A | $685M | $640M | +7.03% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 8.6% | — | — |
ROE | 2.9% | — | — |
ROA | 1.4% | — | — |
Current Ratio | $1.341 | — | — |
Debt to Equity | $1.038 | — | — |
Other companies in Oil & Gas Equipment & Services
SLB reported Q1 2026 EPS of $0.50, down 13.8% from $0.58 in Q1 2025, and net income of $752M, a 5.6% YoY decline. Whether this beat or missed consensus estimates would require comparison to analyst forecasts, which are not included in the filing data.
SLB's Q1 2026 results showed revenue growth of 2.7% to $8.72B, but profitability came under pressure with net income falling to $752M and EPS dropping to $0.50. A standout balance sheet development was a 34.1% surge in stockholders' equity to $26.18B, while operating cash flow declined sharply by 26.2% to $487M.
SLB's revenue grew 2.7% year-over-year to $8.72B in Q1 2026, up from $8.49B in Q1 2025, reflecting continued demand for oilfield services. However, this top-line growth was not enough to offset cost pressures, as net income declined 5.6% over the same period.
Based on the financial data, key risks include a 26.2% drop in operating cash flow to $487M, which covers the $426M dividend by only a slim margin, and a 13.8% decline in EPS to $0.50 despite revenue growth. Additionally, low ROE of 2.87% and ROA of 1.38% suggest the company's expanded asset and equity base is not yet generating commensurate returns.
SLB's financial health shows a mixed picture: the balance sheet strengthened with stockholders' equity rising 34.1% to $26.18B and long-term debt falling 8.1% to $9.67B, while the current ratio of 1.34x indicates adequate short-term liquidity. However, declining net income, compressed margins, and a sharp drop in operating cash flow to $487M are areas of concern that investors should monitor closely.