QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period endedSeptember 30, 2026
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file No.: 1-4601
SLB N.V. (SLB Limited)
(Exact name of registrant as specified in its charter)
Curaçao
52-0684746
(State or other jurisdiction of incorporation or organization)
(IRS Employer Identification No.)
42 rue Saint-Dominique
Paris, France
75007
5599 San Felipe
Houston, Texas, United States of America
77056
Parkstraat 83
The Hague, The Netherlands
2514 JG
(Addresses of principal executive offices)
(Zip Codes)
Registrant’s telephone number in the United States, including area code, is: (713) 513-2000
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
common stock, par value $0.01 per share
SLB
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☒
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Net income attributable to noncontrolling interests
45
35
83
101
Net income attributable to SLB
$
735
$
739
$
2,273
$
2,550
Basic income per share of SLB
$
0.50
$
0.50
$
1.53
$
1.83
Diluted income per share of SLB
$
0.49
$
0.50
$
1.51
$
1.80
Average shares outstanding:
Basic
1,481
1,471
1,490
1,396
Assuming dilution
1,497
1,488
1,506
1,414
See Notes to Consolidated Financial Statements
3
SLB LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(Unaudited)
(Stated in millions)
Third Quarter
Nine Months
2026
2025
2026
2025
Net income
$
780
$
774
$
2,356
$
2,651
Currency translation adjustments
Unrealized net change arising during the period
(75
)
(43
)
(42
)
183
Cash flow hedges
Net gain (loss) on cash flow hedges
18
(28
)
54
(67
)
Reclassification to net income of net realized loss (gain)
3
(8
)
10
(8
)
Pension and other postretirement benefit plans
Amortization to net income of net actuarial loss
14
9
39
25
Amortization to net income of net prior service credit
2
(3
)
2
(9
)
Pension settlement charge
187
-
187
-
Income taxes on pension and other postretirement benefit plans
(1
)
-
(4
)
(1
)
Other
(10
)
3
(15
)
14
Comprehensive income
918
704
2,587
2,788
Comprehensive income attributable to noncontrolling interests
45
35
83
101
Comprehensive income attributable to SLB
$
873
$
669
$
2,504
$
2,687
See Notes to Consolidated Financial Statements
4
SLB LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Stated in millions)
Sept. 30,
2026
Dec. 31,
(Unaudited)
2025
ASSETS
Current Assets
Cash
$
2,621
$
3,036
Short-term investments
930
1,176
Receivables less allowance for doubtful accounts (2026 - $322; 2025 - $335)
9,735
8,689
Inventories
5,517
5,032
Other current assets
1,694
1,580
20,497
19,513
Investments in Affiliated Companies
1,712
1,783
Fixed Assets less accumulated depreciation
7,707
7,894
Goodwill
17,263
16,794
Intangible Assets
4,927
4,988
Other Assets
4,094
3,896
$
56,200
$
54,868
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities
$
11,955
$
11,490
Estimated liability for taxes on income
695
894
Short-term borrowings and current portion of long-term debt
1,653
1,894
Dividends payable
454
443
14,757
14,721
Long-term Debt
11,147
9,742
Postretirement Benefits
470
479
Deferred Taxes
656
644
Other Liabilities
1,957
1,991
28,987
27,577
Equity
Common stock
16,248
16,354
Treasury stock
(4,698
)
(3,576
)
Retained earnings
19,006
18,067
Accumulated other comprehensive loss
(4,505
)
(4,736
)
SLB stockholders’ equity
26,051
26,109
Noncontrolling interests
1,162
1,182
27,213
27,291
$
56,200
$
54,868
See Notes to Consolidated Financial Statements
5
SLB LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
(Stated in millions)
Nine Months Ended September 30,
2026
2025
Cash flows from operating activities:
Net income
$
2,356
$
2,651
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (1)
2,095
1,911
Non-cash pension settlement charge
187
-
Gain on sale of APS project
-
(149
)
Impairment of equity method investment
-
121
Deferred taxes
(27
)
(89
)
Stock-based compensation expense
251
257
Earnings of equity method investments, less dividends received
(25
)
(59
)
Change in assets and liabilities: (2)
Increase in receivables
(882
)
(528
)
Increase in inventories
(455
)
(249
)
(Increase) decrease in other current assets
(115
)
87
Decrease (increase) in other assets
15
(39
)
Increase (decrease) in accounts payable and accrued liabilities
192
(381
)
Decrease in estimated liability for taxes on income
(286
)
(202
)
(Decrease) increase in other liabilities
(23
)
40
Other
73
113
NET CASH PROVIDED BY OPERATING ACTIVITIES
3,356
3,484
Cash flows from investing activities:
Capital expenditures
(1,287
)
(1,178
)
APS investments
(340
)
(312
)
Exploration data costs capitalized
(208
)
(168
)
Cash acquired in ChampionX Corporation acquisition
-
479
Business acquisitions and investments, net of cash acquired
(570
)
(144
)
Sale of short-term investments, net
228
572
Purchase of Blue Chip Swap securities
-
(167
)
Proceeds from sale of Blue Chip securities
-
144
Proceeds from sale of APS investment
-
338
Proceeds from sale of ChampionX Drilling Technologies business
-
286
Other
37
8
NET CASH USED IN INVESTING ACTIVITIES
(2,140
)
(142
)
Cash flows from financing activities:
Stock repurchase program
(1,755
)
(2,414
)
Dividends paid
(1,305
)
(1,176
)
Proceeds from issuance of long-term debt
2,000
660
Repayment of long-term debt
(715
)
(1,112
)
Proceeds from employee stock purchase plan
227
222
Proceeds from exercise of stock options
120
8
Taxes paid on net settled stock-based compensation awards
(71
)
(61
)
Net increase in short-term borrowings
6
17
Other
(121
)
(65
)
NET CASH USED IN FINANCING ACTIVITIES
(1,614
)
(3,921
)
Net decrease in cash before translation effect
(398
)
(579
)
Translation effect on cash
(17
)
49
Cash, beginning of period
3,036
3,544
Cash, end of period
$
2,621
$
3,014
(1)
Includes depreciation of fixed assets and amortization of intangible assets, exploration data costs, and Asset Performance Solutions ("APS") investments.
(2)
Net of the effect of business acquisitions and divestitures.
6
See Notes to Consolidated Financial Statements
7
SLB LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
(Unaudited)
(Stated in millions, except per share amounts)
Accumulated
Other
Common Stock
Retained
Comprehensive
Noncontrolling
January 1, 2026 – September 30, 2026
Issued
In Treasury
Earnings
Loss
Interests
Total
Balance, January 1, 2026
$
16,354
$
(3,576
)
$
18,067
$
(4,736
)
$
1,182
$
27,291
Net income
2,273
83
2,356
Currency translation adjustments
(42
)
(42
)
Changes in fair value of cash flow hedges
64
64
Pension and other postretirement benefit plans
224
224
Shares sold to optionees, less shares exchanged
(23
)
143
120
Vesting of restricted stock, net of taxes withheld
(248
)
177
(71
)
Employee stock purchase plan
(86
)
313
227
Stock repurchase program
(1,755
)
(1,755
)
Stock-based compensation expense
251
251
Dividends declared ($0.885 per share)
(1,316
)
(1,316
)
Dividends paid to noncontrolling interests
(120
)
(120
)
Other
(18
)
(15
)
17
(16
)
Balance, September 30, 2026
$
16,248
$
(4,698
)
$
19,006
$
(4,505
)
$
1,162
$
27,213
Accumulated
Other
Common Stock
Retained
Comprehensive
Noncontrolling
January 1, 2025 – September 30, 2025
Issued
In Treasury
Earnings
Loss
Interests
Total
Balance, January 1, 2025
$
11,458
$
(1,773
)
$
16,395
$
(4,950
)
$
1,220
$
22,350
Net income
2,550
101
2,651
Currency translation adjustments
183
183
Changes in fair value of cash flow hedges
(75
)
(75
)
Pension and other postretirement benefit plans
15
15
Shares sold to optionees, less shares exchanged
(9
)
17
8
Vesting of restricted stock, net of taxes withheld
(267
)
206
(61
)
Employee stock purchase plan
(99
)
321
222
Stock repurchase program
(2,414
)
(2,414
)
Stock-based compensation expense
257
257
Dividends declared ($0.855 per share)
(1,199
)
(1,199
)
Dividends paid to noncontrolling interests
(65
)
(65
)
Acquisition of ChampionX Corporation
5,005
19
5,024
Other
(7
)
7
14
12
26
Balance, September 30, 2025
$
16,338
$
(3,636
)
$
17,746
$
(4,813
)
$
1,287
$
26,922
8
Accumulated
Other
Common Stock
Retained
Comprehensive
Noncontrolling
July 1, 2026 – September 30, 2026
Issued
In Treasury
Earnings
Loss
Interests
Total
Balance, July 1, 2026
$
16,260
$
(4,253
)
$
18,710
$
(4,643
)
$
1,180
$
27,254
Net income
735
45
780
Currency translation adjustments
(75
)
(75
)
Changes in fair value of cash flow hedges
21
21
Pension and other postretirement benefit plans
202
202
Shares sold to optionees, less shares exchanged
(5
)
19
14
Vesting of restricted stock, net of taxes withheld
(38
)
30
(8
)
Employee stock purchase plan
(41
)
163
122
Stock repurchase program
(656
)
(656
)
Stock-based compensation expense
72
72
Dividends declared ($0.295 per share)
(436
)
(436
)
Dividends paid to noncontrolling interests
(65
)
(65
)
Other
(1
)
(3
)
(10
)
2
(12
)
Balance, September 30, 2026
$
16,248
$
(4,698
)
$
19,006
$
(4,505
)
$
1,162
$
27,213
(Stated in millions, except per share amounts)
Accumulated
Other
Common Stock
Retained
Comprehensive
Noncontrolling
July 1, 2025 – September 30, 2025
Issued
In Treasury
Earnings
Loss
Interests
Total
Balance, July 1, 2025
$
11,354
$
(3,742
)
$
17,433
$
(4,743
)
$
1,249
$
21,551
Net income
739
35
774
Currency translation adjustments
(43
)
(43
)
Changes in fair value of cash flow hedges
(36
)
(36
)
Pension and other postretirement benefit plans
6
6
Shares sold to optionees, less shares exchanged
(7
)
7
-
Vesting of restricted stock, net of taxes withheld
(41
)
35
(6
)
Employee stock purchase plan
(55
)
172
117
Stock repurchase program
(114
)
(114
)
Stock-based compensation expense
89
89
Dividends declared ($0.285 per share)
(426
)
(426
)
Dividends paid to noncontrolling interests
(22
)
(22
)
Acquisition of ChampionX Corporation
5,005
19
5,024
Other
(7
)
6
3
6
8
Balance, September 30, 2025
$
16,338
$
(3,636
)
$
17,746
$
(4,813
)
$
1,287
$
26,922
SHARES OF COMMON STOCK
(Unaudited)
(Stated in millions)
Shares
Issued
In Treasury
Outstanding
Balance, January 1, 2026
1,580
(85
)
1,495
Shares sold to optionees, less shares exchanged
-
3
3
Vesting of restricted stock
-
5
5
Shares issued under employee stock purchase plan
-
7
7
Stock repurchase program
-
(34
)
(34
)
Balance, September 30, 2026
1,580
(104
)
1,476
See Notes to Consolidated Financial Statements
9
SLB LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation
The accompanying unaudited consolidated financial statements of SLB Limited and its subsidiaries (“SLB”) have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of SLB management, all adjustments considered necessary for a fair statement have been included in the accompanying unaudited financial statements. All intercompany transactions and balances have been eliminated in consolidation. Operating results for the three-month period ended September 30, 2026 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2026. The December 31, 2025 balance sheet information has been derived from the SLB 2025 audited financial statements. For further information, refer to the Consolidated Financial Statements and notes thereto included in the SLB Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission on January 23, 2026.
2. Charges and Credits
2026
SLB offered a lump sum payment in lieu of receiving an annuity to former employees and pensioners who were participants in its International Staff Pension Plan. This pension plan paid approximately $0.9 billion from its plan assets to those who accepted the offer, thereby reducing its benefit obligation. This transaction had no cash impact on SLB, but did result in a non-cash pension settlement charge of $187 million during the third quarter of 2026. This settlement charge represented the immediate recognition of the related deferred actuarial losses in Accumulated Other Comprehensive Loss and is classified in Restructuring & other in the Consolidated Statement of Income.
SLB recorded charges of $41 million, $69 million and $55 million during the first, second and third quarters of 2026, respectively, in connection with the July 2025 acquisition of ChampionX Corporation ("ChampionX") (see Note 4 - Acquisition). These costs are classified in Merger & integration in the Consolidated Statement of Income.
(Stated in millions)
Noncontrolling
Pretax Charge
Tax Benefit
Interests
Net
First quarter:
Merger and integration
$
41
$
8
$
2
$
31
Second quarter:
Merger and integration
69
19
3
47
Third quarter:
Pension settlement charge
187
-
-
187
Merger and integration
55
13
2
40
$
352
$
40
$
7
$
305
2025
First quarter
During the first quarter of 2025, SLB recorded a $158 million charge relating to workforce reductions to realign and optimize its support and service delivery structure. This charge is classified in Restructuring & other in the Consolidated Statement of Income.
During the first quarter of 2025, SLB recorded $49 million of charges in connection with the ChampionX acquisition and the October 2023 acquisition of the Aker Solutions subsea business. These costs are classified in Merger & integration in the Consolidated Statement of Income.
Second quarter
During the second quarter of 2025, SLB recorded a $69 million impairment charge relating to an equity method investment that was determined to be other-than-temporarily impaired. This charge is classified in Restructuring & other in the Consolidated Statement of Income.
During the second quarter of 2025, SLB recorded a charge of $66 million relating to workforce reductions to align its resources with activity levels. This charge is classified in Restructuring & other in the Consolidated Statement of Income.
10
During the second quarter of 2025, in connection with the ChampionX acquisition and the acquisition of the Aker Solutions subsea business, SLB recorded $35 million of charges related to merger and integration-related costs. These costs are classified in Merger & integration in the Consolidated Statement of Income.
During the second quarter of 2025, SLB completed the sale of its interest in the Palliser Asset Performance Solutions ("APS") project in Canada in exchange for net cash proceeds of $338 million, of which $22 million were received in the third quarter of 2025. SLB recorded a gain of $149 million as a result of this transaction. This gain is classified in Interest & other income in the Consolidated Statement of Income.
Third quarter
In connection with the acquisition of ChampionX, SLB recorded charges of $66 million relating to the amortization of purchase accounting adjustments associated with the write-up of acquired inventory to its estimated fair value; $61 million of transaction costs, including advisory and legal fees; and $54 million relating to employee benefits for change-in-control arrangements, accelerated stock-based compensation and retention. In addition, SLB recorded $28 million of other merger and integration costs associated with the acquisition of ChampionX and the acquisition of the Aker Solutions subsea business. $143 million of these costs are classified in Merger & integration with the remaining $66 million classified in Cost of sales in the Consolidated Statement of Income.
During the third quarter of 2025, SLB recorded a charge of $57 million relating to workforce reductions to align its resources with activity levels. This charge is classified in Restructuring & other in the Consolidated Statement of Income.
During the third quarter of 2025, SLB recorded a $52 million impairment charge relating to an equity method investment that was determined to be other-than-temporarily impaired. This charge is classified in Restructuring & other in the Consolidated Statement of Income.
(Stated in millions)
Pretax Charge
Tax Benefit
Noncontrolling
(Credit)
(Expense)
Interests
Net
First quarter:
Workforce reductions
$
158
$
10
$
-
$
148
Other merger and integration
49
1
4
44
Second quarter:
-
Impairment of equity method investment
69
12
-
57
Workforce reductions
66
3
-
63
Other merger and integration
35
4
4
27
Gain on sale of Palliser APS project
(149
)
(4
)
-
(145
)
Third quarter:
Amortization of inventory fair value adjustment
66
15
-
51
Acquisition-related professional fees
61
-
-
61
Workforce reductions
57
4
-
53
Acquisition-related employee benefits
54
2
-
52
Impairment of equity-method investment
52
4
-
48
Other merger and integration
28
2
4
22
$
546
$
53
$
12
$
481
11
3. Earnings per Share
The following is a reconciliation from basic earnings per share of SLB to diluted earnings per share of SLB:
(Stated in millions, except per share amounts)
2026
2025
Net Income Attributable to SLB
Average Shares Outstanding
Earnings per Share
Net Income Attributable to SLB
Average Shares Outstanding
Earnings per Share
Third Quarter
Basic
$
735
1,481
$
0.50
$
739
1,471
$
0.50
Assumed exercise of stock options
-
1
-
1
Unvested restricted stock
-
15
-
16
Diluted
$
735
1,497
$
0.49
$
739
1,488
$
0.50
2026
2025
Net Income Attributable to SLB
Average Shares Outstanding
Earnings per Share
Net Income Attributable to SLB
Average Shares Outstanding
Earnings per Share
Nine Months
Basic
$
2,273
1,490
$
1.53
$
2,550
1,396
$
1.83
Assumed exercise of stock options
-
1
-
1
Unvested restricted stock
-
15
-
17
Diluted
$
2,273
1,506
$
1.51
$
2,550
1,414
$
1.80
The number of outstanding options to purchase shares of SLB common stock that were not included in the computation of diluted income per share, because to do so would have had an antidilutive effect, was as follows:
(Stated in millions)
Third Quarter
Nine Months
2026
2025
2026
2025
Employee stock options
5
18
5
18
4. Acquisition
On July 16, 2025, SLB acquired all of the outstanding shares of ChampionX in an all-stock transaction. ChampionX is a global leader in production chemistry solutions, artificial lift systems, and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely, effectively, and sustainably across the world. The acquisition strengthens SLB's leadership in the production and recovery space. Under the terms of the agreement, ChampionX shareholders received 0.735 shares of SLB common stock in exchange for each ChampionX share.
Businesses acquired from ChampionX contributed revenue of approximately $0.6 billion and pretax operating income of approximately $0.1 billion to SLB for the period from August 1, 2025 to September 30, 2025.
Excluding its Drilling Technologies business, which was disposed of concurrently with the closing of the acquisition, ChampionX recorded revenue of approximately $2.0 billion during the period of January 1, 2025 to July 31, 2025. The proforma impact of this acquisition on net income attributable to SLB and diluted earnings per share was not material.
5. Inventories
A summary of inventories, which are stated at the lower of average cost or net realizable value, is as follows:
(Stated in millions)
Sept. 30,
Dec. 31,
2026
2025
Raw materials & field materials
$
2,746
$
2,550
Work in progress
953
797
Finished goods
1,818
1,685
$
5,517
$
5,032
12
6. Fixed Assets
Fixed assets consist of the following:
(Stated in millions)
Sept. 30,
Dec. 31,
2026
2025
Property, plant & equipment
$
32,186
$
32,045
Less: Accumulated depreciation
24,479
24,151
$
7,707
$
7,894
Depreciation expense relating to fixed assets was as follows:
(Stated in millions)
2026
2025
Third Quarter
$
468
$
453
Nine Months
$
1,405
$
1,258
7. Goodwill
The changes in the carrying amount of goodwill by segment were as follows:
(Stated in millions)
Reservoir
Well
Production
Digital
Performance
Construction
Systems
All Other
Total
Balance at December 31, 2025
$
2,060
$
4,111
$
6,598
$
3,699
$
326
$
16,794
Acquisitions
272
24
-
140
-
436
Other
-
-
(13
)
27
19
33
Balance at September 30, 2026
$
2,332
$
4,135
$
6,585
$
3,866
$
345
$
17,263
8. Intangible Assets
Intangible assets consist of the following:
(Stated in millions)
Sept. 30, 2026
Dec. 31, 2025
Gross
Accumulated
Net Book
Gross
Accumulated
Net Book
Book Value
Amortization
Value
Book Value
Amortization
Value
Customer relationships
$
2,780
$
938
$
1,842
$
2,783
$
849
$
1,934
Technology/technical know-how
2,900
1,119
1,781
2,635
998
1,637
Trade names
1,066
321
745
1,067
283
784
Other
1,643
1,084
559
1,637
1,004
633
$
8,389
$
3,462
$
4,927
$
8,122
$
3,134
$
4,988
Amortization expense charged to income was as follows:
(Stated in millions)
2026
2025
Third Quarter
$
113
$
101
Nine Months
$
334
$
265
Based on the carrying value of intangible assets at September 30, 2026, amortization expense for the subsequent five years is estimated to be: fourth quarter of 2026: $124million; 2027: $484 million; 2028: $473million; 2029: $457 million; 2030: $448million; and 2031: $426 million.
13
9. Long-term Debt
Long-term Debt consists of the following:
(Stated in millions)
Sept. 30,
Dec. 31,
2026
2025
3.90% Senior Notes due 2028
$
1,490
$
1,484
2.65% Senior Notes due 2030
1,247
1,247
2.00% Guaranteed Notes due 2032
1,132
1,172
0.25% Notes due 2027
1,023
1,059
0.50% Notes due 2031
1,022
1,058
5.15% Senior Notes due 2036
992
-
4.30% Senior Notes due 2029
849
848
4.50% Senior Notes due 2028
498
497
4.55% Senior Notes due 2031
497
-
4.80% Senior Notes due 2033
496
-
4.85% Senior Notes due 2033
495
495
5.00% Senior Notes due 2029
495
494
5.00% Senior Notes due 2034
488
487
7.00% Notes due 2038
194
195
5.95% Notes due 2041
110
111
5.13% Notes due 2043
98
98
5.00% Senior Notes due 2027
-
497
Other
21
-
$
11,147
$
9,742
The estimated fair value of SLB’s Long-term Debt, based on quoted market prices at September 30, 2026 and December 31, 2025, was $10.4billion and $9.4 billion, respectively.
At September 30, 2026, SLB had committed credit facility agreements with commercial banks aggregating $5.0 billion, of which $2.0 billion matures in February 2029 and $3.0 billion matures in December 2030. These committed facilities support commercial paper programs in the United States and Europe. There were no borrowings under these facilities at September 30, 2026 or December 31, 2025.
Commercial paper borrowings are classified as long-term debt to the extent they are backed up by available and unused committed credit facilities maturing in more than one year and to the extent it is SLB’s intent to maintain these obligations for longer than one year. There were no borrowings under the commercial paper programs at September 30, 2026 and December 31, 2025.
SLB Limited fully and unconditionally guarantees the publicly-held debt securities issued by Schlumberger Investment S.A., an indirect wholly-owned subsidiary of SLB Limited.
10. Derivative Instruments and Hedging Activities
SLB’s functional currency is primarily the US dollar. However, outside the United States, a significant portion of SLB’s expenses is incurred in foreign currencies. Therefore, when the US dollar weakens (strengthens) in relation to the foreign currencies of the countries in which SLB conducts business, the US dollar-reported expenses will increase (decrease).
Changes in foreign currency exchange rates expose SLB to risks on future cash flows relating to its fixed rate debt denominated in currencies other than the functional currency. SLB uses cross-currency interest rate swaps to provide a hedge against these risks. These contracts are accounted for as cash flow hedges, with the fair value of the derivative recorded on the Consolidated Balance Sheet and in Accumulated other comprehensive loss. Amounts recorded in Accumulated other comprehensive loss are reclassified into earnings in the same period or periods that the hedged item is recognized in earnings.
Details regarding SLB’s outstanding cross-currency interest rate swaps as of September 30, 2026, were as follows:
•
During 2019, SLB entered into cross-currency interest rate swaps in order to hedge changes in the fair value of its €0.5 billion 0.25% Notes due 2027 and €0.5 billion 0.50% Notes due 2031 that were issued by a US-dollar functional currency subsidiary. These cross-currency interest rate swaps effectively convert the Euro-denominated notes to US-dollar denominated debt with fixed annual interest rates of 2.51% and 2.76%, respectively.
•
During 2020, a US-dollar functional currency subsidiary of SLB issued €0.8 billion of Euro-denominated debt. SLB entered into cross-currency interest rate swaps to hedge changes in the US dollar value of its €0.4 billion of 0.25% Notes due 2027 and €0.4 billion of 0.50% Notes due 2031. These cross-currency interest rate swaps effectively convert the Euro-denominated notes to US-dollar denominated debt with fixed annual interest rates of 1.87% and 2.20%, respectively.
14
•
During 2020, a US-dollar functional currency subsidiary of SLB issued €2.0 billion of Euro-denominated debt. SLB entered into cross-currency interest rate swaps to hedge changes in the US dollar value of its €1.0 billion of 1.375% Guaranteed Notes due 2026 and €1.0 billion of 2.00% Guaranteed Notes due 2032. These cross-currency interest rate swaps effectively convert the Euro-denominated notes to US-dollar denominated debt with fixed annual interest rates of 2.77% and 3.49%, respectively.
A summary of the amounts included in the Consolidated Balance Sheet relating to cross-currency interest rate swaps was as follows:
(Stated in millions)
Sept. 30, 2026
Dec. 31, 2025
Other current assets
$
49
$
93
Other Assets
$
54
$
110
Other Liabilities
$
12
$
6
The fair values were determined using a model with inputs that are observable in the market or can be derived or corroborated by observable data.
SLB is exposed to risks on future cash flows to the extent that the local currency is not the functional currency and expenses denominated in local currency are not equal to revenues denominated in local currency. SLB uses foreign currency forward contracts to provide a hedge against a portion of these cash flow risks. These contracts are accounted for as cash flow hedges.
SLB is also exposed to changes in the fair value of assets and liabilities denominated in currencies other than the functional currency. While SLB uses foreign currency forward contracts to economically hedge this exposure as it relates to certain currencies, these contracts are not designated as hedges for accounting purposes. Instead, the fair value of the derivative is recorded on the Consolidated Balance Sheet and changes in the fair value are recognized in the Consolidated Statement of Income, as are changes in the fair value of the hedged item.
Foreign currency forward contracts were outstanding for the US dollar equivalent of $5.8 billion and $6.3 billion in various foreign currencies as of September 30, 2026 and December 31, 2025, respectively.
Other than the previously mentioned cross-currency interest rate swaps, the fair value of the other outstanding derivatives was not material as of September 30, 2026 and December 31, 2025.
The effect of derivative instruments designated as cash flow hedges, and those not designated as hedges, on the Consolidated Statement of Income was as follows:
(Stated in millions)
Gain (Loss) Recognized in Income
Third Quarter
Nine Months
2026
2025
2026
2025
Consolidated Statement of Income Classification
Derivatives designated as cash flow hedges:
Cross-currency interest rate swaps
$
(10
)
$
(52
)
$
(153
)
$
415
Cost of services/sales
Cross-currency interest rate swaps
(18
)
(17
)
(53
)
(55
)
Interest expense
Foreign currency forward contracts
4
3
(31
)
2
Cost of services/sales
Foreign currency forward contracts
(7
)
7
21
7
Revenue
$
(31
)
$
(59
)
$
(216
)
$
369
Derivatives not designated as hedges:
Foreign currency forward contracts
$
(13
)
$
(22
)
$
(5
)
$
20
Cost of services/sales
11. Contingencies
SLB is party to various legal proceedings from time to time. A liability is accrued when a loss is both probable and can be reasonably estimated. Management believes that the probability of a material loss with respect to any currently pending legal proceeding is remote. However, litigation is inherently uncertain, and it is not possible to predict the ultimate disposition of any of these proceedings.
15
12. Segment Information
Financial information by segment is as follows:
(Stated in millions)
Third Quarter 2026
Depreciation
Income
and
Capital
Revenue
Before Taxes
Amortization
Investments (5)
Digital
$
693
$
194
$
34
$
83
Reservoir Performance
1,634
266
118
105
Well Construction
2,888
475
157
166
Production Systems
4,000
646
154
170
All Other
544
136
90
120
Eliminations & other
(310
)
(141
)
73
38
Corporate & other (1)
(204
)
72
Interest income (2)
22
Interest expense (3)
(133
)
Charges and credits (4)
(242
)
$
9,449
$
1,019
$
698
$
682
(Stated in millions)
Third Quarter 2025
Depreciation
Income
and
Capital
Revenue
Before Taxes
Amortization
Investments (5)
Digital
$
658
$
187
$
28
$
86
Reservoir Performance
1,682
312
110
105
Well Construction
2,967
558
170
110
Production Systems
3,474
559
131
121
All Other
397
96
62
94
Eliminations & other
(250
)
(86
)
72
65
Corporate & other (1)
(203
)
65
Interest income (2)
37
Interest expense (3)
(142
)
Charges and credits (4)
(318
)
$
8,928
$
1,000
$
638
$
581
(1)
Comprised principally of certain corporate expenses not allocated to the segments, stock-based compensation costs, amortization expense associated with certain intangible assets, certain centrally managed initiatives and other nonoperating items.
(2)
Interest income excludes amounts that are included in the segments’ income ($4million in 2026; $- million in 2025).
(3)
Interest expense excludes amounts that are included in the segments’ income ($-million in 2026; $- million in 2025).
(4)
See Note 2 – Charges and Credits.
(5)
Capital investments includes capital expenditures, APS investments, and exploration data costs capitalized.
16
(Stated in millions)
Nine Months 2026
Depreciation
Income
and
Capital
Revenue
Before Taxes
Amortization
Investments (5)
Digital
$
2,030
$
522
$
115
$
211
Reservoir Performance
4,783
754
348
319
Well Construction
8,427
1,315
479
410
Production Systems
11,278
1,728
458
464
All Other
1,492
391
258
352
Eliminations & other
(868
)
(409
)
215
79
Corporate & other (1)
(643
)
222
Interest income (2)
65
Interest expense (3)
(377
)
Charges and credits (4)
(352
)
$
27,142
$
2,994
$
2,095
$
1,835
(Stated in millions)
Nine Months 2025
Depreciation
Income
and
Capital
Revenue
Before Taxes
Amortization
Investments (5)
Digital
$
1,836
$
465
$
117
$
172
Reservoir Performance
5,072
908
321
366
Well Construction
8,908
1,698
502
358
Production Systems
9,247
1,520
312
322
All Other
1,542
414
290
323
Eliminations & other
(642
)
(239
)
215
117
Corporate & other (1)
(550
)
154
Interest income (2)
103
Interest expense (3)
(425
)
Charges and credits (4)
(546
)
$
25,963
$
3,348
$
1,911
$
1,658
(1)
Comprised principally of certain corporate expenses not allocated to the segments, stock-based compensation costs, amortization expense associated with certain intangible assets, certain centrally managed initiatives and other nonoperating items.
(2)
Interest income excludes amounts that are included in the segments’ income ($14million in 2026; $1 million in 2025).
(3)
Interest expense excludes amounts that are included in the segments’ income ($-million in 2026; $6 million in 2025).
(4)
See Note 2 – Charges and Credits.
(5)
Capital investments includes capital expenditures, APS investments, and exploration data costs capitalized.
Total assets by segment are as follows:
(Stated in millions)
Sept. 30,
Dec. 31,
2026
2025
Digital
$
1,024
$
925
Reservoir Performance
4,159
3,947
Well Construction
6,564
6,167
Production Systems
9,987
9,373
All Other
2,432
2,249
Eliminations and other
1,066
1,033
Goodwill and intangibles
22,190
21,783
Cash and short-term investments
3,551
4,212
All other assets
5,227
5,179
$
56,200
$
54,868
17
Segment assets consist of receivables, inventories, fixed assets, exploration data costs capitalized, and APS investments.
Revenue by geographic area was as follows:
(Stated in millions)
Third Quarter
Nine Months
2026
2025
2026
2025
North America
$
2,401
$
1,930
$
6,812
$
5,303
Latin America
1,749
1,482
4,992
4,469
Europe & Africa (1)
2,437
2,434
7,078
7,038
Middle East & Asia
2,807
3,000
8,064
8,983
Other
55
82
196
170
$
9,449
$
8,928
$
27,142
$
25,963
(1)
Includes Russia and the Caspian region.
North America and International revenue disaggregated by segment was as follows:
(Stated in millions)
Third Quarter 2026
North
America
International
Other
Total
Digital
$
168
$
523
$
2
$
693
Reservoir Performance
154
1,472
8
1,634
Well Construction
579
2,274
35
2,888
Production Systems
1,335
2,642
23
4,000
All Other
231
313
-
544
Eliminations & other
(66
)
(231
)
(13
)
(310
)
$
2,401
$
6,993
$
55
$
9,449
(Stated in millions)
Third Quarter 2025
North
America
International
Other
Total
Digital
$
156
$
500
$
2
$
658
Reservoir Performance
143
1,536
3
1,682
Well Construction
527
2,371
69
2,967
Production Systems
1,008
2,440
26
3,474
All Other
132
264
1
397
Eliminations & other
(36
)
(195
)
(19
)
(250
)
$
1,930
$
6,916
$
82
$
8,928
18
(Stated in millions)
Nine Months 2026
North
America
International
Other
Total
Digital
$
535
$
1,492
$
3
$
2,030
Reservoir Performance
443
4,325
15
4,783
Well Construction
1,676
6,624
127
8,427
Production Systems
3,800
7,392
86
11,278
All Other
562
930
-
1,492
Eliminations & other
(204
)
(629
)
(35
)
(868
)
$
6,812
$
20,134
$
196
$
27,142
(Stated in millions)
Nine Months 2025
North
America
International
Other
Total
Digital
$
453
$
1,377
$
6
$
1,836
Reservoir Performance
433
4,633
6
5,072
Well Construction
1,581
7,146
181
8,908
Production Systems
2,365
6,850
32
9,247
All Other
990
550
2
1,542
Eliminations & other
(519
)
(66
)
(57
)
(642
)
$
5,303
$
20,490
$
170
$
25,963
Significant segment expenses, which represent the difference between segment revenue and pretax segment income, consist of the following:
(Stated in millions)
Third Quarter 2026
Reservoir
Well
Production
Digital
Performance
Construction
Systems
Compensation
$
191
$
384
$
576
$
472
Cost of products, materials, and supplies
-
248
808
2,302
Depreciation and amortization
34
118
157
154
Allocations
86
162
230
137
Other
188
456
642
289
$
499
$
1,368
$
2,413
$
3,354
(Stated in millions)
Third Quarter 2025
Reservoir
Well
Production
Digital
Performance
Construction
Systems
Compensation
$
185
$
393
$
586
$
404
Cost of products, materials, and supplies
-
292
807
2,005
Depreciation and amortization
28
110
170
131
Allocations
82
160
230
130
Other
176
415
616
245
$
471
$
1,370
$
2,409
$
2,915
19
(Stated in millions)
Nine Months 2026
Reservoir
Well
Production
Digital
Performance
Construction
Systems
Compensation
$
566
$
1,160
$
1,737
$
1,420
Cost of products, materials, and supplies
-
762
2,327
6,445
Depreciation and amortization
115
348
479
458
Allocations
265
485
691
410
Other
562
1,274
1,878
817
$
1,508
$
4,029
$
7,112
$
9,550
(Stated in millions)
Nine Months 2025
Reservoir
Well
Production
Digital
Performance
Construction
Systems
Compensation
$
557
$
1,207
$
1,781
$
877
Cost of products, materials, and supplies
-
879
2,427
5,526
Depreciation and amortization
117
321
502
312
Allocations
244
487
720
406
Other
453
1,270
1,780
606
$
1,371
$
4,164
$
7,210
$
7,727
Other segment expenses include transportation, mobilization, lease, professional fees, and other costs.
Revenue in excess of billings related to contracts where revenue is recognized over time was $0.6billion at September 30, 2026 and $0.4 billion at December 31, 2025. Such amounts are included within Receivables less allowance for doubtful accounts in the Consolidated Balance Sheet.
Total backlog was $6.8 billion at September 30, 2026, of which approximately80% is expected to be recognized as revenue over the next 12 months.
Billings and cash collections in excess of revenue was $2.7 billion at September 30, 2026 and $2.3 billion at December 31, 2025. Such amounts are included within Accounts payable and accrued liabilities in the Consolidated Balance Sheet.
20
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Third Quarter 2026 Compared to Second Quarter 2026
(Stated in millions)
Third Quarter 2026
Second Quarter 2026
Income
Income
Revenue
Before Taxes
Revenue
Before Taxes
Digital
$
693
$
194
$
697
$
194
Reservoir Performance
1,634
266
1,556
232
Well Construction
2,888
475
2,742
417
Production Systems
4,000
646
3,771
586
All Other
544
136
505
142
Eliminations & other
(310
)
(141
)
(299
)
(167
)
Corporate & other (1)
(204
)
(211
)
Interest income (2)
22
23
Interest expense (3)
(133
)
(128
)
Charges and credits (4)
(242
)
(69
)
$
9,449
$
1,019
$
8,972
$
1,019
(1)
Comprised principally of certain corporate expenses not allocated to the segments, stock-based compensation costs, amortization expense associated with certain intangible assets, certain centrally managed initiatives and other nonoperating items.
(2)
Interest income excludes amounts that are included in the segments’ income ($4 million in the third quarter of 2026; $5 million in the second quarter of 2026).
(3)
Interest expense excludes amounts that are included in the segments’ income ($- million in the third quarter of 2026; $- million in the second quarter of 2026).
(4)
Charges and credits are described in detail in Note 2 to the Consolidated Financial Statements.
Third-quarter 2026 revenue of $9.4 billion increased 5% compared to the second quarter of 2026 with all geographic areas growing sequentially — led by a gradual recovery in the Middle East, growth in North America land and broadening international activity in deepwater offshore basins.
In the Middle East, revenue grew 13% sequentially despite late-quarter disruptions. Outside the region, growth was supported by higher activity in U.S. Land, highlighted by ChampionX achieving its highest quarterly revenue since the acquisition in July 2025.
Energy security and supply shocks continue to drive a quest for international supply diversification, reserve replacement and sustained production — driving a distinct upcycle, despite near-term uncertainty in the Middle East.
SLB's international outlook continues to strengthen, driven by deepwater momentum across Latin America, Europe, Sub-Saharan Africa and Asia, underscored by recent SLB OneSubsea contract awards. Furthermore, international diversification is accelerating as major U.S. shale operators expand abroad and partner with national oil companies across global basins.
Digital
Digital revenue of $693 million decreased 1% sequentially, primarily reflecting a $48 million decrease in Digital Exploration revenue following strong sales of exploration data licenses and transfer fees in Brazil and Indonesia in the prior quarter. This decline was largely offset by higher Platforms & Applications sales and continued growth in Digital Operations.
Digital pretax operating margin of 28% increased 27 basis points (bps) sequentially, primarily due to improved profitability in Platforms & Applications and Digital Operations, partially offset by lower profitability in Digital Exploration following reduced sales of exploration data licenses and transfer fees.
Reservoir Performance
Reservoir Performance revenue of $1.6 billion increased 5% sequentially, driven by higher intervention, evaluation and stimulation services, particularly in the Middle East.
Reservoir Performance pretax operating margin of 16% increased 140 bps sequentially, driven by improved profitability in the Middle East as operations recovered, particularly across evaluation, stimulation and intervention services.
21
Well Construction
Well Construction revenue of $2.9 billion increased 5% sequentially, driven by higher drilling activity in the Middle East, led by strong drilling fluids sales and increased drilling measurements activity.
Well Construction pretax operating margin of 16% increased 122 bps sequentially, driven primarily by improved profitability in the Middle East as operations recovered during the quarter.
Production Systems
Production Systems revenue of $4.0 billion increased 6% sequentially, driven by higher sales of completions, production chemicals and artificial lift in the Middle East, as well as stronger SLB OneSubsea revenue in Europe & Africa.
Production Systems pretax operating margin of 16%, increased 60 bps sequentially driven by improved profitability in SLB OneSubsea, artificial lift, completions and production chemicals, supported by the recovery in Middle East operations.
All Other
All Other revenue of $544 million increased $39 million sequentially driven by strong growth in Data Center Solutions, where revenue increased 23% or $44 million.
All Other pretax operating income of $136 million decreased $6 million sequentially as ramp-up costs associated with new Data Center Solutions projects impacted profitability.
Nine Months 2026 Compared to Nine Months 2025
(Stated in millions)
Nine Months 2026
Nine Months 2025
Income
Income
Revenue
Before Taxes
Revenue
Before Taxes
Digital
$
2,030
$
522
$
1,836
$
465
Reservoir Performance
4,783
754
5,072
908
Well Construction
8,427
1,315
8,908
1,698
Production Systems
11,278
1,728
9,247
1,520
All Other
1,492
391
1,542
414
Eliminations & other
(868
)
(409
)
(642
)
(239
)
Corporate & other (1)
(643
)
(550
)
Interest income (2)
65
103
Interest expense (3)
(377
)
(425
)
Charges and credits (4)
(352
)
(546
)
$
27,142
$
2,994
$
25,963
$
3,348
(1)
Comprised principally of certain corporate expenses not allocated to the segments, stock-based compensation costs, amortization expense associated with certain intangible assets, certain centrally managed initiatives and other nonoperating items.
(2)
Interest income excludes amounts that are included in the segments’ income ($14 million in 2026; $1 million in 2025).
(3)
Interest expense excludes amounts that are included in the segments’ income ($- million in 2026; $6 million in 2025).
(4)
Charges and credits are described in detail in Note 2 to the Consolidated Financial Statements.
Nine-month 2026 revenue of $27.1 billion increased 5% or $1.2 billion year on year. Excluding the impact of the ChampionX acquisition in the third quarter last year, revenue declined year on year by 4% or $0.9 billion. This decrease was largely attributable to a 16%, or $1.1 billion, decline in revenue in the Middle East due to operational disruptions related to the conflict in the region.
Digital
Digital revenue of $2.0 billion increased 11%, or $194 million, year on year driven by a $152 million increase in Digital Operations and $53 million of higher sales of exploration data licenses and transfer fees.
Digital pretax operating margin of 26% increased 41 bps year on year driven by higher Digital Exploration sales and improved profitability in Digital Operations.
22
Reservoir Performance
Reservoir Performance revenue of $4.8 billion decreased 6% year on year due to lower stimulation and intervention activity, primarily driven by operational disruptions caused by the Middle East conflict.
Reservoir Performance pretax operating margin of 16% contracted 212 bps year on year primarily due to the operational disruptions caused by the Middle East conflict.
Well Construction
Well Construction revenue of $8.4 billion decreased 5% year on year primarily due to lower activity resulting from the Middle East conflict.
Well Construction pretax operating margin of 16% contracted 346 bps year on year primarily due to lower profitability as a result of the Middle East conflict compounded by pricing headwinds in select markets.
Production Systems
Production Systems revenue of $11.3 billion increased 22% year on year from the acquired ChampionX production chemicals and artificial lift businesses. Excluding the impact of the acquisition, Production Systems revenue for the first nine months of 2026 was essentially flat year on year as the decline in the Middle East was offset by growth in other regions.
Production Systems pretax operating margin of 15% decreased 111 bps year on year primarily due to lower profitability in surface production systems, SLB OneSubsea and completions.
All Other
All Other revenue of $1.5 billion decreased $50 million year on year. The absence of $215 million in APS revenue following the divestiture of the Palliser asset in Canada in the second quarter of 2025 was offset by a $226 million increase in Data Center Solutions revenue. The remaining decrease was primarily attributable to reduced revenue in SLB Capturi.
All Other pretax operating income of $391 million decreased $23 million due to lower profitability in APS projects following the Palliser divestiture partially offset by higher profitability in Data Center Solutions as a result of the higher revenue.
Interest Expense
Interest expense of $377 million for the first nine months of 2026 decreased by $55 million as compared to the same period of 2025. This decrease was primarily driven by lower average outstanding commercial paper borrowings in the first nine months of 2026 as compared to the same period of 2025.
Interest & Other Income
Interest & other income consisted of the following:
(Stated in millions)
Third Quarter
Second Quarter
Nine Months
2026
2026
2026
2025
Earnings of equity method investments
$
43
$
48
$
80
$
155
Interest income
25
28
107
104
Gain on sale of Palliser APS project
-
-
-
149
$
68
$
76
$
187
$
408
The decrease in earnings of equity method investments for the first nine months of 2026 as compared to the same period of 2025 was primarily associated with equity investments in rig-related businesses.
Other
Research & engineering and General & administrative expenses, as a percentage of Revenue were as follows:
Third
Second
Quarter
Quarter
Nine Months
2026
2026
2026
2025
Research & engineering
1.7
%
1.9
%
1.8
%
2.0
%
General & administrative
0.9
%
0.9
%
1.0
%
1.0
%
The effective tax rate was 23% for the third quarter of 2026 as compared to 20% for the second quarter of 2026. The increase in the
23
effective tax rate was primarily due to the $187 million pension settlement charge recorded during the third quarter of 2026, described in Note 2 to the Consolidated Financial Statements, which is not tax deductible. The effective tax rate for both the first nine months of 2026 and 2025 was 21%.
Charges and Credits
SLB recorded charges and credits during the first nine months of 2026 and 2025. These charges and credits, which are summarized below, are more fully described in Note 2 to the Consolidated Financial Statements.
2026:
(Stated in millions)
Noncontrolling
Pretax Charge
Tax Benefit
Interests
Net
First quarter:
Merger and integration
$
41
$
8
$
2
$
31
Second quarter:
Merger and integration
69
19
3
47
Third quarter:
Pension settlement charge
187
-
-
187
Merger and integration
55
13
2
40
$
352
$
40
$
7
$
305
2025:
(Stated in millions)
Pretax Charge
Tax Benefit
Noncontrolling
(Credit)
(Expense)
Interests
Net
First quarter:
Workforce reductions
$
158
$
10
$
-
$
148
Other merger and integration
49
1
4
44
Second quarter:
-
Impairment of equity method investment
69
12
-
57
Workforce reductions
66
3
-
63
Other merger and integration
35
4
4
27
Gain on sale of Palliser APS project
(149
)
(4
)
-
(145
)
Third quarter:
Amortization of inventory fair value adjustment
66
15
-
51
Acquisition-related professional fees
61
-
-
61
Workforce reductions
57
4
-
53
Acquisition-related employee benefits
54
2
-
52
Impairment of equity-method investment
52
4
-
48
Other merger and integration
28
2
4
22
$
546
$
53
$
12
$
481
24
Liquidity and Capital Resources
Details of the components of liquidity as well as changes in liquidity are as follows:
(Stated in millions)
Sept. 30,
Sept. 30,
Dec. 31,
Components of Liquidity:
2026
2025
2025
Cash
$
2,621
$
3,014
$
3,036
Short-term investments
930
571
1,176
Short-term borrowings and current portion of long-term debt
(1,653
)
(1,923
)
(1,894
)
Long-term debt
(11,147
)
(10,843
)
(9,742
)
Net debt (1)
$
(9,249
)
$
(9,181
)
$
(7,424
)
Nine Months Ended Sept. 30,
Changes in Liquidity:
2026
2025
Net income
$
2,356
$
2,651
Depreciation and amortization (2)
2,095
1,911
Non-cash pension settlement expense
187
-
Gain on sale of Palliser APS project
-
(149
)
Impairment of equity method investment
-
121
Earnings of equity method investments, less dividends received
(25
)
(59
)
Deferred taxes
(27
)
(89
)
Stock-based compensation expense
251
257
Increase in working capital
(1,546
)
(1,273
)
Other
65
114
Cash flow from operations
3,356
3,484
Capital expenditures
(1,287
)
(1,178
)
APS investments
(340
)
(312
)
Exploration data costs capitalized
(208
)
(168
)
Free cash flow (3)
1,521
1,826
Stock repurchase program
(1,755
)
(2,414
)
Dividends paid
(1,305
)
(1,176
)
Proceeds from employee stock purchase plan
227
222
Proceeds from exercise of stock options
120
8
Net debt assumed in connection with ChampionX acquisition
-
(133
)
Business acquisitions and investments, net of cash acquired and debt assumed
(583
)
(144
)
Proceeds from the sale of Palliser APS project
-
338
Proceeds from sale of ChampionX Drilling Technologies business
-
286
Purchase of Blue Chip Swap securities
-
(167
)
Proceeds from sale of Blue Chip securities
-
144
Taxes paid on net settled stock-based compensation awards
(71
)
(61
)
Other
(99
)
(34
)
Increase in net debt before impact of changes in foreign exchange rates
(1,945
)
(1,305
)
Impact of changes in foreign exchange rates on net debt
120
(471
)
Increase in net debt
(1,825
)
(1,776
)
Net debt, beginning of period
(7,424
)
(7,405
)
Net debt, end of period
$
(9,249
)
$
(9,181
)
(1)
“Net debt” represents gross debt less cash and short-term investments. Management believes that net debt provides useful information to investors and management regarding the level of SLB’s indebtedness by reflecting cash and investments that could be used to repay debt. Net debt is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, total debt.
(2)
Includes depreciation of fixed assets and amortization of intangible assets, exploration data costs, and APS investments.
(3)
“Free cash flow” represents cash flow from operations less capital expenditures, APS investments and exploration data costs capitalized. Management believes that free cash flow is an important liquidity measure for the company and that it is useful to investors and management as a measure of our ability to generate cash. Once business needs and obligations are met, this cash can be used to reinvest in the company for future growth or to return to shareholders through dividend payments or share repurchases. Free cash flow does not represent the residual cash flow available for discretionary expenditures. Free cash flow is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, cash flow from operations.
25
Key liquidity events during the first nine months of 2026 and 2025 included:
•
Capital investments (consisting of capital expenditures, APS investments and exploration data costs capitalized) were $1.8 billion during the first nine months of 2026 compared to $1.7 billion during the first nine months of 2025. Capital investments for the full year 2026 are expected to be approximately $2.5 billion.
•
In January 2026, SLB announced a 3.5% increase to its quarterly cash dividend from $0.285 per share of outstanding common stock to $0.295 per share, beginning with the dividend payable in April 2026. Dividends paid during the first nine months of 2026 and 2025 were $1.3 billion and $1.2 billion, respectively.
•
During the second quarter of 2026, SLB issued $500 million of 4.55% Senior Notes due 2031, $500 million of 4.80% Senior Notes due 2033, and $1.0 billion of 5.15% Senior Notes due 2036.
•
As of September 30, 2026, SLB had cumulatively repurchased approximately $7.6 billion of SLB common stock under its $10 billion share repurchase program.
The following table summarizes the activity under the share repurchase program:
(Stated in millions, except per share amounts)
Total cost
Total number
Average price
of shares
of shares
paid per
purchased
purchased
share
Nine months ended September 30, 2026
$
1,755
34.0
$
51.57
Nine months ended September 30, 2025
$
2,414
60.0
$
40.23
•
During the third quarter of 2025, SLB repaid its $0.5 billion 1.40% Senior Notes due 2025.
•
During the third quarter of 2025, SLB fully repaid all the $0.6 billion of debt assumed in connection with the acquisition of ChampionX.
•
During the third quarter of 2025 and concurrent with the close of the ChampionX acquisition, the ChampionX Drilling Technologies business was disposed of and SLB received $286 million of proceeds.
•
During the second quarter of 2025, SLB completed the sale of its interest in the Palliser APS project in Canada in exchange for net cash proceeds of $338 million, of which $22 million were received in the third quarter of 2025.
As of September 30, 2026, SLB had $3.6 billion of cash and short-term investments on hand and committed debt facility agreements with commercial banks aggregating $5.0 billion, all of which was available. SLB believes these amounts, along with cash generated by ongoing operations, are sufficient to meet future business requirements for the next 12 months and beyond.
SLB has a global footprint in more than 100 countries. As of September 30, 2026, only three of those countries individually accounted for greater than 5% of SLB’s net receivable balance. Only one of those countries, the United States, represented greater than 10% of such receivables.
On August 31, 2026, SLB announced that it signed an agreement to acquire Kelvion, a global provider of thermal management and heat exchange technologies. The acquisition strengthens SLB’s Data Center Solutions business with critical thermal management technologies and expands SLB's role in data center infrastructure, which is one of the world’s fastest-growing industrial and technology markets. Under the terms of the agreement, SLB will acquire Kelvion for approximately $3.4 billion in cash and will assume approximately $0.7 billion of debt. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the first half of 2027.
FORWARD-LOOKING STATEMENTS
This third-quarter 2026 Form 10-Q, as well as other statements we make, contain “forward-looking statements” within the meaning of the federal securities laws, which include any statements that are not historical facts. Such statements often contain words such as “expect,” “may,” “can,” “believe,” “predict,” “plan,” “potential,” “projected,” “projections,” “precursor,” “forecast,” “outlook,” “expectations,” “estimate,” “intend,” “anticipate,” “ambition,” “goal,” “target,” “scheduled,” “think,” “should,” “could,” “would,” “will,” “see,” “likely,” and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain, such as statements about SLB’s financial and performance targets and other forecasts or expectations regarding, or dependent on, its business outlook; growth for SLB as a whole and for each of its Divisions (and for specified business lines, geographic areas, or technologies within each Division); the benefits of the ChampionX acquisition, including the ability of SLB to integrate the ChampionX business successfully and to achieve anticipated synergies and value creation from the acquisition; the benefits of the proposed transaction between SLB and Kelvion and the anticipated timing of such transaction; oil and natural gas demand and production growth; oil and natural gas prices; forecasts or expectations regarding energy transition and global climate change; improvements in operating procedures and technology; capital expenditures by SLB and the oil and gas industry; the business strategies of SLB, including digital and “fit for basin,” as well as the strategies of SLB’s customers; SLB’s capital allocation plans, including dividend plans and share repurchase programs; SLB’s APS projects, joint ventures, and other alliances; the impact of ongoing or escalating conflicts on global energy supply; access to raw materials; future global economic and geopolitical conditions; future liquidity, including free cash flow; and future results of operations, such as margin levels. These
26
statements are subject to risks and uncertainties, including, but not limited to, changing global economic and geopolitical conditions; changes in exploration and production spending by SLB’s customers, and changes in the level of oil and natural gas exploration and development; the results of operations and financial condition of SLB’s customers and suppliers; SLB’s inability to achieve its financial and performance targets and other forecasts and expectations; SLB’s inability to achieve net-zero carbon emissions goals or interim emissions reduction goals; general economic, geopolitical and business conditions in key regions of the world; foreign currency risk; inflation; changes in monetary policy by governments; tariffs; pricing pressure; weather and seasonal factors; unfavorable effects of health pandemics; availability and cost of raw materials; operational modifications, delays or cancellations; challenges in SLB’s supply chain; production declines; the extent of future charges; SLB’s inability to recognize efficiencies and other intended benefits from its business strategies and initiatives, such as digital or new energy, as well as its cost reduction strategies; changes in government regulations and regulatory requirements, including those related to offshore oil and gas exploration, radioactive sources, explosives, chemicals, and climate-related initiatives; the inability of technology to meet new challenges in exploration; the competitiveness of alternative energy sources or product substitutes; the terms and timing of the proposed transaction between SLB and Kelvion; the ability of SLB and Kelvion to integrate the business successfully and to achieve anticipated synergies and value creation from the proposed transaction; the ability to secure government regulatory approvals on the terms expected, at all or in a timely manner; and other risks and uncertainties detailed in this Form 10-Q and our most recent Form 10-K and Forms 8-K filed with or furnished to the SEC.
If one or more of these or other risks or uncertainties materialize (or the consequences of any such development changes), or should our underlying assumptions prove incorrect, actual results or outcomes may vary materially from those reflected in our forward-looking statements. Forward-looking and other statements in this Form 10-Q regarding our environmental, social, and other sustainability plans and goals are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the SEC. In addition, historical, current, and forward-looking environmental, social, and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. Statements in this Form 10-Q are made as of October 28, 2026, and SLB disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events, or otherwise.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
For quantitative and qualitative disclosures about market risk affecting SLB, see Item 7A, “Quantitative and Qualitative Disclosures about Market Risk,” of the SLB Annual Report on Form 10-K for the fiscal year ended December 31, 2025. SLB’s exposure to market risk has not changed materially since December 31, 2025.
Item 4. Controls and Procedures.
SLB has carried out an evaluation under the supervision and with the participation of SLB’s management, including the Chief Executive Officer (“CEO”) and the Chief Financial Officer (“CFO”), of the effectiveness of SLB’s “disclosure controls and procedures” (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) as of the end of the period covered by this report. Based on this evaluation, the CEO and the CFO have concluded that, as of the end of the period covered by this report, SLB’s disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed in the reports that SLB files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. SLB’s disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is accumulated and communicated to its management, including the CEO and the CFO, as appropriate, to allow timely decisions regarding required disclosure. There was no change in SLB’s internal control over financial reporting during the quarter to which this report relates that has materially affected, or is reasonably likely to materially affect, SLB’s internal control over financial reporting.
27
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
The information with respect to this Item 1 is set forth under Note 11—Contingencies, in the accompanying Consolidated Financial Statements.
Item 1A. Risk Factors.
As of the date of this filing, there have been no material changes from the risk factors disclosed in Part I, Item 1A, of SLB’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Unregistered Sales of Equity Securities
None.
Issuer Repurchases of Equity Securities
On January 21, 2016, the SLB Board of Directors approved a $10 billion share repurchase program for SLB common stock. As of September 30, 2026, SLB had repurchased approximately $7.6 billion of SLB common stock under this program.
SLB's common stock repurchase activity for the three months ended September 30, 2026 was as follows:
(Stated in thousands, except per share amounts)
Total number of shares purchased
Average price paid per share
Total number of shares purchased as part of publicly announced plans or programs
Maximum value of shares that may yet be purchased under the plans or programs
July 2026
5,168.7
$
47.38
5,168.7
$
2,783,546
August 2026
3,601.0
$
52.36
3,601.0
$
2,595,014
September 2026
4,101.0
$
54.39
4,101.0
$
2,371,954
12,870.7
$
51.01
12,870.7
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Mine Safety Disclosures.
Our mining operations are subject to regulation by the federal Mine Safety and Health Administration under the Federal Mine Safety and Health Act of 1977. Information concerning mine safety violations or other regulatory matters required by section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95 to this report.
Item 5. Other Information.
In 2013, SLB completed the wind down of its service operations in Iran. Prior to this, certain non-US subsidiaries provided oilfield services to the National Iranian Oil Company and certain of its affiliates (“NIOC”).
SLB’s residual transactions or dealings with the government of Iran during the third quarter of 2026 consisted of payments of taxes and other typical governmental charges. Certain non-US subsidiaries of SLB maintain depository accounts at the Dubai branch of Bank Saderat Iran (“Saderat”), and at Bank Tejarat (“Tejarat”) in Tehran and in Kish for the deposit by NIOC of amounts owed to non-US subsidiaries of SLB for prior services rendered in Iran and for the maintenance of such amounts previously received. One non-US subsidiary also maintained an account at Tejarat for payment of local expenses such as taxes. SLB anticipates that it will discontinue dealings with Saderat and Tejarat following the receipt of all amounts owed to SLB for prior services rendered in Iran.
* Exhibit 101.INS—Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document
* Exhibit 104—Cover Page Interactive Data File (embedded within the Inline XBRL document)
* Filed with this Form 10-Q.
** Furnished with this Form 10-Q.
29
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
SLB LIMITED
Date:
October 28, 2026
/s/ Howard Guild
Howard Guild
Chief Accounting Officer and Duly Authorized Signatory
