SLB's stock jumped 7.2% to $50.60 following its second-quarter earnings report, pushing the company toward the top of the S&P 500. The rally came after SLB posted adjusted earnings per share of 55 cents, beating Wall Street's 51-cent forecast. Revenue grew 5% year-over-year to $8.97 billion, surpassing expectations of $8.67 billion.
Offshore Drilling Offsets Middle East Challenges
North America delivered a standout performance, with revenue soaring nearly 36% to $2.24 billion. This surge was driven primarily by a rebound in U.S. unconventional drilling and heightened demand for production and oil recovery solutions. Meanwhile, international revenue declined 2.6% to $6.67 billion, weighed down by disruptions tied to the ongoing U.S.-Iran conflict in the Middle East.
CEO Olivier Le Peuch highlighted that increased offshore activity in Latin America, Europe, Africa, and Asia helped cushion the pressure from the Middle East's struggles. Excluding that region, all business divisions showed sequential revenue growth, supported by resilient offshore operations and a rebound in U.S. unconventional drilling.
Data-Center Business Emerges as New Growth Driver
SLB is expanding beyond traditional oilfield services. Its data-center solutions segment grew rapidly, on track to surpass $1 billion in annualized revenue by the end of 2026. The unit is broadening its offerings by adding engineering and design services to meet rising demand from energy companies needing infrastructure for AI and data workloads. This diversification could become an increasingly important revenue stream moving forward.
After trading down nearly 1% on Thursday, SLB shares surged on Friday and held most of their gains into late morning trading.
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