SLB Jumps 6% on Earnings Beat, AI Growth; Lifts Oil Sector as S&P 500 Energy Stocks Rally

Key drivers included a 20% revenue boost in its digital services segment and 9% growth in its reservoir performance segment, offsetting a 1% decline in well construction revenue. CEO Olivier Le Peuch highlighted robust demand in digital products and maximized recovery efforts from existing assets, particularly in the Middle East, Asia, Europe, and Africa.

SLB also announced a 3.6% dividend increase to $0.285 per share and a $2.3 billion accelerated share repurchase program, targeting $4 billion in shareholder returns for 2025.

How Is SLB Leveraging AI and Strategic Partnerships?

The company underscored artificial intelligence as a key growth area, bolstered by partnerships with Nvidia, Amazon Web Services, and Aramco. Le Peuch described AI as a transformative force for the oilfield services industry, driving sustained outperformance for customers and shareholders.

SLB’s digital strategy, including AI and cloud-based platforms, positions the company as a leader in technology-driven solutions amid a challenging oil market.

What Is the Broader Market Context?

U.S. oil prices held near $79 per barrel, their highest level since July, supporting SLB’s outlook for international market spending growth in 2025. However, the company warned of flat to slightly declining North American spending and muted revenue growth due to cautious customer budgets and reduced discretionary spending.

International natural gas projects, particularly in Asia, the Middle East, and the North Sea, remain a bright spot, while North American activity is constrained by lower drilling rates.