Why did SLB's second-quarter profit beat analysts' estimates despite disruptions in the Middle East?

SLB's second-quarter adjusted profit of 55 cents per share exceeded the analysts' estimate of 51 cents primarily because strong growth in North America—where revenue jumped 36%—more than offset a 14% decline in revenue from the Middle East and Asia, which fell to $2.57 billion due to operational disruptions and lower activity linked to the ongoing Iran-related conflict.

What is the significance of the Middle East to SLB's business, and how did the conflict impact its second-quarter results?

The Middle East is SLB's largest market, accounting for 34% of its total 2025 revenue, and the company explicitly warned that the regional conflict would reduce second-quarter earnings by 6 to 8 cents per share; indeed, revenue from the Middle East and Asia dropped 14% year-on-year, reflecting lower activity and operational disruptions, though CEO Olivier Le Peuch noted early signs of recovery in some countries while emphasizing that full recovery depends on a durable resolution of the conflict.

Top US oilfield services firm SLB beats quarterly profit estimates

Jul 24, 2026

SLB beat Q2 profit estimates with 55 cents per share, driven by a 36% North American revenue surge. Total revenue reached $8.97 billion, offsetting Middle East losses linked to ongoing regional conflicts.

reuters

2026-07-24

Top US oilfield services firm SLB beats quarterly profit estimates

Top US oilfield services firm SLB beats quarterly profit estimates

FAQ