SLB LIMITED/NV recently released its 10-Q report. SLB N.V. provides technology and services for the energy industry worldwide through four divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems. Its businesses span reservoir interpretation and data processing, stimulation and intervention, drilling and well construction services, production systems, artificial lift, subsea equipment, and related engineering and logistics support.
For the first quarter of 2026, SLB reported revenue of $8.721 billion, up 3% from $8.490 billion a year earlier, but down 11% from $9.745 billion in the fourth quarter of 2025. Pretax income was $956 million, compared with $1.063 billion in the prior-year quarter and $943 million in the fourth quarter. Net income was $761 million, down from $829 million a year earlier.
By segment versus the first quarter of 2025, Digital revenue rose 9% to $640 million and pretax income increased to $134 million from $125 million. Reservoir Performance revenue fell 6% to $1.594 billion, with pretax income down to $257 million from $282 million. Well Construction revenue declined 6% to $2.797 billion, while pretax income dropped to $424 million from $589 million. Production Systems revenue increased 23% to $3.508 billion, driven by the ChampionX acquisition, and pretax income rose to $497 million from $471 million. All Other revenue fell 21% to $443 million, while pretax income decreased to $113 million from $162 million.
Sequentially, Digital revenue fell 22% from $825 million in the fourth quarter of 2025. Reservoir Performance declined 9% from $1.748 billion, Well Construction fell 5% from $2.949 billion, and Production Systems dropped 14% from $4.078 billion. All Other revenue was down 1% from $445 million.
SLB said the quarter was affected by disruptions in the Middle East, which it said represented about 70% of its Middle East & Asia first-quarter revenue of $2.7 billion. The company said those disruptions hit Well Construction and Reservoir Performance most sharply, as it demobilized operations in several countries. It also said the conflict reduced international revenue by 7% year on year and North America revenue by 8% year on year, excluding the impact of the ChampionX acquisition.
Interest and other income totaled $43 million in the quarter, down from $78 million a year earlier. Research and engineering expenses were 1.9% of revenue, compared with 2.0% a year earlier, while general and administrative expenses held at 1.1% of revenue. The effective tax rate was 20%, down from 22%.
SLB recorded $41 million of merger and integration charges in the quarter, versus $206 million of charges and credits in the prior-year quarter, which included $158 million of workforce reduction charges and $48 million of merger and integration charges.
Cash and short-term investments totaled $3.387 billion at March 31, 2026, compared with $4.212 billion at March 31, 2025 and $4.212 billion at Dec. 31, 2025. Net debt was $8.221 billion, versus $10.105 billion a year earlier and $7.424 billion at year-end 2025. Cash flow from operations was $487 million, down from $660 million a year earlier, and free cash flow was negative $23 million versus positive $103 million. Capital investments were $510 million in the quarter, including $343 million of capital expenditures, $103 million of APS investments and $64 million of exploration data costs capitalized.
SLB repurchased $451 million of stock in the quarter and paid $426 million in dividends. In January 2026, it raised its quarterly dividend 3.5% to $0.295 per share from $0.285, beginning with the April 2026 payment. As of March 31, 2026, the company said it had repurchased about $6.3 billion of stock under its $10 billion buyback program. As a result of these announcements, the company's shares have moved 2.58% on the market, and are now trading at a price of $56.15. If you want to know more, read the company's complete 10-Q report here.
