What changed
$SLB — Oilfield services and technology for energy industry.
🎯 Q1 FY26 | Rev $9B | EPS $0.52 vs $0.51 🟢
💡 Consensus expects a recovery in international drilling activity and margin expansion from cost synergies with ChampionX. However, organic revenue declined 7% YoY, adjusted EBITDA fell 12%, and free cash flow was only $144M (vs $262M prior year).
🏢 Business Quality: 7/10 | Valuation: fair
📉 Reward/Risk: Upside 10% to $62.50 (15x FY26 consensus EPS) vs downside 20% to $45.50 (10x trough EPS of $2.00). Ratio 0.5:1 unfavorable.
🔮 Catalyst: Q2 2026 earnings (mid-July): watch for sequential revenue growth, margin improvement, and free cash flow conversion. Key metric: adjusted EBITDA margin >20% (Q1 was ~20.3%). Failure signal: further organic revenue decline or guidance cut.
💰 Entry: Current price $56.91 is not attractive.
Also in play: $HAL $BHI $NOV $FTI $CHX $BKR