SLB (SLB) has just put Q1 2026 under the microscope, with investors weighing its recent revenue and EPS trajectory. In the last reported quarter, Q4 2025 revenue was about US$9.7b and basic EPS was roughly US$0.55, compared with prior year Q4 2024 revenue of about US$9.3b and basic EPS of roughly US$0.78. Over the past few quarters, revenue has moved from about US$9.2b in Q3 2024 to US$8.5b in Q1 2025 and then to US$8.9b and US$9.7b in Q3 and Q4 2025. Quarterly basic EPS ranged from roughly US$0.50 to US$0.84, which frames an earnings season where the key question is how sustainably SLB is converting this top line into margins that may be relevant for long term holders.

See our full analysis for SLB.

With the headline figures on the table, the next step is to see how these results line up against the widely followed SLB narratives that focus on growth, resilience, and margin pressure, and to assess where the fresh numbers might challenge or reinforce those views.

Margins Under Pressure After One Off Loss

• Over the last 12 months, SLB produced about US$35.7b of revenue and US$3.4b of net income, which works out to a 9.4% net margin compared with 12.3% a year earlier, and that 9.4% includes a one off US$1.1b loss.
• Consensus narrative expects margins to climb over time, yet the recent margin line tells a more mixed story:
  • Analysts see earnings growing about 10.7% per year, but that is below the 16.1% forecast for the broader US market, so the current 9.4% margin is not being paired with especially fast growth in these figures.
  • The one off US$1.1b loss distorts trailing earnings, which means anyone leaning on simple year over year margin comparisons should separate that item before judging how the core business is tracking against the consensus margin improvement story.

Valuation Sits Between Peers And DCF

• SLB trades on a 25x trailing P/E and a share price of US$56.15, which is below the US Energy Services industry average multiple of 30.1x, above the peer average of 22.9x, and below the DCF fair value of about US$83.77 that implies a gap of roughly 33%.
• What stands out for the bullish view is how these valuation markers line up with the growth narrative:
  • Bullish arguments lean on earnings growth and higher long term margins, and a DCF fair value of US$83.77 versus US$56.15 today is consistent with that optimism, even though the current 25x P/E is already above the 22.9x peer average.
  • At the same time, earnings are forecast to grow around 10.7% per year, which is slower than the 16.1% US market forecast, so anyone leaning on the bullish case needs to be comfortable that future margin gains, not top line growth alone, justify paying a premium to peers.

On days like this, it helps to see exactly how bullish investors are joining the dots between growth, margins, and that DCF gap. 🐂 SLB Bull Case

Bears Focus On Slower Revenue Trend

• Revenue is forecast to grow about 3.7% per year, which trails the 11% forecast for the broader US market and leaves SLB relying more on margin moves and mix than on rapid top line expansion.
• Bears worry that energy transition and spending shifts will cap growth, and the current data gives them some support as well as pushback:
  • On one hand, a 3.7% revenue growth forecast and a trailing net margin of 9.4% that is down from 12.3% fit the cautious view that it could be harder to expand earnings quickly just through volume.
  • On the other hand, forecasts still call for earnings growth of roughly 10.7% per year and analysts have a consensus price target of US$56.36, which sits very close to the current US$56.15 share price, suggesting the base case is not aligned with the most pessimistic outcomes in the bearish narrative.

If you are weighing those cautious arguments, it is worth seeing how the full bear case lines up against the numbers just reported. 🐻 SLB Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for SLB on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With both risks and rewards in play, the real question is how this balance fits with your own approach and time horizon. If you want a clearer picture before acting, start by weighing the 2 key rewards and 3 important warning signs

Explore Alternatives

SLB currently faces a mix of slower 3.7% revenue growth, a lower 9.4% net margin after a one off loss, and earnings forecasts trailing the broader US market.

If that combination of modest growth and margin pressure makes you hesitant, you may wish to compare it with companies screened as having 55 high quality undervalued stocks to see where the risk reward trade off may look more appealing.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.