SLB shares rose 7.1% after earnings, as investors appeared to reward broad sequential growth across its core divisions and expanding margins. Production Systems led the quarter, while management also pointed to improving revenue visibility from multiyear Middle East contracts and continued data-center demand.
- Revenue grew sequentially across all geographic areas and core divisions; pretax segment operating margins expanded across all four divisions.
- Production Systems led growth, and SLB said its production business now accounts for more than 50% of its portfolio. ChampionX posted its highest quarterly revenue since the acquisition, with margins expanding for a fourth consecutive quarter.
- Well Construction benefited from double-digit increases in Argentina, Guyana, Brazil and US land, alongside growth in the Middle East and Asia. Four Saudi Aramco contracts cover more than 450 wells over an initial three-year term.
- Digital revenue was steady sequentially after exceptional exploration sales in the prior quarter. Management expects double-digit year-on-year digital growth for the year and adjusted EBITA margins above 35%.
- The near-term pace of Middle East recovery remains uncertain. Data-center solutions continued to grow, with investment in capacity and geographic expansion into Asia.
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