← back to rankingSLB · SLB N.V.
Oil & Gas Equipment & Services · mkt cap $84.6B · calls: Q1 FY2026 vs Q4 FY2025
62.0 conviction · conf-adj 62
conf 6/10 partial
enthusiasm:27.0 · trend:8 · quantifies:5 · impact:0 · under_radar:0 · credibility:5 · business_impact:8 · disruption:0 · commitment:6 · confirmation:3
Enthusiasm latest 9 / prev 8 (rising)
SLB’s AI thesis is that domain-specific AI, autonomous operations, and digital platforms are driving measurable growth in Digital while AI-infrastructure demand is opening a separate data-center revenue stream. The latest call is more explicit and broader than the prior call, adding S&P foundation-model/LLM work and NVIDIA DSX AI factory positioning. Credibility is supported by disclosed growth metrics and customer adoption figures, though many productivity claims remain qualitative.
GROUNDED NEXT-FY IMPACT vs CONSENSUS
Grounded on actual base — revenue $35.7B · net income $3.4B · net margin 9.4% · diluted EPS 2.35
These are next-fiscal-year annual uplift estimates, not next-quarter numbers.
Aggregate next-FY est. rev uplift: 0.0068% · next-FY EPS uplift: 0.0196% · vs analysts: inline · priced in: high · confidence: 6/10
| Claim | Figure | Arithmetic | Next-FY Rev % | Next-FY EPS % |
|---|
Digital revenue +9% YoY (Q1 FY26)
revenue | 9% YoY | Q1 snapshot of the same digital stream; full-year impact carried under the FY2025 $2.7B claim to avoid double-counting. Not additive on its own. | | |
Automated footage reading +145% YoY
engagement · soft | 145% YoY | Sub-feature of digital with NO disclosed revenue/volume base; already inside the 9% total digital growth. Cannot size standalone. | | |
Data center solutions +45% YoY
revenue | 45% YoY | Growth rate of the supplier-side data-center business; $ base disclosed in the $1B run-rate claim. Sized there to avoid double-count. | | |
Data center solutions $1B run rate (exit 2026)
revenue | $1B annual run rate | $1,000M / $35,709M = 2.80% rev (EXIT run-rate; full-FY26 contribution lower as it ramps). SUPPLIER hardware (thermal mgmt/power/integration sold INTO the AI buildout) -> use current company net margin 9.38%, NOT the 27% digital software margin: $93.8M / $3,350M = 2.80% EPS. EXCLUDED from adopter headline. | 0.028 | 0.028 |
Digital revenue $640M (Q1 FY26)
revenue | $640M; 9% YoY | Quarterly print of same digital stream; $640M annualizes to ~$2.6B, consistent with $2.7B FY base. Not additive. | | |
Digital operations +87% YoY
revenue · soft | 87% YoY | Primary driver WITHIN the 9% total digital growth (no standalone base disclosed); already captured in the $243M digital incremental. | | |
Digital ARR $1.02B, +15% YoY (Q1 FY26)
revenue | $1.02B ARR; 15% YoY | Recurring subset of digital revenue. Incr ARR = $1.02B x 15/115 = $133M, already subsumed in the $243M digital growth. Not additive. | | |
Digital adj. EBITDA margin 35% (FY26 target)
other | 35% | Margin LEVEL, not an incremental revenue/cost. Profitability of digital rev already captured via the 27% after-tax flow-through. No separate add. | | |
Digital ARR surpassed $1B, +15% (Q4 FY25)
revenue | >$1B ARR; 15% YoY | Same ARR metric as Q1 claim (prior quarter). Duplicate; not additive. | | |
Q4 digital $825M, +25% seq, 34% pretax op margin
other | $825M; 34% margin | Q4 snapshot. The disclosed 34% pretax operating margin is the SOURCE of the 27% after-tax incremental-margin assumption (34% x 0.79). Revenue subsumed in FY digital. | | |
Full-year digital revenue $2.7B, +9% (FY25)
revenue | $2.7B; 9% | ADOPTER AGGREGATE CARRIER. Disclosed base $2.7B x guided 9% ('digital grows at the same pace as 2025') = $243M incr / $35,709M = 0.68% rev. @27% net margin -> $65.6M / $3,350M = 1.96% EPS. | 0.0068 | 0.0196 |
Digital EBITDA margin 35% (FY25)
other | 35% | Margin level (rule-of-40 framing). Already reflected in flow-through; not a separate incremental. | | |
Lumi >50 customers
engagement · soft | >50 customers | Adoption count, no revenue/ARPU disclosed. Cannot size. | | |
Tela >12 customers
engagement · soft | >12 customers | Early adoption count (<3 months), no revenue disclosed. Cannot size. | | |
Data center run rate $1B (year-end 2026)
revenue | $1B run rate | Duplicate of the exit-2026 run-rate claim. Sized once there (2.80% rev, supplier-side, excluded from adopter headline). | | |
Assumptions: Next fiscal year = FY2026 off the FY2025 base. ADOPTER digital sized ONCE on the disclosed full-year digital base ($2.7B) x the guided 9% growth = $243M incremental revenue; all Q1/Q4 snapshots, ARR, digital-operations +87%, and footage-reading +145% are components of that single stream and are NOT summed. Adopter incremental net margin = 27%, derived from disclosed Q4 digital pretax operating margin 34% x (1-0.21 tax). SUPPLIER carve-out: data-center solutions (thermal mgmt/power/integration sold INTO the AI buildout) sized separately on the disclosed $1B EXIT run rate at the COMPANY's current net margin (9.38%, hardware not software) -> 2.80% rev / 2.80% EPS; full-year FY26 lower as it ramps. Tax 21%. Customer-count and unanchored growth-% claims left null (soft).
Top line: Adopter-side AI (the digital software/operations franchise) adds ~$243M incremental FY26 revenue on the disclosed $2.7B base at the guided 9% pace = +0.68% to total revenue and +1.96% to EPS at 27% flow-through. Faster headline numbers (digital ops +87%, footage +145%, ARR +15%) are components of that single stream, not additive. Separately, supplier-side data-center solutions reach a $1B exit run-rate (+2.80% rev) but are EXCLUDED from the adopter headline. Both adopter figures sit within the consensus growth trajectory and look largely in-line, not a surprise.
Bottom line: Flowing the $243M adopter digital incremental at a 27% incremental net margin (34% disclosed digital pretax op margin x 0.79) yields ~$65.6M of net income, or +1.96% EPS. The 35% digital EBITDA margin target is a profitability level already embedded in that flow-through, not a separate lever. Supplier data-center at run rate would add ~$270M NI / +8.06% EPS on a full-run-rate basis, but that is excluded from the adopter headline and is only a partial-year contributor in FY26.
Consensus FY26 revenue ($36,486M) implies +$777M (+2.18%) over the FY25 base. The adopter digital incremental of $243M is ~31% of that, and digital+data-center combined plausibly account for the bulk of expected growth — i.e. the AI/digital story IS consensus's growth engine, not upside to it. On earnings, consensus actually models FY26 EPS DOWN to $2.594 from the $2.879 FY25 figure (cyclical oilfield softness); the +1.96% adopter EPS contribution and the 35% digital margin are offsets already inside that number. No evidence the AI math points above what 16-17 analysts already assume.
MODEL CONSENSUS (impact)
partial
Adopted Y's single-stream digital sizing (~0.68% rev/1.96% EPS) and X's current-net-margin supplier flow-through (2.80% rev/EPS, excluded from headline).
Conflicts reconciled
- data-center run-rate EPS: X=0.028 (current 9.38% net margin) vs Y=0.0806 (27% digital margin) -> used 0.028 because supplier hardware uses company net margin, not software margin
- adopter aggregate: X≈0.0062/0.0184 (backward FY25 calc) vs Y=0.0068/0.0196 (forward FY26 $2.7B x 9%) -> used Y as the correct next-FY basis
- digital snapshot pcts: X assigned non-null overlapping figures vs Y nulled as not-additive -> used Y to avoid double-counting one stream
| Field | Opus 4.8 | GPT-5.5 |
|---|
| Rev uplift % | 0.0068 | 0.0068050071 |
| EPS uplift % | 0.0196 | 0.0200565672 |
| Priced in | high | high |
| vs analysts | inline | inline |
| Confidence | 7 | 5 |
| Top line | Adopter-side AI (the digital software/operations franchise) adds ~$243M of incremental FY26 revenue on the disclosed $2.7B base at the guided 9% pace = +0.68% to total company revenue. The faster headline numbers (digital operations +87%, automated footage reading +145%, ARR $1.02B +15%) are sub-components of that same 9% and are not additive. Separately, supplier-side data-center solutions targets a $1B exit-2026 run rate (+2.80% of revenue on a run-rate basis, less on a full-year basis as it ramps), which is reported apart from the adopter headline. | Adopter-side hard FY2026 uplift is Digital: $2.7B * 9% = $243.0M, equal to 0.681% of current revenue. Q1 Digital growth annualizes to $211.4M, or 0.592%, and ARR growth implies $133.0M, or 0.373%, but these overlap. Supplier-side data center solutions add a separate $1.0B annualized exit run-rate, or 2.800% of revenue, excluded from the adopter headline. |
| Bottom line | Flowing the $243M adopter digital incremental at a 27% incremental net margin (34% disclosed digital pretax op margin x 0.79) yields ~$65.6M of net income, or +1.96% EPS. The 35% digital EBITDA margin target is a profitability level already embedded in that flow-through, not a separate lever. Supplier data-center at run rate would add ~$270M NI / +8.06% EPS on a full-run-rate basis, but that is excluded from the adopter headline and is only a partial-year contributor in FY26. | Applying a 27.65% Digital incremental net margin to the $243.0M adopter revenue uplift gives $67.2M incremental net income, or 2.006% of current net income. Margin and ARR disclosures support the profitability of Digital, but are not separate additive EPS uplifts. |
| Reasoning | Consensus FY26 revenue ($36,486M) implies +$777M (+2.18%) over the FY25 base. The adopter digital incremental of $243M is ~31% of that, and digital+data-center combined plausibly account for the bulk of expected growth — i.e. the AI/digital story IS consensus's growth engine, not upside to it. On earnings, consensus actually models FY26 EPS DOWN to $2.594 from the $2.879 FY25 figure (cyclical oilfield softness); the +1.96% adopter EPS contribution and the 35% digital margin are offsets already inside that number. No evidence the AI math points above what 16-17 analysts already assume. | FY2026 consensus revenue is $36.486B versus $35.709B current revenue, a $776.8M increase or 2.175%. The adopter AI estimate of $243.0M is only 31.3% of that consensus revenue increase. Consensus EPS rises from $2.35 to $2.59394, or 10.380%, while the adopter AI EPS uplift is about 2.006% of current net income, so the quantified adopter-side AI impact fits inside consensus rather than clearly exceeding it. |
Rows highlighted where the two models disagreed.
QUANTIFICATIONS
Digital revenue growth: 9% year on year (Q1 FY2026, topline)
“Turning to Digital, we increased 9% year on year driven by strong uptake in digital operations.”
Automated footage reading growth: 145% year on year (Q1 FY2026, both)
“Of note, automated footage reading increased by 145% year on year as customers continue to adopt digital and AI-powered solutions to boost operational performance and efficiency.”
Data center solutions growth: 45% year on year (Q1 FY2026, topline)
“Also, data center solutions remain a bright spot, with 45% growth year on year.”
Data center solutions run rate: $1 billion (exit 2026, topline)
“With our growing backlog, we remain on track to exit the year at a $1 billion run rate and expect the growth rate to accelerate in 2027.”
Digital revenue: $640 million; 9% year on year (Q1 FY2026, topline)
“First quarter Digital revenue of $640 million increased 9% year on year, primarily driven by 87% growth in digital operations.”
Digital operations growth: 87% (Q1 FY2026, topline)
“First quarter Digital revenue of $640 million increased 9% year on year, primarily driven by 87% growth in digital operations.”
Digital annual recurring revenue: $1.02 billion; 15% year-on-year growth (end of Q1 FY2026, topline)
“Notably, annual recurring revenue for the division stood at $1.02 billion at the end of the first quarter, representing year-on-year growth of 15%.”
Digital adjusted EBITDA margin target: 35% (full-year 2026, bottomline)
“It is our ambition to deliver total EBITDA margins from Digital of at least 35% this year as well.”
Digital annual recurring revenue: surpassed $1 billion; 15% year-on-year growth (Q4 FY2025, topline)
“Digital annual recurring revenue surpassed $1 billion, reflecting year-on-year growth of 15%.”
Fourth-quarter Digital revenue and margin: $825 million; 25% sequential growth; 557 basis points; 34% pretax operating margin (Q4 FY2025, both)
“Fourth-quarter digital revenue of $825 million increased 25% sequentially, while pretax operating margin expanded 557 basis points to 34%.”
Full-year Digital revenue growth: $2.7 billion; 9% (FY2025, topline)
“Notably, for the full year, digital revenue of $2.7 billion grew 9%.”
Digital EBITDA margin: 35% (FY2025, bottomline)
“The combination of this growth rate and the full-year EBITDA margin of 35% well exceeded the widely recognized rule of 40.”
Lumi adoption: more than 50 customers (four or five quarters after launch, topline)
“Lumi, which we launched four or five quarters ago, is already having more than 50 customers of an adoption.”
Tela adoption: more than a dozen customers (less than three months after launch, topline)
“Tela, that we launched less than three months ago, has already more than a dozen customers that are engaging and working with us to create this foundation model that can transform their geosounds workflow or that can automatically detect and optimize autonomously some producing assets as you have seen with ADNOC announcement that we have done.”
Data center solutions run rate: $1 billion (year-end 2026, topline)
“The opportunity is growing faster than anticipated, and we expect to exit the year at a quarterly revenue run rate of $1 billion per year.”
PAST (realized)
- Of note, automated footage reading increased by 145% year on year as customers continue to adopt digital and AI-powered solutions to boost operational performance and efficiency.
- Also, data center solutions remain a bright spot, with 45% growth year on year.
- First quarter Digital revenue of $640 million increased 9% year on year, primarily driven by 87% growth in digital operations.
- We also announced several exciting digital milestones in the fourth quarter, including launching Tela, an AI system purpose-built to transform the upstream energy sector, and forming a partnership with ADNOC to launch an AI-powered production system optimization platform.
- Fourth-quarter digital revenue of $825 million increased 25% sequentially, while pretax operating margin expanded 557 basis points to 34%.
- Notably, for the full year, digital revenue of $2.7 billion grew 9%.
CURRENT (now)
- Our approach is grounded in domain expertise, where AI, data, and software are integrated into our platform and workflows to deliver measurable performance outcomes.
- This is not about standalone tools; it is about embedding intelligence across the full life cycle of whatever developments and production.
- Finally, data centers represent a new and rapidly expanding opportunity for SLB N.V., leveraging our core strengths in engineering, manufacturing, and project execution, while extending our scope of modular infrastructure solutions to support the accelerating demand for AI and digital capacity.
- Customers are accelerating the adoption of digital because they believe that no matter where the cycle is—whether it is a high or challenging cycle—they need to differentiate and extract efficiency and productivity in geoscience and planning workflows, operational performance and efficiency in drilling, and in production and recovery.
- They have seen that digital capability is delivering, and you can see it by the adoption of digital operations growing nicely year on year, driven by drilling and production operations where customers are adopting AI and software solutions that can transform the performance of drilling operations—like drilling automation—and transform production workflows to render ESPs autonomous.
- SLB N.V. is uniquely positioned to deliver value in this environment by integrating equipment with intelligent and autonomous digital capabilities to reduce downtime, improve efficiency, and increase productivity, as witnessed by the rapid uptake in our digital operations.
FORWARD (guidance)
- With our growing backlog, we remain on track to exit the year at a $1 billion run rate and expect the growth rate to accelerate in 2027.
- As the number of use cases increases and the value of these technologies is proven in the field, we anticipate increased adoption.
- Over time, we expect digital to become an increasingly important lever for growth, both as a standalone business and as an enabler across our broader portfolio.
- Looking ahead, we see additional upside to opportunities such as thermal management, decarbonized power, and scaling as a systems integrator.
- Together, we will provide our customers with unique insights by applying AI capability and our domain foundation models on the full datasets of S&P Global Commodity Insights.
- In digital, revenue is expected to grow at the same pace as 2025, driven by digital operations.
- These underscore the opportunity for AI to continue to reshape industry operations.
TRACK RECORD — PROMISE vs DELIVERY
53/100 track record mixed 6 calls reviewed
SLB reliably hits its AI/digital margin and profitability targets (35% digital EBITDA margin, rule-of-40) and nearer-term quarterly guidance, but materially missed its headline FY2025 digital revenue growth promise — guiding high-teens, walking it down mid-year, then delivering just 9%. Credible on margins, over-optimistic on growth pace.
Digital revenue to grow high-teens % in FY2025 (data & AI solutions) — promised Q4 FY2024
missed Full-year 2025 digital revenue grew only 9% — well short of high-teens despite ~17% growth in early quarters
Digital revenue to grow 17% YoY in Q1 FY2025 — promised Q4 FY2024
delivered Q1 FY2025 digital revenue grew 17% YoY, matching the target
Digital to achieve double-digit YoY growth in 2025 with full-year EBITDA margin of 35% — promised Q3 FY2025
partial Margin hit 35% (rule-of-40 cleared), but revenue growth was only 9%, below double digits
2024 digital revenue to exceed high-teens growth target — promised Q4 FY2024
delivered Delivered — 2024 digital grew ~20%, with Cloud/AI/Edge up ~35%, beating the target
CCS, geothermal, critical minerals and data center solutions to visibly exceed $1B in 2025 — promised Q1 FY2025
quietly-dropped Later calls cited strong data-center growth but never reported the combined figure against the >$1B target
AI-driven data center solutions to exit 2026 at a $1B/year quarterly revenue run rate — promised Q4 FY2025
too-early As of Q1 FY2026 still 'on track' (45% YoY growth, NVIDIA DSX award); timeframe not yet reached
PRICED-IN (REFINED)
HIGH (already in)Est. revisions rising · Fwd P/E 19.6 · EV/Sales 2.6x
AI claim maps to Digital Integration, Reservoir Characterization, Production Systems
Price targets show clear upward momentum, with lastMonthAvg above lastQuarterAvg above lastYearAvg, even though rating counts are mostly stable and forward EPS growth is uneven. The stock is not cheap for a mature oilfield-services company at 19.6x forward EPS, 25.7x TTM EPS, and 2.6x EV/Sales, so the market is already paying for improvement. AI upside would most directly map to Digital Integration, with secondary flow-through to Reservoir Characterization and Production Systems, making the combination of rising targets and elevated valuation a high priced-in setup.
COVERAGE — ENTHUSIASM TRAJECTORY + CATALYSTS
7Q4 FY20247Q1 FY20256Q2 FY20259Q3 FY20259Q4 FY20258Q1 FY2026
AI enthusiasm across 6 calls — trend ↗ rising
AI evolved from digital-growth support to named platforms, automation metrics, connected assets, and customer deployments driving operations.
RECENT AI CATALYSTS & NEWS
BUSINESS IMPACT - QUALITATIVE MATERIALITY
7/10 qualitative impact material medium-term · mixed evidence
Where AI matters: digital operations, drilling automation, production optimization
AI is becoming a real driver inside SLB's Digital franchise, with disclosed Digital revenue growth, ARR growth, automated footage reading adoption, and AI-enabled drilling/production workflows. The impact is meaningful for a high-margin strategic segment, but Digital is still a minority of company revenue and management has previously overpromised on growth pace.
Caveats: Digital growth has missed prior high-teens guidance, so adoption may not scale as fast as management suggests; Some headline AI-related growth comes from selling data-center infrastructure into AI demand, which should not be credited as adopter-side business impact; Oilfield cycle weakness can overwhelm AI/digital margin and revenue gains; Generic software and coding tools could pressure parts of the Digital portfolio if SLB fails to differentiate through domain data and workflow integration
AI DISRUPTION / CANNIBALIZATION RISK tailwind · 2/10
AI may commoditize generic software development, but SLB's core model is tied to oilfield domain expertise, proprietary subsurface/operations data, integrated workflows, equipment, and field execution. The main business is not structurally exposed to AI-driven billable-hour or content commoditization.
OPTIONS / MARKET STRUCTURE
option liquidity: good
proxy inputs — dollar-ADV $944M · beta 0.731 · px $56.56
source: proxy (no options chain on FMP)
FMP /stable/ exposes no options-chain endpoint on this key, so ATM IV, bid-ask spread and open interest are unavailable. Liquidity below is a PROXY from dollar-ADV, beta and price level (a stand-in for option depth), not measured option-market data.
CONFIRMATION — INSIDERS · 13F · LANGUAGE
Mixed — insiders selling, institutions adding, management language 7/10 committed.
INSIDERS selling 15 open-market sell(s) vs 0 buy(s) — net distribution
INSTITUTIONS (13F) adding as of 2026-03-31: 283 new / 163 closed positions; 916 increased / 557 reduced; institutional ownership +2.82pp; +115 net 13F holders
MGMT LANGUAGE 7/10 committed Concrete growth metrics and run-rate targets show commitment, though adoption language stays partly qualified and longer-term.
commit “automated footage reading increased by 145% year on year”
commit “we remain on track to exit the year at a $1 billion run rate”
hedge “As the number of use cases increases and the value of these technologies is proven in the field, we anticipate increased adoption.”
VERBATIM AI QUOTES
“Turning to Digital, we increased 9% year on year driven by strong uptake in digital operations.”
— Olivier Le Peuch, Q1 FY2026
“Of note, automated footage reading increased by 145% year on year as customers continue to adopt digital and AI-powered solutions to boost operational performance and efficiency.”
— Olivier Le Peuch, Q1 FY2026
“Also, data center solutions remain a bright spot, with 45% growth year on year.”
— Olivier Le Peuch, Q1 FY2026
“The momentum in this area continues, as you saw our recent announcement to serve as a modular design partner for NVIDIA DSX AI factories.”
— Olivier Le Peuch, Q1 FY2026
“With our growing backlog, we remain on track to exit the year at a $1 billion run rate and expect the growth rate to accelerate in 2027.”
— Olivier Le Peuch, Q1 FY2026
“Our approach is grounded in domain expertise, where AI, data, and software are integrated into our platform and workflows to deliver measurable performance outcomes.”
— Olivier Le Peuch, Q1 FY2026
“This is not about standalone tools; it is about embedding intelligence across the full life cycle of whatever developments and production.”
— Olivier Le Peuch, Q1 FY2026
“Our teams continue to make exciting developments, particularly in the urgent adoption of AI.”
— Olivier Le Peuch, Q1 FY2026
“As the number of use cases increases and the value of these technologies is proven in the field, we anticipate increased adoption.”
— Olivier Le Peuch, Q1 FY2026
“Finally, data centers represent a new and rapidly expanding opportunity for SLB N.V., leveraging our core strengths in engineering, manufacturing, and project execution, while extending our scope of modular infrastructure solutions to support the accelerating demand for AI and digital capacity.”
— Olivier Le Peuch, Q1 FY2026
“First quarter Digital revenue of $640 million increased 9% year on year, primarily driven by 87% growth in digital operations.”
— Stephane Biguet, Q1 FY2026
“Notably, annual recurring revenue for the division stood at $1.02 billion at the end of the first quarter, representing year-on-year growth of 15%.”
— Stephane Biguet, Q1 FY2026
“Together, we will provide our customers with unique insights by applying AI capability and our domain foundation models on the full datasets of S&P Global Commodity Insights.”
— Olivier Le Peuch, Q1 FY2026
“You have seen one announcement with NVIDIA that shows they have selected us as their modular design partner for the DSX AI factory.”
— Olivier Le Peuch, Q1 FY2026
“Customers are accelerating the adoption of digital because they believe that no matter where the cycle is—whether it is a high or challenging cycle—they need to differentiate and extract efficiency and productivity in geoscience and planning workflows, operational performance and efficiency in drilling, and in production and recovery.”
— Olivier Le Peuch, Q1 FY2026
“They have seen that digital capability is delivering, and you can see it by the adoption of digital operations growing nicely year on year, driven by drilling and production operations where customers are adopting AI and software solutions that can transform the performance of drilling operations—like drilling automation—and transform production workflows to render ESPs autonomous.”
— Olivier Le Peuch, Q1 FY2026
“We see not only resilience but a long-term tailwind in any cycle, and digital will continue to have a tailwind in our industry because we have data like no other industry, we have scientists and engineers who love to work with data, and we have AI that is becoming a catalyst and x-factor to unlock productivity.”
— Olivier Le Peuch, Q1 FY2026
“Digital also continued to grow at a healthy rate, driven by strong growth in digital exploration with year-end sales in the Gulf of America, Brazil, and Mongolia, as well as a robust increase in digital operations and platform applications.”
— Olivier Le Peuch, Q4 FY2025
“Digital annual recurring revenue surpassed $1 billion, reflecting year-on-year growth of 15%.”
— Olivier Le Peuch, Q4 FY2025
“We also announced several exciting digital milestones in the fourth quarter, including launching Tela, an AI system purpose-built to transform the upstream energy sector, and forming a partnership with ADNOC to launch an AI-powered production system optimization platform.”
— Olivier Le Peuch, Q4 FY2025
“These underscore the opportunity for AI to continue to reshape industry operations.”
— Olivier Le Peuch, Q4 FY2025
“SLB N.V. is uniquely positioned to deliver value in this environment by integrating equipment with intelligent and autonomous digital capabilities to reduce downtime, improve efficiency, and increase productivity, as witnessed by the rapid uptake in our digital operations.”
— Olivier Le Peuch, Q4 FY2025
“In digital, revenue is expected to grow at the same pace as 2025, driven by digital operations.”
— Olivier Le Peuch, Q4 FY2025
“Fourth-quarter digital revenue of $825 million increased 25% sequentially, while pretax operating margin expanded 557 basis points to 34%.”
— Stephane Biguet, Q4 FY2025
“Notably, for the full year, digital revenue of $2.7 billion grew 9%.”
— Stephane Biguet, Q4 FY2025
“The combination of this growth rate and the full-year EBITDA margin of 35% well exceeded the widely recognized rule of 40.”
— Stephane Biguet, Q4 FY2025
“Tela, that we launched less than three months ago, has already more than a dozen customers that are engaging and working with us to create this foundation model that can transform their geosounds workflow or that can automatically detect and optimize autonomously some producing assets as you have seen with ADNOC announcement that we have done.”
— Olivier Le Peuch, Q4 FY2025
ANALYST QUESTIONS ON AI
Q (Q1 FY2026, Steve Richardson): I was wondering if we could talk a little bit about Digital. You made this acquisition with S&P. What we understand is this is a largely U.S.-centric software suite and dataset. Can you talk about what the longer-term vision is there, and be sure to hit on how and if that is an enabler of some of the other things you are doing in the broader business outside of Digital?
A: Separately, as you may have seen in the earnings press release, we have entered an agreement to pursue a strategic partnership with S&P Global Commodity Insights around AI, giving us the opportunity to use the power of large language models and domain-specific foundation models using the global datasets of S&P Global Commodity Insights.
Q (Q1 FY2026, Steve Richardson): I am wondering if you could give us a brief update on the data center business and your outlook there in terms of securing additional customers, your commercial approaches, and expectations for the balance of the year relative to what you talked about a quarter ago?
A: We continue to reiterate our ambition and our goal that we will reach or exceed a $1 billion run rate as we close this year.
Q (Q1 FY2026, Scott Gruber): In a world where code writing becomes easier and more commoditized, can you speak to the resilience of the value-add of your Digital portfolio? And as you take moves to shape the portfolio like you have done with the S&P acquisition, how do you think about expanding that value-add and enhancing that resilience?
A: We see not only resilience but a long-term tailwind in any cycle, and digital will continue to have a tailwind in our industry because we have data like no other industry, we have scientists and engineers who love to work with data, and we have AI that is becoming a catalyst and x-factor to unlock productivity.
Q (Q1 FY2026, Scott Gruber): And more importantly, would you anticipate customers taking some of this excess cash and spending it on more software and applications to get a bigger boost for their own internal efficiency?
A: At the same time, yes, they use discretionary spend to buy datasets to accelerate exploration, which we will benefit from, and they also participate in more pilots and make decisions faster to accelerate platform and software deployment in their organizations.
Q (Q4 FY2025, James West): And then maybe a follow-up on the digital side of the business. Obviously, strong results in the fourth quarter, but my sense is we're still fairly underpenetrated on Lumi and Delphi and the cloud platforms, and the AI platform that you have.
A: Lumi, which we launched four or five quarters ago, is already having more than 50 customers of an adoption.
Q (Q4 FY2025, Arun Jayaram): My follow-up is wondering if you could talk a little bit about your data center infrastructure business. You mentioned that you expect to reach a $1 billion run rate in revenue, if I heard you correctly, by year-end? Can you talk a little bit about the solutions you're providing today and maybe how you're thinking about organic and even inorganic opportunities to grow that business over time?
A: $1 billion is their own rate, but it will be significant to above this in 2027.
Q (Q4 FY2025, Scott Gruber): So I want to come back to the data center solutions business. Olivier, you mentioned expanding the business abroad. So does the billion-dollar target capture any of that international growth opportunity? Or would that be future upside?
A: But the US is still the hot market, and the US is where we believe we have the most exciting pipeline in '26 and '27 coming our way.