SLB (SLB) Q3 2026 Earnings Call: Q&A Summary

Q: James West of Melius Research asked which specific areas or product lines are expected to grow faster than others.

A: Olivier Le Peuch stated that the cycle is favorable to the company's footprint, with growth expected in deepwater exploration, production recovery, and new areas like Venezuela and Argentina.

Q: James West of Melius Research asked where the company is seeing the most exciting exploration activity.

A: Olivier Le Peuch noted that exploration is active in mature basins like West Africa and the North Sea, as well as frontier basins in Brazil, Namibia, and Indonesia, driven by energy security and the need to replace declining reserves.

Q: Scott Gruber of Citigroup asked how resilient the growth outlook is if crude prices moderate or Middle East conflict persists.

A: Olivier Le Peuch explained that the company expects mid-single-digit global activity growth assuming Middle East activity remains flat at 2026 levels, with the Middle East acting as a potential catalyst for further upside upon resolution.

Q: Scott Gruber of Citigroup asked for an update on the opportunity in Venezuela.

A: Olivier Le Peuch stated that activity is increasing with international operators, and the company expects multi-fold growth in 2027, potentially reaching the historical $1 billion level.

Q: Saurabh Pant of Bank of America asked for color on Middle East disruptions and the recovery seen before them.

A: Olivier Le Peuch noted that activity increased in the UAE and Kuwait earlier in the quarter, though it stabilized toward the end, and the company assumes fourth-quarter activity will remain at current levels without further escalation.

Q: Saurabh Pant of Bank of America asked if margins can normalize if Middle East revenue returns to pre-conflict levels.

A: Stephane Biguet stated that Middle East activity is a swing factor for margins, and the company has intentionally kept resources in place to capture the rebound, which will provide strong operating leverage when activity returns.

Q: Arun Jayaram of JPMorgan asked about trends at ChampionX and the ability to scale that business internationally.

A: Olivier Le Peuch reported that ChampionX delivered strong top-line growth and margin expansion, and the company sees potential to expand this portfolio internationally, particularly in the Middle East and offshore basins.

Q: Arun Jayaram of JPMorgan asked about the visibility for OneSubsea into 2027.

A: Olivier Le Peuch stated that the company expects to surpass its $9 billion booking target across two years, which will drive visible revenue growth in 2027 and beyond due to the multiyear nature of these awards.

Q: Sebastian Erskine of Rothschild & Co Redburn asked about the building blocks for North America growth.

A: Olivier Le Peuch stated that growth is driven by production recovery, drilling technology, and digital portfolios, alongside the new Data Center Solutions business, which is on track to surpass $2 billion in exit rate for 2027.

Q: Sebastian Erskine of Rothschild & Co Redburn asked about the opportunity for Data Center Solutions outside the U.S.

A: Olivier Le Peuch noted that the company is replicating its North American setup in Asia and diversifying its customer base, with the upcoming Kelvion acquisition expected to further enhance thermal management capabilities.

Q: An analyst from Goldman Sachs asked for regional color regarding the 2027 outlook.

A: Olivier Le Peuch stated that the company expects growth across every basin, with exploration visible in Africa and the Americas, deepwater in the Americas and Asia, and conventional production recovery globally.

Q: An analyst from Goldman Sachs asked about the opportunity set for digital offerings.

A: Olivier Le Peuch identified digital operations, digital exploration, and AI as the three primary vectors of growth, with increasing customer interest in using data to derisk exploration and optimize production.

Q: Marc Bianchi of TD Cowen asked if digital can continue at double-digit growth in 2027.

A: Olivier Le Peuch stated that the company aims for double-digit growth in digital, supported by the exploration cycle, digital operations, and AI, which acts as a disruptor for the industry.

Q: Marc Bianchi of TD Cowen asked about the appetite for further M&A in data centers.

A: Olivier Le Peuch said the company is focused on closing the Kelvion acquisition and fulfilling existing project backlogs before considering further M&A.

Q: Derek Podhaizer of Piper Sandler asked about the levers for Production Systems growth in Q4 and 2027.

A: Olivier Le Peuch stated that Q4 growth is supported by year-end product sales and OneSubsea, while 2027 growth will be driven by the broader production portfolio, including ChampionX and completions.

Q: Derek Podhaizer of Piper Sandler asked how to frame the upside if the Middle East recovers.

A: Olivier Le Peuch noted that the company expects international growth regardless of the Middle East, but a resolution in that region would serve as a catalyst for additional growth, potentially exceeding pre-conflict activity levels.