Schlumberger Slips 2% Following Q1 Miss

Schlumberger (NYSE:SLB) shares fell more than 2% in premarket trading after the oilfield services giant reported first-quarter results that came in below analyst expectations, marking a subdued start to 2025 despite strength in select regions and its digital business.

The company posted adjusted earnings of $0.72 per share, missing the consensus estimate of $0.74. Revenue declined 3% year-over-year to $8.49 billion, falling short of the $8.64 billion Wall Street had forecast.

CEO Olivier Le Peuch acknowledged the soft performance, noting that gains in the Middle East, North Africa, Argentina, and offshore U.S. operations were outweighed by slowdowns in other geographies. However, he highlighted the company’s ability to maintain profitability in a challenging environment, as adjusted EBITDA margins edged up to 23.8% from 23.6% a year ago—reflecting effective cost management and operational discipline.

One standout area was digital services, where revenue jumped 17% year-over-year. The company credited this growth to rising demand for AI-driven tools and digital solutions aimed at boosting operational efficiency.

Looking ahead, Schlumberger reaffirmed its commitment to returning at least $4 billion to shareholders in 2025 via dividends and share buybacks.