Middle East Issues Hit SLB Operations, Profit

SLB reported a challenging first quarter of 2026, with revenue beating estimates but GAAP EPS decreasing due to widespread disruptions in the Middle East. Geopolitical issues led to demobilization of operations in several countries, particularly impacting Well Construction and Reservoir Performance segments. Despite these headwinds, the company saw growth in Digital revenue and Production Systems (driven by ChampionX acquisition), and advanced strategic moves including a share repurchase program, dividend approval, and an agreement to acquire S&P Global’s geoscience and petroleum engineering software portfolio.

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