Most people still think of SLB as a drill-bit company. That framing is about two years out of date.
Over a century of upheaval and industrial reinvention, SLB has grown into the largest oilfield services and energy technology company in the world. What is changing now is where the growth is actually coming from.
While most energy companies are feeding the AI boom by building power plants, SLB is focusing on modular data center infrastructure and integrated power solutions designed to accelerate data center deployment.
That is a different business than what the stock is priced for.
The Numbers Today
SLB is scheduled to report second-quarter results on Friday, July 24, 2026, and will hold its Q2 2026 results conference call at 9:30 a.m. ET.
That EPS decline is real and it is not pretty. But context matters here.
Management has said that if Middle East disruptions persist through the middle of the quarter and then start to alleviate, it would negatively impact second-quarter earnings per share by an incremental $0.06 to $0.08.
The headwinds are specific and they are geographic. The question is whether they are temporary.
The Part Everyone Is Skipping Past
A strategic alliance with Liberty Energy to deliver modular infrastructure solutions and integrated power generation for data center projects represents a significant diversification catalyst. SLB’s Digital division reported $1.02 billion in annual recurring revenue as of March 31, 2026, growing 15% year over year.
Those are software margins. In an oilfield services company. In April 2026 prepared remarks, SLB said it expects to achieve full-year 2026 Digital adjusted EBITDA margin that is at least equivalent to last year’s level of 35%.
On July 14, 2026, the company announced an agreement with Liberty Energy to form a strategic alliance to deliver modular infrastructure solutions and integrated power generation for data center projects globally. SLB said it has shipped more than 1.3 gigawatts of prefabricated modular infrastructure since April 2024 and expects cumulative deliveries to exceed 2 gigawatts globally by year-end 2026.
Leading AI hyperscalers have told investors they plan to spend hundreds of billions of dollars on data centers and AI infrastructure in 2026 alone. SLB is positioning itself to capture a piece of the physical infrastructure layer of that spend. The market has not figured out how to price that yet.
The Bear Case Is Real
Do not ignore the operational drag. The anticipated drop in earnings reflects broader challenges in the oil and gas industry, particularly in international drilling and offshore demand.
The bears look at SLB and see a cyclical energy company with geopolitical exposure trying to talk up a tech pivot that represents a small fraction of revenue. They are not wrong to be skeptical of the timing.
What they might be underpricing: by combining modular infrastructure with integrated power generation, SLB and Liberty Energy are positioning themselves as critical capacity vendors for the technology sector.
The Valuation Gap
Wall Street consensus remains broadly constructive, with a Moderate Buy rating and an average analyst price target around $60–$61 in mid-July 2026.
Barclays, Raymond James, UBS, and Susquehanna have all trimmed targets recently. But all four maintained positive ratings while doing it. The thesis is intact. The multiple is compressed.
What today’s call really decides is how fast the Middle East headwind fades, and how much of the data center revenue story gets quantified with actual numbers rather than forward guidance. That is a big claim. Q2 is where it starts being tested against reality.
For informational purposes only.
