SLB Stock Slips Pre-Market After Q1 2025 Earnings Miss – CEO Blames International Slowdown

CEO Oliver Le Peuch reaffirmed the company’s financial targets, saying SLB expects to return more than 50% of free cash flow to shareholders and will “materially exceed this target” in 2025.

Oil services firm SLB (SLB), formerly known as Schlumberger, fell short of earnings expectations in the first quarter, sending the company’s stock down by 1.5% in pre-market trading on Friday.

SLB posted earnings of $0.72 per share, missing the consensus estimate of $0.73, according to Koyfin. Revenue declined 3% year-over-year (YoY) to $8.49 billion, falling short of analysts’ projections of $8.59 billion. 

“It was a subdued start to the year,” CEO Olivier Le Peuch said in a statement, noting that strength in offshore U.S., North Africa, and Argentina was offset by a slowdown in Mexico, offshore Africa, and Saudi Arabia. He also cited a “steep decline” in Russia.

The company’s performance remains closely tied to oil and gas prices, which have not provided much support. West Texas Intermediate, the U.S. crude benchmark, is down 14% year-to-date and has declined 26% over the past 12 months.

SLB also said that it remains confident its deal to acquire Champion X, announced in April, will close in the second or early third quarter.

Le Peuch reaffirmed the company’s financial targets, saying SLB expects to return more than 50% of free cash flow to shareholders and will “materially exceed this target” in 2025.

The company said it plans to distribute at least $4 billion through dividends and share repurchases this year.

Amid ongoing volatility in commodity prices, global economic conditions, and shifting tariffs, Le Peuch said SLB is focused on protecting margins and maintaining consistent cash generation.

SLB’s stock has fallen nearly 30% over the past 12 months and is down 10% so far in 2025. 

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