BUSINESS

United States-based SLB pivots toward data centers

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United States-based SLB, formerly known as Schlumberger, reported second-quarter adjusted earnings of 55 cents a share on revenue of $8.97 billion, beating Wall Street forecasts and lifting its stock about 10% for its strongest one-day gain in six months. Chief Executive Olivier Le Peuch said that increased offshore activity in Latin America, Europe, Africa and Asia more than offset disruptions tied to the conflict in the Middle East, where hostilities and Iran-backed Houthi threats to supplies have weighed on oilfield services providers. The quarter marked a return to year-on-year revenue growth outside the Middle East, as global crude markets grappled with supply risks and prices that recently climbed more than 8% in a week. United States-based SLB also highlighted its data center operations as a key growth driver, with revenue from that business rising 33% quarter-on-quarter and 80% from a year earlier, putting it on track to reach a $1 billion annualized revenue run rate by year-end and more than $2 billion by the end of next year. The company aims to build out its role as an industrial technology partner to the data-center industry and this year expanded a deal with Nvidia to support artificial-intelligence infrastructure. SLB’s results opened U.S. energy earnings season, ahead of upcoming reports from integrated majors ExxonMobil and Chevron and from refiners expected to post sharply higher quarterly profits amid war-related supply disruptions.

Prepared by Christopher Adams and reviewed by editorial team.

Timeline of Events

1926 SLB founded as oilfield services
Recent months Middle East conflict disrupts operations
This year Offshore work expands across four regions
This year SLB grows data center business
Friday SLB posts strong second-quarter earnings
Friday Shares jump ten percent on results
Friday Management signals emerging energy upcycle
Next year Firms expected to rebuild energy inventories

Why This Matters to You

SLB's pivot to data centers could affect your wallet. If you own SLB stock, you're likely cheering. If you're considering investing, it's a key growth area to watch. And if you work in data centers or AI, SLB's expansion might mean more job opportunities.

The Bottom Line

SLB is navigating global conflicts and betting big on data centers. It's a bold move that's paying off so far. But as always, market conditions can change quickly. Worth forwarding if you know someone eyeing the tech or energy sectors.