SLB Issues Critical Update on Middle East Operations and First Quarter Earnings Outlook

Key Points

• SLB (NYSE: SLB) has activated crisis response teams due to escalating geopolitical tensions in the Middle East.
• Travel and transit through the region are suspended; demobilization of operations initiated in several countries.
• First quarter revenue will be lower than previously expected.
• Additional costs anticipated, resulting in an estimated impact of 6-9 cents per diluted share for Q1.
• Phased resumption of full activity will occur as conditions allow.
• SLB remains confident in the resilience of its global business despite near-term disruptions.
• Forward-looking statements highlight continued uncertainty due to geopolitical risks.

Detailed Investor-Focused Analysis

SLB (NYSE: SLB), a global leader in energy technology, has issued a significant update impacting its operations and financial outlook for the first quarter of 2026. The company is responding to escalating geopolitical instability in the Middle East, a region critical to global energy supply and SLB’s business footprint.

Operational Response: SLB’s top priority is the safety and security of its employees. The company has activated local and regional crisis response teams that are meeting daily. As a direct response to the evolving situation, SLB has suspended all travel and transit through the region. Additionally, operations are being demobilized in several countries, following customer actions to safeguard personnel and facilities. SLB is collaborating closely with local authorities and customers to monitor developments and will resume full activity in the region through a phased approach, once conditions are deemed stable.

Financial Impact: The operational disruptions are expected to have a material impact on SLB’s first quarter results. The company now anticipates Q1 revenue to be lower than previously forecasted. Furthermore, the additional costs associated with crisis management and operational demobilization are projected to result in a reduction of approximately 6-9 cents per diluted share for the quarter. This direct guidance represents a notable deviation from earlier expectations and is highly relevant for shareholders and potential investors.

Ongoing Uncertainty: SLB cautions that these estimates are subject to change, given the dynamic nature of the geopolitical environment. The company will continue to monitor the situation and update investors as necessary. This uncertainty, combined with the potential for further operational disruptions, introduces a risk factor that could affect SLB’s share price and investor sentiment in the near term.

Long-Term Outlook: Despite these near-term challenges, SLB underscores its confidence in the resilience of its global business, including operations in the Middle East. With a century-long track record of navigating geopolitical crises, SLB reiterates its commitment to serving a global customer base and maintaining its position as a leader in energy innovation and transition.

Important Considerations for Shareholders

• The operational disruptions and associated cost impact represent material, price-sensitive information that could affect SLB’s share value.
• The company’s ability to manage and adapt to the ongoing crisis will be critical for its short-term financial performance and long-term reputation.
• Investors should closely monitor further updates from SLB, as the situation remains highly fluid and could result in additional guidance revisions.
• The company’s forward-looking statements are subject to various risks, including geopolitical, operational, and regulatory uncertainties.

Contact Information

Media:
Josh Byerly – SVP of Global Communications
Moira Duff – Director of External Communications
Tel: +1 (713) 375-3407
Email: [email protected]

Investors:
James R. McDonald – SVP of Investor Relations & Industry Affairs
Joy V. Domingo – Director of Investor Relations
Tel: +1 (713) 375-3535
Email: [email protected]

Disclaimer

This article contains information based on SLB’s public disclosures and forward-looking statements, which are subject to risks and uncertainties. Actual results may differ materially from those expressed or implied due to changing geopolitical, economic, and operational conditions. Investors are advised to consider SLB’s filings with the SEC and consult their financial advisors prior to making investment decisions. This article is for informational purposes only and does not constitute investment advice.

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