Schlumberger (NYSE:SLB) Stock: $35.78 Price, Dividend Yield 3.2%, Buy Rating

NYSE:SLB Stock Performance and Valuation Metrics

Schlumberger Limited (NYSE:SLB) closed at $35.78 on September 8, 2025, extending its position near the lower end of its 52-week range of $31.11 to $46.16. The company holds a market capitalization of $53.37 billion, supported by revenues of $35.48 billion on a trailing twelve-month basis. Profit margins stand at 11.53%, while return on equity reaches 19.22%. On valuation, SLB trades at a trailing P/E ratio of 12.25 and forward P/E of 10.89, well below its historical average closer to 24x earnings. Price-to-sales sits at 1.41 and price-to-book at 2.63, suggesting a discount compared to long-term energy peers. The dividend yield is 3.18% on a forward payout of $1.14 annually, with a payout ratio under 40%, leaving ample coverage from free cash flow of $3.01 billion.

Earnings and Revenue Trends for NYSE:SLB

Second-quarter 2025 results showed EPS of $0.74, a narrow beat over consensus estimates of $0.73. Revenue landed at $8.55 billion, slightly above projections of $8.51 billion but down 6.5% year-on-year from $9.16 billion in Q2 2024. Earnings growth remains challenged by weaker North American activity, but sequential results showed stabilization, with adjusted EBITDA margins up 21 basis points to 24%. For full-year 2025, analysts expect EPS of $2.90, down from $3.41 in the prior year, before recovering to $3.08 in 2026, implying mid-single-digit growth. Revenue estimates show $35.42 billion for 2025, climbing toward $37.14 billion in 2026 as international markets offset softness in U.S. shale.

Dividend Stability and Shareholder Returns

The quarterly dividend of $0.285 per share was confirmed with an ex-dividend date of September 3, 2025, representing an annual yield of 3.2%. Historically, SLB’s 5-year average yield stands near 2.3%, making the current payout relatively attractive for income investors. With $3.7 billion in cash and net debt to EBITDA at 1.25x, balance sheet strength supports dividend sustainability. The payout ratio of 38.36% indicates SLB has room to navigate oil price swings while maintaining distributions. Institutional ownership remains high at 79.61%, with insiders holding 0.20% of shares, and recent institutional flows included Banque Transatlantique SA expanding its stake by over 1.85 million shares in Q1 2025, signaling confidence from large investors.

For tracking insider moves, see the SLB stock profile and insider transactions.

Geographic and Segment Growth Drivers

International strength has become the core stabilizer for SLB. Markets in Iraq, the UAE, Kuwait, East Asia, and Australia posted resilient activity, while offshore projects in Guyana, Brazil, and Suriname provide visibility into 2026. SLB’s ChampionX acquisition is beginning to reshape its revenue mix, expanding into less cyclical segments like production chemicals and artificial lift solutions. Management targets $400 million in annual pre-tax synergies within three years from the ChampionX integration, increasing recurring OpEx-driven revenues less exposed to commodity cycles. Production Systems revenue in Q2 2025 climbed 3% sequentially to $3 billion, offsetting weakness in Digital & Integration and Reservoir Performance.

Digital and Technology Investments for NYSE:SLB

UBS recently highlighted Schlumberger’s growing digital business, projecting its DELFI and LUMI platforms could be valued between $6.1 billion and $16.1 billion, representing as much as 25% of corporate enterprise value despite contributing only 2–3% of expected 2026 revenues. The company continues to expand with new technology like Electris™, an electric well completions suite aimed at improving recovery rates and cutting operating costs. SLB also secured an EPCI contract for Equinor’s Fram Sør project and a global offshore framework with bp, reflecting momentum in integrated energy solutions. Digital disclosures from H2 2025 onwards are expected to provide clarity, which could re-rate the stock if margins expand in line with expectations.

Risks from Mexico and Russia Exposure

Receivables tied to Mexico’s PEMEX remain a concern. Outstanding exposure was $773 million at the end of Q2 2025, but when including credit default swaps SLB used to backstop customer loans, the total exposure could reach $1.8 billion. In Russia, revenue contribution has dropped to 4%, but $600 million in net assets remain at risk of impairment, and regulatory scrutiny continues. Any further sanctions or write-offs could weigh on near-term financial results. Historical precedent shows SLB paid $232.7 million in fines in 2015 for sanctions breaches, and risk of future penalties cannot be ignored. These exposures, alongside volatile oil prices, underscore downside risks.

Analyst Ratings and Price Targets for NYSE:SLB

Wall Street sentiment remains positive. Out of 21 analysts, two rate SLB a Strong Buy, fifteen a Buy, and four a Hold. The consensus price target is $45.43, implying nearly 27% upside from current levels. The high target sits at $63, while the low is $36. UBS maintains a Buy rating with a $44 target, JPMorgan holds an Overweight at $44, and Stifel targets $52. Wells Fargo recently downgraded from Strong Buy to Hold amid short-term weakness. Quant ratings are more cautious, showing a Hold with a 2.91 score due to cyclical volatility, but fundamentals suggest valuation remains compelling.

Final Assessment: Buy, Sell, or Hold on SLB

At $35.78, NYSE:SLB trades at just 12x earnings with a 3.2% yield, substantial international exposure, and a pipeline of offshore projects that position the company for margin expansion into 2026. The integration of ChampionX diversifies revenue streams into less cyclical areas, and the digital business has the potential to command a significant premium multiple. While risks tied to PEMEX receivables and Russian operations linger, SLB’s balance sheet, institutional backing, and undervalued multiples outweigh the downside. With analyst targets averaging $45.43 and growth drivers intact, SLB merits a Buy rating for investors seeking exposure to oilfield services with strong dividends, undervaluation, and long-term growth catalysts.

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