SLB
SLB N.V.
Energy · Oil & Gas Equipment & Services · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The growth factor scored poorly due to simultaneous top-line contraction and a sharp double-digit decline in net income and EPS, which the model penalized heavily.
- Profitability and financial health factors provided mid-range support, as SLB's 9.4% net margin, 12.0% operating margin, and 7.7 interest coverage ratio reflect a company that is still fundamentally sound.
- The dividend factor contributed positively with a 47.5% payout ratio, but the absence of a macro theme assignment and weak momentum from declining quarterly earnings kept the total score at 42.7/100.
Why Not Higher
- The combination of a 24.4% year-over-year decline in net income and persistent quarterly deterioration in operating income from 2025Q2 through 2026Q1 significantly weighed on both the growth and momentum factors.
- The lack of any macro theme assignment means the model applied no thematic tailwind, and the growth score came in near the floor due to simultaneous revenue and earnings contraction.
Data Confidence
9 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue declined from FY2024's $36,289,000,000 to FY2025's $35,708,000,000 (-1.6%), while net income fell from FY2024's $4,461,000,000 to FY2025's $3,374,000,000 (-24.4%), and diluted EPS dropped from FY2024's $3.11 to FY2025's $2.35 (-24.4%).
The model penalized SLB heavily for simultaneous top-line contraction and a sharp double-digit decline in both net income and earnings per share, resulting in a near-floor growth score.
In FY2025, SLB posted a net margin of 9.4%, an operating margin of 12.0%, and a return on assets of 6.1%.
These figures reflect a company that remains solidly profitable at both the operating and net levels, with a meaningful return on its asset base, which the model rewarded with a mid-range profitability score.
In FY2025, SLB reported an interest coverage ratio of 7.7 (operating income divided by interest expense) and total assets of $54,868,000,000.
An interest coverage ratio of 7.7 in FY2025 suggests the company comfortably services its debt obligations, and the large asset base provides scale; the model assigned a mid-range score reflecting these positives alongside data gaps on other health metrics.
Quarterly revenue rose from 2025Q2's $8,546,000,000 to a peak of 2025Q4's $9,744,000,000 before pulling back to 2026Q1's $8,721,000,000, while operating income declined from 2025Q2's $1,285,000,000 steadily to 2025Q4's $943,000,000 and held near that level at 2026Q1's $956,000,000, and net income similarly fell from 2025Q2's $1,014,000,000 to 2025Q3's $739,000,000 and has not recovered, sitting at 2026Q1's $752,000,000.
Although revenue showed a temporary seasonal lift in 2025Q4, the persistent deterioration in operating and net income across the four most recent quarters signals decelerating earnings momentum, which the model reflected in a below-average score.
SLB's dividend payout ratio in FY2025 was 47.5% of net income.
A payout ratio of 47.5% in FY2025 indicates that SLB returns a meaningful share of earnings to shareholders while retaining enough capital for reinvestment, a balance the model rewarded with a high dividend score.
SLB is not currently assigned to any of the 24 tracked macro themes in the model.
The absence of a theme assignment means the model did not apply any thematic tailwind to SLB's score; this is a neutral classification rather than a negative signal about the company's business or prospects.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
SLB N.V. earned a composite score of 42.7/100 with a Medium risk rating and a Monitor Only label, reflecting a company that remains solidly profitable but is facing meaningful headwinds. Revenue slipped 1.6% year-over-year to $35,708,000,000 in FY2025, while net income fell sharply by 24.4% to $3,374,000,000, and diluted EPS dropped from $3.11 to $2.35 over the same period. On the positive side, SLB maintains a net margin of 9.4%, an operating margin of 12.0%, a comfortable interest coverage ratio of 7.7, and a dividend payout ratio of 47.5% that signals a shareholder-friendly capital return posture. However, persistent quarterly deterioration in operating and net income, combined with no active macro theme assignment, limits the model's overall enthusiasm for the stock at this time.
Plain English
SLB is a large, profitable oilfield services company that is currently earning decent margins and paying a solid dividend, but its revenues and profits have been shrinking recently, and its quarterly earnings trend has been heading in the wrong direction, which is why the model rates it as a 'Monitor Only' situation.
Bull Case vs. Bear Case
Bull Case
- SLB remains solidly profitable, posting a net margin of 9.4% and an operating margin of 12.0% in FY2025, demonstrating that the core business continues to generate meaningful earnings even in a challenging environment.
- The company's interest coverage ratio of 7.7 in FY2025 indicates it comfortably services its debt, and a total asset base of $54,868,000,000 provides significant operational scale.
- A dividend payout ratio of 47.5% in FY2025 shows SLB is returning a meaningful share of earnings to shareholders while retaining capital for reinvestment, reflecting a balanced and shareholder-friendly financial policy.
Bear Case
- Revenue contracted 1.6% from FY2024 to FY2025, and net income fell by 24.4% over the same period, with diluted EPS dropping from $3.11 to $2.35, signaling simultaneous top-line and bottom-line deterioration.
- Quarterly operating income has declined steadily from $1,285,000,000 in 2025Q2 to $956,000,000 in 2026Q1, and net income has not recovered from its trough, sitting at $752,000,000 in 2026Q1, pointing to persistent earnings pressure.
- SLB is not currently assigned to any of the 24 tracked macro themes in the model, meaning no thematic tailwind is being applied to its composite score, leaving it without a structural catalyst in the current framework.
What Could Change the Picture
Bullish Triggers
- A sustained reversal in quarterly operating and net income trends — particularly if operating income climbs back toward the $1,285,000,000 level seen in 2025Q2 — would signal that the earnings deterioration has stabilized.
- Assignment to one or more of the model's 24 tracked macro themes could provide a thematic tailwind that meaningfully improves the composite score.
Bearish Triggers
- Further acceleration in net income or revenue declines beyond the already steep 24.4% year-over-year drop in net income would deepen concerns about the sustainability of current profitability levels.
- A deterioration in the interest coverage ratio below comfortable levels, or a reduction in the dividend payout ratio, could signal worsening financial health and reduced shareholder returns.
Risk Profile
Medium RiskSLB's interest coverage ratio of 7.7 in FY2025 suggests the company is not in immediate financial distress, but the steady quarterly decline in operating income from $1,285,000,000 in 2025Q2 to $956,000,000 in 2026Q1 and the failure of net income to recover from its trough indicate that earnings momentum remains a meaningful risk to watch.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.