Slb rises 7.1% after third-quarter results beat estimates

What happened

Slb rose 7.1% on October 23, 2026, because third-quarter results beat expectations and margins improved. Slb (SLB) reported earnings per share of $0.64 against $0.62 expected and said adjusted EBITDA margin rose 71 basis points sequentially to 21.9%, according to Reuters and Barrons. The company reported revenue for the quarter of $9,449 million, up 6% year-on-year, and income before taxes of $1,019 million, producing an income-before-tax margin of 10.8% for the period.

How big was the move

The stock closed at $53.06, a move that equaled 3.0 times a typical daily move for this stock, and trading volume ran at 1.5 times its 20-day average. The S&P 500 fell 0.5% on the day while the Energy sector median rose 2.7%, leaving the stock 4.3 percentage points better than the sector median. Over the last five sessions the stock rose 7.2% as investors absorbed the quarterly news. Market sensitivity remained modest, reflecting a beta of 0.61, meaning the stock tends to move less than the market.

The technical picture

The stock was 7.2% above its 20-day moving average and 1.1% above its 50-day moving average, while 3.5% above its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend, and the Relative Strength Index (14 days) stood at 60, in a neutral range. The stock remained 12.2% below the 52-week high and had risen 52.0% over one year, a performance 38.2 percentage points ahead of the S&P 500. Volatility was elevated, with 37% annualized over 60 days, higher than 56% of its own readings over five years.

Fundamentals and valuation

For the four quarters through September 30, 2026, revenue was $36.89 billion, which grew 4.6% from a year earlier, and diluted earnings per share were $2.04, which fell 21.2% from a year earlier. Gross margin was 16.3% compared with 19.1% a year earlier, and operating margin was 12.6% versus 16.1% a year earlier. Free-cash-flow margin was 8.0% and return on invested capital was 9.2%. The balance sheet showed net debt of 1.3 times EBITDA and share count over one year increased by 0.6%.

Valuation metrics placed the stock at 26.0 times trailing earnings and 21.6 times forward earnings, with a free-cash-flow yield of 4.0%. Its price to trailing earnings is higher than 81% of its own readings over the past five years, with a five-year median of 19.7 times earnings, indicating a rich valuation versus its recent history. PromtFinance scores were mixed within the sector: Momentum 66 (Positive) and Revisions 88 (Strong) contrasted with Value 37 (Weak) and Growth 33 (Weak), a combination that can support short-term strength while keeping longer-term questions about earnings growth and valuation.

Earnings and analyst expectations

The October 23, 2026, report showed EPS of $0.64 versus $0.62 expected, 3.7% above estimates, marking six consecutive quarters beating estimates and an average surprise of 4.7% above estimates over the last four reports. Management said pre-tax operating margins expanded across each of its four divisions and that adjusted EBITDA margin improved by 71 basis points sequentially to 21.9%. Revenue for the quarter was $9,449 million, up 5% sequentially and 6% year-on-year.

Analysts place a consensus price target of $64.58, 21.7% above the closing price, based on 66 analysts reporting and a consensus rating of Buy; 85% of those ratings were Buy or Strong Buy. The typical two-day reaction after recent reports was that the stock rose 2.6%. The next scheduled report is January 22, 2027.

What to watch

• January 22, 2027: next scheduled earnings report
• Consensus price target of $64.58, 21.7% above the closing price
• PromtFinance Revisions score of 88 (Strong)
• Net debt of 1.3 times EBITDA
• One year performance up 52.0%, 38.2 percentage points ahead of the S&P 500