BMO Capital has raised its price target on SLB to $55.00 from $53.00 and retained an Outperform rating. The move came after the company reported fourth-quarter 2025 results that outpaced both BMO's internal forecasts and consensus expectations for revenues and earnings per share.
At the time of the update SLB was trading at $49.15, roughly 5% below its 52-week high of $51.67. Data cited in the update show the stock has returned 40.8% over the prior six months.
The fourth-quarter beat contributed to BMO revising its multi-year outlook. Schlumberger reported diluted earnings per share of $2.35 for the last twelve months and annual revenue of $35.7 billion. BMO observed that the company's 2026 guidance was in line with expectations, with management commentary pointing to momentum building as the year progresses and a more robust recovery in Saudi Arabia than BMO had previously modeled.
Investors and analysts are projecting revenue growth in 2026 of about 4%, which aligns with BMO's assumptions. The company also offers a 2.4% dividend yield and has sustained dividend payments for 56 consecutive years, a factor that contributes to income-oriented investor interest.
BMO emphasized several areas expected to underpin improved results in 2027. Specifically, the firm pointed to deepwater operations, activity related to data centers, and operations in Venezuela as contributors that justified increasing its 2027 estimates.
Accordingly, BMO adjusted its earnings per share forecasts for 2026 and 2027 to $2.87 and $3.30, respectively, up from prior projections of $2.86 and $3.19. The updated 2027 projection incorporates an assumption of approximately 4% revenue growth and margins about 100 basis points higher than previously modeled.
The company's most recent quarterly results provided the immediate catalyst for analyst attention. For fourth-quarter 2025, SLB reported EPS of $0.78, outperforming a forecast of $0.74, and revenue of $9.75 billion versus an anticipated $9.55 billion. These topline and bottom-line beats prompted other brokerages to revisit their targets and ratings.
BofA Securities raised its price target on SLB to $55 and maintained a Buy rating, citing improved international revenue prospects with emphasis on the Middle East and Saudi Arabia. RBC Capital increased its target to $54 and highlighted SLB's strong free cash flow generation while keeping an Outperform rating. Both broker comments and BMO's revisions reflect a broadly positive stance from analysts following the quarter, even as the wider oil market faces ongoing challenges.
These developments are likely to factor into investor evaluations of SLB's near-term trajectory and longer-term earnings power. The combination of better-than-expected quarterly results, upward revisions to 2027 expectations, and sustained dividend payments frame the current analyst optimism.