JPMorgan has raised its 12-month price objective for SLB to $54.00 from $43.00 and kept an Overweight rating on the oilfield services provider following the company’s outlook for 2026. The upgrade from the bank follows SLB’s guidance, which aligns with consensus expectations and highlights anticipated recoveries in international markets that depressed the company’s 2025 results.
SLB identified three specific international areas it expects to improve in 2026: Saudi Arabia, Mexico, and deepwater operations. Management cited these regions as the principal sources of pressure during 2025 and indicated that performance there should begin to normalize, supporting revenue recovery next year.
On the product and service side, SLB is forecasting continued strength in its Digital segment, projecting high single-digit growth and further margin expansion. The company also expects favorable dynamics for its Production Systems business. Those tailwinds include robust Subsea order activity, heightened demand for production-oriented services, and synergy realization tied to the CHX merger.
Geographically, SLB highlighted Latin America, the Middle East, and Asia as primary growth contributors in 2026, with modest offsets expected from slight declines in Europe and Africa. The company additionally noted its position to benefit from a revival in Venezuela’s oil industry, stating it is the only western oilfield services firm operating there under the license held by CVX.
While SLB foresees a reduction in North American land spending in 2026, the firm expects its revenue mix to be supported by the Gulf of America footprint and marked expansion in its Data Center Solutions business. That unit grew 121% in 2025 to roughly $460 million in revenue and is forecasted to reach a $1 billion annualized run rate by the fourth quarter of 2026.
SLB’s most recent quarterly disclosure reinforced the positive tone. In fourth-quarter 2025 results, the company posted earnings per share of $0.78, topping the $0.74 analysts had expected. Revenue for the quarter came in at $9.75 billion, above consensus forecasts of $9.55 billion.
The company’s fourth-quarter performance prompted several analyst revisions. Raymond James increased its price target to $57.00, pointing to strong results across the Digital and Production Systems segments. BMO Capital lifted its target to $55.00 after SLB exceeded both its and consensus revenue and EPS projections. BofA Securities raised its target to $55.00, citing optimism about international revenue growth, particularly in the Middle East and Saudi Arabia. RBC Capital also nudged its target to $54.00, highlighting robust free cash flow generation and slightly better-than-expected quarterly results.
Summary
JPMorgan raised SLB’s price target to $54 while retaining an Overweight rating after SLB’s 2026 outlook signaled recoveries in Saudi Arabia, Mexico and deepwater operations. The company expects high single-digit growth and margin expansion in Digital, Production Systems tailwinds driven by Subsea demand and CHX merger synergies, and international growth led by Latin America, the Middle East and Asia. SLB reported fourth-quarter 2025 EPS and revenue above expectations, prompting multiple analyst price-target increases.
Key points
- JPMorgan raised its SLB price target to $54.00 from $43.00 and kept an Overweight rating.
- SLB projects high single-digit growth and margin expansion in its Digital segment, and expects Production Systems to benefit from Subsea orders, production-oriented service demand, and CHX merger synergies.
- International growth for 2026 is expected to be driven by Latin America, the Middle East and Asia; slight declines are anticipated in Europe and Africa, while North American land spending is forecast to fall.
Risks and uncertainties
- Recovery timelines for Saudi Arabia, Mexico and deepwater operations are uncertain - continued weakness in these regions would weigh on international revenue and the broader energy services sector.
- Any slowdown in Subsea order activity or delayed synergy capture from the CHX merger could dampen Production Systems momentum and margins, impacting oilfield equipment and services demand.
- A decline in North American land spending presents downside risk to regional revenues despite offsetting growth elsewhere; shifts in regional capital expenditure patterns could affect energy and industrial services markets.
These points underline how SLB’s outlook and recent results influence expectations across the energy services, subsea engineering, and industrial data solutions segments.