Schlumberger (SLB) Stock Forecast & Price Target

SLB is well positioned to compound value because it combines a leading global oilfield-services franchise with dominant digital capabilities, strong international exposure, and a differentiated position in fragmented but oligopolistic markets. In 2025, Digital generated $2.7 billion of revenue, roughly $1 billion of annual recurring revenue, and about $900 million of adjusted EBITDA at a 35% margin, while revenue and EBITDA grew at 16% and 23% CAGRs since 2021, supported by more than $3 billion of digital R&D, proprietary AI, and a deep installed base. With a Digital TAM of about $25 billion expanding toward $35 billion to $50 billion by 2030, SLB’s targeted 10% to 15% revenue CAGR, margin expansion to 38% to 42%, and strong FCF generation underpin a favorable long-term outlook.

SLB is challenged by its heavy exposure to international markets, where continued Middle East disruptions are already pressuring 2Q26 results and limiting near-term visibility despite mid-high single-digit growth expected outside the region. Its outlook is further weakened by the risk that global recession, softer oil prices, and inflationary headwinds could reduce upstream activity, compress margins, and trigger lower utilization with weaker fixed-cost absorption in Digital & Integration and Well Construction Solutions. Although the company remains a leader in differentiated oligopolies and digital revenue is nearly $3 billion, the revised 2026 EBITDA estimate of $8.0 billion and a downside case of $7.8 billion underscore that profitability could fall short if activity and pricing do not improve.