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How a Wave of Bearish Analyst Calls at Schlumberger (SLB) Has Changed Its Investment Story

Simply Wall St · 09/02/2025 10:11
  • Recently, Schlumberger has faced bearish analyst sentiment and a Zacks Rank #5 (Strong Sell), with forecasts pointing to a decline in EPS and revenue compared to the previous year driven by commodity price weakness, softer North American activity, and wider sector headwinds.
  • Interestingly, while most brokerage firms maintain a consensus Buy rating, recent downward revisions to earnings estimates and the sector's positioning in the bottom 12% by the Zacks Industry Rank highlight cautious institutional sentiment.
  • We'll examine how this recent wave of analyst pessimism ahead of earnings could reshape the company’s investment narrative and future outlook.

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Schlumberger Investment Narrative Recap

To own shares in Schlumberger today, you have to believe in a long-term recovery for global oilfield spending, driven primarily by international markets and digital transformation, even as short-term headwinds persist. The recent wave of bearish analyst sentiment and industry downgrades may weigh on confidence before upcoming earnings, yet it does not fundamentally change the biggest near-term risk: a further slowdown in North American upstream activity, which could pressure revenue and margins through year-end.

Among the company's recent announcements, Q2 2025 results were especially relevant, Schlumberger reported year-over-year declines in both revenue and net income, echoing themes in recent analyst downgrades and sector caution. This underlines how commodity price weakness and slower North American activity have already begun impacting key metrics that matter for near-term performance catalysts.

By contrast, investors should also be aware that persistent macro uncertainty and volatility in commodity prices may still...

Read the full narrative on Schlumberger (it's free!)

Schlumberger's narrative projects $38.7 billion revenue and $4.9 billion earnings by 2028. This requires 2.9% yearly revenue growth and a $0.8 billion earnings increase from $4.1 billion.

Uncover how Schlumberger's forecasts yield a $45.43 fair value, a 23% upside to its current price.

Exploring Other Perspectives

SLB Community Fair Values as at Sep 2025
SLB Community Fair Values as at Sep 2025

Thirteen members of the Simply Wall St Community estimate Schlumberger's fair value anywhere from US$35 to over US$66 per share. Alongside these diverse outlooks, continued fluctuations in global operator spending remain a central factor that could shape Schlumberger's future results, so you may want to review how your own view compares with a range of alternative assessments.

Explore 13 other fair value estimates on Schlumberger - why the stock might be worth just $35.00!

Build Your Own Schlumberger Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.