SLB Anticipates First Quarter Earnings Hit Due to Middle East Conflict
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 15 2026
0mins
Should l Buy SLB?
Source: Yahoo Finance
- Earnings Warning: SLB anticipates a $0.06 to $0.09 impact on its first-quarter earnings per share due to disruptions in the Strait of Hormuz caused by escalating conflicts, significantly affecting its operations in Iraq, Qatar, and Kuwait.
- Market Impact: While the effects in major markets like Saudi Arabia and the UAE are currently deemed 'marginal', analysts note that the Hormuz blockade has forced producers to curtail output, rapidly filling storage facilities and potentially straining future supply chains.
- Investment Opportunity: Morgan Stanley maintains an 'Overweight' rating on SLB, suggesting that the recent 6% decline in share price since February may present a buying opportunity for investors willing to overlook short-term volatility amid the ongoing conflict.
- Cautious U.S. Market: American drilling and completion companies are exhibiting unusual restraint despite rising global oil prices, with public E&Ps adhering to capital discipline and waiting for clearer market signals before increasing rig deployments.
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Analyst Views on SLB
Wall Street analysts forecast SLB stock price to fall
16 Analyst Rating
16 Buy
0 Hold
0 Sell
Strong Buy
Current: 51.730
Low
43.00
Averages
48.71
High
55.00
Current: 51.730
Low
43.00
Averages
48.71
High
55.00
About SLB
SLB N.V. is a global technology company. The Company’s segments include Digital, Reservoir Performance, Well Construction, Production Systems, and All Other. Digital segment includes products, services, and solutions that span the energy value chain from subsurface characterization through field development and hydrocarbon production to carbon management and the integration of adjacent energy systems. Reservoir Performance segment consists of reservoir-centric technologies and services that are critical to optimizing reservoir productivity and performance. Well Construction segment provides operators and drilling rig manufacturers with services and products related to the design and construction of a well. Production Systems segment develops technologies and provides expertise that enhances production and recovery from subsurface reservoirs to the surface, into pipelines, and to refineries. All Other segment includes asset performance solutions, data center solutions and SLB Capturi.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Capital One Performance Focus: Capital One is scheduled to report earnings on Tuesday, with market attention on its consumer health metrics and the progress of its acquisitions of Discover and Brex, particularly amid rising economic uncertainties.
- Boeing Earnings Outlook: Boeing is expected to release its earnings report on Wednesday, with market focus on order volumes in both its commercial and defense sectors, as well as free cash flow performance, especially after previous unexpected losses.
- GE Vernova Order Growth: GE Vernova will report alongside Boeing, with first-quarter new orders anticipated to reach $14.4 billion, reflecting a 65% year-over-year increase, indicating strong market performance amid rising electricity demand.
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- Earnings Expectations: According to FactSet, the S&P 500 is projected to have a blended growth rate of 12.5% in Q1, with 78% of reporting companies exceeding expectations, providing a positive backdrop for the upcoming earnings season that could further bolster market confidence.
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- Technical Fragility: Despite the market's strong short-term performance, analyst Craig Johnson warns that the rapid transition from oversold to overbought conditions masks underlying macroeconomic risks, urging investors to remain cautious and focus on high-quality investment opportunities.
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Impact on U.S. Oil Companies: U.S. oil companies are experiencing a decline in shares following Iran's announcement regarding the Strait of Hormuz.
Strait of Hormuz Status: Iran has declared that the Strait of Hormuz is completely open for the remaining period of Lebanon's ceasefire.
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- Market Trend Analysis: While several stocks are trading near their 52-week highs, investors should remain cautious of short-term trends, and selecting fundamentally strong stocks like Merck may yield better returns in the future.
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- Energy Stock Profit-Taking: Investor Stephanie Link announced on CNBC that she sold her Chevron position to realize a 35% gain, reallocating funds into technology stocks while maintaining a significant stake in oilfield services company SLB, indicating a cautious yet confident stance on the energy sector.
- Investment in Tech Stocks: Although Link did not specify the tech stocks purchased, she highlighted Quanta Services as a key player in the data center revolution, noting its diverse role in power infrastructure and potential benefits from rising power demand and grid upgrades, reflecting her optimism for future tech investments.
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