SLB Positioned for Growth in 2026 as AI Beneficiary and Stock Recovery Expected

Written by Emily J. Thompson, Senior Investment Analyst

SLB+1.66%

Source: CNBC

Updated: 5d ago

0mins

Source: CNBC

Industry Recovery Outlook: Stephanie Link from Hightower believes SLB is set for organic growth in 2026, primarily driven by power demand and artificial intelligence, indicating a gradual recovery that will enhance the company's market position.
International Market Opportunities: An expected significant increase in international activity in the second half of 2026, particularly with a 6% year-over-year capital expenditure growth in the Middle East, presents substantial growth potential for SLB, which derives 81% of its revenue from international markets.
Digital Solutions Advantage: SLB's digital solutions business, which offers AI products to enhance customer efficiency and productivity, is anticipated to drive higher margins and revenue growth, with nearly $1 billion in recurring revenue reported in the last year's third quarter alone.
Shareholder Return Plan: SLB aims to achieve approximately $4 billion in shareholder returns this year through buybacks and dividends, demonstrating the company's commitment to enhancing profitability while rewarding investors.

SLB

$45.9+Infinity%1D

Analyst Views on SLB

Wall Street analysts forecast SLB stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SLB is 45.76 USD with a low forecast of 38.00 USD and a high forecast of 56.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

15 Analyst Rating

14 Buy

1 Hold

0 Sell

Strong Buy

Current: 45.150

Low

38.00

Averages

45.76

High

56.00

Current: 45.150

Low

38.00

Averages

45.76

High

56.00

Susquehanna

Positive

maintain

$42 -> $52

2026-01-07

Reason

Susquehanna

Price Target

$42 -> $52

2026-01-07

maintain

Positive

Reason

Susquehanna raised the firm's price target on SLB to $52 from $42 and keeps a Positive rating on the shares. With U.S. rig and frac spread count flattish from Q3 levels heading into Q4 earnings season for the oilfield services sector, U.S. drilling and completions activity "appears to have held in better than most were expecting," the analyst tells investors in a group preview.

TD Cowen

Buy

downgrade

$57 -> $55

2026-01-07

Reason

TD Cowen

Price Target

$57 -> $55

2026-01-07

downgrade

Buy

Reason

TD Cowen lowered the firm's price target on SLB to $55 from $57 and keeps a Buy rating on the shares. The firm adjusted targets in the oilfield services group as part of a Q4 preview. Many oilfield stocks have responded positively to the capture of Nicolas Maduro, anticipating increased oilfield investment in Venezuela, the analyst tells investors in a research note. However, TD thinks it will take a long time and require a lot of guarantees from the U.S. government for U.S. companies to commit capital. It says the stock rallies on the news may be overdone. However, many names in the group remain "cheap," the firm adds.

Freedom Capital

Buy

Hold

downgrade

$47

2026-01-06

Reason

Freedom Capital

Price Target

$47

2026-01-06

downgrade

Buy

Hold

Reason

Freedom Capital downgraded SLB to Hold from Buy with a $47 price target. The "euphoria" in the U.S. oil and gas sector triggered by the U.S. operation in Venezuela is "unjustified," contends the analyst, who calls rising oil and gas equities amid declining oil prices "a dangerous game for investors." The sharp rally in U.S. oil and gas stocks over recent months shows little regard for the sector's negative fundamental backdrop, marked by falling oil prices and an oversupplied market, the analyst argues.

Evercore ISI

In Line -> Outperform

upgrade

$38 -> $54

2026-01-06

Reason

Evercore ISI

Price Target

$38 -> $54

2026-01-06

upgrade

In Line -> Outperform

Reason

Evercore ISI upgraded SLB to Outperform from In Line with a price target of $54, up from $38. The firm says the company's outlook "is much clearer than it has been in 2+ years." The closing of the ChampionX acquisition and reduction of exposure to APS reposition SLB towards the well head and production and reduce its risk profile, the analyst tells investors in a research note.

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.