Shelf Registration for ESOP and Analyst Sentiment Might Change The Case For Investing In SLB

• In June 2025, Schlumberger Limited filed a shelf registration to offer up to US$816.24 million worth of common stock in connection with its Employee Stock Ownership Plan (ESOP), involving 24 million shares.
• This move arrives amid mounting analyst concern about Schlumberger's earnings outlook, as recent revisions and insider selling have pointed to eroding sentiment ahead of its next earnings report.
• We'll assess how sharp earnings estimate cuts and a marked shift in analyst sentiment could alter Schlumberger's investment narrative.

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Schlumberger Investment Narrative Recap

Owning Schlumberger often means believing in its ability to leverage digital innovation and low-carbon expansion to drive resilient growth, even in cycles marked by volatile upstream spending. The recent US$816.24 million ESOP-related shelf registration does not materially alter the biggest near-term catalyst, an earnings rebound fueled by demand for digital and diversified services, or the most pressing risk, which remains the broad-based decline in international upstream investments.

Of the company updates, the launch of the Electris™ Technologies portfolio in May 2025 stands out. This offering accelerates Schlumberger’s digital transformation goals and amplifies the key short-term catalyst: higher-margin growth from digital and automation services, providing potential revenue streams less tied to classic oilfield volatility.

Yet, amid these moves, investors should not overlook the risk posed by ongoing declines in discretionary international upstream spending, especially if...

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

Schlumberger's outlook anticipates $38.0 billion in revenue and $5.4 billion in earnings by 2028. This projection is based on a 1.8% annual revenue growth rate and a $1.2 billion increase in earnings from the current $4.2 billion.

Uncover how Schlumberger's forecasts yield a $47.80 fair value, a 28% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided 11 fair value estimates for SLB, ranging from US$35 to US$72,296. The breadth of these views underscores just how sharply opinions differ, even as diverse growth catalysts expand beyond oil and gas.

Explore 11 other fair value estimates on Schlumberger - why the stock might be worth as much as 94% more than the current price!

Build Your Own Schlumberger Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Schlumberger research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Schlumberger research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Schlumberger's overall financial health at a glance.

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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.

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