Is SLB (SLB) Turning Its Lumi AI Platform Into Essential Infrastructure For Global Operators?

• Earlier this month, SLB announced it had signed a collaboration agreement with Shell to build digital and AI solutions on its Lumi platform, aiming to unify data and workflows across subsurface, well construction, and production in a secure environment for upstream operations.
• This partnership reinforces SLB’s efforts to turn its digital tools into core infrastructure for global operators, potentially deepening customer integration and strengthening its technology-led service offering.
• We’ll now examine how this Shell AI collaboration, centered on SLB’s Lumi platform, may influence the company’s longer-term investment narrative.

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SLB Investment Narrative Recap

To own SLB, you need to believe that global upstream spending and the shift toward higher margin digital and AI tools will support steady earnings, even as the energy transition advances. The Shell Lumi collaboration appears directionally positive for SLB’s digital ambitions, but it does not materially change the near term dependence on operator capex cycles or the key risk that weaker upstream budgets, especially in short cycle markets, could pressure revenue.

The Shell agreement also connects directly with SLB’s broader push into digital platforms, including recent AI and software initiatives such as its Petrel deployment across Shell’s assets. Together, these efforts aim to deepen SLB’s role in production optimization and data centric workflows, tying into the main catalyst that higher margin, recurring digital revenue could help offset future cyclicality in traditional oilfield services.

Yet behind the promise of AI driven efficiency, investors should be aware of the risk that global upstream spending weakens more than expected and...

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

SLB's narrative projects $38.7 billion revenue and $4.9 billion earnings by 2028.

Uncover how SLB's forecasts yield a $45.31 fair value, a 19% upside to its current price.

Exploring Other Perspectives

Fourteen members of the Simply Wall St Community currently see SLB’s fair value anywhere between about US$36 and US$86.91, underscoring how widely opinions can differ. Against that backdrop, the Shell Lumi AI partnership highlights how SLB’s push into digital tools could matter for future resilience, so it is worth weighing these contrasting views before deciding how much of your portfolio’s earnings exposure you want tied to upstream spending cycles.

Explore 14 other fair value estimates on SLB - why the stock might be worth over 2x more than the current price!

Build Your Own SLB 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 SLB research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free SLB research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate SLB'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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