Financial Analysis

6. Acquisitions ChampionX On July 16, 2025, SLB acquired all of the outstanding shares of ChampionX in an all-stock transaction. ChampionX is a global leader in chemistry solutions, artificial lift systems, and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely, efficiently, and sustainably across the world. The acquisition strengthens SLB's leadership in the production and recovery space. Under the terms of the agreement, ChampionX shareholders received 0.735 shares of SLB common stock in exchange for each ChampionX share. Calculation of Consideration Transferred The following details the fair value of the consideration transferred to effect the acquisition of ChampionX: (stated in millions, except exchange ratio and per share amounts) Equity consideration: Number of shares of ChampionX stock outstanding 191 Exchange ratio 0.735 SLB shares of common stock issued 141 SLB closing stock share price on July 15, 2025 $ 35.07 Equity consideration $ 4,936 Fair value of replacement equity awards 69 Total fair value of the consideration transferred $ 5,005 Preliminary Allocation of Consideration Transferred to Net Assets Acquired The following amounts represent the preliminary estimates of the fair value of assets acquired and liabilities assumed in the acquisition. The final determination of fair value for certain assets and liabilities will be completed as soon as the information necessary to complete the analysis is obtained. …

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12. Stock-based Compensation Plans SLB has three types of stock-based compensation programs: (i) a restricted stock unit and performance share unit program (collectively referred to as restricted stock), (ii) a discounted stock purchase plan (DSPP), and (iii) stock options. Restricted Stock SLB grants performance share units to certain key employees. The number of shares earned is determined at the end of each performance period based on SLBs achievement of certain predefined targets as described in the underlying performance share unit agreement. In the event SLB exceeds the predefined target, shares for up to a maximum of 250 % of the target award may be awarded. In the event SLB falls below the predefined target, a reduced number of shares may be awarded. If SLB falls below the threshold award performance level, no shares will be awarded. As of December 31, 2025, 2.4 million performance share units were outstanding assuming the achievement of 100% of target. Restricted stock awards do not pay dividends or have voting rights prior to vesting and generally vest at the end of three years or ratably in equal tranches over a three-year period. The fair value of a restricted stock award is generally the quoted market price of SLBs stock on the date of grant less the present value of the expected dividends not received prior to vesting. The following table summarizes information related to restricted stock activity: (Shares stated in millions) 2025 2024 2023 Weighted- Weighted- W …

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13. Income Taxes Income before taxes subject to United States and non-United States income taxes was as follows: (Stated in millions) 2025 2024 2023 United States $ ( 68 ) $ 641 $ 355 Outside United States 4,359 5,031 4,927 $ 4,291 $ 5,672 $ 5,282 SLB recorded net pretax charges o f $ 1.107 billion in 2025 ($ 565 million of charges in the US and $ 542 million of net charges outside the US); $ 540 million in 2024 ($ 188 million of charges in the US and $ 352 million of net charges outside the US); and $ 110 million in 2023 ($ 2 million of net credits in the US and $ 112 million of charges outside the US) . These charges and credits are included in the table above and are more fully described in Note 3 Charges and Credits . The components of net deferred tax liabilities were as follows: (Stated in millions) 2025 2024 Intangible assets $ ( 1,208 ) $ ( 758 ) Net operating losses 153 123 Fixed assets, net 106 173 Research and development credits 87 158 Capitalized research and development costs 255 216 Pension and other postretirement benefits ( 71 ) ( 62 ) Investments in non-US subsidiaries ( 194 ) ( 69 ) Foreign tax credits 63 - Other, net 165 152 $ ( 644 ) $ ( 67 ) Approximately $ 105 million of the $ 153 million deferred tax asset relating to net operating losses at December 31, 2025 can be carried forward indefinitely. The deferred tax balance at December 31, 2025 and 2024 was net of valuation allowances relating to the following: (Stated in millions) 2025 2024 Foreign tax cr …

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9. Long-term Debt and Debt Facility Agreements Long-term Debt consists of the following: (Stated in millions) 2025 2024 3.90 % Senior Notes due 2028 $ 1,484 $ 1,478 2.65 % Senior Notes due 2030 1,247 1,250 2.00 % Guaranteed Notes due 2032 1,172 1,034 0.25 % Notes due 2027 1,059 936 0.50 % Notes due 2031 1,058 935 4.30 % Senior Notes due 2029 848 848 4.50 % Senior Notes due 2028 497 497 5.00 % Senior Notes due 2027 497 495 4.85 % Senior Notes due 2033 495 498 5.00 % Senior Notes due 2029 494 493 5.00 % Senior Notes due 2034 487 489 7.00 % Notes due 2038 195 197 5.95 % Notes due 2041 111 111 5.13 % Notes due 2043 98 98 1.375 % Guaranteed Notes due 2026 - 1,040 1.00 % Guaranteed Notes due 2026 - 624 $ 9,742 $ 11,023 Long-term Debt as of December 31, 2025 is due as follows: $ 1.6 billion in 2027, $ 2.0 billion in 2028, $ 1.3 billion in 2029, $ 1.2 billion in 2030, $ 1.1 billion in 2031, and $ 2.6 billion thereafter. The estimated fair value of SLBs Long-term Debt at December 31, 2025 and December 31, 2024 was $ 9.4 billion and $ 10.4 billion, respectively, and was estimated based on quoted market prices. At December 31, 2025, SLB had committed credit facility agreements with commercial banks aggregating $ 5.0 billion, of which $ 2.0 billion matures in February 2029 and $ 3.0 billion matures in December 2030. These committed facilities support commercial paper programs in the United States and Europe. There were no borrowings under these facilities at December 31, 2025 and 2024. C …

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17. Pension and Other Postretirement Benefit Plans Pension Plans SLB sponsors several defined benefit pension plans that cover substantially all US employees hired prior to October 1, 2004. The benefits are based on years of service and compensation, on a career-average pay basis. In addition to the US defined benefit pension plans, SLB sponsors several other international defined benefit pension plans. The most significant of these international plans are the International Staff Pension Plan and the UK pension plan (collectively, the International plans). The International Staff Pension Plan covers certain international employees hired prior to July 1, 2014 and is based on years of service and compensation on a career-average pay basis. The UK plan covers employees hired prior to April 1, 1999, and is based on years of service and compensation, on a final salary basis. The weighted-average assumed discount rate, compensation increases and expected long-term rate of return on plan assets used to determine the net pension cost for the US and International plans were as follows: US International 2025 2024 2023 2025 2024 2023 Discount rate 5.70 % 5.25 % 5.50 % 5.67 % 5.14 % 5.41 % Compensation increases 4.00 % 4.00 % 4.00 % 4.85 % 4.84 % 4.84 % Return on plan assets 6.30 % 6.00 % 6.00 % 6.57 % 5.91 % 6.00 % Net pension cost (credit) included the following components: (Stated in millions) US International 2025 2024 2023 2025 2024 2023 Service cost $ 20 $ 23 $ 23 $ 46 $ 56 $ 54 In …

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3. Charges and Credits 2025 SLB recorded the following charges and credits during 2025: (Stated in millions) Pretax Charge (Credit) Tax Benefit (Expense) Noncontrolling Interest Net First quarter: Workforce reductions $ 158 $ 10 $ - $ 148 Other merger and integration 49 1 4 44 Second quarter: Impairment of equity method investment 69 12 - 57 Workforce reductions 66 3 - 63 Other merger and integration 35 4 4 27 Gain on sale of Palliser APS project ( 149 ) ( 4 ) - ( 145 ) Third quarter: Amortization of inventory purchase accounting adjustment 66 15 - 51 Acquisition-related professional fees 61 - - 61 Workforce reductions 57 4 - 53 Acquisition-related employee benefits 54 2 - 52 Impairment of equity-method investment 52 4 - 48 Other merger and integration 28 2 4 22 Fourth quarter: Goodwill impairment 210 - 41 169 Workforce reductions 126 14 3 109 Amortization of inventory purchase accounting adjustment 100 23 - 77 Other merger and integration 125 21 12 92 Reversal of valuation allowance relating to deferred tax assets - 92 - ( 92 ) $ 1,107 $ 203 $ 68 $ 836 In connection with the July 2025 acquisition of ChampionX Corporation (ChampionX) (see Note 6 Acquisitions ), SLB recorded $ 367 million of merger and integration charges during 2025. These charges consisted of $ 166 million relating to the amortization of purchase accounting adjustments associated with the write-up of acquired inventory to its estimated fair value; $ 80 million of transaction costs, including advisory and leg …

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"16. Segment Information SLB is primarily organized under four Divisions that combine and integrate SLBs technologies, enhancing the Companys ability to support the emerging long-term growth opportunities in each of these market segments. SLB previously reported its results on the basis of four Divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems. Commencing the third quarter of 2025, SLB's Digital business is reported as a separate Division. Additionally, SLB's Asset Performance Solutions (""APS""), Data Center Solutions and SLB Capturi businesses are now reported in the All Other category. The acquired ChampionX businesses are predominantly reported in SLB's Production Systems Division, with the exception of its digital business, which is reported in SLB's Digital Division. Prior periods have been recast to conform to the current presentation. SLBs segments, are: Digital Comprised of SLB's industry-leading digital solutions and data products. Reservoir Performance Consists of reservoir-centric technologies and services that are critical to optimizing reservoir productivity and performance. Well Construction Combines the full portfolio of products and services to optimize well placement and performance, maximize drilling efficiency, and improve wellbore assurance. Production Systems Develops technologies and provides expertise that enhances production and recovery of oil and gas assets from subsurface reservoirs to the surfac …

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2. Summary of Accounting Policies The Consolidated Financial Statements of SLB have been prepared in accordance with accounting principles generally accepted in the United States of America. Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. On an ongoing basis, SLB evaluates its estimates, including those related to collectibility of accounts receivable; revenue recognized for certain long-term construction-type contracts over time; recoverability of fixed assets, goodwill, intangible assets, Asset Performance Solutions investments, and investments in affiliates; income taxes; exploration data; contingencies and actuarial assumptions for employee benefit plans. SLB bases its estimates on historical experience and other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Revenue Recognition SLB recognizes revenue upon the transfer of control of promised products or services to customers at an amount that reflects the consideration it expe …

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11. Stockholders Equity SLB is authorized to issue 4,500,000,000 shares of common stock, par value $ 0.01 per share, of which 1,495,331,485 and 1,400,850,420 shares were outstanding on December 31, 2025 and 2024, respectively. Holders of common stock are entitled to one vote for each share of stock held. SLB is also authorized to issue 200,000,000 shares of preferred stock, par value $ 0.01 per share, which may be issued in series with terms and conditions determined by the SLB Board of Directors. No shares of preferred stock have been issued. Accumulated Other Comprehensive Loss consists of the following: (Stated in millions) 2025 2024 2023 Currency translation adjustments $ ( 2,397 ) $ ( 2,697 ) $ ( 2,557 ) Pension and other postretirement benefit plans ( 2,283 ) ( 2,275 ) ( 1,709 ) Cash flow hedges ( 43 ) 46 42 Other ( 13 ) ( 24 ) ( 30 ) $ ( 4,736 ) $ ( 4,950 ) $ ( 4,254 ) …

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4. Acquisition On July 16, 2025, SLB acquired all of the outstanding shares of ChampionX in an all-stock transaction. ChampionX is a global leader in production chemistry solutions, artificial lift systems, and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely, effectively, and sustainably across the world. The acquisition strengthens SLB's leadership in the production and recovery space. Under the terms of the agreement, ChampionX shareholders received 0.735 shares of SLB common stock in exchange for each ChampionX share. Excluding its Drilling Technologies business, which was disposed of concurrently with the closing of the acquisition, ChampionX recorded revenue of approximately $ 0.9 billion and $ 1.7 billion during the second quarter and the first six months of 2025, respectively.

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9. Long-term Debt Long-term Debt consists of the following: (Stated in millions) Jun. 30, Dec. 31, 2026 2025 3.90 % Senior Notes due 2028 $ 1,488 $ 1,484 2.65 % Senior Notes due 2030 1,247 1,247 2.00 % Guaranteed Notes due 2032 1,134 1,172 0.25 % Notes due 2027 1,026 1,059 0.50 % Notes due 2031 1,024 1,058 5.15 % Senior Notes due 2036 992 - 4.30 % Senior Notes due 2029 849 848 4.50 % Senior Notes due 2028 498 497 4.55 % Senior Notes due 2031 497 - 4.80 % Senior Notes due 2033 496 - 4.85 % Senior Notes due 2033 495 495 5.00 % Senior Notes due 2029 495 494 5.00 % Senior Notes due 2034 488 487 7.00 % Notes due 2038 194 195 5.95 % Notes due 2041 110 111 5.13 % Notes due 2043 98 98 5.00 % Senior Notes due 2027 - 497 Other 9 - $ 11,140 $ 9,742 The estimated fair value of SLBs Long-term Debt, based on quoted market prices at June 30, 2026 and December 31, 2025, was $ 10.7 billion and $ 9.4 billion, respectively. At June 30, 2026, SLB h ad committed credit facility agreements with commercial banks aggregating $ 5.0 billion, of which $ 2.0 billion matures in February 2029 and $ 3.0 billion matures in December 2030. These committed facilities support commercial paper programs in the United States and Europe. There were no borrowings under these facilities at June 30, 2026 or December 31, 2025. Commercial paper borrowings are classified as long-term debt to the extent they are backed up by available and unused committed credit facilities maturing in more than one year and to the extent …

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"2. Charges and Credits 2026 SLB recorded charges of $ 41 million and $ 69 million during the first and second quarters of 2026, respectively, primarily in connection with the July 2025 acquisition of ChampionX Corporation (""ChampionX"") (see Note 4 - Acquisition ). These costs are classified in Merger & integration in the Consolidated Statement of Income . (Stated in millions) Noncontrolling Pretax Charge Tax Benefit Interests Net First quarter: Merger and integration $ 41 $ 8 $ 2 $ 31 Second quarter: Merger and integration 69 19 3 47 $ 110 $ 27 $ 5 $ 78 2025 First quarter During the first quarter of 2025, SLB recorded a $ 158 million charge relating to workforce reductions to realign and optimize its support and service delivery structure. This charge is classified in Restructuring & other in the Consolidated Statement of Income . During the first quarter of 2025, SLB recorded $ 49 million of charges in connection with the July 2025 acquisition of ChampionX and the October 2023 acquisition of the Aker Solutions subsea business. These costs are classified in Merger & integration in the Consolidated Statement of Income. Second quarter During the second quarter of 2025, SLB recorded a $ 69 million impairment charge relating to an equity method investment that was determined to be other-than-temporarily impaired. This charge is classified in Restructuring & other in the Consolidated Statement of Income . During the second quarter of 2025, SLB recorded a charge …

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12. Segment Information Financial information by segment is as follows: (Stated in millions) Second Quarter 2026 Depreciation Income and Capital Revenue Before Taxes Amortization Investments (5) Digital $ 697 $ 194 $ 48 $ 62 Reservoir Performance 1,556 232 118 125 Well Construction 2,742 417 161 136 Production Systems 3,771 586 152 165 All Other 505 142 85 125 Eliminations & other ( 299 ) ( 167 ) 71 30 Corporate & other (1) ( 211 ) 77 Interest income (2) 23 Interest expense (3) ( 128 ) Charges and credits (4) ( 69 ) $ 8,972 $ 1,019 $ 712 $ 643 (Stated in millions) Second Quarter 2025 Depreciation Income and Capital Revenue Before Taxes Amortization Investments (5) Digital $ 591 $ 153 $ 33 $ 33 Reservoir Performance 1,691 314 107 124 Well Construction 2,963 551 169 118 Production Systems 2,932 491 91 111 All Other 583 155 117 107 Eliminations & other ( 214 ) ( 80 ) 71 27 Corporate & other (1) ( 169 ) 45 Interest income (2) 30 Interest expense (3) ( 139 ) Charges and credits (4) ( 21 ) $ 8,546 $ 1,285 $ 633 $ 520 (1) Comprised principally of certain corporate expenses not allocated to the segments, stock-based compensation costs, amortization expense associated with certain intangible assets, certain centrally managed initiatives and other nonoperating items. (2) Interest income excludes amounts that are included in the segments income ($ 5 million in 2026; $ - million in 2025). (3) Interest expense excludes amounts that are included in the segments income ( $ - …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing