Raymond James has reaffirmed its Outperform rating on Schlumberger Ltd. (NYSE: SLB), accompanied by a price objective of $52.00, following the company's fourth-quarter financial disclosures for 2025. This valuation is consistent with the prevailing consensus among analysts. Schlumberger's shares currently hover close to their 52-week peak of $49.58, having delivered an impressive 42.6% gain over the preceding six months. According to InvestingPro data, the stock is trading near fair value based on an extensive valuation framework.
The company's performance in the final quarter of 2025 was robust, characterized by revenue expansion across all geographic segments. Schlumberger surpassed revenue forecasts from both Raymond James and the broader Street consensus. This outperformance was primarily attributable to the company's digital division and the inaugural full-quarter contribution from ChampionX within the Production Systems segment. Despite the encouraging quarterly outcomes, trailing twelve-month revenue stood at $35.25 billion, representing a modest year-over-year decline of 2.1%, as per InvestingPro metrics.
Though Schlumberger fell slightly short of margin expectations, its EBITDA figures outpaced both Raymond James and Street estimates by margins of 1.5% and 1.3% respectively. A standout financial metric was the firm's free cash flow, which reached $2.29 billion for the quarter. This contribution brought the total for the fiscal year 2025 to approximately $4.1 billion, enabling the company to meet its shareholder return target of $4 billion. This free cash flow strength supports a free cash flow yield of 5% and an Altman Z-Score of 4.16, underscoring Schlumberger's sound financial stability.
Further demonstrating financial discipline, Schlumberger raised its dividend by 3.5% to $0.295 per share and unveiled a target to return over $4 billion to shareholders in 2026. The company’s net debt levels have improved, reaching their lowest since Q4 2024 due to this cash generation. This dividend increase marks the 55th consecutive year of dividend payments for Schlumberger, which has achieved incremental raises for each of the past four years. Currently, the dividend yield stands at 2.31%, with the company maintaining a moderate debt profile as classified by InvestingPro.
Management has acknowledged that the year 2025 offered a mixed operating landscape, with challenges tempered by the resilience of Schlumberger’s portfolio and growth within its Digital operations. The company anticipates relief from these headwinds in significant markets throughout 2026, particularly expecting recovery momentum in the Middle East. Schlumberger’s overall financial health has been rated as "GREAT" by InvestingPro, indicating a robust foundation to capitalize on the forecasted market resurgence. For investors seeking detailed insights, InvestingPro provides eleven additional recommendations related to SLB, including valuation analysis and broader fundamental assessment available through its Pro Research suite covering over 1,400 U.S.-listed equities.
Complementing Raymond James’ outlook, Bernstein has also upheld an Outperform rating on Schlumberger ahead of its Q4 2025 earnings announcement, setting a slightly higher price target at $52.30. The firm projects revenues of $9.57 billion, EBITDA at $2.355 billion, and earnings per share of $0.74, slightly exceeding Bloomberg consensus estimates. In a recent strategic move, Schlumberger completed the acquisition of RESMAN Energy Technology from Nordic Capital, enhancing its capabilities in reservoir surveillance and tracer technologies.
Stifel has likewise revised upward its price target for Schlumberger to $52.00 from $48.00 while maintaining a Buy rating. This adjustment is driven by expectations for increased international activities, notably within the Middle East and offshore markets.
Bernstein has identified several prevalent themes expected to shape the oil services sector in 2026, with Schlumberger positioned at the forefront. Investor interest, expansion in Middle Eastern operations, and digital services are highlighted as key growth drivers. Conversely, interest in areas such as energy transition initiatives and offshore/subsea operations is anticipated to diminish.
In a related sector development, Freedom Capital Markets downgraded ExxonMobil from Hold to Sell, citing concerns over the valuation levels of U.S. oil and gas stocks amid a fundamental environment characterized by declining oil prices. This juxtaposition provides insight into ongoing shifts within the industry and underscores the differentiated outlook for Schlumberger and its peers.