RBC Capital has increased its price objective for SLB to $54.00 from $51.00 and maintained an Outperform rating on the stock. The move follows the company’s fourth-quarter 2025 results and reflects RBC’s view of SLB’s cash generation and relative valuation.
SLB shares are trading at $49.15, a level just under the company’s 52-week high of $51.67, after climbing more than 40% over the past six months.
RBC Capital analyst Keith Mackey noted that SLB posted adjusted EBITDA of $2.33 billion for the fourth quarter and reported earnings per share of $0.78 - outcomes that slightly outpaced consensus. For the trailing twelve months, SLB delivered total EBITDA of $7.73 billion. According to InvestingPro analysis, the company retains a "GREAT" overall financial health score.
Company guidance for 2026 broadly matches market expectations but is tilted toward the second half of the year, with SLB anticipating modest upstream improvement driven by activity in Latin America and the Middle East/Asia regions. Analysts are modeling EPS of $2.87 for fiscal 2026. InvestingPro data cited in the analysis indicates the stock is currently fairly valued.
RBC highlighted two central factors supporting the raised target and the sustained Outperform view: strong free cash flow generation and an EV/EBITDA valuation that sits below historical norms. SLB also maintains a long record of shareholder returns by preserving dividend payments for 56 consecutive years, with the current yield at 2.4%.
SLB remains on RBC’s Global Energy Best Ideas List, a designation the firm uses to flag names it views as attractive from a long-term value perspective at prevailing prices.
Separate reporting of SLB NV’s fourth-quarter 2025 results underscores the operational beat. The company posted EPS of $0.78, topping a $0.74 consensus estimate and representing a 5.41% positive surprise. Revenue came in at $9.75 billion versus an expected $9.55 billion. These results point to a stronger-than-anticipated finish to 2025 for SLB NV.
The combination of better-than-expected quarterly performance, a back-loaded outlook for 2026, and the valuation and cash-flow characteristics cited by RBC form the basis for the firm’s more bullish near-term target. Investors monitoring production cadence, regional upstream demand patterns, and cash conversion metrics will likely treat free cash flow and EV/EBITDA as key indicators going forward.