Item 8. Financial Statements and Supplementary Data.

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Item 8. Financial Statements and Supplementary Data.

SLB LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEME****NT OF INCOME


	(Stated in millions, except per share amounts)

Year Ended December 31,	2025		2024		2023
Revenue
Services	$	21,200	$	23,297	$	22,439
Product sales		14,508		12,992		10,696
Total Revenue		35,708		36,289		33,135
Interest & other income		481		380		342
Expenses
Cost of services		16,764		17,847		17,231
Cost of sales		12,437		10,982		9,341
Research & engineering		709		749		711
General & administrative		340		385		364
Restructuring & other		457		237		-
Impairments		331		162		-
Merger & integration		302		123		45
Interest		558		512		503
Income before taxes		4,291		5,672		5,282
Tax expense		840		1,093		1,007
Net income		3,451		4,579		4,275
Net income attributable to noncontrolling interests		77		118		72
Net income attributable to SLB	$	3,374	$	4,461	$	4,203

Basic earnings per share of SLB	$	2.38	$	3.14	$	2.95

Diluted earnings per share of SLB	$	2.35	$	3.11	$	2.91

Average shares outstanding:
Basic		1,421		1,421		1,425
Assuming dilution		1,437		1,436		1,443

See the Notes to Consolidated Financial Statements

SLB LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF C****OMPREHENSIVE INCOME


(Stated in millions)

Year Ended December 31,	2025			2024			2023
Net income	$	3,451		$	4,579		$	4,275
Currency translation adjustments:
Net change arising during the period		299			(138	)		(113	)
Cash flow hedges:
Net (loss) gain on cash flow hedges		(15	)		8			177
Reclassification to net income of net realized loss		(74	)		(4	)		(19	)
Pension and other postretirement benefit plans:
Actuarial loss arising during the period		(28	)		(582	)		(437	)
Amortization to net income of net actuarial losses		34			(3	)		(12	)
Amortization to net income of net prior service credit		(13	)		(23	)		(23	)
Income taxes on pension and other postretirement benefit plans		(1	)		42			58
Other		12			4			(30	)
Comprehensive income		3,665			3,883			3,876
Comprehensive income attributable to noncontrolling interests		77			118			72
Comprehensive income attributable to SLB	$	3,588		$	3,765		$	3,804

See the Notes to Consolidated Financial Statements

SLB LIMITED AND SUBSIDIARIES

CONSOLIDATED B****ALANCE SHEET


(Stated in millions)

December 31,	2025			2024
ASSETS
Current Assets
Cash	$	3,036		$	3,544
Short-term investments		1,176			1,125
Receivables less allowance for doubtful accounts (2025 - $335; 2024 - $325)		8,689			8,011
Inventories		5,032			4,375
Other current assets		1,580			1,515
		19,513			18,570
Investments in Affiliated Companies		1,783			1,635
Fixed Assets less accumulated depreciation		7,894			7,359
Goodwill		16,794			14,593
Intangible Assets		4,988			3,012
Other Assets		3,896			3,766
	$	54,868		$	48,935
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities		11,490			10,375
Estimated liability for taxes on income		894			982
Short-term borrowings and current portion of long-term debt		1,894			1,051
Dividends payable		443			403
		14,721			12,811
Long-term Debt		9,742			11,023
Postretirement Benefits		479			512
Deferred Taxes		644			67
Other Liabilities		1,991			2,172
		27,577			26,585
Equity
Common stock		16,354			11,458
Treasury stock		(3,576	)		(1,773	)
Retained earnings		18,067			16,395
Accumulated other comprehensive loss		(4,736	)		(4,950	)
SLB stockholders' equity		26,109			21,130
Noncontrolling interests		1,182			1,220
		27,291			22,350
	$	54,868		$	48,935

See the Notes to Consolidated Financial Statements

SLB LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEM****ENT OF CASH FLOWS


(Stated in millions)

Year Ended December 31,	2025			2024			2023
Cash flows from operating activities:
Net income	$	3,451		$	4,579		$	4,275
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization (1)		2,643			2,519			2,312
Impairments		331			162			-
Amortization of inventory purchase accounting adjustment		166			43			11
Gains on sales of investments		-			(24	)		(36	)
Gain on sale of APS project		(149	)		-			-
Deferred taxes		(279	)		(41	)		28
Stock-based compensation expense		332			316			293
Earnings of equity method investments, less dividends received		(59	)		(18	)		(132	)
Change in assets and liabilities: (2)
Increase in receivables		(75	)		(236	)		(659	)
Increase in inventories		(72	)		(101	)		(254	)
Decrease in other current assets		10			3			121
Decrease (increase) in other assets		(22	)		13			(10	)
Increase (decrease) in accounts payable and accrued liabilities		218			(635	)		780
Decrease in estimated liability for taxes on income		(141	)		(51	)		(62	)
Increase (decrease) in other liabilities		38			34			(76	)
Other		97			39			46
NET CASH PROVIDED BY OPERATING ACTIVITIES		6,489			6,602			6,637
Cash flows from investing activities:
Capital expenditures		(1,694	)		(1,931	)		(1,939	)
APS investments		(428	)		(483	)		(507	)
Exploration data capitalized		(252	)		(198	)		(153	)
Cash acquired in ChampionX Corporation acquisition		479			-			-
Proceeds from sale of APS project		338			-			-
Proceeds from sale of ChampionX Drilling Technologies business		286			-			-
Other business acquisitions and investments, net of cash acquired		(187	)		(553	)		(242	)
(Purchase) sale of short-term investments, net		(33	)		(32	)		117
Purchases of Blue Chip Swap securities		(224	)		(207	)		(185	)
Proceeds from sales of Blue Chip Swap securities		194			152			97
Proceeds from sale of Liberty shares		-			-			137
Other		109			107			(108	)
NET CASH USED IN INVESTING ACTIVITIES		(1,412	)		(3,145	)		(2,783	)
Cash flows from financing activities:
Dividends paid		(1,602	)		(1,533	)		(1,317	)
Stock repurchase program		(2,414	)		(1,737	)		(694	)
Proceeds from employee stock purchase plan		222			219			191
Proceeds from exercise of stock options		7			29			90
Taxes paid on net-settled stock-based compensation awards		(61	)		(90	)		(169	)
Proceeds from issuance of long-term debt		-			1,475			994
Repayment of long-term debt		(1,597	)		(955	)		(1,578	)
Net (decrease) increase in short-term borrowings		(19	)		(115	)		2
Other		(178	)		(65	)		(31	)
NET CASH USED IN FINANCING ACTIVITIES		(5,642	)		(2,772	)		(2,512	)
Net (decrease) increase in cash before translation effect		(565	)		685			1,342
Impact of changes in exchange rates on cash		57			(41	)		(97	)
Cash, beginning of period		3,544			2,900			1,655
Cash, end of period	$	3,036		$	3,544		$	2,900

(1)

Includes depreciation of fixed assets and amortization of intangible assets, exploration data costs and APS investments.

(2)

Net of the effect of business acquisitions and divestitures.

See the Notes to Consolidated Financial Statements

SLB LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT O****F STOCKHOLDERS’ EQUITY


	(Stated in millions)
										Accumulated
										Other
	Common Stock						Retained			Comprehensive			Noncontrolling
	Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, January 1, 2023	$	11,837		$	(1,016	)	$	10,719		$	(3,855	)	$	304		$	17,989
Net income								4,203						72			4,275
Currency translation adjustments											(113	)					(113	)
Changes in fair value of cash flow hedges											158						158
Pension and other postretirement benefit plans											(414	)					(414	)
Vesting of restricted stock, net of taxes withheld		(702	)		533												(169	)
Employee stock purchase plan		(162	)		353												191
Stock repurchase program					(694	)											(694	)
Stock-based compensation expense		293															293
Shares sold to optionees, less shares exchanged		(53	)		143												90
Dividends declared ($1.00 per share)								(1,425	)								(1,425	)
Acquisition of Aker Subsea		413												841			1,254
Other		(2	)		3						(30	)		(47	)		(76	)
Balance, December 31, 2023		11,624			(678	)		13,497			(4,254	)		1,170			21,359
Net income								4,461						118			4,579
Currency translation adjustments											(138	)					(138	)
Changes in fair value of cash flow hedges											4						4
Pension and other postretirement benefit plans											(566	)					(566	)
Vesting of restricted stock, net of taxes withheld		(407	)		317												(90	)
Employee stock purchase plan		(65	)		284												219
Stock repurchase program					(1,737	)											(1,737	)
Stock-based compensation expense		316															316
Shares sold to optionees, less shares exchanged		(10	)		39												29
Dividends declared ($1.10 per share)								(1,563	)								(1,563	)
Other					2						4			(68	)		(62	)
Balance, December 31, 2024		11,458			(1,773	)		16,395			(4,950	)		1,220			22,350
Net income								3,374						77			3,451
Currency translation adjustments											299						299
Changes in fair value of cash flow hedges											(89	)					(89	)
Pension and other postretirement benefit plans											(8	)					(8	)
Vesting of restricted stock, net of taxes withheld		(294	)		233												(61	)
Employee stock purchase plan		(99	)		321												222
Stock repurchase program					(2,414	)											(2,414	)
Stock-based compensation expense		332															332
Shares sold to optionees, less shares exchanged		(42	)		49												7
Dividends declared ($1.14 per share)								(1,625	)								(1,625	)
Dividends paid to noncontrolling interest														(207	)		(207	)
Acquisition of ChampionX Corporation		5,005									(2	)		19			5,022
Other		(6	)		8			(77	)		14			73			12
Balance, December 31, 2025	$	16,354		$	(3,576	)	$	18,067		$	(4,736	)	$	1,182		$	27,291

See the Notes to Consolidated Financial Statements

SLB LIMITED AND SUBSIDIARIES

SHARES OF CO****MMON STOCK


			(Stated in millions)

						Shares
	Issued		In Treasury			Outstanding
Balance, January 1, 2023		1,434		(14	)		1,420
Employee stock purchase plan		-		5			5
Vesting of restricted stock, net of taxes withheld		-		8			8
Shares sold to optionees, less shares exchanged		-		2			2
Stock repurchase program		-		(13	)		(13	)
Acquisition of Aker Subsea		5		-			5
Balance, December 31, 2023		1,439		(12	)		1,427
Employee stock purchase plan		-		5			5
Vesting of restricted stock, net of taxes withheld		-		6			6
Shares sold to optionees, less shares exchanged		-		1			1
Stock repurchase program		-		(38	)		(38	)
Balance, December 31, 2024		1,439		(38	)		1,401
Vesting of restricted stock, net of taxes withheld		-		5			5
Share issued under employee stock purchase plan		-		7			7
Shares sold to optionees, less shares exchanged		-		1			1
Stock repurchase program		-		(60	)		(60	)
Acquisition of ChampionX Corporation		141		-			141
Balance, December 31, 2025		1,580		(85	)		1,495

See the Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements

1. Business Description

SLB Limited (SLB N.V., incorporated in Curaçao) and its consolidated subsidiaries (collectively, “SLB”) form a global technology company that drives energy innovation for a balanced planet. With a global footprint in more than 100 countries and employees representing almost twice as many nationalities, SLB works each day on innovating energy technology, delivering digital at scale, decarbonizing industries, and developing and scaling new energy systems that accelerate the energy transition.

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 expects to receive in exchange for these products or services. The vast majority of SLB’s services and product offerings are short-term in nature. The time between invoicing and when payment is due under these arrangements is generally between 30 to 60 days.

Revenue is recognized for certain long-term construction-type contracts over time. These contracts involve significant design and engineering efforts in order to satisfy custom designs for customer-specific applications. Revenue is recognized as work progresses on each contract. Progress is measured by the ratio of actual costs incurred to date on the project in relation to total estimated project costs. The estimate of total project costs has a significant impact on both the amount of revenue recognized as well as the related profit on a project. Revenue and profits on contracts can also be significantly affected by change orders and claims. Due to the nature of these projects, adjustments to estimates of contract revenue and total contract costs may be required as work progresses. Progress billings are generally issued upon completion of certain phases of work as stipulated in the contract. Any expected losses on a project are recorded in full in the period in which they become probable.

Total backlog was $5.6 billion at December 31, 2025, of which approximately 65% is expected to be recognized as revenue during 2026.

Short-term Investments

Short-term investments are comprised primarily of money market funds, time deposits, certificates of deposit, commercial paper, bonds, and notes, substantially all of which are denominated in US dollars and are stated at cost plus accrued interest, which approximates fair value.

For purposes of the Consolidated Statement of Cash Flows, SLB does not consider Short-term investments to be cash equivalents.

Investments in Affiliated Companies

Investments in companies in which SLB does not have a controlling financial interest, but over which it has significant influence, are accounted for using the equity method. SLB’s share of the after-tax earnings of equity method investees is included in Interest & other income. Investments in privately held companies in which SLB does not have the ability to exercise significant influence are accounted for using the cost method. Investments in publicly traded companies in which SLB does not have the ability to exercise significant influence are reported at fair value, with unrealized gains and losses reported as a component of Interest & other income.

Exploration Data

SLB’s exploration data library consists of completed and in-process seismic surveys that are licensed on a nonexclusive basis. SLB capitalizes costs directly incurred in acquiring and processing the exploration data. Such costs are charged to Cost of services based on the percentage of the total costs to the estimated total revenue that SLB expects to receive from the sales of such data. However, an individual survey generally will not carry a net book value greater than a 4-year, straight-line amortized value.

The carrying value of the exploration data library is reviewed for impairment annually as well as when an event or change in circumstance indicating impairment may have occurred. Adjustments to the carrying value are recorded when it is determined that estimated future cash flows, which involve significant judgment on the part of SLB, would not be sufficient to recover the carrying value of the surveys. Significant adverse changes in SLB’s estimated future cash flows could result in impairment charges in a future period.

Asset Performance Solutions

Asset Performance Solutions (“APS”) projects are generally focused on developing and co-managing production of customers’ assets under long-term agreements. SLB invests its own services and products into the field development activities and operations and is compensated on a fee-per-barrel basis or based on cash flow generated. This includes certain arrangements whereby SLB is only compensated based on incremental production that it helps deliver above a mutually agreed baseline.

SLB capitalizes its investments in a project including the direct costs associated with providing its services or products. These capitalized investments are amortized to the Consolidated Statement of Income as the related production is achieved based on the units of production method, whereby each unit produced is assigned a pro-rata portion of the unamortized costs based on estimated total production, resulting in a matching of revenue with the applicable costs.

Concentration of Credit Risk

SLB is exposed to concentrations of credit risk primarily relating to cash, short-term investments, receivables from clients, and derivative financial instruments. SLB places its cash and short-term investments with financial institutions and corporations and limits the amount of credit exposure with any one of them. SLB regularly evaluates the creditworthiness of the issuers in which it invests. By using derivative financial instruments to hedge certain exposures, SLB exposes itself to some credit risk. SLB minimizes this credit risk by entering into transactions with high-quality counterparties, limiting the exposure to each counterparty and monitoring the financial condition of its counterparties.

As a large multinational company, SLB’s accounts receivable are spread over many countries and customers. The United States represented 13% of SLB’s net accounts receivable balance at December 31, 2025. No other country accounted for greater than 10% of SLB’s accounts receivable balance. SLB maintains an allowance for uncollectible accounts receivable based on expected collectibility and performs ongoing credit evaluations of its customers’ financial condition. If the financial condition of SLB’s customers were to deteriorate resulting in an impairment of their ability to make payments, adjustments to the allowance may be required.

Earnings per Share

The following is a reconciliation from basic to diluted earnings per share of SLB:


(Stated in millions, except per share amounts)

	Net Income Attributable to SLB		Average Shares Outstanding		Earnings per Share
2025:
Basic	$	3,374		1,421	$	2.38
Dilutive impact of stock options and restricted stock		-		16
Diluted	$	3,374		1,437	$	2.35
2024:
Basic	$	4,461		1,421	$	3.14
Dilutive impact of stock options and restricted stock		-		15
Diluted	$	4,461		1,436	$	3.11
2023:
Basic	$	4,203		1,425	$	2.95
Dilutive impact of stock options and restricted stock		-		18
Diluted	$	4,203		1,443	$	2.91

The number of outstanding employee stock options to purchase shares of SLB common stock that were not included in the computation of diluted earnings per share, because to do so would have had an anti-dilutive effect, were as follows:


(Stated in millions)

	2025		2024		2023
Employee stock options		17		16		21

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 legal fees; $59 million relating to employee benefits for change-in-control arrangements, accelerated stock-based compensation and retention; and $62 million of other merger and integration cost. $201 million of these costs are classified in Merger & integration with the remaining $166 million classified in Cost of sales in the Consolidated Statement of Income.

In connection with the October 2023 acquisition of the Aker Solutions (“Aker”) subsea business (see Note 6 – Acquisitions), SLB recorded $101 million of charges during 2025, consisting primarily of costs associated with information technology, and severance costs associated with the integration. These costs are classified in Merger & integration in the Consolidated Statement of Income.

SLB recorded $407 million of charges relating to workforce reductions to align its resources with activity levels and to realign and optimize its support and service delivery structure. These charges are classified in Restructuring & other in the Consolidated Statement of Income.

SLB recorded a $121 million of impairment charges relating to an equity method investment that was determined to be other-than-temporarily impaired. These charges are classified in Impairments in the Consolidated Statement of Income.

During the second quarter of 2025, SLB completed the sale of its interest in the Palliser APS project in Canada in exchange for net cash proceeds of $338 million. SLB recorded a gain of $149 million as a result of this transaction. This gain is classified in Interest & other income in the Consolidated Statement of Income.

During the fourth quarter of 2025, SLB recorded $50 million of other restructuring charges primarily relating to the closure of certain facilities and certain activities. These charges are classified in Restructuring & other in the Consolidated Statement of Income.

SLB recorded a $210 million goodwill impairment charge relating to its SLB Capturi reporting unit during the fourth quarter of 2025. This charge is classified in Impairments in the Consolidated Statement of Income.

During the fourth quarter of 2025, SLB reversed $92 million of a valuation allowance relating to deferred tax assets associated with certain foreign tax credits in the US. This credit is reflected in Tax expense in the Consolidated Statement of Income.

2024

SLB recorded the following charges and credits during 2024:


	(Stated in millions)

	Pretax Charge (Credit)			Tax Benefit (Expense)		Noncontrolling Interest		Net
First quarter:
Amortization of inventory purchase accounting adjustment	$	14		$	4	$	3	$	7
Merger and integration		11			2		2		7
Second quarter:
Workforce reductions		111			17		-		94
Merger and integration		16			1		5		10
Amortization of inventory purchase accounting adjustment		15			4		3		8
Third quarter									-
Workforce reductions		65			10		-		55
Merger and integration		33			6		4		23
Amortization of inventory purchase accounting adjustment		14			4		3		7
Fourth quarter									-
Asset impairments		162			23		-		139
Merger and integration		63			6		7		50
Workforce reductions		61			10		-		51
Gain on sale of investment		(24	)		-		-		(24	)
	$	541		$	87	$	27	$	427

During the second quarter of 2024, SLB commenced a program to realign and optimize its support and service delivery structure in certain parts of its organization. As a result, SLB recorded severance charges of $111 million during the second quarter, $65 million during the third quarter, and $61 million during the fourth quarter which are classified in Restructuring & other in the Consolidated Statement of Income.

In connection with the October 2023 acquisition of the Aker subsea business (see Note 6 - Acquisitions) and the ChampionX transaction, SLB recorded $166 million of charges during 2024, consisting of: $43 million relating to the amortization of purchase accounting adjustments associated with the write-up of acquired inventories to its estimated fair value (classified in Cost of sales in the Consolidated Statement of Income) and $123 million of other merger and integration-related costs which are classified in Merger & integration.

During the fourth quarter of 2024, SLB recorded impairment charges consisting of $93 million relating to equity investments and $69 million relating to fixed asset impairments. These charges are classified in Impairments in the Consolidated Statement of Income.

During the fourth quarter of 2024, SLB sold an investment accounted for under the equity method. SLB received proceeds of $51 million and recognized a gain of $24 million, which is classified in Interest & other, net in the Consolidated Statement of Income.

2023

SLB recorded the following charges and credits during 2023:


	(Stated in millions)

	Pretax Charge (Credit)			Tax Benefit (Expense)			Noncontrolling Interests		Net
First quarter:
Gain on sale of Liberty shares	$	(36	)	$	(8	)	$	-	$	(28	)
Fourth quarter:
Currency devaluation loss in Argentina		90			-			-		90
Merger and integration		45			5			6		34
Amortization of inventory purchase accounting adjustment		11			3			2		6
	$	110		$	-		$	8	$	102

On December 31, 2020, SLB contributed its onshore hydraulic fracturing business in the United States and Canada, including its pressure pumping, pumpdown perforating and Permian frac sand business, to Liberty Energy Inc. (“Liberty”) in exchange for an equity interest in Liberty. During the first quarter of 2023, SLB sold all of its remaining approximately 9 million shares of Liberty and received net proceeds of $137 million. As a result, SLB recognized a gain of $36 million which is classified in Interest & other income in the Consolidated Statement of Income.

Although SLB’s functional currency in Argentina is the US dollar, a portion of its transactions are denominated in pesos. During the fourth quarter of 2023, Argentina devalued its peso relative to the US dollar by approximately 55%. As a result, SLB recorded a $90 million devaluation charge. $61 million of this charge is classified in Cost of services in the Consolidated Statement of Income, with the remaining $29 million classified in Cost of sales.

In connection with SLB’s acquisition of the Aker subsea business, SLB recorded the following charges: $23 million of acquisition-related transaction costs, including advisory and legal fees; $11 million relating to the amortization of purchase accounting adjustments associated with the write-up of acquired inventories to its estimated fair value; and $22 million of other merger and integration-related costs. $45 million of these costs are classified in Merger & integration in the Consolidated Statement of Income with the remaining $11 million classified in Cost of sales.

4. Inventories

Inventories, which are stated at the lower of average cost or net realizable value, consist of the following:


(Stated in millions)

	2025		2024
Raw materials & field materials	$	2,550	$	2,387
Work in progress		797		786
Finished goods		1,685		1,202
	$	5,032	$	4,375

5. Fixed Assets

Fixed assets consist of the following:


(Stated in millions)

	2025		2024
Land	$	368	$	315
Buildings & improvements		5,289		4,510
Machinery & equipment		26,388		24,748
		32,045		29,573
Less: Accumulated depreciation		24,151		22,214
	$	7,894	$	7,359

The estimated useful lives of Buildings & improvements are primarily 25 to 30 years. The estimated useful lives of Machinery & equipment are primarily 5 to 10 years.

Depreciation expense, which is recorded on a straight-line basis, was $1.7 billion in 2025, $1.6 billion in 2024, and $1.4 billion in 2023.

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. These amounts, which are not expected to differ materially from current estimates, will be finalized no later than one year from the acquisition date.


(Stated in millions)

Cash	$	479
Accounts receivable		489
Inventories (1)		680
Net assets held for sale (2)		286
Fixed assets		676
Intangible assets (weighted average life of 18 years)
Customer relationships (weighted-average life of 25 years)		950
Technology/Technical know-how (weighted-average life of 16 years)		980
Tradenames (weighted-average life of 20 years)		330
Other assets		206
Accounts payable and accrued liabilities		(719	)
Long-term debt		(612	)
Deferred taxes		(840	)
Other liabilities		(189	)
Noncontrolling interests		(19	)
Total identifiable net assets	$	2,697
Goodwill (3)		2,308
Total consideration transferred	$	5,005

(1)

SLB recorded an adjustment of $166 million to write-up the acquired inventory to its estimated fair value. SLB's Cost of sales reflected this increased valuation as the acquired inventory was sold. See Note 3 - Charges and Credits.

(2)

Concurrent with the closing of the acquisition, SLB completed the sale of ChampionX's Drilling Technologies business for net cash proceeds of $286 million.

(3)

The goodwill recognized is primarily attributable to expected synergies that will result from combining the operations of SLB and ChampionX, as well as intangible assets which do not qualify for separate recognition. The amount of goodwill that is deductible for income tax purposes is not significant.

Businesses acquired from ChampionX contributed revenue of approximately $1.5 billion and pretax operating income of approximately $0.3 billion to SLB for the period from August 1, 2025 through December 31, 2025.

Excluding its Drilling Technologies business, which was disposed of concurrently with the closing of the acquisition, ChampionX recorded revenue of approximately $3.4 billion in 2024 and $2.0 billion during the period from January 1, 2025 to July 31, 2025. The pro forma impact of this acquisition on net income attributable to SLB and diluted earnings per share was not material.

Aker Subsea

On October 2, 2023, SLB, Aker, and Subsea7 closed their previously announced joint venture, SLB OneSubsea. SLB OneSubsea drives innovation and efficiency in subsea production by helping customers unlock reserves and reduce cycle time. SLB OneSubsea comprises SLB’s and Aker’s subsea businesses, which include an extensive complementary subsea production and processing technology portfolio, world-class manufacturing scale and capacity, access to industry-leading reservoir and digital domain expertise, unique pore-to-process integration capabilities, and strengthened research and development capabilities.

In addition to contributing its subsea business to the joint venture, at closing SLB issued 5.1 million shares of its common stock valued at $306.5 million to Aker. Concurrently, Subsea7 purchased a 10% interest in exchange for $306.5 million in cash to Aker. The joint venture also issued a promissory note valued at $87.5 million to Aker. SLB owns 70% of the joint venture, while Aker owns 20% and Subsea7 owns 10%.

The formation of the joint venture was accounted for as a business combination. As the majority owner and controlling entity, SLB is considered the acquirer and reflects OneSubsea as a consolidated subsidiary in its Consolidated Financial Statements. The transfer of the SLB subsea business to the joint venture was accounted for at historical cost, while the Aker subsea business was recorded based on the fair value of the assets acquired and liabilities assumed of approximately $1.3 billion.

The combination of the historical cost and fair value, discussed above, resulted in net assets of the joint venture of approximately $2.8 billion upon formation. Aker and Subsea7’s combined 30% interest in the initial net assets of OneSubsea of $0.8 billion was recognized in Noncontrolling interests in the Consolidated Balance Sheet. The $0.1 billion difference between the noncontrolling interest recognized and the fair value of Aker’s net assets acquired less the fair value of the SLB shares of common stock issued to Aker was recorded as an increase to Common stock in the Consolidated Balance Sheet.

The following amounts represent the estimated fair value of assets acquired and liabilities assumed in connection with the formation of the joint venture.


(Stated in millions)

Cash	$48
Accounts receivable	355
Inventories (1)	192
Other current assets	237
Fixed assets	168
Intangible assets (weighted average life of 18 years)	390
Accounts payable and accrued liabilities	(915)
Deferred taxes	(127)
Other liabilities	(1)
Total identifiable net assets	$347
Goodwill (2)	966
Total consideration transferred	$1,313

(1)

SLB recorded an adjustment of $54 million to write-up the acquired inventory to its estimated fair value. SLB’s Cost of sales reflected this increased valuation as the acquired inventory was sold. See Note 3 – Charges and Credits.

(2)

The goodwill recognized is primarily attributable to intangible assets that do not qualify for separate recognition as well as expected synergies from combining the subsea operations of SLB and Aker. None of the goodwill is deductible for income tax purposes.

For the period from October 2, 2023 to December 31, 2023, the subsea business acquired from Aker contributed revenue of approximately $0.5 billion. The acquired Aker subsea business’ contribution to Net income attributable to SLB for the same period was not material.

Aker reported revenue for its subsea business of approximately $1.4 billion for the nine months ended September 30, 2023.

7. Goodwill

The changes in the carrying amount of goodwill by segment were as follows:


	(Stated in millions)

			Reservoir		Well			Production
	Digital		Performance		Construction			Systems		All Other			Total
Balance, December 31, 2023	$	2,044	$	3,804	$	6,417		$	1,819	$	-		$	14,084
Acquisitions		-		-		5			22		482			509
Balance, December 31, 2024		2,044		3,804		6,422			1,841		482			14,593
Acquisition of ChampionX		-		250		200			1,858		-			2,308
Other acquisitions		16		57		-			-		-			73
Impairment (see Note 3)		-		-		-			-		(210	)		(210	)
Impact of changes in exchange rate and other		-		-		(24	)		-		54			30
Balance, December 31, 2025	$	2,060	$	4,111	$	6,598		$	3,699	$	326		$	16,794

8. Intangible Assets

Intangible assets consist of the following:


	(Stated in millions)

	2025						2024
	Gross		Accumulated		Net Book		Gross		Accumulated		Net Book
	Book Value		Amortization		Value		Book Value		Amortization		Value
Customer relationships	$	2,783	$	849	$	1,934	$	1,887	$	799	$	1,088
Technology/technical know-how		2,635		998		1,637		1,588		872		716
Trade names		1,067		283		784		795		299		496
Other		1,637		1,004		633		1,604		892		712
	$	8,122	$	3,134	$	4,988	$	5,874	$	2,862	$	3,012

Customer relationships are generally amortized over periods ranging from 18 to 28 years, technology/technical know-how are generally amortized over periods ranging from 10 to 18 years, and trade names are generally amortized over periods ranging from 15 to 30 years.

Amortization expense was $376 million in 2025, $334 million in 2024, and $314 million in 2023.

Based on the carrying value of intangible assets at December 31, 2025, amortization expense for the subsequent five years is estimated to be as follows: 2026: $437 million, 2027: $433 million, 2028: $423 million, 2029: $410 million and 2030: $404 million.

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 SLB’s 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.

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 it is SLB’s intent to maintain these obligations for longer than one year. There were no borrowings under the commercial paper programs at December 31, 2025 and 2024.

SLB Limited fully and unconditionally guarantees the publicly-held securities issued by Schlumberger Investment SA, an indirect wholly-owned subsidiary of SLB Limited.

10. Derivative Instruments and Hedging Activities

SLB’s functional currency is primarily the US dollar. Approximately 70% of SLB’s revenues in 2025 were denominated in US dollars. However, outside the United States, a significant portion of SLB’s expenses is incurred in foreign currencies. Therefore, when the US dollar weakens (strengthens) in relation to the foreign currencies of the countries in which SLB conducts business, the US dollar-reported expenses will increase (decrease).

Changes in foreign currency exchange rates expose SLB to risks on future cash flows relating to its fixed rate debt denominated in currencies other than the functional currency. SLB uses cross-currency interest rate swaps to provide a hedge against these risks. These contracts are accounted for as cash flow hedges, with the fair value of the derivative recorded on the Consolidated Balance Sheet and in Accumulated other comprehensive loss. Amounts recorded in Accumulated other comprehensive loss are reclassified into earnings in the same period or periods that the hedged item is recognized in earnings.

Details regarding SLB’s outstanding cross-currency interest rate swaps as of December 31, 2025, were as follows:

During 2019, SLB entered into cross-currency interest rate swaps in order to hedge changes in the fair value of its €0.5 billion 0.25% Notes due 2027 and €0.5 billion 0.50% Notes due 2031 that were issued by a US-dollar functional currency subsidiary. These cross-currency interest rate swaps effectively convert the Euro-denominated notes to US-dollar denominated debt with fixed annual interest rates of 2.51% and 2.76%, respectively.

During 2020, a US-dollar functional currency subsidiary of SLB issued €0.8 billion of Euro-denominated debt. SLB entered into cross-currency interest rate swaps to hedge changes in the fair value of its €0.4 billion of 0.25% Notes due 2027 and €0.4 billion of 0.50% Notes due 2031. These cross-currency interest rate swaps effectively convert the Euro-denominated notes to US-dollar denominated debt with fixed annual interest rates of 1.87% and 2.20%, respectively.

During 2020, a US-dollar functional currency subsidiary of SLB issued €2.0 billion of Euro-denominated debt. SLB entered into cross-currency interest rate swaps to hedge changes in the fair value of its €1.0 billion of 1.375% Guaranteed Notes due 2026 and €1.0 billion of 2.00% Guaranteed Notes due 2032. These cross-currency interest rate swaps effectively convert the Euro-denominated notes to US-dollar denominated debt with fixed annual interest rates of 2.77% and 3.49%, respectively.

A summary of the amounts included in the Consolidated Balance Sheet relating to cross currency interest rate swaps follows:


	(Stated in millions)

	Dec. 31, 2025	Dec. 31, 2024
Other current assets	$93	$37
Other Assets	$110	$2
Other Liabilities	$6	$183

The fair values were determined using a model with inputs that are observable in the market or can be derived or corroborated by observable data.

SLB is exposed to risks on future cash flows to the extent that the local currency is not the functional currency and expenses denominated in local currency are not equal to revenues denominated in local currency. SLB uses foreign currency forward contracts to provide a hedge against a portion of these cash flow risks. These contracts are accounted for as cash flow hedges.

SLB is also exposed to changes in the fair value of assets and liabilities denominated in currencies other than the functional currency. While SLB uses foreign currency forward contracts to economically hedge this exposure as it relates to certain currencies, these contracts are not designated as hedges for accounting purposes. Instead, the fair value of the derivative is recorded on the Consolidated Balance Sheet and changes in the fair value are recognized in the Consolidated Statement of Income, as are changes in the fair value of the hedged item. Transaction losses of $118 million in 2025, $139 million in 2024, $154 million (including $90 million related to the Argentina devaluation; see Note 3 – Charges and credits for further details) in 2023 were recognized in the Consolidated Statement of Income net of related hedging activities.

Foreign currency forward contracts were outstanding for the US dollar equivalent of $6.3 billion and $5.5 billion in various foreign currencies as of December 31, 2025 and 2024, respectively.

Other than the previously mentioned cross-currency interest rate swaps, the fair value of the other outstanding derivatives was not material as of December 31, 2025 and 2024.

The effect of derivative instruments designated as hedges and those not designated as hedges on the Consolidated Statement of Income was as follows:


										(Stated in millions)

	Gain (Loss) Recognized in Income									Consolidated Statement
	2025			2024			2023			of Income Classification
Derivatives designated as cash flow hedges:
Cross-currency interest rate swaps	$	488		$	(199	)	$	173		Cost of services/sales
Cross-currency interest rate swaps		(72	)		(85	)		(88	)	Interest expense
Commodity contracts		-			(7	)		3		Revenue
Foreign currency forward contracts		-			23			15		Cost of services/sales
Foreign exchange contract		17			(12	)		-		Revenue
	$	433		$	(280	)	$	103
Derivatives not designated as hedges:
Foreign currency forward contracts	$	26		$	5		$	(9	)	Cost of services/sales

SLB has issued credit default swaps (“CDSs”) to certain third-party financial institutions that have an aggregate notional amount outstanding of approximately $0.6 billion as of December 31, 2025 ($1.15 billion as of December 31, 2024). The CDSs relate to borrowings provided by the financial institutions to SLB’s primary customer in Mexico. The borrowings were used by this customer to pay certain of SLB’s outstanding receivables. Approximately $0.1 billion of the outstanding CDSs will reduce on a monthly basis over its remaining 2-month term while the remaining $0.5 billion will reduce on a monthly basis over its remaining 6-month term. The fair value of these derivative liabilities was not material at December 31, 2025 or December 31, 2024.

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	)

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 SLB’s 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 SLB’s 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-					Weighted-
				Average					Average					Average
	Restricted			Grant Date		Restricted			Grant Date		Restricted			Grant Date
	Stock			Fair Value		Stock			Fair Value		Stock			Fair Value
Unvested at beginning of year		13		$	46.12		14		$	39.88		18		$	30.24
Granted		7		$	36.13		6		$	45.44		5		$	56.24
Assumed in ChampionX transaction		1		$	25.81		-		$	-		-		$	-
Adjustments for performance achieved		-		$	-		1		$	22.85		2		$	32.47
Vested		(6	)	$	42.42		(8	)	$	32.50		(10	)	$	29.82
Forfeited		(1	)	$	39.60		-		$	-		(1	)	$	27.71
Unvested at year-end		14		$	41.47		13		$	46.12		14		$	39.88

Discounted Stock Purchase Plan

Under the terms of the DSPP, employees can choose to have a portion of their earnings withheld, subject to certain restrictions, to purchase SLB common stock. The purchase price of the stock is 85% of the lower of the stock price at the beginning or end of the plan period at six-month intervals.

The fair value of the employees’ purchase rights under the DSPP was estimated using the Black-Scholes model with the following assumptions and resulting weighted-average fair value per share:


	2025			2024			2023
Dividend yield		3.1	%		2.1	%		1.7	%
Expected volatility		33	%		31	%		50	%
Risk-free interest rate		4.27	%		5.31	%		5.13	%
Weighted-average fair value per share	$	8.96		$	12.02		$	14.93

Stock Options

Key employees may be granted stock options under SLB stock option plans. The exercise price equals the average of the high and low sales prices of SLB stock on the date of grant. The maximum term is 10 years, and the options generally vest in increments over five years.

The following table summarizes stock option activity:


	(Shares stated in millions)

	2025					2024					2023
				Weighted-					Weighted-					Weighted-
				Average					Average					Average
				Exercise					Exercise					Exercise
	Shares			Price		Shares			Price		Shares			Price
Outstanding at beginning of year		22		$	69.20		28		$	72.33		35		$	70.31
Exercised		(1	)	$	38.95		(1	)	$	39.91		(2	)	$	40.02
Forfeited / expired		(5	)	$	84.21		(5	)	$	91.55		(5	)	$	73.18
Assumed in ChampionX acquisition		1		$	9.11		-		$	-		-		$	-
Outstanding at year-end		17		$	62.06		22		$	69.20		28		$	72.33

The following table summarizes information related to options outstanding as of December 31, 2025, all of which are exercisable:


	(Shares stated in millions)

			Weighted-
			Average		Weighted-
	Options		Remaining Life		Average
Exercise prices range	Outstanding		(in years)		Exercise Price
$7.62 - $10.26		1		1.6	$	9.11
$38.75 - $47.55		6		3.6	$	39.81
$61.92 - $79.85		3		1.0	$	70.23
$80.52 - $87.38		7		0.7	$	83.92
		17		1.9	$	62.06

Stock options outstanding as of December 31, 2025 had an intrinsic value of $22 million.

Total Stock-based Compensation Expense

The following summarizes stock-based compensation expense recognized in income:


(Stated in millions)

	2025		2024		2023
Restricted stock	$	268	$	250	$	225
DSPP		64		59		56
Stock options		-		7		12
	$	332	$	316	$	293

At December 31, 2025, there was $307 million of total unrecognized compensation cost related to nonvested stock-based compensation arrangements, of which $190 million is expected to be recognized in 2026, $96 million in 2027, $18 million in 2028, and $3 million in 2029.

As of December 31, 2025, approximately 10 million shares of SLB common stock were available for future grants under SLB’s stock-based compensation programs.

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 of $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 credits	$	69	$	162
Net operating losses	$	40	$	62

The components of Tax expense were as follows:


(Stated in millions)

	2025			2024			2023
Current:
United States-Federal	$	7		$	10		$	(23	)
United States-State		2			7			5
Outside United States		1,110			1,117			997
		1,119			1,134			979
Deferred:
United States-Federal	$	(64	)	$	88		$	(77	)
United States-State		1			2			6
Outside United States		(60	)		(61	)		104
United States - Valuation allowance		(133	)		(26	)		(5	)
Outside United States - Valuation allowance		(23	)		(44	)		-
		(279	)		(41	)		28
	$	840		$	1,093		$	1,007

A reconciliation of the United States statutory federal tax rate to the consolidated effective tax rate follows:



	2025						2024						2023
	Amount			Percentage			Amount			Percentage			Amount			Percentage
US federal income tax	$	901			21.0	%	$	1,191			21.0	%	$	1,109			21.0	%
Non-US tax effects
United Arab Emirates		(51	)		(1.2	)		(47	)		(0.8	)		(40	)		(0.8	)
Saudi Arabia		(39	)		(0.9	)		(85	)		(1.5	)		(101	)		(1.9	)
Norway		20			0.5			(65	)		(1.1	)		(41	)		(0.8	)
Ecuador:
Dividend withholding tax		61			1.4			30			0.5			106			2.0
Other		8			0.2			83			1.5			50			0.9
British Virgin Island		31			0.7			61			1.1			93			1.8
Russia		16			0.4			15			0.3			59			1.1
Other jurisdictions		65			1.5			26			0.5			(60	)		(1.1	)
Tax credits		(33	)		(0.8	)		(21	)		(0.4	)		(20	)		(0.4	)
Changes in valuation allowance		(133	)		(3.1	)		(26	)		(0.5	)		(5	)		(0.1	)
Nontaxable or nondeductible items		4			0.1			(34	)		(0.6	)		14			0.3
Changes in unrecognized tax benefits		(5	)		(0.1	)		(26	)		(0.5	)		(75	)		(1.4	)
Other adjustments		(5	)		(0.1	)		(9	)		(0.2	)		(82	)		(1.6	)
	$	840			19.6	%	$	1,093			19.3	%	$	1,007			19.0	%

A number of the jurisdictions in which SLB operates have tax laws that are not fully defined and are evolving. SLB’s tax filings are subject to regular audit by the tax authorities. These audits may result in assessments for additional taxes that are resolved with the tax authorities or, potentially, through the courts. Tax liabilities are recorded based on estimates of additional taxes that will be due upon the conclusion of these audits. Due to the uncertain and complex application of tax regulations, the ultimate resolution of audits may result in liabilities which could be materially different from these estimates.

A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions is as follows:


(Stated in millions)

	2025			2024			2023
Balance at beginning of year	$	715		$	783		$	893
Additions based on tax positions related to the current year		78			79			66
Additions for tax positions of prior years		75			150			91
Additions related to acquisitions		73			-			-
Impact of changes in exchange rates		20			(23	)		(25	)
Settlements with tax authorities		(28	)		(75	)		(36	)
Reductions for tax positions of prior years		(93	)		(104	)		(176	)
Reductions due to the lapse of statute of limitations		(34	)		(95	)		(30	)
	$	806		$	715		$	783

The amounts above exclude accrued interest and penalties of $132 million at December 31, 2025 and $116 million at December 31, 2024. SLB classifies interest and penalties relating to uncertain tax positions within Tax expense in the Consolidated Statement of Income.

The following table summarizes the tax years that are either currently under audit or remain open and subject to examination by the tax authorities in the most significant jurisdictions in which SLB operates:


Ecuador	2021 - 2025
Mexico	2020 - 2025
Norway	2020 - 2025
Russia	2022 - 2025
Saudi Arabia	2020 - 2025
United Kingdom	2023 - 2025
United States	2022 - 2025

Cash paid for income taxes was as follows:


(Stated in millions)

	2025	2024	2023
US Federal	$44	$10	$13
US State	11	1	8
Ecuador	210	224	210
Saudi Arabia	70	101	*
Mexico	*****	*	126
Other	863	804	703
	$1,198	$1,140	$1,060

Amount of income taxes paid during the year did not meet the 5% disaggregation threshold.

14. Leases

SLB’s leasing activities primarily consist of operating leases for administrative offices, manufacturing facilities, research centers, service centers, sales offices, and certain equipment. Total operating lease expense, which approximates cash paid and includes short-term leases, was $1.5 billion in 2025, and $1.4 billion in each of 2024 and 2023.

Maturities of operating lease liabilities as of December 31, 2025 were as follows:


(Stated in millions)

2026	$	242
2027		196
2028		151
2029		113
2030		96
Thereafter		258
Total lease payments	$	1,056
Less: Interest		(151	)
	$	905
Amounts recognized in balance sheet:
Accounts payable and accrued liabilities	$	672
Other Liabilities		233
	$	905

The weighted-average remaining lease term as of December 31, 2025 was 8 years. The weighted-average discount rate used to determine the operating lease liability as of December 31, 2025 was 4%.

15. Contingencies

SLB is party to various legal proceedings from time to time. A liability is accrued when a loss is both probable and can be reasonably estimated. Management believes that the probability of a material loss with respect to any currently pending legal proceeding is remote. However, litigation is inherently uncertain, and it is not possible to predict the ultimate disposition of any of these proceedings.

16. Segment Information

SLB is primarily organized under four Divisions that combine and integrate SLB’s technologies, enhancing the Company’s 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.

SLB’s 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 surface, into pipelines, and to refineries.

All Other – Consists of Asset Performance Solutions, Data Center Solutions, and SLB Capturi.

Financial information by segment is as follows:


				(Stated in millions)

	2025
									Depreciation
				Pretax					and		Capital
	Revenue			Income			Assets		Amortization		Investments
Digital	$	2,660		$	745		$	925	$	183	$	257
Reservoir Performance		6,820			1,250			3,947		435		467
Well Construction		11,856			2,248			6,167		672		514
Production Systems		13,325			2,184			9,373		463		466
All other		1,987			498			2,249		375		441
Eliminations & other		(940	)		(351	)		1,033		288		229
Goodwill and intangible assets								21,783
Cash and short-term investments								4,212
All other assets								5,179
Corporate & other (1)					(759	)				227
Interest income (2)					134
Interest expense (3)					(551	)
Charges & credits (4)					(1,107	)
	$	35,708		$	4,291		$	54,868	$	2,643	$	2,374


				(Stated in millions)

	2024
									Depreciation
				Pretax					and		Capital
	Revenue			Income			Assets		Amortization		Investments
Digital	$	2,439		$	612		$	768	$	173	$	199
Reservoir Performance		7,177			1,452			3,802		404		624
Well Construction		13,357			2,826			6,740		649		745
Production Systems		11,935			1,900			7,049		347		406
All Other		2,117			775			2,512		482		503
Eliminations & other		(736	)		(244	)		1,152		287		135
Goodwill and intangible assets								17,605
Cash and short-term investments								4,669
All other assets								4,638
Corporate & other (1)					(744	)				177
Interest income (2)					134
Interest expense (3)					(498	)
Charges & credits (4)					(541	)
	$	36,289		$	5,672		$	48,935	$	2,519	$	2,612


				(Stated in millions)

	2023
									Depreciation
				Pretax					and		Capital
	Revenue			Income			Assets		Amortization		Investments
Digital	$	2,034		$	366		$	652	$	167	$	162
Reservoir Performance		6,561			1,263			3,483		387		514
Well Construction		13,478			2,932			7,126		587		908
Production Systems		9,831			1,245			6,634		325		384
All Other		1,844			892			2,455		411		513
Eliminations & other		(613	)		(175	)		1,351		277		118
Goodwill and intangible assets								17,323
Cash and short-term investments								3,989
All other assets								4,944
Corporate & other (1)					(729	)				158
Interest income (2)					87
Interest expense (3)					(489	)
Charges & credits (4)					(110	)
	$	33,135		$	5,282		$	47,957	$	2,312	$	2,599

(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 which are included in the segments’ income (2025: $2 million; 2024: $40 million; 2023: $13 million).

(3)

Interest expense excludes amounts which are included in the segments’ income (2025: $7 million; 2024: $14 million; 2023: $14 million).

(4)

See Note 3 – Charges and Credits.

Segment assets consist of receivables, inventories, fixed assets, exploration data, and APS investments.

Capital investments includes capital expenditures, APS investments, and exploration data cost capitalized.

Depreciation and amortization includes depreciation of fixed assets and amortization of intangible assets, exploration data costs, and APS investments.

Revenue from Digital Operations of $464 million, $290 million, and $186 million in 2025, 2024 and 2023, respectively, is reflected in the Digital Division. Revenue from this solution is generated from the same customer base as SLB's Core divisions of Well Construction, Reservoir Performance and Production Systems. In order to incentivize the Core divisions and Digital to develop and promote digital operations, the resulting revenue and profitability is recognized in both the respective Core division as well as in the Digital Division. This effect is eliminated in consolidation.

Revenue by geographic area for the years ended December 31, 2025, 2024, and 2023 was as follows:


(Stated in millions)

	2025		2024		2023
North America	$	7,515	$	6,680	$	6,727
Latin America		6,152		6,719		6,645
Europe & Africa *		9,572		9,671		8,524
Middle East & Asia		12,218		13,026		11,019
Eliminations & other		251		193		220
	$	35,708	$	36,289	$	33,135

Includes Russia and the Caspian region

Revenue is based on the location where services are provided and products are sold.

SLB did not have revenue from third-party customers in its country of domicile during the last three years. Revenue in the United States in 2025, 2024, and 2023 was $6.3 billion, $5.3 billion, and $5.4 billion, respectively.

North America and International revenue disaggregated by segment was as follows:


(Stated in millions)

	2025
	North America			International			Other			Total
Digital	$	682		$	1,970		$	8		$	2,660
Reservoir Performance		579			6,230			11			6,820
Well Construction		2,137			9,475			244			11,856
Production Systems		3,564			9,703			58			13,325
All Other		682			1,306			(1	)		1,987
Eliminations & other		(129	)		(742	)		(69	)		(940	)
	$	7,515		$	27,942		$	251		$	35,708


(Stated in millions)

	2024
	North America			International			Other			Total
Digital	$	613		$	1,821		$	5		$	2,439
Reservoir Performance		548			6,622			7			7,177
Well Construction		2,359			10,776			222			13,357
Production Systems		2,516			9,386			33			11,935
All Other		716			1,401			-			2,117
Eliminations & other		(72	)		(590	)		(74	)		(736	)
	$	6,680		$	29,416		$	193		$	36,289


(Stated in millions)

	2023
	North America			International			Other			Total
Digital	$	477		$	1,551		$	6		$	2,034
Reservoir Performance		498			6,057			6			6,561
Well Construction		2,709			10,530			239			13,478
Production Systems		2,598			7,219			14			9,831
All Other		513			1,331			-			1,844
Eliminations & other		(68	)		(500	)		(45	)		(613	)
	$	6,727		$	26,188		$	220		$	33,135

Fixed Assets less accumulated depreciation by geographic area was as follows:


(Stated in millions)

	2025		2024		2023
North America	$	2,020	$	1,805	$	1,728
Latin America		1,338		1,044		1,079
Europe & Africa		1,909		1,721		1,804
Middle East & Asia		2,627		2,789		2,629
	$	7,894	$	7,359	$	7,240

Significant segment expenses, which represents the difference between segment revenue and pretax segment income, consist of the following:


(Stated in millions)

	2025
		Reservoir	Well	Production
	Digital	Performance	Construction	Systems
Compensation	$744	$1,593	$2,362	$1,370
Cost of products, materials, and supplies	-	1,183	3,211	7,874
Depreciation and amortization	183	435	672	463
Allocations	328	643	944	532
Other	660	1,716	2,419	902
	$1,915	$5,570	$9,608	$11,141


(Stated in millions)

	2024
			Reservoir		Well		Production
	Digital		Performance		Construction		Systems
Compensation	$	747	$	1,638	$	2,587	$	1,037
Cost of products, materials, and supplies		-		1,232		3,579		7,408
Depreciation and amortization		173		404		649		347
Allocations		314		668		1,011		529
Other		593		1,783		2,705		714
	$	1,827	$	5,725	$	10,531	$	10,035


(Stated in millions)

	2023
			Reservoir		Well		Production
	Digital		Performance		Construction		Systems
Compensation	$	745	$	1,501	$	2,526	$	1,104
Cost of products, materials, and supplies		-		1,157		3,673		5,946
Depreciation and amortization		167		387		587		325
Allocations		309		605		943		492
Other		447		1,648		2,817		719
	$	1,668	$	5,298	$	10,546	$	8,586

Other segment expenses include transportation, mobilization, lease, occupancy, professional, and other costs.

SLB's chief operating decision maker is its Chief Executive Officer who uses pretax segment income to assess the performance of each segment.

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
Interest cost		178			173			178			437			413			407
Expected return on plan assets		(193	)		(200	)		(198	)		(538	)		(553	)		(607	)
Amortization of net loss		4			-			-			43			10			-
	$	9		$	(4	)	$	3		$	(12	)	$	(74	)	$	(146	)

The weighted-average assumed discount rate and compensation increases used to determine the projected benefit obligations for the US and International plans were as follows:



	US						International
	2025			2024			2025			2024
Discount rate		5.55	%		5.70	%		5.56	%		5.67	%
Compensation increases		4.00	%		4.00	%		4.85	%		4.85	%

The changes in the projected benefit obligation, plan assets and funded status of the plans were as follows:


(Stated in millions)

	US						International
	2025			2024			2025			2024
Change in Projected Benefit Obligations:
Projected benefit obligation at beginning of year	$	3,225		$	3,413		$	7,796		$	8,109
Service cost		20			23			46			56
Interest cost		178			173			437			413
Contribution by plan participants		-			-			71			61
Actuarial losses (gains)		59			(160	)		122			(457	)
Currency effect		-			-			83			(2	)
Benefits paid		(229	)		(224	)		(399	)		(384	)
Projected benefit obligation at end of year	$	3,253		$	3,225		$	8,156		$	7,796
Change in Plan Assets:
Plan assets at fair value at beginning of year	$	3,175		$	3,427		$	7,674		$	8,390
Actual return on plan assets		273			(38	)		656			(408	)
Currency effect		-			-			100			(2	)
Company contributions		10			10			1			17
Contributions by plan participants		-			-			71			61
Benefits paid		(229	)		(224	)		(399	)		(384	)
Plan assets at fair value at end of year	$	3,229		$	3,175		$	8,103		$	7,674
Unfunded Liability	$	(24	)	$	(50	)	$	(53	)	$	(122	)
Amounts Recognized in Balance Sheet:
Postretirement Benefits	$	(159	)	$	(154	)	$	(320	)	$	(358	)
Other Assets		135			104			267			236
	$	(24	)	$	(50	)	$	(53	)	$	(122	)
Amounts Recognized in Accumulated Other Comprehensive Loss:
Actuarial losses	$	381		$	405		$	2,316		$	2,296

Accumulated benefit obligation	$	3,169		$	3,137		$	7,995		$	7,634

The asset represents the difference between the plan assets and the projected benefit obligation (“PBO”). The PBO represents the actuarial present value of benefits based on employee service and compensation and includes an assumption about future compensation levels. The accumulated benefit obligation represents the actuarial present value of benefits based on employee service and compensation but does not include an assumption about future compensation levels.

Actuarial gains and losses arising during 2025 and 2024 were primarily attributable to changes in the discount rate used to determine the PBO.

The weighted-average allocation of plan assets as of December 31, 2025 and 2024 and the target allocations by asset category as of December 31, 2025 were as follows:




	US									International
	Target			2025			2024			Target			2025			2024
Cash and cash equivalents	0 - 3		%		1	%		1	%	0 - 5		%		1	%		1	%
Equity securities	0 - 5				3			2		5 - 10				6			3
Debt securities	80 - 90				82			82		60 - 70				69			69
Private equity and real estate	5 - 12				8			9		12 - 17				16			17
Private debt	2 - 8				6			6		5 - 10				8			10
		100	%		100	%		100	%		100	%		100	%		100	%

The expected rate of return on assets assumptions reflect the long-term average rate of return expected to be earned on plan assets. The assumptions have been determined based on expectations regarding future rates of return for the portfolio considering the asset allocation and related historical rates of return. The appropriateness of the assumptions is reviewed annually.

The fair value of SLB’s pension plan assets at December 31, 2025 and 2024, by asset category, is presented below and was determined based on valuation techniques categorized as follows:

Level One: The use of quoted prices in active markets for identical instruments.

Level Two: The use of quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active or other inputs that are observable in the market or can be corroborated by observable market data.

Level Three: The use of significant unobservable inputs that typically require the use of management’s estimates of assumptions that market participants would use in pricing.


(Stated in millions)

	US Plan Assets
	2025								2024
			Level		Level		Level				Level		Level		Level
	Total		One		Two		Three		Total		One		Two		Three
Asset Category:
Cash and Cash Equivalents	$	31	$	31	$	-	$	-	$	33	$	33	$	-	$	-
Equity Securities		92		73		19		-		70		58		12		-
Debt Securities:
Corporate bonds		1,931		-		1,931		-		1,713		-		1,713		-
Government and related debt securities		707		28		679		-		861		13		848		-
Other		14		-		14		-		13		-		13		-
Alternative Investments:
Private equity		210		-		-		210		234		-		-		234
Private debt		181		-		-		181		186		-		-		186
Real estate		63		-		-		63		65		-		-		65
Total	$	3,229	$	132	$	2,643	$	454	$	3,175	$	104	$	2,586	$	485


(Stated in millions)

	International Plan Assets
	2025								2024
			Level		Level		Level				Level		Level		Level
	Total		One		Two		Three		Total		One		Two		Three
Asset Category:
Cash and Cash Equivalents	$	77	$	43	$	34	$	-	$	90	$	89	$	1	$	-
Equity Securities		482		482		-				264		264
Debt Securities:
Corporate bonds		3,008		-		3,008		-		2,948		-		2,948		-
Government and related debt securities		2,046		514		1,532		-		1,969		448		1,521		-
Other		550		-		550		-		390		-		390		-
Alternative Investments:
Private equity		1,108		-		-		1,108		1,136		-		-		1,136
Private debt		686		-		-		686		738		-		-		738
Real estate		146		-		-		146		139		-		-		139
Total	$	8,103	$	1,039	$	5,124	$	1,940	$	7,674	$	801	$	4,860	$	2,013

SLB’s funding policy is to contribute amounts that are based upon a number of factors including the funded status of the plans, amounts that are deductible for income tax purposes, legal funding requirements, and available cash flow. SLB does not expect to make any material contributions to its postretirement benefit plans in 2026.

Postretirement Benefits Other Than Pensions

SLB provides healthcare benefits to certain former US employees who have retired.

The actuarial assumptions used to determine the accumulated postretirement benefit obligation and net periodic benefit cost for the US postretirement medical plan were as follows:




	Benefit Obligation						Net Periodic Benefit
	At December 31,						Cost for the Year
	2025			2024			2025			2024			2023
Discount rate		5.70	%		5.25	%		5.70	%		5.25	%		5.50	%
Return on plan assets	-			-				4.91	%		4.43	%		4.41	%
Current medical cost trend rate		7.75	%		7.25	%		7.75	%		7.25	%		7.50	%
Ultimate medical cost trend rate		4.50	%		4.50	%		4.50	%		4.50	%		4.50	%
Year that the rate reaches the ultimate trend rate		2039			2035			2039			2035			2035

The net credit for the US postretirement medical plan included the following components:


(Stated in millions)

	2025			2024			2023
Service cost	$	17		$	19		$	16
Interest cost		42			41			42
Expected return on plan assets		(43	)		(42	)		(41	)
Amortization of prior service credit		(13	)		(23	)		(23	)
Amortization of net gain		(13	)		(13	)		(12	)
	$	(10	)	$	(18	)	$	(18	)

The changes in the accumulated postretirement benefit obligation, plan assets and funded status were as follows:


(Stated in millions)

	2025			2024
Change in Accumulated Postretirement Benefit Obligation:
Benefit obligation at beginning of year	$	781		$	805
Service cost		17			19
Interest cost		42			41
Contribution by plan participants		5			6
Actuarial loss (gain)		6			(37	)
Benefits paid		(61	)		(53	)
Benefit obligation at end of year	$	790		$	781
Change in Plan Assets:
Plan assets at fair value at beginning of year	$	913		$	964
Actual return on plan assets		66			1
Contributions by plan participants		4			6
Benefits paid		(65	)		(58	)
Plan assets at fair value at end of year	$	918		$	913
Asset	$	128		$	132
Amounts Recognized in Accumulated Other Comprehensive Loss:
Actuarial gains	$	228		$	224
Prior service credit		-			13
	$	228		$	237

The asset balance relating to this plan was included in Other Assets in the Consolidated Balance Sheet.

The assets of the US postretirement medical plan are invested 84% in debt securities and 16% in equity securities at December 31, 2025. The fair value of these assets was primarily determined based on Level Two valuation techniques.

Other Information

The expected benefits to be paid under the US and International pension plans as well as the postretirement medical plan are as follows:


(Stated in millions)

	Pension Plans				Postretirement
	US		International		Medical Plan
2026	$	233	$	447	$	50
2027	$	234	$	463	$	51
2028	$	235	$	477	$	52
2029	$	236	$	493	$	54
2030	$	236	$	497	$	56
2031-2035	$	1,185	$	2,670	$	316

18. Supplementary Information

Cash paid for interest was $560 million in 2025, $510 million in 2024, and $503 million in 2023.

Interest and other income includes the following:


(Stated in millions)

	2025		2024		2023
Earnings of equity method investments	$	196	$	182	$	206
Gain on sale of Palliser APS project *		149	$	-	$	-
Interest income		136		174		100
Gain on sale of investment *		-		24		-
Gain on sale of Liberty shares *		-		-		36
	$	481	$	380	$	342

See Note 3 – Charges and Credits

The components of depreciation and amortization expense were as follows:


(Stated in millions)

	2025	2024	2023
Depreciation of fixed assets	$1,733	$1,551	$1,445
Amortization of intangible assets	376	334	314
Amortization of APS investments	369	481	410
Amortization of exploration data costs	165	153	143
	$2,643	$2,519	$2,312

The change in Allowance for doubtful accounts was as follows:


(Stated in millions)

	2025			2024			2023
Balance at beginning of year	$	325		$	337		$	340
Additions		24			6			18
Amounts written off		(14	)		(18	)		(21	)
Balance at end of year	$	335		$	325		$	337

Revenue in excess of billings related to contracts where revenue is recognized over time was $0.4 billion at December 31, 2025 and $0.5 billion at December 31, 2024. Such amounts are included within Receivables less allowance for doubtful accounts in the Consolidated Balance Sheet.

Other Assets consist of the following:


(Stated in millions)

	2025		2024
Investments in APS projects	$	1,797	$	2,083
Pension and other postretirement plan assets		530		472
Operating lease assets		879		702
Exploration data costs capitalized		283		196
Other		407		313
	$	3,896	$	3,766

Accounts payable and accrued liabilities consist of the following:


(Stated in millions)

	2025		2024
Trade payables	$	4,859	$	4,230
Payroll, vacation, and employee benefits		1,586		1,475
Billings and cash collections in excess of revenue		2,264		2,007
Other		2,781		2,663
	$	11,490	$	10,375

Management’s Report on Internal Control Over Financial Reporting

SLB management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). SLB’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

SLB management assessed the effectiveness of its internal control over financial reporting as of December 31, 2025. In making this assessment, it used the criteria set forth in 2013 by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control—Integrated Framework. Based on this assessment SLB’s management has concluded that, as of December 31, 2025, its internal control over financial reporting is effective based on those criteria.

The effectiveness of SLB’s internal control over financial reporting as of December 31, 2025 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which appears herein.

Report of Independent Regist****ered Public Accounting Firm

To the Board of Directors and Stockholders

of SLB Limited

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheet of SLB Limited and its subsidiaries (the “Company”) as of December 31, 2025 and 2024, and the related consolidated statements of income, comprehensive income, stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2025, including the related notes (collectively referred to as the “consolidated financial statements”). We also have audited the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024 and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Uncertain Tax Positions

As described in Note 13 to the consolidated financial statements, the Company’s tax filings are subject to regular audit by the tax authorities, and those audits may result in assessments for additional taxes that are resolved with the tax authorities or, potentially, through the courts. Tax liabilities are recorded based on estimates of additional taxes that will be due upon the conclusion of these audits.

The principal considerations for our determination that performing procedures relating to uncertain tax positions is a critical audit matter are the significant judgment applied by management in determining these liabilities including a high degree of estimation uncertainty due to the uncertain and complex application of tax regulations, which in turn led to a high degree of auditor judgment, subjectivity, and effort in performing procedures to evaluate management’s estimates.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the identification and recognition of uncertain tax positions. These procedures also included, among others (i) evaluating management’s process for determining the estimated liabilities for uncertain tax positions, (ii) testing the completeness and reasonableness of uncertain tax positions recorded in the consolidated financial statements, and (iii) evaluating assessments received from the relevant tax authorities. Professionals with specialized skill and knowledge were used to assist in evaluating the reasonableness of assumptions used by management, including management's assessment of whether tax positions are more likely than not of being sustained.


/s/ PricewaterhouseCoopers LLP

Houston, Texas
January 23, 2026

We have served as the Company’s auditor since 1952.

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