Item 1. Financial Statements.

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Item 1. Financial Statements.

SLB LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME

(Unaudited)


(Stated in millions, except per share amounts)

	Third Quarter				Nine Months
	2025		2024		2025		2024
Revenue
Services	$	5,152	$	5,841	$	15,844	$	17,419
Product sales		3,776		3,318		10,119		9,586
Total Revenue		8,928		9,159		25,963		27,005
Interest & other income		78		96		408		265
Expenses
Cost of services		4,075		4,465		12,554		13,403
Cost of sales		3,295		2,772		8,631		8,103
Research & engineering		170		187		522		557
General & administrative		72		90		256		305
Restructuring & other		109		65		402		176
Merger & integration		143		33		226		60
Interest		142		136		432		381
Income before taxes		1,000		1,507		3,348		4,285
Tax expense		226		289		697		824
Net income		774		1,218		2,651		3,461
Net income attributable to noncontrolling interests		35		32		101		95
Net income attributable to SLB	$	739	$	1,186	$	2,550	$	3,366

Basic income per share of SLB	$	0.50	$	0.84	$	1.83	$	2.36

Diluted income per share of SLB	$	0.50	$	0.83	$	1.80	$	2.34
Average shares outstanding:
Basic		1,471		1,417		1,396		1,425
Assuming dilution		1,488		1,432		1,414		1,441

See Notes to Consolidated Financial Statements

SLB LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Unaudited)


(Stated in millions)

	Third Quarter						Nine Months
	2025			2024			2025			2024
Net income	$	774		$	1,218		$	2,651		$	3,461
Currency translation adjustments
Unrealized net change arising during the period		(43	)		(42	)		183			11
Cash flow hedges
Net loss on cash flow hedges		(28	)		(5	)		(67	)		(48	)
Reclassification to net income of net realized loss (gain)		(8	)		(2	)		(8	)		3
Pension and other postretirement benefit plans
Amortization to net income of net actuarial (gain) loss		9			(1	)		25			(2	)
Amortization to net income of net prior service credit		(3	)		(6	)		(9	)		(17	)
Income taxes on pension and other postretirement benefit plans		-			1			(1	)		4
Other		3			12			14			13
Comprehensive income		704			1,175			2,788			3,425
Comprehensive income attributable to noncontrolling interests		35			32			101			95
Comprehensive income attributable to SLB	$	669		$	1,143		$	2,687		$	3,330

See Notes to Consolidated Financial Statements

SLB LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET


(Stated in millions)

	Sept. 30,
	2025			Dec. 31,
	(Unaudited)			2024
ASSETS
Current Assets
Cash	$	3,014		$	3,544
Short-term investments		571			1,125
Receivables less allowance for doubtful accounts (2025 - $341; 2024 - $325)		9,101			8,011
Inventories		5,321			4,375
Other current assets		1,461			1,515
		19,468			18,570
Investments in Affiliated Companies		1,691			1,635
Fixed Assets less accumulated depreciation		7,999			7,359
Goodwill		17,007			14,593
Intangible Assets		5,089			3,012
Other Assets		3,839			3,766
	$	55,093		$	48,935
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities	$	10,857		$	10,375
Estimated liability for taxes on income		814			982
Short-term borrowings and current portion of long-term debt		1,923			1,051
Dividends payable		443			403
		14,037			12,811
Long-term Debt		10,843			11,023
Postretirement Benefits		502			512
Deferred Taxes		827			67
Other Liabilities		1,962			2,172
		28,171			26,585
Equity
Common stock		16,338			11,458
Treasury stock		(3,636	)		(1,773	)
Retained earnings		17,746			16,395
Accumulated other comprehensive loss		(4,813	)		(4,950	)
SLB stockholders’ equity		25,635			21,130
Noncontrolling interests		1,287			1,220
		26,922			22,350
	$	55,093		$	48,935

See Notes to Consolidated Financial Statements

SLB LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)


(Stated in millions)

	Nine Months Ended September 30,
	2025			2024
Cash flows from operating activities:
Net income	$	2,651		$	3,461
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (1)		1,911			1,871
Gain on sale of APS project		(149	)		-
Impairment of equity method investment		121			-
Deferred taxes		(89	)		32
Stock-based compensation expense		257			244
Earnings of equity method investments, less dividends received		(59	)		(9	)
Change in assets and liabilities: (2)
Increase in receivables		(528	)		(396	)
Increase in inventories		(249	)		(243	)
Decrease in other current assets		87			23
Increase in other assets		(39	)		(3	)
Decrease in accounts payable and accrued liabilities		(381	)		(732	)
Decrease in estimated liability for taxes on income		(202	)		(147	)
Increase in other liabilities		40			39
Other		113			72
NET CASH PROVIDED BY OPERATING ACTIVITIES		3,484			4,212
Cash flows from investing activities:
Capital expenditures		(1,178	)		(1,322	)
APS investments		(312	)		(390	)
Exploration data costs capitalized		(168	)		(141	)
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		(144	)		(552	)
Sales (purchase) of short-term investments, net		572			(268	)
Purchase of Blue Chip Swap securities		(167	)		(136	)
Proceeds from sale of Blue Chip securities		144			92
Other		8			49
NET CASH USED IN INVESTING ACTIVITIES		(142	)		(2,668	)
Cash flows from financing activities:
Dividends paid		(1,176	)		(1,144	)
Proceeds from employee stock purchase plan		222			219
Proceeds from exercise of stock options		8			25
Taxes paid on net settled stock-based compensation awards		(61	)		(86	)
Stock repurchase program		(2,414	)		(1,236	)
Proceeds from issuance of long-term debt		660			1,475
Repayment of long-term debt		(1,112	)		(416	)
Net increase (decrease) in short-term borrowings		17			(142	)
Other		(65	)		(36	)
NET CASH USED IN FINANCING ACTIVITIES		(3,921	)		(1,341	)
Net (decrease) increase in cash before translation effect		(579	)		203
Translation effect on cash		49			(17	)
Cash, beginning of period		3,544			2,900
Cash, end of period	$	3,014		$	3,086

(1)

Includes depreciation of fixed assets and amortization of intangible assets, exploration data costs, and Asset Performance Solutions ("APS") investments.

(2)

Net of the effect of business acquisitions and divestitures.

See Notes to Consolidated Financial Statements

SLB LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT O****F STOCKHOLDERS’ EQUITY

(Unaudited)


	(Stated in millions, except per share amounts)

										Accumulated
										Other
	Common Stock						Retained			Comprehensive			Noncontrolling
January 1, 2025 – September 30, 2025	Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, January 1, 2025	$	11,458		$	(1,773	)	$	16,395		$	(4,950	)	$	1,220		$	22,350
Net income								2,550						101			2,651
Currency translation adjustments											183						183
Changes in fair value of cash flow hedges											(75	)					(75	)
Pension and other postretirement benefit plans											15						15
Shares sold to optionees, less shares exchanged		(9	)		17												8
Vesting of restricted stock, net of taxes withheld		(267	)		206												(61	)
Employee stock purchase plan		(99	)		321												222
Stock repurchase program					(2,414	)											(2,414	)
Stock-based compensation expense		257															257
Dividends declared ($0.855 per share)								(1,199	)								(1,199	)
Dividends paid to noncontrolling interests														(65	)		(65	)
Acquisition of ChampionX Corporation		5,005												19			5,024
Other		(7	)		7						14			12			26
Balance, September 30, 2025	$	16,338		$	(3,636	)	$	17,746		$	(4,813	)	$	1,287		$	26,922



										Accumulated
										Other
	Common Stock						Retained			Comprehensive			Noncontrolling
January 1, 2024 – September 30, 2024	Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, January 1, 2024	$	11,624		$	(678	)	$	13,497		$	(4,254	)	$	1,170		$	21,359
Net income								3,366						95			3,461
Currency translation adjustments											11						11
Changes in fair value of cash flow hedges											(45	)					(45	)
Pension and other postretirement benefit plans											(15	)					(15	)
Shares sold to optionees, less shares exchanged		(9	)		34												25
Vesting of restricted stock, net of taxes withheld		(386	)		300												(86	)
Employee stock purchase plan		(65	)		284												219
Stock repurchase program					(1,236	)											(1,236	)
Stock-based compensation expense		244															244
Dividends declared ($0.825 per share)								(1,176	)								(1,176	)
Dividends paid to noncontrolling interests														(36	)		(36	)
Other					2						13			(12	)		3
Balance, September 30, 2024	$	11,408		$	(1,294	)	$	15,687		$	(4,290	)	$	1,217		$	22,728



										Accumulated
										Other
	Common Stock						Retained			Comprehensive			Noncontrolling
July 1, 2025 – September 30, 2025	Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, July 1, 2025	$	11,354		$	(3,742	)	$	17,433		$	(4,743	)	$	1,249		$	21,551
Net income								739						35			774
Currency translation adjustments											(43	)					(43	)
Changes in fair value of cash flow hedges											(36	)					(36	)
Pension and other postretirement benefit plans											6						6
Shares sold to optionees, less shares exchanged		(7	)		7												-
Vesting of restricted stock, net of taxes withheld		(41	)		35												(6	)
Employee stock purchase plan		(55	)		172												117
Stock repurchase program					(114	)											(114	)
Stock-based compensation expense		89															89
Dividends declared ($0.285 per share)								(426	)								(426	)
Dividends paid to noncontrolling interests														(22	)		(22	)
Acquisition of ChampionX Corporation		5,005												19			5,024
Other		(7	)		6						3			6			8
Balance, September 30, 2025	$	16,338		$	(3,636	)	$	17,746		$	(4,813	)	$	1,287		$	26,922


	(Stated in millions, except per share amounts)

										Accumulated
										Other
	Common Stock						Retained			Comprehensive			Noncontrolling
July 1, 2024 – September 30, 2024	Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, July 1, 2024	$	11,401		$	(973	)	$	14,890		$	(4,247	)	$	1,209		$	22,280
Net income								1,186						32			1,218
Currency translation adjustments											(42	)					(42	)
Changes in fair value of cash flow hedges											(7	)					(7	)
Pension and other postretirement benefit plans											(6	)					(6	)
Shares sold to optionees, less shares exchanged					5												5
Vesting of restricted stock, net of taxes withheld		(35	)		27												(8	)
Employee stock purchase plan		(29	)		148												119
Stock repurchase program					(501	)											(501	)
Stock-based compensation expense		71															71
Dividends declared ($0.275 per share)								(389	)								(389	)
Dividends paid to noncontrolling interests														(24	)		(24	)
Other											12						12
Balance, September 30, 2024	$	11,408		$	(1,294	)	$	15,687		$	(4,290	)	$	1,217		$	22,728

SHARES OF COMMON STOCK

(Unaudited)


			(Stated in millions)

						Shares
	Issued		In Treasury			Outstanding
Balance, January 1, 2025		1,439		(38	)		1,401
Shares sold to optionees, less shares exchanged		-		1			1
Vesting of restricted stock		-		4			4
Shares issued under employee stock purchase plan		-		7			7
Stock repurchase program		-		(60	)		(60	)
Acquisition of ChampionX Corporation		141		-			141
Balance, September 30, 2025		1,580		(86	)		1,494

See Notes to Consolidated Financial Statements

SLB LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Basis of Presentation

The accompanying unaudited consolidated financial statements of SLB Limited and its subsidiaries (“SLB”) have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of SLB management, all adjustments considered necessary for a fair statement have been included in the accompanying unaudited financial statements. All intercompany transactions and balances have been eliminated in consolidation. Operating results for the three-month period ended September 30, 2025 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2025. The December 31, 2024 balance sheet information has been derived from the SLB 2024 audited financial statements. For further information, refer to the Consolidated Financial Statements and notes thereto included in the SLB Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission on January 22, 2025.

2. Charges and Credits

2025

Third quarter 2025:

In connection with the acquisition of ChampionX Corporation ("ChampionX") (see Note 4), SLB recorded charges of $66 million relating to the amortization of purchase accounting adjustments associated with the write-up of acquired inventory to its estimated fair value; $61 million of transaction costs, including advisory and legal fees; and $54 million relating to employee benefits for change-in-control arrangements, accelerated stock-based compensation and retention. In addition, SLB recorded $28 million of other merger and integration costs associated with the acquisition of ChampionX and the October 2023 acquisition of the Aker Solutions subsea business. $143 million of these costs are classified in Merger & integration with the remaining $66 million classified in Cost of sales in the Consolidated Statement of Income.

During the third quarter of 2025, SLB recorded a charge of $57 million relating to workforce reductions to align its resources with activity levels. This charge is classified in Restructuring & other in the Consolidated Statement of Income. SLB may record additional charges related to workforce reductions in 2025 as it continues to align its resources with activity levels.

During the third quarter of 2025, SLB recorded a $52 million impairment charge relating to an equity method investment that was determined to be other-than-temporarily impaired. This charge is classified in Restructuring & other in the Consolidated Statement of Income.

Second quarter 2025:

During the second quarter of 2025, SLB recorded a $69 million impairment charge relating to an equity method investment that was determined to be other-than-temporarily impaired. This charge is classified in Restructuring & other in the Consolidated Statement of Income.

During the second quarter of 2025, SLB recorded a charge of $66 million relating to workforce reductions to align its resources with activity levels. This charge is classified in Restructuring & other in the Consolidated Statement of Income.

During the second quarter of 2025, SLB recorded $35 million of charges in connection with the acquisition of ChampionX and the October 2023 acquisition of Aker solutions subsea business. These costs are classified in Merger & integration 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, of which $22 million were received in the third quarter of 2025. 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.

First quarter 2025:

During the first quarter of 2025, SLB recorded a $158 million charge relating to workforce reductions to realign and optimize its support and service delivery structure. This charge is classified in Restructuring & other in the Consolidated Statement of Income.

During the first quarter of 2025, SLB recorded $49 million of charges in connection with the acquisition of ChampionX and the October 2023 acquisition of the Aker Solutions subsea business. These costs are classified in Merger & integration in the Consolidated Statement of Income.


	(Stated in millions)

	Pretax Charge			Tax Benefit			Noncontrolling
	(Credit)			(Expense)			Interests		Net
First quarter:
Workforce reductions	$	158		$	10		$	-	$	148
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 fair value 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
	$	546		$	53		$	12	$	481

2024

During the second and third quarters of 2024, SLB recorded charges of $111 million and $65 million, respectively, related to workforce reductions to realign and optimize its support and service delivery structure. These charges are classified in Restructuring & other in the Consolidated Statement of Income.

During the first nine months of 2024, SLB recorded $103 million of charges in connection with the October 2023 acquisition of the Aker Solutions subsea business and the ChampionX transaction consisting of $43 million relating to the amortization of purchase accounting adjustments associated with the write-up of acquired inventory to its estimated fair value, which is classified in Cost of sales in the Consolidated Statement of Income, and $60 million of other merger and integration-related costs that are classified in Merger & integration.


	(Stated in millions)

					Noncontrolling
	Pretax Charge		Tax Benefit		Interests		Net
First quarter:
Amortization of inventory fair value 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 fair value adjustment		15		4		3		8
Third quarter:
Workforce reductions		65		10		-		55
Merger and integration		33		6		4		23
Amortization of inventory fair value adjustment		14		4		3		7
	$	279	$	48	$	20	$	211

3. Earnings per Share

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


	(Stated in millions, except per share amounts)

	2025						2024
	Net Income Attributable to SLB		Average Shares Outstanding		Earnings per Share		Net Income Attributable to SLB		Average Shares Outstanding		Earnings per Share
Third Quarter
Basic	$	739		1,471	$	0.50	$	1,186		1,417	$	0.84
Assumed exercise of stock options		-		1				-		1
Unvested restricted stock		-		16				-		14
Diluted	$	739		1,488	$	0.50	$	1,186		1,432	$	0.83


	2025						2024
	Net Income Attributable to SLB		Average Shares Outstanding		Earnings per Share		Net Income Attributable to SLB		Average Shares Outstanding		Earnings per Share
Nine Months
Basic	$	2,550		1,396	$	1.83	$	3,366	$	1,425	$	2.36
Assumed exercise of stock options		-		1				-		1
Unvested restricted stock		-		17				-		15
Diluted	$	2,550		1,414	$	1.80	$	3,366	$	1,441	$	2.34

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


(Stated in millions)

	Third Quarter				Nine Months
	2025		2024		2025		2024
Employee stock options		18		17		18		17

4. Acquisition

On July 16, 2025, SLB acquired all of the outstanding shares of ChampionX in an all-stock transaction. ChampionX is a global leader in production chemistry solutions, artificial lift systems, and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely, effectively, and sustainably across the world. The acquisition strengthens SLB's leadership in the production and recovery space. Under the terms of the agreement, ChampionX shareholders received 0.735 shares of SLB common stock in exchange for each ChampionX share.

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 merger. 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)		696
Net assets held for sale (2)		286
Fixed assets		676
Intangible assets:
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		204
Accounts payable and accrued liabilities		(717	)
Long-term debt		(612	)
Deferred taxes		(835	)
Other liabilities		(189	)
Noncontrolling interests		(19	)
Total identifiable net assets	$	2,718
Goodwill (3)		2,287
Total consideration transferred	$	5,005

(1)

SLB recorded an adjustment of $166 million to write-up the acquired inventory to its estimated fair value. This adjustment will be amortized as the acquired inventory is sold.

(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 $0.6 billion and pretax operating income of approximately $0.1 billion (including the recurring effects of purchase accounting) to SLB for the period from August 1, 2025 through September 30, 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.

5. Inventories

A summary of inventories, which are stated at the lower of average cost or net realizable value, is as follows:


(Stated in millions)

	Sept. 30,		Dec. 31,
	2025		2024
Raw materials & field materials	$	2,741	$	2,387
Work in progress		830		786
Finished goods		1,750		1,202
	$	5,321	$	4,375

6. Fixed Assets

Fixed assets consist of the following:


(Stated in millions)

	Sept. 30,		Dec. 31,
	2025		2024
Property, plant & equipment	$	31,832	$	29,573
Less: Accumulated depreciation		23,833		22,214
	$	7,999	$	7,359

Depreciation expense relating to fixed assets was as follows:


(Stated in millions)

	2025		2024
Third Quarter	$	453	$	394
Nine Months	$	1,258	$	1,155

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 at December 31, 2024	$	2,044	$	3,804	$	6,422	$	1,841	$	482	$	14,593
Acquisition of ChampionX		-		250		200		1,837		-		2,287
Other acquisitions		16		-		57		-		-		73
Impact of changes in exchange rates		-		-		-		-		54		54
Balance at September 30, 2025	$	2,060	$	4,054	$	6,679	$	3,678	$	536	$	17,007

8. Intangible Assets

Intangible assets consist of the following:


	(Stated in millions)

	Sept. 30, 2025						Dec. 31, 2024
	Gross		Accumulated		Net Book		Gross		Accumulated		Net Book
	Book Value		Amortization		Value		Book Value		Amortization		Value
Customer relationships	$	2,838	$	873	$	1,965	$	1,887	$	799	$	1,088
Technology/technical know-how		2,634		958		1,676		1,588		872		716
Tradenames		1,125		328		797		795		299		496
Other		1,624		973		651		1,604		892		712
	$	8,221	$	3,132	$	5,089	$	5,874	$	2,862	$	3,012

Amortization expense charged to income was as follows:


(Stated in millions)

	2025		2024
Third Quarter	$	101	$	87
Nine Months	$	265	$	250

Based on the carrying value of intangible assets at September 30, 2025, amortization expense for the subsequent five years is estimated to be: fourth quarter of 2025—$112 million; 2026—$436 million; 2027—$433 million; 2028—$423 million; 2029—$410 million; and 2030—$404 million.

9**.** Long-term Debt

Long-term Debt consists of the following:


(Stated in millions)

	Sept. 30,		Dec. 31,
	2025		2024
3.90% Senior Notes due 2028	$	1,483	$	1,478
2.65% Senior Notes due 2030		1,246		1,250
1.375% Guaranteed Notes due 2026		1,158		1,040
2.00% Guaranteed Notes due 2032		1,152		1,034
0.25% Notes due 2027		1,042		936
0.50% Notes due 2031		1,040		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		494		498
5.00% Senior Notes due 2029		494		493
5.00% Senior Notes due 2034		487		489
7.00% Notes due 2038		196		197
5.95% Notes due 2041		111		111
5.13% Notes due 2043		98		98
1.00% Guaranteed Notes due 2026		-		624
	$	10,843	$	11,023

The estimated fair value of SLB’s Long-term Debt, based on quoted market prices at September 30, 2025 and December 31, 2024, was $10.5 billion and $10.4 billion, respectively.

At September 30, 2025, SLB had committed credit facility agreements with commercial banks aggregating $5.0 billion, of which $2.0 billion matures in February 2028 and $3.0 billion matures in December 2029. These committed facilities support commercial paper programs in the United States and Europe. There were no borrowings under these facilities at September 30, 2025 or December 31, 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. Borrowings under the commercial paper programs at September 30, 2025 were $0.7 billion, all of which were classified in Short-term borrowings and current portion of long-term debt in the Consolidated Balance Sheet. There were no borrowings under the commercial paper programs at December 31, 2024.

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

10. Derivative Instruments and Hedging Activities

SLB’s functional currency is primarily the US dollar. 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 September 30, 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 US dollar 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 US dollar 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 was as follows:


	(Stated in millions)

	Sept. 30, 2025		Dec. 31, 2024
Other current assets	$	-	$	37
Other Assets	$	152	$	2
Other Liabilities	$	11	$	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.

Foreign currency forward contracts were outstanding for the US dollar equivalent of $6.1 billion and $5.5 billion in various foreign currencies as of September 30, 2025 and December 31, 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 September 30, 2025 and December 31, 2024.

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


							(Stated in millions)

	Gain (Loss) Recognized in Income
	Third Quarter						Nine Months
	2025			2024			2025			2024			Consolidated Statement of Income Classification
Derivatives designated as cash flow hedges:
Cross-currency interest rate swaps	$	(52	)	$	193		$	415		$	47		Cost of services/sales
Cross-currency interest rate swaps		(17	)		(21	)		(55	)		(65	)	Interest expense
Commodity contracts		-			-			-			(10	)	Revenue
Foreign currency forward contracts		3			10			2			12		Cost of services/sales
Foreign currency forward contracts		7			(8	)		7			(6	)	Revenue
	$	(59	)	$	174		$	369		$	(22	)
Derivatives not designated as hedges:
Foreign currency forward contracts	$	(22	)	$	(13	)	$	20		$	10		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 $0.8 billion as of September 30, 2025. 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 $0.2 billion of the outstanding CDSs will reduce on a monthly basis over its remaining 5-month term while the remaining $0.6 billion will reduce on a monthly basis over its remaining 9-month term. The fair value of these derivative liabilities was not material at September 30, 2025 or December 31, 2024.

11. 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.

12. Segment Information

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's 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.

Financial information by segment is as follows:


				(Stated in millions)

	Third Quarter 2025
							Depreciation
				Income			and		Capital
	Revenue			Before Taxes			Amortization		Investments (5)
Digital	$	658		$	187		$	28	$	86
Reservoir Performance		1,682			312			110		105
Well Construction		2,967			558			170		110
Production Systems		3,474			559			131		121
All Other		397			96			62		94
Eliminations & other		(250	)		(86	)		73		65
Corporate & other (1)					(203	)		64
Interest income (2)					37
Interest expense (3)					(142	)
Charges and credits (4)					(318	)
	$	8,928		$	1,000		$	638	$	581


				(Stated in millions)

	Third Quarter 2024
							Depreciation
				Income			and		Capital
	Revenue			Before Taxes			Amortization		Investments (5)
Digital	$	638		$	190		$	39	$	50
Reservoir Performance		1,823			367			102		151
Well Construction		3,312			714			166		165
Production Systems		3,037			518			92		106
All Other		554			188			124		140
Eliminations & other		(205	)		(75	)		72		32
Corporate & other (1)					(187	)		45
Interest income (2)					36
Interest expense (3)					(132	)
Charges and credits (4)					(112	)
	$	9,159		$	1,507		$	640	$	644

(1)

Comprised principally of certain corporate expenses not allocated to the segments, stock-based compensation costs, amortization expense associated with certain intangible assets, certain centrally managed initiatives and other nonoperating items.

(2)

Interest income excludes amounts that are included in the segments’ income ($- million in 2025; $16 million in 2024).

(3)

Interest expense excludes amounts that are included in the segments’ income ($- million in 2025; $4 million in 2024).

(4)

See Note 2 – Charges and Credits.

(5)

Capital investments included capital expenditures, APS investments, and exploration data costs capitalized.


				(Stated in millions)

	Nine Months 2025
							Depreciation
				Income			and		Capital
	Revenue			Before Taxes			Amortization		Investments (5)
Digital	$	1,836		$	465		$	117	$	172
Reservoir Performance		5,072			908			321		366
Well Construction		8,908			1,698			502		358
Production Systems		9,247			1,520			312		322
All Other		1,542			414			290		323
Eliminations & other		(642	)		(239	)		215		117
Corporate & other (1)					(550	)		154
Interest income (2)					103
Interest expense (3)					(425	)
Charges and credits (4)					(546	)
	$	25,963		$	3,348		$	1,911	$	1,658


				(Stated in millions)

	Nine Months 2024
							Depreciation
				Income			and		Capital
	Revenue			Before Taxes			Amortization		Investments (5)
Digital	$	1,734		$	370		$	126	$	142
Reservoir Performance		5,368			1,082			302		403
Well Construction		10,090			2,145			484		555
Production Systems		8,808			1,390			257		275
All Other		1,535			588			355		403
Eliminations & other		(530	)		(171	)		214		75
Corporate & other (1)					(568	)		133
Interest income (2)					98
Interest expense (3)					(370	)
Charges and credits (4)					(279	)
	$	27,005		$	4,285		$	1,871	$	1,853

(1)

(2)

Interest income excludes amounts that are included in the segments’ income ($1 million in 2025; $31 million in 2024).

(3)

Interest expense excludes amounts that are included in the segments’ income ($6 million in 2025; $13 million in 2024).

(4)

See Note 2 – Charges and Credits.

(5)

Capital investments included capital expenditures, APS investments, and exploration data costs capitalized.

Total assets by segment are as follows:


	(Stated in millions)

		Sept. 30,		Dec. 31,
		2025		2024
Digital		$	754	$	768
Reservoir Performance			4,110		3,802
Well Construction			6,690		6,741
Production Systems			9,420		7,049
All Other			2,257		2,511
Eliminations and other			1,216		1,152
Goodwill and intangibles			22,096		17,605
Cash and short-term investments			3,585		4,669
All other assets			4,965		4,638
		$	55,093	$	48,935

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

Revenue by geographic area was as follows:


					(Stated in millions)

	Third Quarter				Nine Months
	2025		2024		2025		2024
North America	$	1,930	$	1,687	$	5,303	$	4,929
Latin America		1,482		1,689		4,469		5,084
Europe & Africa (1)		2,434		2,434		7,038		7,199
Middle East & Asia		3,000		3,302		8,983		9,650
Other		82		47		170		143
	$	8,928	$	9,159	$	25,963	$	27,005

(1)

Includes Russia and the Caspian region.

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


							(Stated in millions)

	Third Quarter 2025
	North
	America			International			Other			Total
Digital	$	156		$	500		$	2		$	658
Reservoir Performance		143			1,536			3			1,682
Well Construction		527			2,371			69			2,967
Production Systems		1,008			2,440			26			3,474
All Other		132			264			1			397
Eliminations & other		(36	)		(195	)		(19	)		(250	)
	$	1,930		$	6,916		$	82		$	8,928

							(Stated in millions)

	Third Quarter 2024
	North
	America			International			Other			Total
Digital	$	128		$	509		$	1		$	638
Reservoir Performance		145			1,676			2			1,823
Well Construction		581			2,675			56			3,312
Production Systems		657			2,373			7			3,037
All Other		357			197			-			554
Eliminations & other		(181	)		(5	)		(19	)		(205	)
	$	1,687		$	7,425		$	47		$	9,159


				(Stated in millions)

	Nine Months 2025
	North
	America			International			Other			Total
Digital	$	453		$	1,377		$	6		$	1,836
Reservoir Performance		433			4,633			6			5,072
Well Construction		1,581			7,146			181			8,908
Production Systems		2,365			6,850			32			9,247
All Other		990			550			2			1,542
Eliminations & other		(519	)		(66	)		(57	)		(642	)
	$	5,303		$	20,490		$	170		$	25,963

				(Stated in millions)

	Nine Months 2024
	North
	America			International			Other			Total
Digital	$	413		$	1,318		$	3		$	1,734
Reservoir Performance		409			4,952			7			5,368
Well Construction		1,776			8,151			163			10,090
Production Systems		1,871			6,915			22			8,808
All Other		1,022			513			-			1,535
Eliminations & other		(562	)		84			(52	)		(530	)
	$	4,929		$	21,933		$	143		$	27,005

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


(Stated in millions)

	Third Quarter 2025
			Reservoir		Well		Production
	Digital		Performance		Construction		Systems
Compensation	$	185	$	393	$	586	$	404
Cost of products, materials, and supplies		-		292		807		2,005
Depreciation and amortization		28		110		170		131
Allocations		82		160		230		130
Other		176		415		616		245
	$	471	$	1,370	$	2,409	$	2,915

(Stated in millions)

	Third Quarter 2024
			Reservoir		Well		Production
	Digital		Performance		Construction		Systems
Compensation	$	180	$	417	$	647	$	238
Cost of products, materials, and supplies		-		314		869		1,867
Depreciation and amortization		39		102		166		92
Allocations		78		169		254		134
Other		151		454		662		188
	$	448	$	1,456	$	2,598	$	2,519


(Stated in millions)

	Nine Months 2025
			Reservoir		Well		Production
	Digital		Performance		Construction		Systems
Compensation	$	557	$	1,207	$	1,781	$	877
Cost of products, materials, and supplies		-		879		2,427		5,526
Depreciation and amortization		117		321		502		312
Allocations		244		487		720		406
Other		453		1,270		1,780		606
	$	1,371	$	4,164	$	7,210	$	7,727

(Stated in millions)

	Nine Months 2024
			Reservoir		Well		Production
	Digital		Performance		Construction		Systems
Compensation	$	577	$	1,231	$	1,965	$	797
Cost of products, materials, and supplies		-		922		2,695		5,467
Depreciation and amortization		126		302		484		257
Allocations		236		497		758		396
Other		425		1,334		2,043		501
	$	1,364	$	4,286	$	7,945	$	7,418

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

Revenue in excess of billings related to contracts where revenue is recognized over time was $0.5 billion at both September 30, 2025 and December 31, 2024. Such amounts are included within Receivables less allowance for doubtful accounts in the Consolidated Balance Sheet.

Total backlog was $5.6 billion at September 30, 2025, of which approximately 60% is expected to be recognized as revenue over the next 12 months.

Billings and cash collections in excess of revenue was $2.2 billion at September 30, 2025 and $2.0 billion at December 31, 2024. Such amounts are included within Accounts payable and accrued liabilities in the Consolidated Balance Sheet.

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