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)

	Second Quarter				Six Months
	2026		2025		2026		2025
Revenue
Services	$	5,200	$	5,327	$	10,119	$	10,692
Product sales		3,772		3,219		7,574		6,343
Total Revenue		8,972		8,546		17,693		17,035
Interest & other income		76		252		119		330
Expenses
Cost of services		4,340		4,227		8,389		8,480
Cost of sales		3,237		2,707		6,578		5,335
Research & engineering		171		180		335		352
General & administrative		84		87		181		184
Restructuring & other		-		135		-		293
Merger & integration		69		35		110		84
Interest		128		142		244		289
Income before taxes		1,019		1,285		1,975		2,348
Tax expense		204		237		399		471
Net income		815		1,048		1,576		1,877
Net income attributable to noncontrolling interests		29		34		38		66
Net income attributable to SLB	$	786	$	1,014	$	1,538	$	1,811

Basic income per share of SLB	$	0.53	$	0.75	$	1.03	$	1.33

Diluted income per share of SLB	$	0.52	$	0.74	$	1.02	$	1.32
Average shares outstanding:
Basic		1,490		1,352		1,494		1,359
Assuming dilution		1,506		1,366		1,511		1,373

See Notes to Consolidated Financial Statements

SLB LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Unaudited)


(Stated in millions)

	Second Quarter						Six Months
	2026			2025			2026			2025
Net income	$	815		$	1,048		$	1,576		$	1,877
Currency translation adjustments
Unrealized net change arising during the period		27			54			33			226
Cash flow hedges
Net gain (loss) on cash flow hedges		50			26			36			(39	)
Reclassification to net income of net realized loss (gain)		5			(5	)		7			-
Pension and other postretirement benefit plans
Amortization to net income of net actuarial loss		14			8			25			16
Amortization to net income of net prior service credit		3			(3	)		-			(6	)
Income taxes on pension and other postretirement benefit plans		(2	)		(1	)		(3	)		(1	)
Other		-			2			(5	)		11
Comprehensive income		912			1,129			1,669			2,084
Comprehensive income attributable to noncontrolling interests		29			34			38			66
Comprehensive income attributable to SLB	$	883		$	1,095		$	1,631		$	2,018

See Notes to Consolidated Financial Statements

SLB LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET


(Stated in millions)

	Jun. 30,
	2026			Dec. 31,
	(Unaudited)			2025
ASSETS
Current Assets
Cash	$	2,743		$	3,036
Short-term investments		1,328			1,176
Receivables less allowance for doubtful accounts (2026 - $322; 2025 - $335)		9,132			8,689
Inventories		5,436			5,032
Other current assets		1,605			1,580
		20,244			19,513
Investments in Affiliated Companies		1,691			1,783
Fixed Assets less accumulated depreciation		7,745			7,894
Goodwill		17,001			16,794
Intangible Assets		4,876			4,988
Other Assets		3,975			3,896
	$	55,532		$	54,868
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities	$	11,210		$	11,490
Estimated liability for taxes on income		742			894
Short-term borrowings and current portion of long-term debt		1,658			1,894
Dividends payable		456			443
		14,066			14,721
Long-term Debt		11,140			9,742
Postretirement Benefits		475			479
Deferred Taxes		669			644
Other Liabilities		1,928			1,991
		28,278			27,577
Equity
Common stock		16,260			16,354
Treasury stock		(4,253	)		(3,576	)
Retained earnings		18,710			18,067
Accumulated other comprehensive loss		(4,643	)		(4,736	)
SLB stockholders’ equity		26,074			26,109
Noncontrolling interests		1,180			1,182
		27,254			27,291
	$	55,532		$	54,868

See Notes to Consolidated Financial Statements

SLB LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)


(Stated in millions)

	Six Months Ended June 30,
	2026			2025
Cash flows from operating activities:
Net income	$	1,576		$	1,877
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (1)		1,397			1,273
Gain on sale of APS project		-			(149	)
Impairment of equity method investment		-			69
Deferred taxes		(5	)		(60	)
Stock-based compensation expense		179			168
Earnings of equity method investments, less dividends received		(21	)		(47	)
Change in assets and liabilities: (2)
Increase in receivables		(307	)		(480	)
Increase in inventories		(362	)		(288	)
(Increase) decrease in other current assets		(30	)		86
Decrease (increase) in other assets		6			(44	)
Decrease in accounts payable and accrued liabilities		(406	)		(557	)
Decrease in estimated liability for taxes on income		(239	)		(162	)
Increase in other liabilities		-			73
Other		58			43
NET CASH PROVIDED BY OPERATING ACTIVITIES		1,846			1,802
Cash flows from investing activities:
Capital expenditures		(802	)		(769	)
APS investments		(226	)		(225	)
Exploration data costs capitalized		(125	)		(83	)
Business acquisitions and investments, net of cash acquired		(236	)		(47	)
(Purchase) sales of short-term investments, net		(158	)		632
Proceeds from sale of APS investment		-			316
Other		25			(10	)
NET CASH USED IN INVESTING ACTIVITIES		(1,522	)		(186	)
Cash flows from financing activities:
Stock repurchase program		(1,099	)		(2,300	)
Dividends paid		(866	)		(773	)
Proceeds from employee stock purchase plan		105			105
Proceeds from exercise of stock options		106			8
Taxes paid on net settled stock-based compensation awards		(63	)		(55	)
Proceeds from issuance of long-term debt		1,985			1,081
Repayment of long-term debt		(729	)		-
Net increase (decrease) in short-term borrowings		10			(28	)
Other		(55	)		(27	)
NET CASH USED IN FINANCING ACTIVITIES		(606	)		(1,989	)
Net decrease in cash before translation effect		(282	)		(373	)
Translation effect on cash		(11	)		65
Cash, beginning of period		3,036			3,544
Cash, end of period	$	2,743		$	3,236

(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, 2026 – June 30, 2026	Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, January 1, 2026	$	16,354		$	(3,576	)	$	18,067		$	(4,736	)	$	1,182		$	27,291
Net income								1,538						38			1,576
Currency translation adjustments											33						33
Changes in fair value of cash flow hedges											43						43
Pension and other postretirement benefit plans											22						22
Shares sold to optionees, less shares exchanged		(18	)		124												106
Vesting of restricted stock, net of taxes withheld		(210	)		147												(63	)
Employee stock purchase plan		(45	)		150												105
Stock repurchase program					(1,099	)											(1,099	)
Stock-based compensation expense		179															179
Dividends declared ($0.59 per share)								(880	)								(880	)
Dividends paid to noncontrolling interests														(55	)		(55	)
Other					1			(15	)		(5	)		15			(4	)
Balance, June 30, 2026	$	16,260		$	(4,253	)	$	18,710		$	(4,643	)	$	1,180		$	27,254



										Accumulated
										Other
	Common Stock						Retained			Comprehensive			Noncontrolling
January 1, 2025 – June 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								1,811						66			1,877
Currency translation adjustments											226						226
Changes in fair value of cash flow hedges											(39	)					(39	)
Pension and other postretirement benefit plans											9						9
Shares sold to optionees, less shares exchanged		(2	)		10												8
Vesting of restricted stock, net of taxes withheld		(226	)		171												(55	)
Employee stock purchase plan		(44	)		149												105
Stock repurchase program					(2,300	)											(2,300	)
Stock-based compensation expense		168															168
Dividends declared ($0.57 per share)								(773	)								(773	)
Dividends paid to noncontrolling interests														(43	)		(43	)
Other					1						11			6			18
Balance, June 30, 2025	$	11,354		$	(3,742	)	$	17,433		$	(4,743	)	$	1,249		$	21,551



										Accumulated
										Other
	Common Stock						Retained			Comprehensive			Noncontrolling
April 1, 2026 – June 30, 2026	Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, April 1, 2026	$	16,198		$	(3,650	)	$	18,369		$	(4,740	)	$	1,176		$	27,353
Net income								786						29			815
Currency translation adjustments											27						27
Changes in fair value of cash flow hedges											55						55
Pension and other postretirement benefit plans											15						15
Shares sold to optionees, less shares exchanged		(3	)		35												32
Vesting of restricted stock, net of taxes withheld		(13	)		9												(4	)
Employee stock purchase plan					1												1
Stock repurchase program					(648	)											(648	)
Stock-based compensation expense		78															78
Dividends declared ($0.295 per share)								(437	)								(437	)
Dividends paid to noncontrolling interests														(32	)		(32	)
Other		-						(8	)					7			(1	)
Balance, June 30, 2026	$	16,260		$	(4,253	)	$	18,710		$	(4,643	)	$	1,180		$	27,254


	(Stated in millions, except per share amounts)

										Accumulated
										Other
	Common Stock						Retained			Comprehensive			Noncontrolling
April 1, 2025 – June 30, 2025	Issued			In Treasury			Earnings			Loss			Interests			Total
Balance, April 1, 2025	$	10,827		$	(3,292	)	$	16,804		$	(4,824	)	$	1,233		$	20,748
Net income								1,014						34			1,048
Currency translation adjustments											54						54
Changes in fair value of cash flow hedges											21						21
Pension and other postretirement benefit plans											4						4
Shares sold to optionees, less shares exchanged		(1	)		1												-
Vesting of restricted stock, net of taxes withheld		(9	)		7												(2	)
Stock repurchase program		460			(460	)											-
Stock-based compensation expense		77															77
Dividends declared ($0.285 per share)								(385	)								(385	)
Dividends paid to noncontrolling interests														(22	)		(22	)
Other					2						2			4			8
Balance, June 30, 2025	$	11,354		$	(3,742	)	$	17,433		$	(4,743	)	$	1,249		$	21,551

SHARES OF COMMON STOCK

(Unaudited)


			(Stated in millions)

						Shares
	Issued		In Treasury			Outstanding
Balance, January 1, 2026		1,580		(85	)		1,495
Shares sold to optionees, less shares exchanged		-		3			3
Vesting of restricted stock		-		3			3
Shares issued under employee stock purchase plan		-		4			4
Stock repurchase program		-		(21	)		(21	)
Balance, June 30, 2026		1,580		(96	)		1,484

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 June 30, 2026 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2026. The December 31, 2025 balance sheet information has been derived from the SLB 2025 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, 2025, filed with the Securities and Exchange Commission on January 23, 2026.

2. Charges and Credits

2026

SLB recorded charges of $41 million and $69 million during the first and second quarters of 2026, respectively, primarily in connection with the July 2025 acquisition of ChampionX Corporation ("ChampionX") (see Note 4 - Acquisition). These costs are classified in Merger & integration in the Consolidated Statement of Income.


	(Stated in millions)

					Noncontrolling
	Pretax Charge		Tax Benefit		Interests		Net
First quarter:
Merger and integration	$	41	$	8	$	2	$	31
Second quarter:
Merger and integration		69		19		3		47
	$	110	$	27	$	5	$	78

2025

First quarter

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

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

Second quarter

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

During the second quarter of 2025, SLB recorded a charge 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, in connection with the ChampionX transaction and the October 2023 acquisition of the Aker Solutions subsea business, SLB recorded $35 million of charges related to merger and integration-related costs. 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 Asset Performance Solutions ("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.


	(Stated in millions)

							Noncontrolling
	Pretax Charge			Tax Benefit			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
Merger and integration		35			4			4		27
Gain on sale of Palliser APS project		(149	)		(4	)		-		(145	)
	$	228		$	26		$	8	$	194

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)

	2026						2025
	Net Income Attributable to SLB		Average Shares Outstanding		Earnings per Share		Net Income Attributable to SLB		Average Shares Outstanding		Earnings per Share
Second Quarter
Basic	$	786		1,490	$	0.53	$	1,014		1,352	$	0.75
Assumed exercise of stock options		-		1				-		-
Unvested restricted stock		-		15				-		14
Diluted	$	786		1,506	$	0.52	$	1,014		1,366	$	0.74


	2026						2025
	Net Income Attributable to SLB		Average Shares Outstanding		Earnings per Share		Net Income Attributable to SLB		Average Shares Outstanding		Earnings per Share
Six Months
Basic	$	1,538		1,494	$	1.03	$	1,811	$	1,359	$	1.33
Assumed exercise of stock options		-		1				-		-
Unvested restricted stock		-		16				-		14
Diluted	$	1,538		1,511	$	1.02	$	1,811	$	1,373	$	1.32

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)

	Second Quarter				Six Months
	2026		2025		2026		2025
Employee stock options		5		18		5		18

4. Acquisition

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

production and recovery space. Under the terms of the agreement, ChampionX shareholders received 0.735 shares of SLB common stock in exchange for each ChampionX share.

Excluding its Drilling Technologies business, which was disposed of concurrently with the closing of the acquisition, ChampionX recorded revenue of approximately $0.9 billion and $1.7 billion during the second quarter and the first six months of 2025, respectively.

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)

	Jun. 30,		Dec. 31,
	2026		2025
Raw materials & field materials	$	2,720	$	2,550
Work in progress		887		797
Finished goods		1,829		1,685
	$	5,436	$	5,032

6. Fixed Assets

Fixed assets consist of the following:


(Stated in millions)

	Jun. 30,		Dec. 31,
	2026		2025
Property, plant & equipment	$	32,105	$	32,045
Less: Accumulated depreciation		24,360		24,151
	$	7,745	$	7,894

Depreciation expense relating to fixed assets was as follows:


(Stated in millions)

	2026		2025
Second Quarter	$	473	$	408
Six Months	$	937	$	805

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, 2025	$	2,060	$	4,111	$	6,598		$	3,699	$	326	$	16,794
Acquisitions		45		24		-			143		-		212
Other		-		-		(13	)		-		8		(5	)
Balance at June 30, 2026	$	2,105	$	4,135	$	6,585		$	3,842	$	334	$	17,001

8. Intangible Assets

Intangible assets consist of the following:


	(Stated in millions)

	Jun. 30, 2026						Dec. 31, 2025
	Gross		Accumulated		Net Book		Gross		Accumulated		Net Book
	Book Value		Amortization		Value		Book Value		Amortization		Value
Customer relationships	$	2,782	$	910	$	1,872	$	2,783	$	849	$	1,934
Technology/technical know-how		2,736		1,075		1,661		2,635		998		1,637
Tradenames		1,067		308		759		1,067		283		784
Other		1,639		1,055		584		1,637		1,004		633
	$	8,224	$	3,348	$	4,876	$	8,122	$	3,134	$	4,988

Amortization expense charged to income was as follows:


(Stated in millions)

	2026		2025
Second Quarter	$	111	$	82
Six Months	$	221	$	164

Based on the carrying value of intangible assets at June 30, 2026, amortization expense for the subsequent five years is estimated to be: remaining two quarters of 2026: $226 million; 2027: $449 million; 2028: $439 million; 2029: $422 million; 2030: $414 million; and 2031: $390 million.

9. Long-term Debt

Long-term Debt consists of the following:


(Stated in millions)

	Jun. 30,		Dec. 31,
	2026		2025
3.90% Senior Notes due 2028	$	1,488	$	1,484
2.65% Senior Notes due 2030		1,247		1,247
2.00% Guaranteed Notes due 2032		1,134		1,172
0.25% Notes due 2027		1,026		1,059
0.50% Notes due 2031		1,024		1,058
5.15% Senior Notes due 2036		992		-
4.30% Senior Notes due 2029		849		848
4.50% Senior Notes due 2028		498		497
4.55% Senior Notes due 2031		497		-
4.80% Senior Notes due 2033		496		-
4.85% Senior Notes due 2033		495		495
5.00% Senior Notes due 2029		495		494
5.00% Senior Notes due 2034		488		487
7.00% Notes due 2038		194		195
5.95% Notes due 2041		110		111
5.13% Notes due 2043		98		98
5.00% Senior Notes due 2027		-		497
Other		9		-
	$	11,140	$	9,742

The estimated fair value of SLB’s Long-term Debt, based on quoted market prices at June 30, 2026 and December 31, 2025, was $10.7 billion and $9.4 billion, respectively.

At June 30, 2026, SLB 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 June 30, 2026 or December 31, 2025.

Commercial paper borrowings are classified as long-term debt to the extent they are backed up by available and unused committed credit facilities maturing in more than one year and to the extent it is SLB’s intent to maintain these obligations for longer than one year. There were no borrowings under the commercial paper programs at June 30, 2026 and December 31, 2025.

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 June 30, 2026, 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)

	Jun. 30, 2026		Dec. 31, 2025
Other current assets	$	53	$	93
Other Assets	$	58	$	110
Other Liabilities	$	12	$	6

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 $5.5 billion and $6.3 billion in various foreign currencies as of June 30, 2026 and December 31, 2025, respectively.

Other than the previously mentioned cross-currency interest rate swaps, the fair value of the other outstanding derivatives was not material as of June 30, 2026 and December 31, 2025.

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
	Second Quarter						Six Months
	2026			2025			2026			2025			Consolidated Statement of Income Classification
Derivatives designated as cash flow hedges:
Cross-currency interest rate swaps	$	(40	)	$	330		$	(143	)	$	467		Cost of services/sales
Cross-currency interest rate swaps		(18	)		(18	)		(35	)		(37	)	Interest expense
Foreign currency forward contracts		(19	)		-			(35	)		(1	)	Cost of services/sales
Foreign currency forward contracts		14			4			28			-		Revenue
	$	(63	)	$	316		$	(185	)	$	429
Derivatives not designated as hedges:
Foreign currency forward contracts	$	13		$	(17	)	$	8		$	42		Cost of services/sales

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

Financial information by segment is as follows:


				(Stated in millions)

	Second Quarter 2026
							Depreciation
				Income			and		Capital
	Revenue			Before Taxes			Amortization		Investments (5)
Digital	$	697		$	194		$	48	$	62
Reservoir Performance		1,556			232			118		125
Well Construction		2,742			417			161		136
Production Systems		3,771			586			152		165
All Other		505			142			85		125
Eliminations & other		(299	)		(167	)		71		30
Corporate & other (1)					(211	)		77
Interest income (2)					23
Interest expense (3)					(128	)
Charges and credits (4)					(69	)
	$	8,972		$	1,019		$	712	$	643


				(Stated in millions)

	Second Quarter 2025
							Depreciation
				Income			and		Capital
	Revenue			Before Taxes			Amortization		Investments (5)
Digital	$	591		$	153		$	33	$	33
Reservoir Performance		1,691			314			107		124
Well Construction		2,963			551			169		118
Production Systems		2,932			491			91		111
All Other		583			155			117		107
Eliminations & other		(214	)		(80	)		71		27
Corporate & other (1)					(169	)		45
Interest income (2)					30
Interest expense (3)					(139	)
Charges and credits (4)					(21	)
	$	8,546		$	1,285		$	633	$	520

(1)

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

(2)

Interest income excludes amounts that are included in the segments’ income ($5 million in 2026; $- million in 2025).

(3)

Interest expense excludes amounts that are included in the segments’ income ($- million in 2026; $3 million in 2025).

(4)

See Note 2 – Charges and Credits.

(5)

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


				(Stated in millions)

	Six Months 2026
								Depreciation
				Income			and			Capital
	Revenue			Before Taxes			Amortization			Investments (5)
Digital	$	1,337		$	328			$	81		$	127
Reservoir Performance		3,150			489				231			214
Well Construction		5,539			841				322			244
Production Systems		7,279			1,083				304			294
All Other		948			255				169			232
Eliminations & other		(560	)		(271	)			140			42
Corporate & other (1)					(439	)			150
Interest income (2)					43
Interest expense (3)					(244	)
Charges and credits (4)					(110	)
	$	17,693		$	1,975			$	1,397		$	1,153


				(Stated in millions)

	Six Months 2025
								Depreciation
				Income			and			Capital
	Revenue			Before Taxes			Amortization			Investments (5)
Digital	$	1,177		$	278			$	89		$	86
Reservoir Performance		3,391			596				211			261
Well Construction		5,940			1,140				333			247
Production Systems		5,773			962				181			201
All Other		1,145			317				227			229
Eliminations & other		(391	)		(153	)			142			53
Corporate & other (1)					(347	)			90
Interest income (2)					66
Interest expense (3)					(283	)
Charges and credits (4)					(228	)
	$	17,035		$	2,348			$	1,273		$	1,077

(1)

(2)

Interest income excludes amounts that are included in the segments’ income ($11 million in 2026; $- million in 2025).

(3)

Interest expense excludes amounts that are included in the segments’ income ($- million in 2026; $6 million in 2025).

(4)

See Note 2 – Charges and Credits.

(5)

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

Total assets by segment are as follows:


	(Stated in millions)

		Jun. 30,		Dec. 31,
		2026		2025
Digital		$	918	$	925
Reservoir Performance			4,087		3,947
Well Construction			6,365		6,167
Production Systems			9,753		9,373
All Other			2,315		2,249
Eliminations and other			1,069		1,033
Goodwill and intangibles			21,877		21,783
Cash and short-term investments			4,071		4,212
All other assets			5,077		5,179
		$	55,532	$	54,868

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)

	Second Quarter				Six Months
	2026		2025		2026		2025
North America	$	2,244	$	1,655	$	4,412	$	3,373
Latin America		1,714		1,492		3,243		2,986
Europe & Africa (1)		2,385		2,369		4,642		4,604
Middle East & Asia		2,572		2,986		5,257		5,983
Other		57		44		139		89
	$	8,972	$	8,546	$	17,693	$	17,035

(1)

Includes Russia and the Caspian region.

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


									(Stated in millions)

	Second Quarter 2026
	North
America				International				Other				Total
Digital	$	170			$	526			$	1			$	697
Reservoir Performance		147				1,409				-				1,556
Well Construction		549				2,156				37				2,742
Production Systems		1,259				2,478				34				3,771
All Other		188				317				-				505
Eliminations & other		(69	)			(215	)			(15	)			(299	)
	$	2,244			$	6,671			$	57			$	8,972

									(Stated in millions)

	Second Quarter 2025
	North
	America				International				Other				Total
Digital	$	126			$	462			$	3			$	591
Reservoir Performance		148				1,541				2				1,691
Well Construction		512				2,394				57				2,963
Production Systems		685				2,243				4				2,932
All Other		203				380				-				583
Eliminations & other		(19	)			(173	)			(22	)			(214	)
	$	1,655			$	6,847			$	44			$	8,546


					(Stated in millions)

	Six Months 2026
	North
America				International				Other				Total
Digital	$	367			$	969			$	1			$	1,337
Reservoir Performance		290				2,854				6				3,150
Well Construction		1,097				4,351				91				5,539
Production Systems		2,465				4,750				64				7,279
All Other		331				617				-				948
Eliminations & other		(138	)			(399	)			(23	)			(560	)
	$	4,412			$	13,142			$	139			$	17,693

					(Stated in millions)

	Six Months 2025
	North
	America				International				Other				Total
Digital	$	297			$	877			$	3			$	1,177
Reservoir Performance		290				3,097				4				3,391
Well Construction		1,054				4,775				111				5,940
Production Systems		1,356				4,410				7				5,773
All Other		419				727				(1	)			1,145
Eliminations & other		(43	)			(313	)			(35	)			(391	)
	$	3,373			$	13,573			$	89			$	17,035

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


(Stated in millions)

	Second Quarter 2026
			Reservoir		Well		Production
	Digital		Performance		Construction		Systems
Compensation	$	193	$	390	$	579	$	481
Cost of products, materials, and supplies		-		244		751		2,154
Depreciation and amortization		48		118		161		152
Allocations		92		161		232		137
Other		170		411		602		261
	$	503	$	1,324	$	2,325	$	3,185

(Stated in millions)

	Second Quarter 2025
			Reservoir		Well		Production
	Digital		Performance		Construction		Systems
Compensation	$	182	$	407	$	592	$	233
Cost of products, materials, and supplies		-		279		818		1,790
Depreciation and amortization		33		107		169		91
Allocations		84		163		240		139
Other		139		421		593		188
	$	438	$	1,377	$	2,412	$	2,441


(Stated in millions)

	Six Months 2026
			Reservoir		Well		Production
	Digital		Performance		Construction		Systems
Compensation	$	376	$	776	$	1,161	$	948
Cost of products, materials, and supplies		-		514		1,519		4,144
Depreciation and amortization		81		231		322		304
Allocations		179		323		461		273
Other		373		817		1,235		527
	$	1,009	$	2,661	$	4,698	$	6,196

(Stated in millions)

	Six Months 2025
			Reservoir		Well		Production
	Digital		Performance		Construction		Systems
Compensation	$	372	$	814	$	1,195	$	473
Cost of products, materials, and supplies		-		587		1,620		3,521
Depreciation and amortization		89		211		333		181
Allocations		162		327		490		276
Other		276		856		1,162		360
	$	899	$	2,795	$	4,800	$	4,811

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 June 30, 2026 and $0.4 billion at December 31, 2025. Such amounts are included within Receivables less allowance for doubtful accounts in the Consolidated Balance Sheet.

Total backlog was $6.4 billion at June 30, 2026, of which approximately 70% is expected to be recognized as revenue over the next 12 months.

Billings and cash collections in excess of revenue was $2.3 billion at both June 30, 2026 and December 31, 2025. Such amounts are included within Accounts payable and accrued liabilities in the Consolidated Balance Sheet.

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