Schlumberger Ltd.

Q2 performance: solid global rebound, Middle East disruption remains the key drag - Revenue: $9.0B, +3% sequentially despite severe Middle East disruptions. - Middle East: revenue down 13% sequentially to $1.66B (still the largest negative factor). - Sequential margin improvement: Pretax segment operating margin +49 bps and adjusted EBITDA margin +83 bps, with the Middle East contribution improving margin vs expectations (plus temporary cost actions to reduce earnings impact). - EPS (ex charges/credits): $0.55, +0.03 sequentially, but -0.19 YoY; temporary actions helped keep EPS impact only slightly below the $0.06–$0.08 guided range.

Division highlights: Production Systems + Digital strong; Data Center Solutions accelerating fast - Digital: $697M (+9% sequentially); adjusted EBITDA margin ~34.7% (very large margin expansion), driven by higher exploration data licenses/transfer fees and improved operating profitability. ARR up 15% YoY. - Production Systems: $3.8B (+7% sequentially) with pretax margin +138 bps to 15.5%, helped by OneSubsea, higher artificial lift/valves/surface production/completions, and ChampionX accretive contribution. - Data Center Solutions: revenue +33% sequentially and +80% YoY—growth from new hyperscaler customers and expansion into data center design/engineering/system integration (beyond manufacturing). - Reservoir Performance & Construction: slight weakness sequentially, largely tied to Middle East disruption (though offset by stronger non-MEA activity).

Guidance / outlook: Q3 base case growth with Middle East recovery assumption + explicit downside scenario - Q3 base case: global sequential revenue growth 3%–4%, and adjusted EBITDA margin expansion ~75 bps. - Digital and Core: expect core division revenue + low-to-mid single digits sequentially; Digital + low single digits. - Middle East downside risk modeling: if Middle East revenue is flat sequentially (i.e., no recovery vs base) then Q3 revenue ~ $150M lower, implying ~$75M adjusted EBITDA headwind (primarily impacts Well Construction + Reservoir Performance). - No material impact expected from “recent tension” at current activity levels, but escalation risk is modeled.