Schlumberger N.V. ( SLB ) shares are trading higher on Friday after the company reported better-than-expected second-quarter 2025 results.

Revenue fell 6% year over year to $8.55 billion, topping the consensus estimate of $8.47 billion. Adjusted earnings per share declined 13% to 74 cents, which aligns with analyst expectations.

North America revenue rose 1% year over year to $1.66 billion, as strong growth in data center infrastructure was offset by weaker Asset Performance Solutions (APS) revenue and a decline in U.S. land drilling activity.

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International revenue dropped 8% to $6.85 billion, with Latin America revenue down 14% due to reduced drilling in Mexico, partially offset by strong unconventional stimulation activity in Argentina.

By segment, revenue was as follows:

Digital & Integration: $995 million, down 5% year over year

Reservoir Performance: $1.69 billion, down 7%

Well Construction: $2.96 billion, down 13%

Production Systems: $3.04 billion, up 3% sequentially

Adjusted EBITDA totaled $2.05 billion, with margins contracting 103 basis points to 24%. The pretax segment operating margin declined by 175 basis points to 18.5%.

For the first half of the year, operating cash flow stood at $1.80 billion, an increase from $1.76 billion in the prior half-year period. Quarterly operating cash flow was $1.14 billion.

On the strategic front, SLB completed the sale of its working interests in the Palliser Block in Alberta, Canada, on June 26. On July 16, it finalized the acquisition of ChampionX, enhancing its position in the production and recovery market and expanding its digital and workflow integration capabilities.

The board of directors declared a quarterly cash dividend of 28.5 cents per share, payable Oct. 9 to shareholders of record as of Sept. 3.

"Looking ahead, assuming commodity prices stay range bound, we remain constructive for the second half of the year. This is supported by our position in key markets, the depth of our diversified portfolio, and our increased exposure to the growing production and recovery market through the acquisition of ChampionX. We will also continue to manage costs in line with market conditions as we remain focused on delivering peer-leading adjusted EBITDA margins," commented SLB Chief Executive Officer Olivier Le Peuch.

SLB expects full-year 2025 capital investment, including capex, exploration data costs, and APS investments, to total approximately $2.4 billion, reflecting the impact of the ChampionX acquisition. This is down from $2.6 billion in 2024.

Price Action: At the last check on Friday, SLB shares were trading lower by 0.95% at $34.34.

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