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    How New Energy Contracts Will Impact SLB (SLB) Stock

    Simply Wall St·10/08/2026 01:41:38
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    • SLB recently announced multi year integrated well construction contracts with Aramco in Saudi Arabia and a subsea production systems award for ExxonMobil’s Rovuma LNG project in Mozambique through its OneSubsea joint venture.
    • The combination of long duration Aramco drilling work and the Mozambique subsea package expands SLB’s backlog across both onshore well delivery and complex deepwater infrastructure.
    • The focus now turns to how these new integrated contracts with Aramco could shape SLB's investment narrative.
    Scan SLB’s latest Aramco and Rovuma LNG moves against other energy contractors by checking which peers make the cut in our 43 power grid technology and infrastructure stocks.

    SLB Investment Narrative Recap

    To own SLB, you need to believe the mix of long cycle oil and gas work, higher margin digital offerings and growing data center exposure can translate into steadier cash generation over time. The Aramco and Rovuma awards speak directly to that first leg. The nearer term swing factor still looks like execution on large integrated projects, with geopolitical disruption and project timing the biggest swing variables.

    The election of Jing Ulrich to the board does not radically change that operating picture in the short run. The more immediate risk remains any prolonged weakness or disruption in key regions that keeps revenue and EBITDA below prior expectations, especially in the Middle East, which would keep margin repair work harder.

    The Aramco integrated well construction contracts connect tightly to this story. These three year agreements, with optional extensions, give SLB visibility on more than 450 wells and reinforce customer uptake of its single workflow model that ties together digital planning, automated drilling and field execution. That is where a lot of the near term operating leverage sits.

    Those awards also sit alongside SLB’s push into digital, production systems and data center solutions, which analysts already view as important drivers for higher recurring and services heavy revenue. Execution risk increases as the portfolio broadens, so investors will likely watch delivery on Aramco and Rovuma milestones closely as a real world check on how well the wider SLB playbook is working.

    What Analysts Are Baking In For SLB

    SLB's narrative projects US$43.0b revenue and US$5.5b earnings by 2029. This implies 5.7% yearly revenue growth and an earnings increase of about US$2.4b from current earnings of US$3.1b.

    Discover why SLB's fair value indicates a 30% potential upside to its current price that may not last much longer.

    NYSE:SLB 1-Year Stock Price Chart
    NYSE:SLB 1-Year Stock Price Chart

    Exploring Other Perspectives

    One alternate angle on SLB leans heavily on earnings optimism. The most bullish analysts were already penciling in US$48.9b of revenue and US$6.8b of earnings by 2029, well above consensus, before these Aramco and Rovuma contracts and Jing Ulrich’s board appointment. You can treat this as a prompt to compare several very different narratives.

    Explore 6 other SLB fair value estimates, including one that suggests as much as 77% upside from the current price.

    Decide For Yourself

    Don't just follow the ticker; dig into the data and build a conviction that's truly your own.

    Looking For More Ideas Beyond SLB?

    If SLB is only one piece of your watchlist, it can help to line it up against other opportunities with different risk and income profiles using the Simply Wall St Screener.

    • If you want potential mispricing with quality in mind, start with a focused set of 29 high quality undervalued stocks that combine stronger fundamentals with cheaper-looking valuations.
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    • If income is your priority, you can zero in on higher yield opportunities by scanning a curated group of 8 dividend fortresses that aim to pair payout with resilience.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.