6. SLB Limited (NYSE:SLB)
SLB Limited (NYSE: SLB) takes sixth place after reporting second-quarter revenue and adjusted earnings above Wall Street expectations. Revenue increased 5% from the previous year to $8.97 billion, while adjusted earnings reached $0.55 per share. Cash flow from operations totaled $1.36 billion, free cash flow reached $716 million and adjusted EBITDA improved sequentially to approximately $1.90 billion. any’s global footprint helped it navigate a difficult geopolitical environment. Strong offshore activity in Latin America, Europe, Africa and Asia offset disruptions in the Middle East. North American revenue increased 36% from the previous year to approximately $2.24 billion, while international revenue declined modestly. SLB Limited (NYSE: SLB) continues to benefit from its position as one of the world’s largest providers of technology, equipment and services to oil and gas producers. When energy companies invest in offshore development, reservoir evaluation, drilling or production optimization, SLB Limited (NYSE: SLB) is often involved. es SLB Limited (NYSE: SLB) higher in this ranking is its rapidly expanding data-center solutions business. Second-quarter data-center revenue increased 80% from the previous year and 33% from the prior quarter to $186 million. Management expects the business to exceed a $1 billion annualized revenue run rate by the end of 2026. This is becoming a meaningful second growth engine rather than a minor side project. ters require enormous amounts of power, cooling infrastructure, electrical equipment and specialized project-management expertise. SLB Limited (NYSE: SLB) has decades of experience building complex energy systems in challenging environments. The company can apply its engineering, subsurface, power and project-execution knowledge to the physical infrastructure required by artificial intelligence. That gives it a different AI investment thesis from semiconductor companies: instead of selling processors, SLB Limited (NYSE: SLB) helps provide the power and infrastructure that allow the processors to operate.
There are still clear risks. Oilfield service earnings remain cyclical, Middle East instability can interrupt operations and year-over-year profitability remains below the previous period. However, SLB Limited (NYSE: SLB) is demonstrating that it can benefit from both traditional energy investment and the global data-center construction boom. That unusual combination earns it the No. 6 position.
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Disclosure: No material interests to disclose. This article was originally published on Global Market Bulletin.
