Schlumberger (SLB) Stock Forecast & Price Target

SLB is attractive because its Digital segment is already producing $2.7 billion of 2025 revenue, about $1 billion of annual recurring revenue, and roughly $900 million of adjusted EBITDA at a 35% margin, while compounding revenue and EBITDA at 16% and 23% since 2021. Its moat is reinforced by more than $3 billion of digital R&D, 390 U.S. patents in the last five years, and deep AI and automation integration that should expand margins as Digital revenue grows toward $4.4-5.4 billion by 2030. The broader business also supports the outlook through strong international exposure, expected free cash flow margin of at least 10% through 2025, net debt to EBITDA under 1.0x at the end of 2023, and a commitment to return at least 50% of free cash flow to investors.

SLB is vulnerable to weaker activity levels that would pressure revenue growth and margins in its Digital & Integration and Well Construction Solutions businesses, especially if utilization stays low and fixed-cost absorption deteriorates. The downside case implies only $7.8B of 2027E EBITDA, and that outcome could be further constrained by the company’s capital commitment to New Energy if returns fail to meet expectations. With roughly 5% of revenue still tied to Russia, exposure to foreign regulations or sanctions, plus tariff escalation, customer consolidation, and tighter capital discipline, could all dampen results.