Schlumberger, a leading U.S. oilfield services company, reported second-quarter profits that exceeded market expectations, with strong performances in key markets offsetting the impact of Middle East instability. The company released its earnings on Friday, showing Q2 revenue of $8.97 billion, up 5% year-over-year and above analyst forecasts. Adjusted earnings per share came in at $0.55, a 26% decline from the prior year but still better than the expected $0.51 per share.

The U.S.-Iran conflict has persisted for nearly five months, casting a geopolitical shadow over the core oil-producing region of the Middle East. The Middle East is Schlumberger's largest market, accounting for 34% of its total 2025 revenue. The company had previously warned that second-quarter earnings per share would be reduced by $0.06 to $0.08 due to market disruptions. Schlumberger's financial report shows that revenue from the Middle East and Asia region reached $2.57 billion in the second quarter, a 14% decrease year-over-year and a 4% decline sequentially, with Middle East revenue alone falling 13% from the previous quarter. North American revenue totaled $2.24 billion, surging 36% year-over-year and increasing 4% sequentially.

Schlumberger CEO Olivier Le Peuch stated that the company delivered solid results in the second quarter, driven by broad-based, continued growth in international markets such as Latin America, Europe, Africa, and Asia, which significantly mitigated the impact of ongoing instability in the Middle East. "Importantly, revenue from outside the Middle East returned to year-over-year growth this quarter, further reinforcing our view of a favorable investment environment in the industry. This growth was fueled by increasing customer focus on energy security, supply diversification, and capacity expansion," Le Peuch added.

Schlumberger is the second major oilfield services company to report earnings this week. Earlier, Halliburton posted mixed second-quarter results, where North American business growth failed to fully offset Middle East geopolitical impacts, leading to adjusted operating profits falling short of expectations. Baker Hughes is scheduled to release its results on Sunday. The April-to-June period marked the first full quarter following the escalation of the U.S.-Israel conflict with Iran, with production in several countries including Iraq, Qatar, and Kuwait being restricted or completely halted. The market had anticipated Schlumberger would report a 31% decline in earnings per share, its largest drop since the fourth quarter of 2020, while Baker Hughes' earnings per share were expected to fall 21%. Both companies have significant exposure to Middle Eastern operations. As of the time of writing, Schlumberger shares were up 3.8% in pre-market trading, with Halliburton and Baker Hughes both gaining 0.6%.