SLB Management is a possum playing bunch of SOBs. You know $SLB management has been grinning from ear-to-ear watching their stock fall the past month and saying nothing. Well, it's dead no more, just jumped 10+% today. After reading the earnings call, I can see why (number 4 is big). 1) Revenue reached $9.0 billion, despite a 13% sequential decline in Middle East revenue. Strength in Latin America, Europe & Africa, Asia, and North America more than offset the disruption. 2) Production Systems continues to be the engine of the business. Artificial lift, production chemicals, subsea equipment, and production optimization all posted strong growth. Oil companies aren't just drilling wells, they're investing to produce more from the wells they already have, and that's playing directly into SLB's strengths. 3) Digital keeps building momentum. Annual recurring software revenue increased 15%, and management continues to position AI and digital operations as major long-term growth drivers. 4) Data Center Solutions may be the most interesting part of the story. Revenue grew 80% year over year, and management now expects the business to exceed a $2 billion annual revenue run rate by the end of 2027. That's not something I expected from an oilfield services company a few years ago. Management also believes the industry is entering the early stages of an international upcycle, driven by deepwater investment, energy security, and growing demand for production and recovery services. If they're right, SLB is positioned exactly where customers are increasing spending. I originally invested in SLB because it was the leader in oilfield services. I'm staying invested because it's becoming much more than that, combining energy expertise with digital technology and AI infrastructure. Are we at the beginnings of an international upcycle in oil?
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