SLBFRA:SCL -2.58%80 Operating Margin % is 12.27% as of Mar. 2026, which is 13% above its 10-year median of 10.89. GuruFocus rates FRA:SCL with a GF Score™ of 80/100 and a GF Value™ of €39.86 (Fairly Valued). The stock has 2 warning signs investors should review. Among 916 Oil & Gas companies, SLB ranks better than 66.38% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. SLB's Operating Income for the
three
months ended in Mar. 2026 was €926 Mil. SLB's Revenue for the
three
months ended in Mar. 2026 was €7,544 Mil. Therefore, SLB's Operating Margin % for the quarter that ended in Mar. 2026 was 12.27%.
Good Sign:
SLB Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for SLB's Operating Margin % or its related term are showing as below:
FRA:SCL'
s Operating Margin % Range Over the Past 10 Years
Min: 7.02 Med: 10.89 Max: 17.43
Current: 14.44
FRA:SCL's Operating Margin % is ranked better than 66.38% of 916
companies
in the Oil & Gas industry
Industry Median: 6.86
vs FRA:SCL: 14.44
SLB's 5-Year Average Operating Margin % Growth Rate was 15.70% per year.
SLB's Operating Income for the
three
months ended in Mar. 2026 was €926 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €4,458 Mil.
SLB (FRA:SCL) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
SLB Operating Margin % Related Terms
SLB Operating Margin % Historical Data
* Premium members only.
The historical data trend for SLB's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:SCL vs BKR, HAL, FTI: Operating Margin % Comparison
For the Oil & Gas Equipment & Services subindustry, SLB's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
SLB Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, SLB's Operating Margin % distribution charts can be found below:
* The bar in red indicates where SLB's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
SLB's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SLB (FRA:SCL) has a Operating Margin % of 12.27% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on SLB and its competitors. This is 13% above median its historical median of 10.89. Over the past decade, SLB's Operating Margin % has ranged from 7.02 to 17.43. According to the industry distribution chart, SLB ranks #308 out of 916 companies in the Oil & Gas industry, placing it in the top 33.6%.
Is SLB's Operating Margin % too high?
SLB's current Operating Margin % of 12.27% is 13% above median its 10-year median of 10.89. Over the past 10 years, this metric has ranged from a low of 7.02 to a high of 17.43. The Oil & Gas industry median Operating Margin % is 6.86. SLB's value of 12.27% is 78.9% above this industry median. Based on the distribution chart, SLB ranks #308 out of 916 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, SLB has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does SLB's Operating Margin % compare to BKR and HAL?
According to the Oil & Gas industry distribution chart, SLB ranks #308 out of 916 companies for Operating Margin %. This puts SLB in the upper half of its industry. The industry median Operating Margin % is 6.86. SLB's value of 12.27% is 78.9% above this benchmark. Historically, SLB's own Operating Margin % has ranged from 7.02 to 17.43 over the past decade. While the company's 10-year median is 10.89 vs. the industry median of 6.86, SLB has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Oil & Gas company?
The median Operating Margin % among Oil & Gas companies is 6.86, based on 916 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SLB's current Operating Margin % of 12.27% is 78.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on SLB and its competitors. For the Oil & Gas industry, the median Operating Margin % is 6.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SLB's current Operating Margin % is 12.27%, which is 13% above median its own 10-year median of 10.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SLB stock overvalued right now?
Based on GuruFocus' analysis, SLB (FRA:SCL) is currently considered Fairly Valued. The stock's GF Value™ is €39.86, compared to a current price of €40.61 — trading 1.9% above its estimated fair value. The current Operating Margin % is 12.27%, which is 13% above median its 10-year median of 10.89 and 78.9% above the Oil & Gas industry median of 6.86. SLB's overall GF Score™ is 80/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For SLB (FRA:SCL), the current Operating Margin % is 12.27% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is SLB (FRA:SCL) Overvalued in 2026?
Based on GuruFocus' analysis, SLB stock appears to be overvalued.
The current stock price of €40.61 is trading 1.9% above its estimated GF Value™ of €39.86.
GuruFocus considers SLB to be Fairly Valued.
Key valuation signals for FRA:SCL:
Operating Margin %: 12.27% (13% above median its 10-year median of 10.89)
GF Value™: €39.86 vs. price of €40.61 (1.9% above fair value)
Industry Position: 78.9% above the Oil & Gas median (#308 of 916)
No single metric tells the full story. See the FRA:SCL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SLB is the world's premier oilfield-services company as measured by market share. While the industry is largely fragmented, SLB holds the first or second competitive position in many of the differentiated oligopolies in which it operates. Also known as Schlumberger, the company was founded in 1926 by Conrad and Marcel Schlumberger. Today, it's most known as a global industry leader in innovation, while it focuses its strategy on its three growth engines: core, digital, and new energy businesses. Over three-fourths of its revenue base is tied to international markets, while the company boasts nearly $3 billion in digital-related revenue.
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