SLBNEUTRAL

SLB Gross Margin Analysis

15.5%

Updated 201h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of each dollar of revenue left after paying direct costs like materials and labor.

Sector Performance

6th percentile

SLB

15.5%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

15.3%(Jul 2026)

↑ Improving

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Deep Analysis

Gross margin is the share of each dollar of revenue left after paying direct costs like materials and labor.

SLB’s current gross margin of 15.5% means it keeps $0.155 per dollar sold before other expenses. That is far below the sector median of 44.7%, putting SLB in the 7th percentile among peers, so most competitors retain a larger slice of revenue. The trend is only partially measurable: the year-over-year change is N/A, but the quarter-over-quarter change is +1.3%, and the two most recent values are 15.5% and 15.3%. The combination of a very low margin with a slight quarterly improvement suggests ongoing cost pressure, yet a small near-term gain offers limited upside. For an investor, this metric points to higher operational exposure than peers, but the improvement tempers the risk. This supports the overall NEUTRAL verdict: the margin level is a concern, while the modest upward move prevents a bearish call.

Frequently Asked Questions

What does the Gross Margin tell investors about SLB?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are SLB's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.