Summary

Energy services stocks are outperforming Big Tech in 2026 by 30%. SLB Q1 2026 earnings due April 24. Baker Hughes had a strong 2025 ($27.73B revenue). The exploration renaissance, Hormuz-driven urgency, and AI adoption are creating multi-vector demand for services.

Stock Performance

• SLB and Baker Hughes are beating Big Tech by 30% in 2026 in stock performance.
• Baker Hughes described as “pulling away from the pack” versus SLB and Halliburton.
• Energy Select Sector SPDR (XLE) outperforming Technology Select Sector SPDR (XLK).

Sources:

• SLB, Baker Hughes Are Beating Big Tech By 30% In 2026: Here’s Why - Benzinga
• One of These Oil Services Stocks Is Pulling Away From the Pack - 24/7 Wall St.

SLB - Q1 2026 Preview

• Q1 2026 earnings release: April 24, 2026 (before market open).
• Analyst consensus: adjusted EPS of $0.60, down 16.7% from year-ago $0.72.
• Despite EPS headwinds, stock performance suggests market sees Hormuz-driven upside ahead.
• Delfi platform serves 85 of top 100 global oil producers (from CERAWeek data).

Sources:

• SLB’s Q1 2026 Earnings: What to Expect - Yahoo Finance

Baker Hughes - 2025 Full Year

• Full-year 2025 revenue: $27.73 billion.
• Q4 adjusted net income surged 11.24% year-over-year.
• Q1 2025 revenue: $6.43 billion (13% drop from prior quarter, slight YoY increase).
• Q1 2026 results not yet reported as of April 5.

Sources:

• Baker Hughes 2026 Company Profile - PitchBook
• Baker Hughes Digital Annual Report - Baker Hughes

ESG and Emissions Context

• Oilfield services companies navigating “tightrope” of Q1 profits, emissions, and net zero commitments.
• Race to net zero continues alongside strong financial performance.

Sources:

• Oilfield Giants Walk a Tightrope: Q1 Profits, Emissions & the Race to Net Zero - Carbon Credits

Our Thinking (2026-04-05)

The 30% outperformance versus Big Tech is a striking signal. The market is pricing in a structural demand increase for energy services driven by:

1. Exploration renaissance: Oil companies returning to exploration after years of underinvestment, needing services for new campaigns.
2. Hormuz urgency: $126/barrel oil justifies aggressive spending on production and drilling.
3. AI transformation: SLB’s Delfi platform and Baker Hughes digital tools becoming revenue drivers, not just cost centers.
4. Power infrastructure: Services companies positioned for the gas turbine buildout and pipeline expansion.

The SLB Q1 earnings on April 24 are the next major data point. Analyst EPS estimates are conservative ($0.60 vs $0.72 prior year), suggesting potential for an upside surprise if Hormuz-driven activity is already flowing through.

The working case for 20%+ revenue growth by 2027 feels conservative given the tailwinds. But capital discipline culture in the industry could moderate the pace.

Watch: SLB Q1 earnings (April 24), Baker Hughes Q1 earnings, rig count trends, upstream CapEx guidance updates post-Hormuz.