Is Schlumberger Limited’s (SLB) Long-Term Outlook Intact?

Artisan Partners, an investment management company, released its “Artisan Value Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets faced significant volatility in the second quarter, fueled by the announcement and subsequent pause of the “Liberation Day” tariffs. Against this backdrop, the fund’s Investor Class ARTLX, Advisor Class APDLX, and Institutional Class APHLX returned 5.99%, 5.96%, and 5.96%, respectively, in the second quarter compared to a 3.79% return for the Russell 1000® Value Index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2025.

In its second-quarter 2025 investor letter, Artisan Value Fund highlighted stocks such as Schlumberger Limited (NYSE:SLB). Headquartered in Houston, Texas, Schlumberger Limited (NYSE:SLB) is a leading provider of technology solutions for the energy industry. The one-month return of Schlumberger Limited (NYSE:SLB) was -5.33%, and its shares lost 24.39% of their value over the last 52 weeks. On August 20, 2025, Schlumberger Limited (NYSE:SLB) stock closed at $33.36 per share, with a market capitalization of $49.762 billion.

Artisan Value Fund stated the following regarding Schlumberger Limited (NYSE:SLB) in its second quarter 2025 investor letter:

“Our energy holdings Schlumberger Limited (NYSE:SLB) and Diamondback Energy were key detractors. Unlike most equity sectors that recovered a significant proportion of their early-April declines after reciprocal tariffs were paused, the rebound among energy stocks was muted. The sector has been held back by falling oil prices as concerns about the impact of tariffs and general macro uncertainty on oil demand drove the price of WTI crude oil below $60 in May, its lowest level in four years. Oil prices have generally been trending down since 2022. While we understand the short-term concerns weighing on the sector, our interest remains on the long-term economics and valuations of our individual portfolio companies. Schlumberger, the world’s largest oilfield services company, has a history of successfully navigating market volatility and delivering on its free cash flow and profit margin growth objectives from a combination of activity growth and pricing gains. As Schlumberger’s shares have been out of favor for the better part of the past two years, the stock now sells cheaply at just 12X trailing one year earnings compared to its five-year average of 22X.”

Schlumberger (SLB) Dives 10.69% as Earnings Disappoint

An aerial view of a well site, depicting the scale of oil and gas operations.

Schlumberger Limited (NYSE:SLB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held Schlumberger Limited (NYSE:SLB) at the end of the first quarter, which was 80 in the previous quarter. While we acknowledge the risk and potential of Schlumberger Limited (NYSE:SLB) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Schlumberger Limited (NYSE:SLB) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Schlumberger Limited (NYSE:SLB) and shared the list of best American energy stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.