Key Takeaways
- SLB (SLB) significantly surpassed Q4 2025 earnings expectations, reporting adjusted EPS of $0.78 on revenue of $9.75 billion, both exceeding analyst estimates.
- First Citizens BancShares (FCNCA) reported a strong Q4 adjusted EPS of $51.27, well above estimates, despite missing some other financial targets like total deposits and CET1 ratio.
- The French government successfully navigated two no-confidence votes and forced through the expenditure part of its 2026 budget, contributing to a tightening of the French yield spread versus German Bunds to its lowest since June 2024.
Energy services giant SLB (SLB) announced robust fourth-quarter 2025 results, with both adjusted earnings per share and revenue exceeding market expectations. The company posted adjusted EPS of $0.78, outperforming the estimated $0.74, and recorded revenue of $9.75 billion, surpassing the $9.55 billion consensus. Adjusted EBITDA for the quarter also came in strong at $2.33 billion, above the estimated $2.31 billion, while capital expenditure was lower than anticipated at $516 million against an estimate of $576.3 million. The well construction segment contributed significantly, with revenue reaching $2.95 billion, slightly above the $2.94 billion estimate.
Meanwhile, First Citizens BancShares (FCNCA) delivered a mixed but largely positive fourth-quarter performance. The bank reported a substantial beat on adjusted EPS at $51.27, significantly higher than the $44.00 estimate. Total loans and leases for Q4 stood at $147.93 billion, exceeding the estimated $145.77 billion, and net interest income was $1.72 billion, slightly above the $1.71 billion estimate. However, the bank's CET1 ratio was 11.2%, falling short of the 11.6% estimate, and total deposits were $161.58 billion, below the $164.3 billion estimate. Looking ahead, First Citizens projects 2026 net interest income between $6.5 billion and $6.9 billion, with 1Q total loans and leases expected to range from $153 billion to $157 billion.
In European markets, the French government has demonstrated political resilience, successfully surviving two no-confidence votes concerning its fiscal plans for the 2026 budget. This outcome allows the government to move closer to adopting its budget. Prime Minister Lecornu utilized constitutional powers to force the expenditure portion of the 2026 budget through the lower house without a vote, highlighting the government's determination. These developments have had a positive impact on French bond markets, as the French yield spread versus German Bunds tightened by 4 basis points to 58.7 basis points, marking its lowest level since June 2024. This tightening spread suggests increased investor confidence in French fiscal stability following the budget's progression.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.