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Baker Hughes Company
(NASDAQ:BKR)
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Rating:69Neutral
Price Target:
$65.00
â–²(4.84% Upside)
Action:Reiterated
Date:10/28/26
The score is driven primarily by solid underlying profitability and improving free cash flow, supported by a strongly positive earnings call with robust order/backlog momentum and constructive forward guidance. Offsetting these strengths are the recent step-up in leverage and mixed technical signals (negative MACD and a mostly range-bound price versus key moving averages), with valuation and dividend yield providing only moderate support.
Positive Factors
Backlog visibility
Record IET remaining performance obligations and a book-to-bill ratio well above one provide substantial revenue visibility beyond the current quarter. This backlog supports planning, utilization and recurring service opportunities, while confirming durable demand across LNG, gas infrastructure, power and industrial applications.
Negative Factors
Higher leverage
The Chart acquisition materially increased leverage, reducing financial flexibility and raising interest expense while debt remains elevated relative to operating cash flow. Management plans to deleverage, but until that occurs, balance-sheet demands may constrain capital allocation and make the company more exposed to execution or demand setbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog visibility
Record IET remaining performance obligations and a book-to-bill ratio well above one provide substantial revenue visibility beyond the current quarter. This backlog supports planning, utilization and recurring service opportunities, while confirming durable demand across LNG, gas infrastructure, power and industrial applications.
Read all positive factors
Baker Hughes Company Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas are driving growth and which may need strategic adjustments.
Analyzes revenue from different business segments, highlighting which areas are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyBaker Hughes Company (BKR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$58.57B
Dividend Yield1.56%
Average Volume (3M)7.07M
Price to Earnings (P/E)18.0
Beta (1Y)0.82
Revenue Growth0.42%
EPS Growth1.75%
CountryUS
Employees54,000
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)2.93
Shares Outstanding992,674,100
10 Day Avg. Volume6,332,961
30 Day Avg. Volume7,073,310
Financial Highlights & Ratios
PEG Ratio-1.37
Price to Book (P/B)2.39
Price to Sales (P/S)1.62
P/FCF Ratio17.73
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue2.40
Enterprise Value/Gross Profit10.20
Enterprise Value/Ebitda13.47
Forecast
1Y Price Target
$73.21Price Target Upside18.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)2.73
Revenue Forecast (FY)$29.51B
Baker Hughes Company Business Overview & Revenue Model
Company Description
Baker Hughes Co. is a holding company, which engages in the provision of oilfield products, services, and digital solutions. It operates through the Oilfield Services and Equipment (OFSE) and industrial and Energy Technology (IET) segments. The OF...
How the Company Makes Money
Baker Hughes primarily makes money by selling equipment and providing services tied to energy production and energy/industrial infrastructure, with revenue generated through two main segments. (1) Oilfield Services & Equipment (OFSE): This segment...
Baker Hughes Company Earnings Call Summary
Earnings Call Date:Oct 27, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 27, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall. Highlights significantly outweighed the lowlights, with record IET RPO, broad-based order momentum, a raised IET order outlook, strong cash generation, progress integrating Chart, and constructive 2027 expectations. Management also acknowledged higher leverage, interest expense, Middle East disruptions, logistics and supply chain challenges, seasonal declines, and a longer backlog conversion profile.Positive Updates
Strong Quarterly Financial Performance
Third-quarter revenue was approximately $8 billion, up 14% year over year. Adjusted EBITDA increased 14% year over year to $1.42 billion, with a 17.6% margin broadly in line with the prior year. Adjusted diluted EPS was $0.70, up 2% year over year.
Negative Updates
Higher Interest Expense
Higher interest expense partially offset strong operational performance and contributed to adjusted diluted EPS increasing only 2% year over year.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Quarterly Financial Performance
Third-quarter revenue was approximately $8 billion, up 14% year over year. Adjusted EBITDA increased 14% year over year to $1.42 billion, with a 17.6% margin broadly in line with the prior year. Adjusted diluted EPS was $0.70, up 2% year over year.
Read all positive updates
Company Guidance
Fourth quarter guidance is company revenue of $8.25 billion and adjusted EBITDA of $1.46 billion, including IET revenue of $3.55 billion and EBITDA of $715 million, OFSE revenue of $3.6 billion and EBITDA of $640 million, and Chart revenue of approximately $1.1 billion and EBITDA of approximately $195 million; full-year adjusted EBITDA midpoint is $5.265 billion, free cash flow conversion is expected at 45 to 50%, and IET orders are expected at $21.5 billion to $23.5 billion, implying a book to bill of above 1.6x. For 2027, company book to bill is expected to remain above 1x, with revenue growth and EBITDA margin expansion; IET organic revenue growth is expected in the low to mid single digit range, GTS growth is expected to normalize to mid single digit growth, and Chart revenue is expected to grow at a low to mid single digit rate, with book to bill above 1x. Baker Hughes expects Chase EBITDA margins to reach 22% to 23% by the second half of 2028, is targeting a high single digit CAGR in MAS-related revenue achieving at least $3 billion by 2030, expects net leverage of less than 1.5x by the second half of 2028, and expects IET orders to exceed $50 billion over Horizon 2.Baker Hughes Company Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 28.74B | 27.73B | 27.83B | 25.51B | 21.16B | 20.50B |
| Gross Profit | 6.76B | 6.54B | 6.48B | 5.90B | 4.96B | 4.54B |
| EBITDA | 5.12B | 4.29B | 4.60B | 3.96B | 1.33B | 1.83B |
| Net Income | 2.90B | 2.59B | 2.98B | 1.94B | -601.00M | -219.00M |
Balance Sheet | ||||||
| Total Assets | 59.06B | 40.88B | 38.36B | 36.95B | 34.18B | 35.35B |
| Cash, Cash Equivalents and Short-Term Investments | 4.07B | 4.96B | 3.36B | 2.65B | 2.49B | 3.85B |
| Total Debt | 18.26B | 7.14B | 6.02B | 6.02B | 6.66B | 6.73B |
| Total Liabilities | 38.50B | 21.87B | 21.31B | 21.43B | 19.66B | 18.56B |
| Stockholders Equity | 20.56B | 18.83B | 16.89B | 15.37B | 14.39B | 14.83B |
Cash Flow | ||||||
| Free Cash Flow | 3.23B | 2.54B | 2.05B | 1.84B | 1.12B | 1.83B |
| Operating Cash Flow | 4.51B | 3.81B | 3.33B | 3.06B | 1.89B | 2.37B |
| Investing Cash Flow | -13.79B | -2.04B | -1.02B | -817.00M | -1.56B | -463.00M |
| Financing Cash Flow | 10.65B | -1.48B | -1.53B | -2.03B | -1.59B | -2.14B |
Baker Hughes Company Technical Analysis
Positive
62.00
Price Trends
58.68
Positive
58.93
Positive
59.90
Negative
Market Momentum
-0.48
Negative
58.58
Neutral
82.48
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKR, the sentiment is Positive. The current price of 62 is above the 20-day moving average (MA) of 55.97, above the 50-day MA of 58.68, and above the 200-day MA of 59.90, indicating a neutral trend. The MACD of -0.48 indicates Negative momentum. The RSI at 58.58 is Neutral, neither overbought nor oversold. The STOCH value of 82.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BKR.
Baker Hughes Company Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $27.99B | 24.36 | 35.29% | 0.28% | 8.77% | 35.66% | |
72 Outperform | $6.50B | 15.92 | 22.51% | 1.20% | -5.65% | 0.77% | |
69 Neutral | $58.57B | 18.00 | 14.11% | 1.56% | 0.42% | 1.75% | |
69 Neutral | $80.26B | 26.00 | 10.66% | 2.16% | 4.55% | -20.58% | |
67 Neutral | $29.46B | 14.90 | 18.46% | 1.91% | 1.53% | 58.46% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
56 Neutral | $7.33B | 79.04 | 1.53% | 2.12% | -1.63% | -78.44% |
* Energy Sector Average
BKR
Baker Hughes Company
59.00
11.42
24.01%
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Baker Hughes Company Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Baker Hughes Highlights Strong Q3 Momentum and Growth
Positive
Oct 27, 2026
On October 27, 2026, Baker Hughes reported third-quarter 2026 results that underscored strong commercial momentum across its IET, OFSE and newly acquired Chart businesses. The company posted orders of $10.8 billion, revenue of $8.0 billion, adjust...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Baker Hughes Highlights Chart Integration and Long-Term Growth Outlook
Positive
Sep 9, 2026
On September 9, 2026, Baker Hughes Chairman and CEO Lorenzo Simonelli presented at the Barclays 40th Annual Energy-Power Conference in New York, outlining how the company is positioned at the center of converging energy, industrial and infrastruct...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.