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Baker Hughes Company
(NASDAQ:BKR)
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Rating:71Outperform
Price Target:
$61.00
â–¼(-1.61% Downside)
Action:Upgraded
Date:09/09/26
BKR scores positively on earnings momentum and outlook (record IET orders/backlog, margin expansion, and constructive guidance) and has supportive technical trend signals (price above key moving averages with healthy momentum). The score is held back by financial-statement risks—especially the very weak TTM revenue growth reading and higher leverage—and by a valuation that is reasonable but not clearly cheap (P/E ~20 and ~1.44% yield).
Positive Factors
IET order visibility
Record IET bookings and a $37.1 billion RPO provide substantial multi-year revenue visibility. This backlog supports capacity planning, improves confidence in future equipment and service demand, and strengthens Baker Hughes’ position across LNG, power and industrial infrastructure markets.
Negative Factors
Higher leverage
The sharp increase in debt relative to equity reduces financial flexibility and raises sensitivity to downturns in cyclical energy markets. Although management plans to deleverage, elevated leverage can constrain capital allocation and increase the importance of sustained cash generation after the acquisition.
Read all positive and negative factors
Positive Factors
Negative Factors
IET order visibility
Record IET bookings and a $37.1 billion RPO provide substantial multi-year revenue visibility. This backlog supports capacity planning, improves confidence in future equipment and service demand, and strengthens Baker Hughes’ position across LNG, power and industrial infrastructure markets.
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.
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The Fly
The FlyBaker Hughes Company (BKR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$55.24B
Dividend Yield1.64%
Average Volume (3M)7.46M
Price to Earnings (P/E)17.8
Beta (1Y)0.83
Revenue Growth0.42%
EPS Growth1.75%
CountryUS
Employees54,000
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)3.14
Shares Outstanding992,674,100
10 Day Avg. Volume5,426,201
30 Day Avg. Volume7,459,182
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 Cap0.99
Enterprise Value/Revenue1.97
Enterprise Value/Gross Profit8.37
Enterprise Value/Ebitda10.77
Forecast
1Y Price Target
$73.27Price Target Upside18.17% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
EPS Forecast (FY)2.7
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:Jul 26, 2026
(Q2-2026)
| Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
Overall the call was positive: Baker Hughes delivered strong operational and commercial results with record IET orders, margin expansion, robust free cash flow, and a successful strategic acquisition (Chart) with identifiable synergies. These positives outweigh the regional and supply-chain headwinds tied to the Middle East conflict, some near-term margin pressure from inflation/logistics, and the delayed revenue conversion for certain large IET orders.Positive Updates
Record IET Orders and Backlog Expansion
IET orders doubled year-over-year to a record $7.1 billion (100% YoY), driving total company bookings of $10.5 billion for the quarter. Book-to-bill for IET was 2.2x and RPO rose 19% year-over-year to an all-time high of $37.1 billion, providing strong multi-year revenue visibility.
Negative Updates
Middle East Conflict and Regional Disruptions
Ongoing conflict in the Middle East created headwinds: management assumes IET faces a 1%–2% revenue headwind related to regional disruptions. OFSE activity in the Middle East remains volatile; OFSE product revenue outperformed but services softened, and regional disruptions increased logistics complexity.
Read all updates
Q2-2026 Updates
Positive
Negative
Record IET Orders and Backlog Expansion
IET orders doubled year-over-year to a record $7.1 billion (100% YoY), driving total company bookings of $10.5 billion for the quarter. Book-to-bill for IET was 2.2x and RPO rose 19% year-over-year to an all-time high of $37.1 billion, providing strong multi-year revenue visibility.
Read all positive updates
Company Guidance
Baker Hughes guided Q3 company revenue of $6.87 billion and adjusted EBITDA of $1.205 billion, with IET revenue of about $3.32 billion and IET EBITDA ~$660 million and OFSE revenue of $3.55 billion with OFSE EBITDA ~$625 million; for full‑year 2026 the company now expects revenue of $27.35 billion and adjusted EBITDA of $4.85 billion, maintains full‑year IET revenue midpoint of $13.5 billion while modestly raising IET EBITDA midpoint to $2.725 billion, expects OFSE full‑year revenue of $13.85 billion and EBITDA of $2.425 billion, and raised full‑year IET orders guidance to $17.5–$19.5 billion; guidance assumes Middle East activity broadly unchanged (with a 1–2% IET revenue headwind), logistics/supply‑chain costs in line with recent levels, the Waygate divestiture closing at year‑end, and a commitment to deleverage back to ~1.0–1.5x net debt/EBITDA within 24 months while realizing $325 million of annualized Chart cost synergies by year 3 ($95M Y1, $230M Y2).Baker Hughes Company Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 27.73B | 27.73B | 27.83B | 25.51B | 21.16B | 20.50B |
| Gross Profit | 6.54B | 6.54B | 6.48B | 5.90B | 4.96B | 4.54B |
| EBITDA | 5.08B | 4.29B | 4.60B | 3.96B | 1.33B | 1.83B |
| Net Income | 3.10B | 2.59B | 2.98B | 1.94B | -601.00M | -219.00M |
Balance Sheet | ||||||
| Total Assets | 52.62B | 40.88B | 38.36B | 36.95B | 34.18B | 35.35B |
| Cash, Cash Equivalents and Short-Term Investments | 17.06B | 4.96B | 3.36B | 2.65B | 2.49B | 3.85B |
| Total Debt | 16.25B | 7.14B | 6.02B | 6.02B | 6.66B | 6.73B |
| Total Liabilities | 32.54B | 21.87B | 21.31B | 21.43B | 19.66B | 18.56B |
| Stockholders Equity | 19.91B | 18.83B | 16.89B | 15.37B | 14.39B | 14.83B |
Cash Flow | ||||||
| Free Cash Flow | 3.13B | 2.54B | 2.05B | 1.84B | 1.12B | 1.83B |
| Operating Cash Flow | 4.44B | 3.81B | 3.33B | 3.06B | 1.89B | 2.37B |
| Investing Cash Flow | -574.00M | -2.04B | -1.02B | -817.00M | -1.56B | -463.00M |
| Financing Cash Flow | 8.75B | -1.48B | -1.53B | -2.03B | -1.59B | -2.14B |
Baker Hughes Company Technical Analysis
Negative
62.00
Price Trends
59.33
Negative
59.26
Negative
59.75
Negative
Market Momentum
-0.87
Negative
45.14
Neutral
61.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKR, the sentiment is Negative. The current price of 62 is above the 20-day moving average (MA) of 56.16, above the 50-day MA of 59.33, and above the 200-day MA of 59.75, indicating a bearish trend. The MACD of -0.87 indicates Negative momentum. The RSI at 45.14 is Neutral, neither overbought nor oversold. The STOCH value of 61.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $27.45B | 23.89 | 35.29% | 0.29% | 8.77% | 35.66% | |
71 Outperform | $55.24B | 17.83 | 16.25% | 1.64% | 0.42% | 1.75% | |
70 Outperform | $74.18B | 24.57 | 11.84% | 2.29% | 2.34% | -29.38% | |
69 Neutral | $5.77B | 15.18 | 22.39% | 1.26% | -5.65% | 0.77% | |
67 Neutral | $27.98B | 14.22 | 18.44% | 2.00% | 1.53% | 58.46% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
58 Neutral | $6.76B | 74.12 | 1.53% | 2.26% | -1.63% | -78.44% |
* Energy Sector Average
BKR
Baker Hughes Company
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7.86
16.33%
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Baker Hughes Company Corporate Events
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...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Baker Hughes posts strong Q2 results and outlook
Positive
Jul 27, 2026
On July 26, 2026, Baker Hughes reported robust second-quarter 2026 results, with orders rising to $10.5 billion, revenue at $6.7 billion, net income of $681 million and adjusted EBITDA of $1.23 billion, supported by strong data center, gas infrast...
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.