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what it is
Baker Hughes sells tools, equipment, and services that help energy companies drill, move gas, and run power systems.
how it gets paid
Last year Baker Hughes made $27.7B in revenue. Drilling services was the main engine at $8.9B, or 32% of sales.
why growth slowed
Revenue fell 0.3% last year. Oil market supply/demand stressors on demand for oilfield solutions might remain in place until the second half of this year.
what just happened
BKR posted $0.78 EPS versus $0.64 expected.
At a glance
A balance sheet — strong enough to weather a downturn
10/100 earnings predictability — expect surprises
19.2x trailing p/e — priced about right
2.1% dividend yield — cash in your pocket every quarter
16.0% return on capital — nothing to write home about
xvary composite: 64/100 — average
What they do
Baker Hughes sells tools, equipment, and services that help energy companies drill, move gas, and run power systems.
Baker Hughes works in 120 countries and gets 74% of revenue outside the U.S. That is a hard footprint to copy. If your rigs, compressors, and service crews already know the vendor, leaving is painful. The company also has 57,000 employees, which is a lot of people to send when the customer needs help now.
How they make money
$27.7B
annual revenue · their business grew -0.3% last year
Drilling services
$8.9B
4.0%
Production equipment
$6.6B
1.0%
LNG turbomachinery
$5.8B
+3.0%
Energy equipment
$4.5B
+2.0%
Aftermarket services
$1.9B
flat
The products that matter
drilling equipment and field services
Oilfield Services & Equipment
inside a $27.7B company
this is still the center of gravity. the overall business generated $27.7B in revenue last year, and the pressure points in the latest update were mostly tied to oilfield demand.
cyclical core
industrial and energy technology
Industrial & Energy Technology
the stability bet
management is leaning on this business to smooth out the cycle. the page says it is producing more reliable revenue and earnings growth, but this snapshot does not provide a separate revenue number.
mix shift
transformational acquisition
Chart Industries deal
$13.6B pending
this is the biggest strategic swing on the page. if the deal closes by mid-2026 and integrates well, Baker Hughes looks less like a pure oilfield stock.
thesis lever
Key numbers
$27.7B
annual revenue
This is the size of the machine. You are buying a company that pulled in almost $28B last year.
11.1%
operating margin
For every $100 of sales, Baker Hughes kept $11.10 after operating costs. That is decent for heavy industrial work.
16.0%
return on capital
The company earns $16 for every $100 it puts into the business. That is the kind of spread that keeps capital from looking stupid.
2.1%
dividend yield
You get paid while you wait. The yield is modest, but it beats zero and fits a business that still throws off cash.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 3 — safer than 50% of stocks
- price stability 45 / 100
- long-term debt $6.0B (11% of capital)
- net profit margin 12.9% — keeps 13 cents of every dollar in revenue
- return on equity 20% — $0.20 profit for every $1 investors have put in
A — among the top-rated companies for balance sheet quality.
Total return vs. market
You invested $10,000 in BKR 3 years ago → it's now worth $16,340.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
BKR posted $0.78 EPS versus $0.64 expected.
Revenue came in at $7.39B in the quarter. The beat mattered because the company still has to work through oil-price pressure and tariff noise.
$7.39B
revenue
$0.78
eps
11.1%
gross margin
the number that mattered
The $0.14 EPS beat mattered most because it showed the business can still out-earn expectations in a sloppy market.
-
baker hughes’ oilfield services & equipment segment is dealing with short-term stressors.
-
elevated supply in the global market has pressured oil prices.political turmoil in the middle east, eastern europe, and the caribbean has increased oil price volatility.
-
too, u.s. import duties have disrupted supply chains, especially for raw materials.energy exploration & production companies in north america have pulled back on oil-rig activity to protect their margins. baker has fared better than most of its peers in the surface sector, thanks to a wide array of advanced, integrated wellsite products and services.
-
in other areas, the company has benefited from expanding natural gas and offshore oil development.oil market supply/demand stressors on demand for oilfield solutions might remain in place until the second half of this year.
-
we expect a better situation in the back half, assuming the world economy strengthens.the industrial & energy technology (iet) business is producing reliable revenue and earnings growth.
source: company earnings report, 2026
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What could go wrong
the top risk is the Chart Industries deal failing to deliver the diversification investors are paying for.
med
chart industries close and integration
the $13.6B acquisition is the biggest strategic move on the page, with a target close by mid-2026. If it slips, gets blocked, or integrates poorly, the whole "less cyclical" story gets delayed.
Impact: you are back to judging a $27.7B revenue company mostly on its oilfield cycle, not on a transformed mix.
med
oil price and rig activity volatility
elevated global supply has pressured oil prices, and North American producers have already pulled back on rig activity to protect margins. That hits demand for Baker Hughes equipment and services.
Impact: revenue was already down 0.3% last year. Another soft patch lands directly on the existing $27.7B base.
med
industrial and energy technology execution
the steadier part of the story needs to keep growing. If the industrial and energy technology business stops being the reliable counterweight management is promising, investors are left with a cleaner slide deck than business mix.
Impact: a 19.2x earnings multiple gets harder to defend if EPS stalls near the recent $2.50 level without a more stable mix.
med
tariffs and supply-chain friction
the current page explicitly calls out U.S. import duties and raw-material disruption. This is not the headline risk, but it is the kind of operational drag that can quietly chip away at margins.
Impact: with quarterly margin at 9.3%, there is less cushion than the A balance sheet might suggest.
Between flat $27.7B revenue, a pending $13.6B merger, and a core business still tied to customer spending on energy projects, this is a stock where execution matters more than the balance sheet headline suggests.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
mid-2026 Chart deal timing
the closing timeline matters because the stock is already being framed around what the acquisition could change.
metric
whether revenue finally moves above flat
$27.7B last year and a $28B estimate for fy2026 tell you the core issue: the market wants evidence of real top-line momentum.
trend
natural gas and offshore strength
those are the better parts of the operating backdrop right now, and they need to keep offsetting softer oilfield demand.
risk
oilfield demand versus margin pressure
if drilling activity stays soft while duties and material costs remain messy, the 9.3% quarterly margin can come under pressure fast.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts see a normal setup rather than a near-term breakout.
risk profile
average
stability score 3 — this is not unusually defensive, but it is not a balance-sheet accident waiting to happen either.
chart momentum
top 20%
technical score 2 — the stock's recent price action has been better than most, even if the underlying business still has work to do.
earnings predictability
10 / 100
earnings predictability is low. You should expect more noise here than in a steady compounder.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 477 buyers vs. 381 sellers in 3q2025. total institutional holdings: 0.9B shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$35
$76
$48
current price
$56
target midpoint · +17% from current · 3-5yr high: $85 (+75% · 17% ann'l return)
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