10-Q · April 24, 2026
Baker Hughes reported Q1 2026 revenue of $6,587 million, up $200 million or 2% year-over-year, driven by a 14% increase in Industrial & Energy Technology (IET) that offset a 7% decline in Oilfield Services & Equipment…
Earnings analysis · 10-Q
BKR earnings analysis
Filed July 27, 2026 · Our reading of the company's report
The latest report
Baker Hughes delivered a $0.64 EPS result above the $0.48 consensus estimate and sequential revenue improvement to $6.742 billion, but revenue remained 2% below the prior-year quarter as OFSE declined 5%. IET earnings…
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Baker Hughes delivered a $0.64 EPS result above the $0.48 consensus estimate and sequential revenue improvement to $6.742 billion, but revenue remained 2% below the prior-year quarter as OFSE declined 5%. IET earnings momentum, a $10.501 billion order intake and $40.1 billion RPO support the medium-term growth case, while Middle East disruption and the post-quarter Chart acquisition increase execution and balance-sheet considerations. The filing does not provide numeric revenue or EPS guidance; management maintains a constructive LNG and gas-infrastructure outlook but flags geopolitical and oil-price uncertainty.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.64
- Gross margin
- 23.5%
What stood out
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Revenue recovered sequentially and EPS beat
Q2 revenue was $6.742 billion, up $152 million from $6.590 billion in Q1 2026, though down $168 million from $6.910 billion in Q2 2025. Diluted EPS of $0.64 exceeded the $0.48 consensus estimate by 33.3%.
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Gross margin improved sequentially
Implied gross margin was 23.5%, calculated from $6.742 billion of revenue and $5.160 billion of segment cost of goods and services. This improved from 22.8% in Q1 2026, while remaining slightly below the 23.6% implied in Q2 2025; consolidated operating margin was not separately disclosed in the supplied filing text.
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IET EBITDA expanded 16%
IET revenue held essentially flat at $3.291 billion, but segment EBITDA increased $93 million, or 16%, to $678 million. Management attributed the improvement to price, productivity, cost-out actions and FX, partly offset by volume and inflation.
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IET orders and backlog accelerated
Total orders rose to $10.501 billion from $7.032 billion, led by Gas Technology Equipment orders of $4.913 billion versus $781 million. IET remaining performance obligations reached $37.1 billion of total RPO of $40.1 billion.
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Cash conversion strengthened
Six-month operating cash flow increased $626 million to $1.845 billion, while net working-capital cash generation rose to $350 million from $98 million. Capital expenditures were $636 million, equal to about 4.8% of $13.329 billion of first-half revenue.
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Liquidity increased ahead of Chart closing
Cash and equivalents were $15.7 billion at June 30 versus $3.7 billion at December 31, 2025, following $9.5 billion of note offerings in March. The company paid $456 million of dividends in the first half while making no share repurchases.
What to watch
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Middle East disruption weighs on OFSE
OFSE revenue fell $166 million, or 5%, to $3.451 billion and segment EBITDA fell $72 million, or 11%, to $605 million. Management cited the Surface Pressure Control disposition and Middle East disruptions; international OFSE revenue declined $171 million, or 6%, to $2.518 billion.
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Geopolitical volatility clouds demand
Management expects upstream spending in the Middle East to decline during 2026 and warns that Strait of Hormuz constraints could affect customer spending, project timing and supply-chain visibility. Brent averaged $102.63 per barrel in Q2 2026, versus $68.07 in Q2 2025, underscoring the volatile backdrop.
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Chart transaction raises funding burden
Debt securities outstanding had $15.7 billion of aggregate principal at June 30, with maturities from 2026 to 2056. The company subsequently completed the approximately $13.6 billion Chart acquisition on July 16, funded partly with March note issuance, other borrowings and cash.
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No formal risk-factor update disclosed
Item 1A states that the company remains subject to the risk factors in its 2025 Annual Report; the filing does not identify a newly added or revised risk factor. Inventory increased during the first half even as net working-capital cash generation was $350 million.
Management's outlook
The 10-Q provides no consolidated revenue or EPS range. Management expects improved global upstream spending through the rest of 2026 absent further oil-price downside, sustained LNG and gas-infrastructure strength, and 2026 capex of up to 5% of annual revenue; it anticipates $0.9 billion to $1.0 billion of 2026 income-tax payments.
Earlier filings 4
10-Q · October 24, 2025
Baker Hughes reported Q3 revenue of $7,010 million, up $102 million versus the prior-year quarter (Q3 2024: $6,908 million), with gross margin roughly stable at ~24.3% and operating margin about 13.5%. Diluted EPS was…
10-K · February 4, 2025
Baker Hughes positions itself as a diversified energy-technology company pursuing a three‑pillar strategy: transform the core, drive profitable growth, and deliver new‑energy solutions. The 2024 Form 10‑K highlights…
10-Q · October 23, 2024
Baker Hughes reported Q3 revenue of $6,908 million, up $267 million (+4.0%) versus Q3 2023 ($6,641 million). Gross margin expanded to ~22.3% and operating margin to ~13.5%, driven by higher operating income of $930…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.