Baker Hughes Orders Jump 31% to $10.764 Billion on Data Center Demand
Key Facts
Baker Hughes said orders totaled $10.764 billion in the third quarter of 2026, up 31% from the same period a year earlier and 2% from the second quarter, driven by its Industrial & Energy Technology segment. The company’s book-to-bill ratio was 1.3, compared with 1.7 in the segment, reflecting orders exceeding billings during the quarter. The segment recorded orders of $5.886 billion, up 42% year over year, which the company described as the second-highest quarterly order value in the segment’s history. Baker Hughes said the $1.747 billion increase from a year earlier came from continued strength in climate technology solutions, gas technology equipment and gas technology services. The company released its results on October 27, after scheduling a call to discuss them for the following day.
The company reported revenue of $8.025 billion, up 14% year over year and 19% from the previous quarter, attributing annual revenue growth primarily to the contribution from its acquisition of Chart. It said the quarter’s results include Chart’s operations from the acquisition’s close on July 16 through the end of the quarter on September 30. During the quarter, Chart recorded orders of $831 million, including $587 million in original equipment and $244 million in aftermarket services, and revenue of $888 million. These figures detail the acquired company’s contribution to the period’s results, while the group’s $10.764 billion in orders includes the other Baker Hughes segments. The company framed revenue growth in the context of including Chart’s operations after the acquisition, alongside order growth in Industrial & Energy Technology.
Demand for electricity to power data centers and artificial intelligence featured in an integrated contract Baker Hughes announced to provide 1.1 gigawatts of capacity to a U.S. technology company. The contract includes 43 gas turbine packages from the NovaLT and Frame 5 models, along with gearboxes and BRUSH generators. The company said the equipment will power advanced computing infrastructure and applications for training and running inference on AI models. It also announced an equipment order to generate about 500 megawatts for AI infrastructure projects and data centers operated by a U.S. energy company. The second order includes 18 Frame 5 turbine generator packages, adding specific examples of generation contracts to the demand supporting the segment’s activity.
The CEO said broad demand from data centers, aerospace, LNG and gas infrastructure, together with capacity expansions, supported raising the full-year segment orders outlook. The company also raised its orders outlook for the segment in the “Horizon 2” period to more than $50 billion. At quarter-end, remaining performance obligations totaled $46.4 billion, up $6.4 billion from the second quarter. Industrial & Energy Technology obligations were $39.4 billion, a record for the segment. The balance includes $16.5 billion for gas technology equipment and $16.8 billion for gas technology services, as well as $3.6 billion in remaining Chart obligations. The obligations balance provides a view of contracted work not yet completed, while the company linked strong demand to its higher segment outlook.
On earnings, net income attributable to Baker Hughes fell to $411 million, down 33% year over year and 40% from the previous quarter. Adjusted net income, by contrast, was $695 million, up 2% year over year and 8% quarter over quarter. Adjusted earnings before interest, taxes, depreciation and amortization were $1.415 billion, up 14% year over year and 15% from the second quarter. The company attributed the annual increases in adjusted net income and adjusted EBITDA primarily to the Chart acquisition, pricing, higher volumes and cost-saving initiatives. It said these factors were partly offset by lower productivity gains, changes in business mix and inflation. Cash flow from operating activities was $1.005 billion, while free cash flow reached $769 million, up 10% year over year but down 31% quarter over quarter.
In its Oilfield Services & Equipment segment, Baker Hughes said improved international activity was led by a notable increase in the Middle East. But segment revenue in the Middle East and Asia fell 13% year over year. The company attributed the decline partly to the divestiture of its surface pressure control business, while increased activity in Europe, the Commonwealth of Independent States, sub-Saharan Africa and Latin America drove revenue growth in other regions. The company’s shares, listed under the ticker BKR, closed at $59 on October 27. Baker Hughes scheduled its earnings webcast for October 28, 2026, at 9:30 a.m. Eastern Time, with a recording to remain available for one month after the call.