Baker Hughes Profit Falls to $411 Million in Third Quarter Amid Middle East Pressure
Key Facts
Baker Hughes reported a profit of $411 million, or 41 cents per share, in the third quarter of 2026, compared with $609 million, or 61 cents per share, in the same period last year, according to The Wall Street Journal. The decline came as the prolonged conflict in the Middle East hurt demand for the company’s services and equipment in the oil-producing region, Reuters reported. Pre-release estimates had projected earnings of 60 cents per share and revenue of $7.69 billion. Those estimates also pointed to a 9.7% annual increase in revenue, against an 11.6% decline in profitability. The result highlights a divergence between expected sales growth and pressure on profitability.
Prior estimates reflected differing readings of the quarter: analysts cited by Investing.com expected revenue of $7.69 billion, while estimates reported by MarketBeat put revenue at $7.75 billion and earnings per share at $0.605. In the third quarter of 2025, revenue was $7.01 billion and earnings per share were $0.68, according to MarketBeat estimates. Investing.com’s estimate put annual revenue growth at 9.7% and the decline in profitability at 11.6%. The actual profit result was 41 cents per share, below the 60-cent estimate cited by Investing.com. In the second quarter, the company reported revenue of $6.742 billion, down 2% year over year, and net income attributable to the company of $681 million, down 3%.
Results from the oilfield services and equipment segment provide context for one source of pressure on the company’s business. The segment generated revenue of $3.451 billion in the second quarter of 2026, up 7% from the prior quarter but down 5% year over year. Baker Hughes attributed the annual decline primarily to the effect of the SPC divestiture and disruptions in the Middle East, partly offset by foreign-exchange effects in Latin America. In its third-quarter report, Reuters linked the prolonged conflict to weaker demand for services and equipment in the oil-producing region. In an earlier disclosure, the CEO said disciplined execution and the ability to navigate Middle East challenges helped adjusted EBITDA exceed the top end of the guidance range.
By contrast, the Industrial & Energy Technology segment recorded orders of $7.088 billion in the second quarter, up 101% year over year. The company said the increase was underpinned by continued strong demand for gas technology equipment and services. Total company orders in the same quarter rose 49% to $10.501 billion, while adjusted EBITDA was $1.231 billion, up 2% year over year. Remaining performance obligations stood at $40.1 billion at the end of the second quarter, including $37.1 billion for the Industrial & Energy Technology segment. These indicators put the segment’s momentum alongside weaker oilfield services revenue, while its effect on overall third-quarter results remains tied to the detailed figures the company discusses.
In its second-quarter disclosure, the CEO described the Middle East conflict as posing short-term challenges, adding that it “reinforces the priority of energy security.” In that disclosure, the company said business fundamentals remained supportive and linked the priority of energy security to potential support for structural spending on exploration and energy infrastructure. As for third-quarter demand, Reuters attributed the conflict’s impact to Baker Hughes services and equipment in the oil-producing region. The company’s shares, listed under the ticker BKR, closed at $56.01 on October 26, 2026. That close came before the results announcement the following day, and the available information does not include the share-price movement after the release.
The company had set October 27 as the date to report results for the quarter ended September 30, 2026, and announced a webcast to discuss them on October 28 at 9:30 a.m. Eastern time. The conference is the next opportunity for investors to follow segment performance after the annual decline in profit. The results presentation is expected to allow discussion of oilfield services and equipment performance amid Middle East disruptions, alongside order momentum in industrial technology and energy. The conference also follows earlier estimates that projected revenue growth despite an expected decline in profitability. The company set the webcast time in its announcement of the results schedule.