| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 55 | 18.8x | 17.8x | Around median | |
Growth | 44 | 0.1% | 7.1% | Around median | |
Quality | 62 | 10.4% | 4.5% | Around median | |
Safety | 74 | 0.2x | 2.6x | Top tier | |
Capital Return | 21 | 1.56% | 2.12% | Bottom tier | |
Momentum | 65 | 40.4% | 2.9% | Around median | |
Sentiment | 47 | 12 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Baker Hughes operates in energy technologies and services across three core markets: upstream activities, energy infrastructure, and industrial markets. The OFSC segment provides well drilling, completion, production, subsea equipment, and digital solutions, while the IET segment sells gas turbines, compression and liquefaction equipment, and power generation systems, then generates subsequent revenue from maintenance, upgrades, and software such as Cordant; following the closing of the Chart Industries acquisition in July 2026, the company will add a third segment with capabilities in thermal management, gas handling, cryogenic storage, and carbon capture.
In Q2 of fiscal 2026, revenue according to EDGAR filings was approximately $6.7 billion, and net income was $681 million. Adjusted earnings before interest, taxes, depreciation, and amortization were $1.23 billion, with a record margin of 18.3%, up 70 basis points year over year, adjusted diluted earnings per share of $0.64, and free cash flow of $1.1 billion.
Q2 fiscal 2026 revenue was split between $3.3 billion for IET and $3.45 billion for OFSC. IET generated earnings before interest, taxes, depreciation, and amortization of $678 million and a margin of 20.6%, up 280 basis points year over year, while OFSC generated approximately $605 million and a margin of 17.5%; accordingly, the company’s margin expansion was driven primarily by IET’s performance despite inflationary and logistics cost pressures on OFSC.
The average analyst price target is $72.27, slightly above the top of the 52-week range of $70.41, while the wide target range extends from $51 to $80 and reflects meaningful differences in estimates of the impact of the order backlog, the Chart acquisition, and Middle East risks. The consensus remains “Buy,” but the low end of the target range is well below the 52-week high, highlighting that realizing Chart savings and converting IET’s $37.1 billion backlog into actual revenue and margins are critical factors in justifying the valuation.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Baker Hughes generated approximately $6.7 billion in revenue and $681 million in net income in Q2 fiscal 2026. The company recorded adjusted earnings before interest, taxes, depreciation, and amortization of $1.23 billion and a record margin of 18.3%. The outperformance came primarily from stronger-than-expected OFSC execution and IET’s 20.6% margin, despite inflation and Middle East disruptions. The company also generated free cash flow of $1.1 billion.
IET recorded orders of $7.1 billion in Q2 fiscal 2026, with a book-to-bill ratio of 2.2 times. This raised remaining performance obligations by 19% to $37.1 billion, while orders over the preceding four months exceeded $20 billion. Orders included $2.6 billion in Power Systems and $1.8 billion in liquefied natural gas equipment. These figures provide revenue visibility and expand the installed base that supports recurring services, upgrades, and software.
Data centers represented $2.2 billion of Power Systems orders in Q2 fiscal 2026. The company received an order from Dynamis for approximately 1.3 gigawatts of NovaLT turbines and an agreement with Kodiak Gas Services starting at approximately 1 gigawatt with an option to reach 1.8 gigawatts. Baker Hughes plans to double gas turbine capacity compared with 2026 levels by the end of 2028, with the first incremental NovaLT capacity beginning in the first half of 2027. Chart Industries adds thermal management and cooling technologies to Baker Hughes’ generation and digital services capabilities.
Automated analysis for informational purposes only — not investment advice.
The acquisition of Chart Industries closed in July 2026, and Chart will operate as a third reporting segment within Baker Hughes. The transaction adds capabilities in thermal management, air and gas handling, cryogenic storage, and carbon capture, with opportunities in data centers, gas, geothermal energy, and mining. Management targets annual cost savings of $325 million by the third year, comprising $95 million in the first year, $230 million in the second year, and $325 million in the third year. In return, execution requires managing 18 integration workstreams and approximately 300 initiatives, with an expected temporary increase in leverage.
Fiscal 2026 guidance assumes Middle East activity remains near the Q2 level through year-end, with pressure of 1% to 2% on IET revenue from disruptions in the region. The company expects annual revenue of $27.35 billion and adjusted earnings before interest, taxes, depreciation, and amortization of $4.85 billion, but changes in geopolitical conditions or supply chains could alter these results. Management also expects a slight decline in global upstream spending and a slower contribution from processing the gas turbine services backlog in the second half. The long cycle for gas turbine equipment delays the conversion of a significant portion of 2026 orders until after 2027.
The analyst consensus on BKR is “Buy,” with an average price target of $72.27. The target range extends from $51 to $80, while the 52-week range is between $43.92 and $70.41. The average target is slightly above the top of the 52-week range, but the wide spread between the lowest and highest targets reflects differing estimates of IET backlog conversion and integration with Chart. Therefore, the valuation rationale depends on the company’s ability to convert $37.1 billion in remaining performance obligations into revenue and margins and achieve the announced Chart savings.
