Baker Hughes Company (BKR) AI Stock Analysis

Baker Hughes Company provides technologies and services for the global energy and industrial sectors across two primary segments: Oilfield Services & Equipment and Industrial & Energy Technology. The Oilfield Services & Equipment segment delivers exploration, drilling, wireline, evaluation, completion, production, and intervention solutions to enhance oil and natural gas extraction. The Industrial & Energy Technology segment provides equipment and services for mechanical-drive, compression, and power-generation applications, including pumps, valves, and solutions for liquefied natural gas production. It also offers sensor-based process measurements, machine health monitoring, asset management, and pipeline integrity services across upstream, midstream, and downstream sectors.

Revenue rose from $20.50B in FY2021 to $21.16B in FY2022, $25.51B in FY2023, and $27.83B in FY2024, before reaching $27.73B in FY2025, reflecting a 5-year CAGR of 6.0%. Net income transitioned from -$219.0M in FY2021 and -$601.0M in FY2022 to $1.94B in FY2023, $2.98B in FY2024, and $2.59B in FY2025. Gross margin expanded from 22.1% in FY2021 to 23.6% in FY2025, while operating margin rose from 6.4% to 12.8% over the same period. In the latest quarter ended June 30, 2026, quarterly revenue growth fell 2.4% year-over-year and quarterly earnings growth declined 4.2% year-over-year.

As of June 30, 2026, Baker Hughes held $17.06B in cash and short-term investments against total debt of $16.25B, resulting in net cash of $803.0M. The company reported total assets of $52.62B, shareholders' equity of $19.91B, a current ratio of 2.09, and a debt-to-equity ratio of 0.82. In FY2025, operating cash flow reached $3.81B and free cash flow was $2.54B. Capital expenditures totaled $1.27B, while capital returns included $910.0M in dividends paid and $384.0M in share buybacks.

Baker Hughes trades at a trailing P/E of 17.9x, a forward P/E of 18.0x, and a PEG ratio of 1.62. The stock carries an enterprise value of $58.13B, with an EV/EBITDA multiple of 11.4x, an EV/revenue multiple of 2.1x, and a price-to-sales ratio of 2.0x. Price-to-book stands at 2.9x based on a market cap of $55.29B. Over the past year, BKR generated a return of 26.7% compared to 16.8% for the S&P 500, while its 5-year return of 132.3% surpassed the S&P 500 return of 83.0%.

Baker Hughes has paid consecutive dividends for 40 years, offering a forward annual dividend of $0.92 per share and a dividend yield of 1.65%. The payout ratio is 34.3%, supported by quarterly distributions. Over the past five years, the dividend grew at an annualized rate of 5.0%. Its most recent ex-dividend date was August 7, 2026.

Wall Street coverage consists of 15 Strong Buy, 5 Buy, 4 Hold, 0 Sell, and 1 Strong Sell ratings. The mean price target of $71.04 implies an upside of 27.5% compared to the last close of $55.70. Analysts forecast FY2026 revenue of $29.53B and EPS of $2.57, followed by FY2027 revenue of $32.52B and EPS of $2.94. The company recorded 4 EPS beats over the last 4 quarters, with its next earnings date scheduled for October 27, 2026.

This page is an AI-written research summary of Baker Hughes Company (BKR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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