GET DAILY SIGNALSBaker Hughes (BKR) Posts +14% Revenue Growth in Q3 2026 Earnings
Key Takeaways
- Baker Hughes reported third-quarter 2026 revenue of $8,025 million, up 14% year over year and above the consensus estimate of roughly $7.69 billion.
- Adjusted diluted earnings per share (EPS) came in at $0.70, beating the analyst consensus of $0.60 by $0.10.
- GAAP net income was $411 million, down 33% year over year, while GAAP diluted EPS fell to $0.41, reflecting acquisition-related costs.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 14% to $1,415 million, supported by the Chart acquisition and higher volume.
- Total book-to-bill reached 1.3, and remaining performance obligations (RPO) hit a record $46.4 billion, signaling strong future demand.
- For more context on Baker Hughes' Major News, Today's Price Move, Price Targets, and Forecast, explore the additional Tickeron pages.
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Earnings Context and Why It Matters
Baker Hughes' third-quarter 2026 report marks the first full quarter to incorporate the recently completed Chart Industries acquisition, making it a key test of the company's diversification strategy beyond traditional oilfield services. Investors are watching whether the industrial and energy technology (IET) business can sustain momentum in gas turbines, liquefied natural gas (LNG) equipment, and data-center power generation, even as oilfield activity remains uneven. The results matter because BKR is repositioning itself around electrification and power demand tied to artificial intelligence and data centers, areas with long-term growth potential. A strong revenue beat and record backlog suggest the strategy is gaining traction, though acquisition costs pressured GAAP profitability. One thing that stands out is how this shift could play out over the next several quarters.
Reported Results
BKR posted third-quarter 2026 revenue of $8,025 million, up 14% year over year and 19% sequentially, driven primarily by the contribution from the Chart acquisition along with higher volume and pricing. Revenue topped the consensus estimate of about $7.69 billion. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Adjusted diluted EPS was $0.70, exceeding the $0.60 consensus by $0.10. On a GAAP basis, diluted EPS was $0.41, weighed down by $284 million in adjusting items tied largely to transaction-related costs. Adjusted net income rose 2% year over year to $695 million, while adjusted EBITDA climbed 14% to $1,415 million.
Total book-to-bill was 1.3, with the IET segment posting an even stronger 1.7, indicating order intake outpaced revenue. Remaining performance obligations (RPO), a forward indicator of contracted work, reached a record $46.4 billion. Operating cash flow was $1,005 million, and free cash flow (operating cash flow minus capital expenditures) was $769 million.
Market Reaction and Investor Sentiment
Heading into the report, sentiment was cautiously optimistic, with 11 positive and 4 negative EPS revisions in the 90 days prior, according to Investing.com. The top- and bottom-line beats supported that optimism, but the sharp year-over-year decline in GAAP net income — down 33% — tempered enthusiasm and highlighted the near-term cost burden of integrating Chart Industries. The stock closed at $59.00 following the release, down about 2.5% over the prior three months but up roughly 23% over the trailing 12 months. Investors appear to be weighing the company's accelerating order book and record backlog against the integration expenses and softer headline profitability that accompanied the acquisition.
Forward Outlook and Key Factors to Monitor
Looking ahead, investors should focus on how quickly Baker Hughes can convert its record RPO into revenue and margins. The IET segment's book-to-bill of 1.7 suggests robust demand for gas turbines, compression equipment, and power-generation solutions, particularly for data centers and LNG infrastructure. Sustaining that order momentum will be central to the growth narrative.
Chart Industries integration will remain a key watchpoint. Management will need to demonstrate that the deal's cost synergies and margin benefits materialize on schedule, especially as transaction and restructuring costs continue to weigh on GAAP results in the near term. Any delays or unexpected integration expenses could pressure profitability.
Finally, monitor the oilfield services and equipment (OFSE) segment, where demand remains tied to upstream spending by oil and gas producers. Global drilling activity, customer capital budgets, and geopolitical factors affecting energy supply will all influence near-term results. Free cash flow generation and capital allocation will also be closely followed as the company balances debt management with continued investment in high-growth power and digital solutions. I'm watching this closely as the integration unfolds.
Using Tickeron’s AI Screener for Additional Perspective
In my analysis of energy names like BKR, I often turn to Tickeron’s AI Screener to quickly filter for comparable companies based on technical patterns, fundamentals, and AI-driven signals. It helps surface ideas and monitor conditions more efficiently than manual reviews, which can be useful when tracking acquisition impacts and backlog trends in this sector.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
BKR's RSI Oscillator ascends from oversold territory
The RSI Indicator for BKR moved out of oversold territory on October 01, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 25 similar instances when the indicator left oversold territory. In 23 of the 25 cases the stock moved higher. This puts the odds of a move higher at 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 41 of 58 cases where BKR's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 71%.
The Moving Average Convergence Divergence (MACD) for BKR just turned positive on October 06, 2026. Looking at past instances where BKR's MACD turned positive, the stock continued to rise in 37 of 48 cases over the following month. The odds of a continued upward trend are 77%.
Following a +4.46% 3-day Advance, the price is estimated to grow further. Considering data from situations where BKR advanced for three days, in 227 of 342 cases, the price rose further within the following month. The odds of a continued upward trend are 66%.
BKR may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 22, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on BKR as a result. In 48 of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 58%.
The 50-day moving average for BKR moved below the 200-day moving average on October 20, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BKR declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 59%.
The Aroon Indicator for BKR entered a downward trend on October 26, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 19 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 68, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 27 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 53 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 57 (best 1 - 100 worst), indicating steady price growth. BKR’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 64 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.942) is normal, around the industry mean (1.624). P/E Ratio (18.790) is within average values for comparable stocks, (-32.247). Projected Growth (PEG Ratio) (1.593) is also within normal values, averaging (1.687). Dividend Yield (0.016) settles around the average of (0.036) among similar stocks. P/S Ratio (2.020) is also within normal values, averaging (1.663).
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
a holding company, which engages in the provision of oilfield products, services, and digital solutions
Industry OilfieldServicesEquipment