Baker Hughes
BKR
$62.34
-0.70%
Baker Hughes Company is a leading energy technology company providing oilfield services, equipment, and industrial energy technology solutions to the global energy industry. As one of the 'Big Three' oilfield services players alongside SLB and Halliburton, it holds a distinct competitive position with a strong international presence, generating roughly three-fourths of its oilfield services revenue from markets outside North America. The current investor narrative centers on the company's strategic portfolio reshaping, highlighted by the $1.45 billion divestiture of its Waygate Technologies unit to sharpen focus on core businesses, while ongoing Middle East tensions and potential Strait of Hormuz disruptions are driving energy price volatility and shaping demand expectations for its services. Additionally, Baker Hughes is positioning itself in the energy transition through partnerships like the hydrogen storage MoU with Vallourec, which adds a growth dimension to its traditional oilfield services identity.…
BKR
Baker Hughes
$62.34
Related headlines
BKR 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Baker Hughes's 12-month outlook, with a consensus price target around $71.91 and implied upside of +15.4% versus the current price.
Average Target
$71.91
0 analysts
Implied Upside
+15.4%
vs. current price
Analyst Count
—
covering this stock
Price Range
$51 - $85
Analyst target range
The target price range spans from a low of $51.00 to a high of $85.00, indicating a wide dispersion of expectations. The high target of $85 implies a 36.3% upside, suggesting some analysts see significant potential from energy transition initiatives and international expansion, while the low target of $51 implies a downside of 18.2%, reflecting concerns about oil price volatility and potential margin compression. The wide spread (34 points) signals high uncertainty about the company's future performance, likely due to geopolitical risks and the pace of energy transition adoption. Recent rating actions show a mix of reaffirmations and one downgrade (Barclays from Overweight to Equal Weight in May 2026), suggesting some analysts are becoming more cautious, but the overall sentiment remains positive.
Bulls vs Bears: BKR Investment Factors
Baker Hughes presents a balanced but slightly bullish case. The company's strong 1-year momentum, diversified revenue streams, and solid profitability are offset by decelerating growth and geopolitical risks. The most important tension is whether the company can sustain its growth trajectory amid a potential slowdown in oilfield activity and the transition to cleaner energy. If BKR successfully executes its energy transition strategy and maintains international momentum, the stock could reach analyst targets; however, any significant downturn in oil prices or prolonged geopolitical instability could derail the thesis. Currently, the bull case has slightly stronger evidence given the analyst consensus and strategic initiatives, but the risks are substantial.
Bullish
- Strong 1-Year Momentum: BKR is up 43.44% over the past year, far outpacing the S&P 500's 20.48% gain. This outperformance reflects robust demand for its services and successful strategic positioning, indicating strong market confidence.
- Diversified Revenue Streams: The Industrial & Energy Technology segment ($3.35B) now slightly exceeds Oilfield Services & Equipment ($3.237B), reducing reliance on cyclical oilfield spending. This balance provides a hedge against oil price volatility and supports growth in energy transition markets.
- Healthy Profitability Metrics: With a trailing P/E of 17.38x, ROE of 13.74%, and net margin of 9.33%, BKR demonstrates solid profitability. The company generated $2.29B in TTM free cash flow, providing ample capital for dividends and strategic investments.
- Analyst Consensus Buy: 23 analysts rate BKR a Buy with an average target of $71.91, implying 15.4% upside from the current $62.34. The high target of $85 suggests 36.3% upside, reflecting optimism about international growth and energy transition initiatives.
Bearish
- Decelerating Revenue Growth: Q1 2026 revenue grew only 2.49% YoY, down from 7.4% in Q4 2025, and sequential revenue declined from $7.386B to $6.587B. This deceleration suggests softening demand, particularly in North America, and could pressure earnings.
- Forward P/E Higher Than Trailing: The forward P/E of 19.72x exceeds the trailing P/E of 17.38x, implying the market expects earnings to decline. This unusual inversion signals anticipated margin compression or increased competition, warranting caution.
- Geopolitical Risk Exposure: Ongoing Middle East tensions and potential Strait of Hormuz disruptions create significant uncertainty. While these can boost oil prices and demand for services, they also risk supply chain disruptions and operational instability in key regions.
- Mixed Analyst Sentiment: Barclays downgraded BKR from Overweight to Equal Weight in May 2026, reflecting growing caution. The wide target range ($51-$85) indicates high uncertainty about future performance, with the low target implying 18.2% downside.
BKR Technical Analysis
Baker Hughes is in a clear long-term uptrend, with the stock up 43.44% over the past year, significantly outperforming the S&P 500's 20.48% gain. The current price of $62.34 sits at 88.5% of its 52-week range (between $43.61 low and $70.41 high), indicating the stock is trading near its highs, reflecting strong momentum but also potential overextension. The stock's beta of 0.959 suggests it is slightly less volatile than the broader market, providing some stability in a volatile energy sector.
Beta
0.96
0.96x market volatility
Max Drawdown
-24.2%
Largest decline past year
52-Week Range
$44-$70
Price range past year
Annual Return
+43.4%
Cumulative gain past year
| Period | BKR Return | S&P 500 |
|---|---|---|
| 1m | +10.1% | +3.6% |
| 3m | -5.6% | +2.7% |
| 6m | +0.2% | +11.4% |
| 1y | +43.4% | +18.7% |
| ytd | +32.2% | +12.3% |
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BKR Fundamental Analysis
Baker Hughes' revenue trajectory shows modest growth, with the most recent quarter (Q1 2026) reporting revenue of $6.587 billion, up 2.49% year-over-year. This growth is decelerating compared to earlier quarters, as Q4 2025 revenue was $7.386 billion and Q3 2025 was $7.01 billion, indicating a sequential decline. The company's two segments, Oilfield Services & Equipment ($3.237 billion) and Industrial & Energy Technology ($3.35 billion), are nearly balanced, with the latter slightly larger, highlighting the company's diversification beyond traditional oilfield services. The revenue growth is being driven by international markets and the industrial technology segment, while North American activity remains subdued.
Quarterly Revenue
$6.6B
2026-03
Revenue YoY Growth
+2.5%
YoY Comparison
Gross Margin
22.8%
Latest Quarter
Free Cash Flow
$2.3B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is BKR Overvalued?
Given that Baker Hughes is profitable with a trailing EPS of $3.59 (calculated from net income of $930 million and shares outstanding of 990 million), the appropriate primary valuation metric is the P/E ratio. The trailing P/E stands at 17.38x, while the forward P/E is 19.72x, indicating that the market expects earnings to decline slightly in the coming year, which is unusual and may reflect anticipated margin pressures or increased competition. The gap between trailing and forward P/E suggests a cautious outlook from investors, possibly due to rising costs or a slowdown in oilfield activity.
PE
17.4x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 9x~27x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
11.3x
Enterprise Value Multiple
Investment Risk Disclosure
Financial & Operational Risks: BKR's debt-to-equity ratio of 0.38 is manageable, but the company's reliance on continued revenue growth to justify its valuation is a concern. With revenue growth decelerating to 2.49% YoY and forward P/E higher than trailing, there is a risk of earnings disappointment. The company's operating margin of 12.8% is decent but could be pressured by rising costs or pricing competition. Additionally, the negative PEG ratio (-1.37) suggests the market expects earnings to decline, which could lead to multiple compression if realized.