Baker Hughes Announces Third-Quarter 2026 Results
Baker Hughes Co (BKR) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Baker Hughes Announces Third-Quarter 2026 Results Third-quarter highlights • Orders of $10.8 billion, including $5.9 billion of IET orders. • RPO of $46.4 billion, including record IET RPO of $39.4 billion. • Revenue of $8.0 billion. • Attributable net income of $411
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance are likely to drive short‑term buying pressure, while the expanded order backlog supports a longer‑term bullish thesis.
Market read
BKR's results reinforce the strength of the energy services sector and may lift related peers.
What to watch
Potential headwinds from commodity price volatility could temper long‑term growth.
Baker Hughes Announces Third-Quarter 2026 Results
Revenue, orders, adjusted EBITDA and free cash flow increased year-over-year, supported by the Chart acquisition, price, higher volume and cost-out initiatives. IET produced $5,886 million of orders and IET RPO reached $39.4 billion, while reported GAAP net income and GAAP diluted EPS declined from the prior quarter and prior year.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Orders, third quarter of 2026other | $10.76B | 2% | 31% |
| Revenue, third quarter of 2026GAAP | $8.03B | 19% | 14% |
| Net income attributable to Baker Hughes, third quarter of 2026GAAP | $411M | (40%) | (33%) |
| Adjusted net income attributable to Baker Hughes, third quarter of 2026non-GAAP | $695M | 8% | 2% |
| Adjusted EBITDA, third quarter of 2026non-GAAP | $1.42B | 15% | 14% |
| GAAP diluted earnings per share, third quarter of 2026GAAP | $0.41 | (40%) | (33%) |
| Adjusted diluted earnings per share, third quarter of 2026non-GAAP | $0.70 | 8% | 2% |
| Cash flow from operating activities, third quarter of 2026GAAP | $1.00B | (25%) | 8% |
| Free cash flow, third quarter of 2026non-GAAP | $769M | (31%) | 10% |
| Remaining Performance Obligations, third quarter of 2026other | $46.4B | an increase of $6.4 billion from the second quarter of 2026 | – |
| IET Remaining Performance Obligations, third quarter of 2026other | $39.4B | up $2.3 billion sequentially | – |
| OFSE Remaining Performance Obligations, third quarter of 2026other | $3.4B | up $0.4 billion sequentially | – |
| Chart Remaining Performance Obligations, third quarter of 2026other | $3.6B | – | – |
| Total book-to-bill ratio, third quarter of 2026other | 1.3 | – | – |
| IET book-to-bill ratio, third quarter of 2026other | 1.7 | – | – |
| Depreciation and amortization, third quarter of 2026GAAP | $505M | – | – |
| Income tax expense, third quarter of 2026GAAP | $97M | – | – |
| Other (income) expense, net, third quarter of 2026GAAP | $157M | – | – |
| Capital expenditures, net of proceeds from disposal of assets, third quarter of 2026other | $236M | – | – |
| Revenue, nine months ended September 30, 2026GAAP | $21.35B | – | – |
| Net income attributable to Baker Hughes Company, nine months ended September 30, 2026GAAP | $2.02B | – | – |
| Diluted income per Class A common stock, nine months ended September 30, 2026GAAP | $2.03 | – | – |
| Net cash flows provided by operating activities, nine months ended September 30, 2026GAAP | $2.85B | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $4.07B | – | – |
| Short-term debt, September 30, 2026GAAP | $788M | – | – |
| Long-term debt, September 30, 2026GAAP | $17.48B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Oilfield Services & EquipmentYear-over-year growth was driven mainly by higher activity in Europe/CIS/Sub-Saharan Africa and Latin America, partially offset by a decrease in Middle East/Asia due to the Surface Pressure Control disposition. | $3.66B | 6% | 1% |
| Industrial & Energy TechnologyYear-over-year revenue growth was driven primarily by Climate Technology Solutions and Gas Technology Services, partially offset by lower Gas Technology Equipment and Industrial Solutions revenue reflective of the Precision Sensors & Instrumentation disposition. | $3.48B | 6% | 3% |
| ChartThird-quarter reported results reflect activity from the July 16, 2026 acquisition date through September 30, 2026; revenue was driven by Original Equipment revenue of $623 million and Aftermarket revenue of $265 million. | $888M | – | – |
Horizon 2 (2026-2028) outlook
- NoteIET order outlook to $50 billion plus
Capital returns
- Cash dividend per Class A common stock was $0.23 for the three months ended September 30, 2026.
- Dividends paid were $228 million for the three months ended September 30, 2026.
- Dividends paid were $684 million for the nine months ended September 30, 2026.
What drove it
- The Chart acquisition contributed to year-over-year consolidated revenue growth and was the primary driver of sequential adjusted net income and adjusted EBITDA growth.
- Sequential adjusted net income and adjusted EBITDA also benefited from higher volume and price.
- Year-over-year adjusted net income and adjusted EBITDA benefited from price, higher volume and cost-out initiatives.
- IET orders increased 42% year-over-year, led by continued strength in Climate Technology Solutions, Gas Technology Equipment and Gas Technology Services.
- OFSE orders increased 19% sequentially, while Subsea and Surface Pressure Systems orders increased 63% sequentially.
Concerns
- GAAP net income attributable to Baker Hughes decreased 40% sequentially and 33% year-over-year.
- GAAP diluted EPS decreased 40% sequentially and 33% year-over-year.
- Reduced productivity benefits, inflation and changes in business mix partially offset adjusted earnings growth.
- IET EBITDA margin was 19.7%, down from 20.6% sequentially.
- OFSE EBITDA margin was 18.1%, down from 18.5% year-over-year.
- OFSE revenue increased only 1% year-over-year, with Middle East/Asia revenue down 13% year-over-year due to the Surface Pressure Control disposition.
What to watch
- Conversion of the $46.4 billion RPO balance into revenue and cash.
- Execution and synergy actions following the Chart acquisition.
- IET order momentum across data centers, space, LNG and gas infrastructure.
- International OFSE activity, including the reported meaningful improvement in the Middle East.
- The effect of reduced productivity benefits, inflation and business mix on segment EBITDA margins.
Balance sheet and cash flow
- Cash and cash equivalents were $4,068 million at September 30, 2026, compared with $3,715 million at December 31, 2025.
- Long-term debt was $17,476 million at September 30, 2026, compared with $5,398 million at December 31, 2025.
- Net cash paid for acquisitions was $14,150 million for the three months and nine months ended September 30, 2026.
- Proceeds from issuance of long-term debt were $2,000 million for the three months ended September 30, 2026 and $11,885 million for the nine months ended September 30, 2026.
- Net cash flows used in investing activities were $14,276 million for the three months ended September 30, 2026.
Analysis
Baker Hughes reported third-quarter revenue of $8,025 million, up 19% sequentially and 14% year-over-year. Orders were $10,764 million, up 2% sequentially and 31% year-over-year, producing a total book-to-bill ratio of 1.3. The company attributed year-over-year revenue growth mainly to the Chart acquisition, completed on July 16, 2026.
Profitability was stronger on an adjusted basis. Adjusted EBITDA rose to $1,415 million, up 15% sequentially and 14% year-over-year, while adjusted net income reached $695 million and adjusted diluted EPS was $0.70. Management cited the Chart acquisition, higher volume and price as sequential drivers, with reduced productivity benefits and inflation as offsets. GAAP net income attributable to Baker Hughes was $411 million and GAAP diluted EPS was $0.41, both down 40% sequentially and 33% year-over-year. Transaction related costs were $158 million and amortization of Chart intangible assets was $143 million in the adjusted-net-income reconciliation.
IET was the principal commercial contributor, with $5,886 million of orders, up 42% year-over-year, and $39.4 billion of RPO. Its revenue grew 3% year-over-year to $3,477 million and segment EBITDA increased 8% to $685 million, although EBITDA margin declined sequentially to 19.7% from 20.6%. OFSE revenue increased 1% year-over-year to $3,660 million, with Europe/CIS/Sub-Saharan Africa and Latin America growth partly offset by a Middle East/Asia decline associated with the Surface Pressure Control disposition. Chart contributed $831 million of orders, $888 million of revenue and $156 million of segment EBITDA from acquisition through quarter-end.
Cash generation remained positive but declined sequentially. Cash flow from operating activities was $1,005 million and free cash flow was $769 million, up 8% and 10% year-over-year, respectively, but down 25% and 31% sequentially. The company paid $14,150 million for acquisitions during the quarter, while cash and cash equivalents ended at $4,068 million and long-term debt was $17,476 million. Dividends paid were $228 million for the quarter.
The release provided a numerical Horizon 2 IET order outlook of $50 billion plus and stated that full-year IET order guidance was raised, without printing a separate full-year numerical figure. The record $46.4 billion RPO, including $39.4 billion in IET, supports management's emphasis on revenue visibility, installed-base expansion and long-term aftermarket opportunity. The key operating items are execution of the Chart integration, conversion of RPO, durability of IET order demand and the effect of inflation, productivity and mix on margins.
Management, verbatim
Baker Hughes delivered another strong quarter, reflecting disciplined operational execution and broad-based commercial momentum across the company. Performance across IET, OFSE and Chart highlights the strength of our expanded portfolio and the growing value of our complementary capabilities as we build a more industrialized energy solutions company positioned across attractive energy and industrial markets.
Simonelli
Alongside continued strong operational results, IET achieved its second-largest order quarter, booking $5.9 billion and driving RPO to another record. Broad-based demand across data centers, space, LNG and gas infrastructure, together with ongoing capacity expansions, reinforces our long-term growth outlook and supports raising our full-year IET order guidance and Horizon 2 (1) IET order outlook to $50 billion plus.
Simonelli
Energy security, rising demand for AI and emerging opportunities across growth markets are creating new opportunities across our energy upstream, energy infrastructure and industrial end markets. With a record RPO, robust order pipeline, growing installed base and inflecting energy upstream market, Baker Hughes is well positioned to deliver durable growth, stronger earnings power and long-term value for shareholders.
Simonelli
Not in the filing
stated, not guessed- Gross margin was not reported.
- Operating income was not reported.
- Operating margin was not reported.
- A GAAP or adjusted tax rate was not reported.
- A separate numerical full-year IET order guidance figure was not reported.
- Revenue, gross-margin, operating-expense and tax-rate guidance were not reported.
- Current-quarter share repurchases were not reported.
- Prior-year and prior-quarter comparisons for Chart were not reported because third-quarter results reflect activity since the July 16, 2026 acquisition date.
- Prior-year comparison for Remaining Performance Obligations was not reported.
- Prior-quarter cash and debt balances were not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is a Form 8‑K reporting Baker Hughes' third‑quarter 2026 financials and operational highlights.
Ticker impact
Baker Hughes disclosed Q3 2026 results with $8.0B revenue, $0.41 GAAP EPS and raised full-year IET order guidance.
likely upward pressure as investors price in higher revenue and raised order outlook
The company beat prior quarter, posted double‑digit revenue growth and explicitly raised its IET order guidance, which typically supports a bullish reaction.
Market effects
Energy services sector may see broader optimism from Baker Hughes' order growth.
U.S. and European energy markets could benefit from increased demand for IET equipment.
Highlights continued AI‑driven data‑center and LNG infrastructure spending worldwide.
Counterpoint
If the market has already priced in the strong order book, the stock may face limited upside.
Key entities
- companyBaker Hughes Company
U.S. listed energy services firm (NASDAQ:BKR).
