Baker Hughes Company (BKR) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Baker Hughes Company (BKR) Energy Operations & Outlook

Baker Hughes Company delivers a comprehensive portfolio of technologies and services across the energy and industrial value chain. With a focus on oilfield services, equipment, turbomachinery, and digital solutions, BKR supports exploration, production, and processing operations worldwide, positioning itself as a key player in the evolving energy landscape.

What Is the Investment Thesis for BKR?

Baker Hughes Company presents a notable research candidate based on its diversified portfolio, strategic positioning in the energy sector, and commitment to innovation. With a market capitalization of $59.0B and a P/E ratio of 17.63, BKR demonstrates financial stability and growth potential. The company's dividend yield of 1.44% offers an attractive income stream for investors. Key growth catalysts include increasing demand for oil and gas, expansion of digital solutions, and strategic partnerships. However, potential risks include commodity price volatility and competition from other major players in the oilfield services and equipment market. The company's beta of 0.90 indicates lower volatility compared to the broader market.

Based on FMP financials and quantitative analysis

BKR Key Highlights

Market Cap of $59.0B reflects Baker Hughes' significant presence in the energy sector.

• P/E Ratio of 17.63 indicates a reasonable valuation compared to its earnings.
• Profit Margin of 11.2% demonstrates the company's ability to generate profit from its revenue.
• Gross Margin of 23.6% shows the profitability of Baker Hughes' products and services.
• Dividend Yield of 1.44% provides a steady income stream for investors.

Who Are BKR's Competitors?

BKR is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are BKR's Key Strengths?

Diversified portfolio of products and services

• Global presence and established customer relationships
• Technological expertise and innovation
• Strong brand reputation

What Are BKR's Weaknesses?

Exposure to commodity price volatility

• Dependence on the oil and gas industry
• High capital expenditures
• Complex organizational structure

What Could Drive BKR Stock Higher?

Increasing demand for oil and gas due to global economic growth.

• Expansion of digital solutions and strategic partnerships.
• Investments in sustainable technologies and ESG initiatives.
• Rising demand for LNG solutions as countries diversify their energy sources.

What Are the Key Risks for BKR?

Insider selling — insiders were net sellers of roughly $28.4M recently.

• Commodity price volatility impacting revenue and profitability.
• Geopolitical risks affecting operations in certain regions.
• Competition from other major players in the oil and gas industry.
• Environmental regulations increasing compliance costs.
• Technological disruptions rendering existing products and services obsolete.

What Are the Growth Opportunities for BKR?

• Expansion of Digital Solutions: Baker Hughes' Digital Solutions (DS) segment presents a significant growth opportunity. The increasing adoption of digital technologies in the energy sector, such as sensor-based process measurements, machine health monitoring, and pipeline integrity solutions, drives demand for BKR's DS offerings. The market for digital solutions in the oil and gas industry is projected to reach $30 billion by 2027, offering substantial growth potential for Baker Hughes. This segment allows for higher margin revenue and stickier customer relationships.
• Increasing Demand for LNG Solutions: The Turbomachinery & Process Solutions (TPS) segment is poised for growth due to the rising demand for liquefied natural gas (LNG) solutions. As countries seek to diversify their energy sources and reduce carbon emissions, LNG is becoming an increasingly important fuel source. Baker Hughes' TPS segment provides equipment and services for LNG production, transportation, and regasification, positioning the company to capitalize on this growing market.
• Growth in Oilfield Services: The Oilfield Services (OFS) segment remains a core growth driver for Baker Hughes. As oil and gas companies increase their exploration and production activities, demand for BKR's OFS offerings, including drilling, wireline, evaluation, completion, production, and intervention services, is expected to rise. The global oilfield services market is projected to reach $250 billion by 2026, driven by increasing investments in both conventional and unconventional oil and gas resources. Baker Hughes' established presence and technological expertise in this segment provide a competitive advantage.
• Strategic Partnerships and Acquisitions: Baker Hughes can pursue growth through strategic partnerships and acquisitions. By collaborating with other technology companies and acquiring complementary businesses, BKR can expand its product and service offerings, enter new markets, and enhance its competitive position. Potential acquisition targets include companies specializing in renewable energy technologies, digital solutions, and advanced materials. Strategic partnerships can also provide access to new customers and distribution channels.
• Focus on Sustainability and ESG Initiatives: Baker Hughes can drive growth by focusing on sustainability and environmental, social, and governance (ESG) initiatives. As investors and customers increasingly prioritize sustainability, BKR can differentiate itself by offering solutions that reduce carbon emissions, improve energy efficiency, and promote responsible resource management. This includes developing technologies for carbon capture, utilization, and storage (CCUS), as well as providing services for decommissioning oil and gas infrastructure. The market for sustainable energy solutions is expected to grow rapidly in the coming years.

What Are BKR's Competitive Advantages?

• Technological expertise and innovation
• Global presence and established customer relationships
• Comprehensive portfolio of products and services
• Strong brand reputation

What Does BKR Do?

Baker Hughes Company, formerly known as Baker Hughes, a GE company, was renamed in October 2019. The company traces its roots back to the early 20th century, evolving through mergers and acquisitions to become a leading provider of technology and services to the energy and industrial sectors. Headquartered in Houston, Texas, Baker Hughes operates globally, serving customers in over 120 countries. The company's four main segments are Oilfield Services (OFS), Oilfield Equipment (OFE), Turbomachinery & Process Solutions (TPS), and Digital Solutions (DS). The OFS segment provides a wide array of services, including exploration, drilling, wireline, evaluation, completion, production, and intervention services. The OFE segment offers subsea and surface wellheads, pressure control and production systems, and flexible pipe systems. The TPS segment delivers equipment and related services for mechanical-drive, compression, and power-generation applications. The DS segment provides sensor-based process measurements, machine health monitoring, and pipeline integrity solutions. Baker Hughes serves a diverse customer base, including oil and gas companies, industrial manufacturers, and energy producers. The company's focus on innovation and technology enables it to provide solutions that improve efficiency, reduce costs, and enhance sustainability for its customers.

What Products and Services Does BKR Offer?

• Provides oilfield services, including drilling, evaluation, and completion.
• Offers oilfield equipment, such as subsea and surface wellheads.
• Delivers turbomachinery and process solutions for the oil and gas industry.
• Provides digital solutions for process measurement and machine health monitoring.
• Offers exploration and production services to oil and gas companies.
• Provides intervention services for oil and gas wells.
• Develops and manufactures equipment for the energy sector.

How Does BKR Make Money?

• Generates revenue through the sale of equipment and services to oil and gas companies.
• Provides long-term service contracts for equipment maintenance and support.
• Offers digital solutions on a subscription basis.
• Partners with other companies to develop and market new technologies.

What Industry Does BKR Operate In?

Baker Hughes Company operates in the oil and gas equipment and services industry, a sector characterized by cyclical demand and technological advancements. The industry is influenced by factors such as commodity prices, geopolitical events, and environmental regulations. The market is competitive, with major players including SLB N.V. and Halliburton. Baker Hughes differentiates itself through its comprehensive portfolio of technologies and services, spanning from oilfield services to digital solutions. The industry is currently experiencing a period of growth, driven by increasing demand for energy and investments in exploration and production activities. The global oil and gas equipment and services market is projected to reach $350 billion by 2028, growing at a CAGR of 4.5% from 2021.

Who Are BKR's Key Customers?

• Oil and gas exploration and production companies
• Refineries and petrochemical plants
• Industrial manufacturers
• Energy producers

Baker Hughes Company (BKR) Valuation Context

Valued at $59.0B, BKR is classified as a large-cap stock. Analyst price targets span from $70.00 to $80.00, with a consensus of $74.27. At the current price of $59.40, that implies approximately 25% upside potential. Relative to its peer group, BKR's quantitative score of 60/100 is roughly in line with the peer average of 70/100.

BKR Revenue & Earnings Trend

In Jun 2025, BKR generated $6.91B in top-line revenue, marking a sequential decrease of 1.4%. The company recorded net income of $701.0M, with diluted EPS of $0.71. Revenue has contracted over three consecutive quarters, which investors in this large-cap Energy stock should monitor closely. Across the four most recent quarters, BKR averaged $0.78 in diluted EPS.

Company Profile

Baker Hughes Company operates in the Oil & Gas Equipment & Services industry within the Energy sector. It is headquartered in Houston, US. The company is led by CEO Lorenzo Simonelli. BKR has traded publicly since 1987.

Return on equity for Baker Hughes Company stands at 16.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 6.1%, showing how much profit it generates from its asset base. BKR trades at a trailing price-to-earnings ratio of 17.63, above the Energy sector average of ~15.80x. Its free cash flow yield is 4.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 2.13 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 5.7%, the inverse of the P/E and a quick read on earnings relative to price.

Baker Hughes Company's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 2.25 places it in the grey zone, a middle ground that warrants monitoring.

Baker Hughes Company has beaten Wall Street's EPS estimate in 8 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 14.5% above estimates on average.

Over the past six months, Baker Hughes Company insiders filed 15 SEC Form 4 transactions — 11 sales and 4 purchases. On net that is roughly 460K shares disposed (about $28.4M), a signal worth weighing alongside the fundamentals.

BKR Financials

BKR Latest News

BKR Analyst Consensus

BKR MoonshotScore

Latest Baker Hughes Company Analysis

What Investors Ask About Baker Hughes Company (BKR) — Energy

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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