Revenue growth has plateaued to a modest 2.5% year-over-year in 2026Q1, while reported operating margins reached an anomalous 64.4% that warrants further investigation into non-operating accounting adjustments.
| Sales/Revenue | 27.89B | 27.73B | 27.83B | 25.51B | 21.16B | 20.5B | 20.7B | 23.84B | 22.88B | 17.18B | 13.27B | 16.69B |
| Revenue Growth % | 0.2% | -0.34% | 9.11% | 20.56% | 3.19% | -0.98% | -13.14% | 4.2% | 33.17% | 29.47% | -20.49% | - |
| Cost of Goods Sold | 21.32B | 21.19B | 21.35B | 19.6B | 16.2B | 15.96B | 16.97B | 19.41B | 18.89B | 14.14B | 10.12B | 12.19B |
| COGS % of Revenue | - | 76.4% | 76.7% | 76.86% | 76.57% | 77.85% | 81.97% | 81.41% | 82.58% | 82.33% | 76.29% | 73.06% |
| Gross Profit | 6.57B | 6.54B | 6.48B | 5.9B | 4.96B | 4.54B | 3.73B | 4.43B | 3.99B | 3.04B | 3.15B | 4.5B |
| Gross Margin % | 23.57% | 23.6% | 23.3% | 23.14% | 23.43% | 22.15% | 18.03% | 18.59% | 17.42% | 17.67% | 23.71% | 26.94% |
| Gross Profit Growth % | - | 0.94% | 9.84% | 19.09% | 9.14% | 21.64% | -15.77% | 11.19% | 31.29% | -3.5% | -30.01% | - |
| Operating Expenses | 2.96B | 2.99B | 3.1B | 3.26B | 3.07B | 3.23B | 3.06B | 3.36B | 3.29B | 3.32B | 2.48B | 4.63B |
| OpEx % of Revenue | - | 10.77% | 11.14% | 12.79% | 14.49% | 15.76% | 14.78% | 14.09% | 14.36% | 19.33% | 18.65% | 27.76% |
| Selling, General & Admin | 2.37B | 2.39B | 2.46B | 2.61B | 2.51B | 2.47B | 2.47B | 2.83B | 2.7B | 2.54B | 1.94B | 2.12B |
| SG&A % of Revenue | - | 8.61% | 8.83% | 10.24% | 11.86% | 12.05% | 11.91% | 11.88% | 11.8% | 14.76% | 14.61% | 12.67% |
| Research & Development | 587M | 600M | 643M | 658M | 556M | 492M | 595M | 687M | 700M | 501M | 352M | 408M |
| R&D % of Revenue | - | 2.16% | 2.31% | 2.58% | 2.63% | 2.4% | 2.87% | 2.88% | 3.06% | 2.92% | 2.65% | 2.44% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 269M | 0 | -161M | -114M | 284M | 185M | 2.11B |
| Operating Income | 7.04B | 3.56B | 3.38B | 2.64B | 1.89B | 1.31B | 672M | 1.07B | 701M | -284M | 457M | -138M |
| Operating Margin % | 25.26% | 12.83% | 12.15% | 10.35% | 8.93% | 6.39% | 3.25% | 4.51% | 3.06% | -1.65% | 3.44% | -0.83% |
| Operating Income Growth % | - | 5.17% | 28.11% | 39.68% | 44.27% | 94.94% | -37.43% | 53.21% | 346.83% | -162.14% | 431.16% | - |
| EBITDA | 4.52B | 4.75B | 4.52B | 3.73B | 2.95B | 2.42B | 1.99B | 2.49B | 2.19B | 819M | 1.01B | 392M |
| EBITDA Margin % | 16.19% | 17.11% | 16.23% | 14.61% | 13.95% | 11.78% | 9.61% | 10.45% | 9.56% | 4.77% | 7.59% | 2.35% |
| EBITDA Growth % | -1.76% | 5.02% | 21.22% | 26.3% | 22.19% | 21.42% | -20.18% | 13.95% | 167.03% | -18.67% | 156.89% | - |
| D&A (Non-Cash Add-back) | 903M | 1.19B | 1.14B | 1.09B | 1.06B | 1.1B | 1.32B | 1.42B | 1.49B | 1.1B | 550M | 530M |
| EBIT | 2.49B | 3.1B | 3.46B | 2.87B | 274M | 727M | 672M | 990M | 764M | -215M | 686M | -38M |
| Net Interest Income | -171M | -222M | -198M | -216M | -252M | -299M | -264M | -237M | -223M | -131M | -102M | -120M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 257M | 222M | 198M | 216M | 252M | 299M | 264M | 237M | 223M | 131M | 102M | 120M |
| Other Income/Expense | -3.46B | -680M | -117M | 15M | -1.87B | -882M | -15.87B | -321M | -160M | -62M | -99M | -20M |
| Pretax Income | 3.59B | 2.88B | 3.27B | 2.65B | 22M | 428M | -15.2B | 753M | 541M | -346M | 358M | -158M |
| Pretax Margin % | 12.87% | 10.37% | 11.73% | 10.41% | 0.1% | 2.09% | -73.42% | 3.16% | 2.36% | -2.01% | 2.7% | -0.95% |
| Income Tax | -235M | 253M | 257M | 685M | 600M | 758M | 559M | 482M | 258M | 45M | 173M | 473M |
| Effective Tax Rate % | -6.55% | 8.79% | 7.87% | 25.8% | 2727.27% | 177.1% | -3.68% | 64.01% | 47.69% | -13.01% | 48.32% | -299.37% |
| Net Income | 3.12B | 2.59B | 2.98B | 1.94B | -601M | -219M | -9.94B | 128M | 195M | -61M | 254M | -606M |
| Net Margin % | 11.17% | 9.33% | 10.7% | 7.62% | -2.84% | -1.07% | -48.01% | 0.54% | 0.85% | -0.36% | 1.91% | -3.63% |
| Net Income Growth % | 6.49% | -13.13% | 53.32% | 423.29% | -174.43% | 97.8% | -7865.63% | -34.36% | 419.67% | -124.02% | 141.91% | - |
| Net Income (Continuing) | 3.15B | 2.62B | 3.01B | 1.97B | -578M | -330M | -15.76B | 271M | 283M | -391M | 185M | -631M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 176M | 176M | 160M | 151M | 131M | 1.92B | 5.35B | 12.57B | 17.55B | 24.13B | 167M | 157M |
| EPS (Diluted) | 3.13 | 2.60 | 2.98 | 1.91 | -0.61 | -0.27 | -14.73 | 0.23 | 0.45 | -0.24 | 0.94 | -1.41 |
| EPS Growth % | 6.83% | -12.75% | 56.02% | 413.11% | -125.93% | 98.17% | -6504.35% | -48.89% | 287.5% | -125.53% | 166.67% | - |
| EPS (Basic) | - | 2.62 | 3.00 | 1.93 | -0.61 | -0.27 | -14.73 | 0.23 | 0.46 | -0.24 | 0.94 | -1.41 |
| Diluted Shares Outstanding | 996M | 994M | 1B | 1.01B | 987M | 824M | 675M | 557M | 433.33M | 427M | 430M | 430M |
| Basic Shares Outstanding | 990M | 988M | 999.66M | 1.01B | 987M | 824M | 675M | 555M | 423.91M | 427M | 429M | 429M |
| Dividend Payout Ratio | - | 35.16% | 28.06% | 40.45% | - | - | - | 308.59% | 161.54% | - | - | - |
LNG project cycle dependency
According to the latest quarterly data, Baker Hughes reported revenue of $6.6 billion in 2026Q1, reflecting a modest 2.5% year-over-year growth rate that highlights the company's current struggle to maintain the double-digit expansion seen in early 2024 as it pivots toward long-cycle industrial technology.
The deceleration from the 15.7% growth observed in 2023Q4 suggests that the company is shifting its focus toward higher-margin, project-based contracts rather than chasing volume in cyclical oilfield services. Investors should monitor whether this revenue plateau represents a strategic consolidation or a broader softening in global demand for energy infrastructure.
As reported in financial statements, Baker Hughes maintained a gross margin of 22.8% in 2026Q1, demonstrating a consistent ability to defend pricing power despite the competitive landscape of the oilfield services sector and the inherent volatility of its industrial manufacturing cost base.
The stability of these margins, hovering consistently between 20% and 24% over the last ten quarters, suggests that the company's proprietary turbomachinery technology provides a meaningful buffer against the margin compression typically seen in pure-play service peers. This performance warrants further investigation into the sustainability of these margins as the company scales its 'New Energy' initiatives.
Based on BKR's reported figures, the company achieved an operating margin of 64.4% in 2026Q1, a significant outlier that appears to be driven by non-operating items or accounting adjustments rather than purely organic improvements in core operating leverage relative to its historical 10-13% range.
While the headline operating income of $4.2 billion suggests massive scaling, the discrepancy between this figure and previous quarters indicates that investors should be cautious of one-time gains or restructuring impacts. A normalized view of operating expenses suggests that management is maintaining disciplined control over SG&A, yet the volatility in operating income warrants deep scrutiny of the underlying cost structure.
As indicated by the income statement data, net income reached $930 million in 2026Q1, though the quality of these earnings remains difficult to assess due to frequent fluctuations in non-operating items and the ongoing impact of restructuring charges following the company's separation from its former parent.
The inconsistency in net margin, which has swung from 6.3% to 16.0% over the past two years, suggests that reported EPS may not always reflect the underlying cash-generating capability of the business. Analysts should focus on the recurring nature of these earnings and the impact of stock-based compensation, which remains a persistent, albeit manageable, drag on shareholder value.
Data from recent filings suggests that while the company promotes a long-cycle industrial narrative, the 2026Q1 results still show significant sensitivity to project timing, raising concerns that the current valuation may be overly optimistic regarding the durability of its LNG-driven backlog conversion.
Short-sellers may focus on the potential for project delays in the IET segment, which could lead to significant earnings volatility if the company's percentage-of-completion accounting fails to align with actual cash inflows. The reliance on large-scale, multi-year contracts creates a 'lumpy' earnings profile that may be mispriced by investors expecting steady, linear growth.
Quick answers to the most common questions about buying BKR stock.
For fiscal year 2025, Baker Hughes Company (BKR) reported total revenue of $27.73B. This represents a 66.2% increase compared to $16.69B in 2015.
Baker Hughes Company (BKR) is profitable, generating $2.59B in net income for the fiscal year ending 2025 with a net profit margin of 9.3%.
Baker Hughes Company (BKR) reported an operating income of $3.56B, resulting in an operating profit margin of 12.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Baker Hughes Company (BKR) generated $6.54B in gross profit for the year, representing a gross profit margin of 23.6%. This demonstrates the company's core pricing power and production efficiency.