Revenue reaccelerated 14.5% year over year to $8.0B in 2026Q3 with gross margin at 24.0%, but operating margin slipped to 13.0% from 13.5% as SG&A grew 20.6% to $732.0M and net margin compressed to 5.1% on non-operating drag, per company-reported statements.
Baker Hughes Company (BKR) annual income statement — 11-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 |
|---|
| Sales/Revenue | 28.74B | 27.73B | 27.83B | 25.51B | 21.16B | 20.5B | 20.7B | 23.84B | 22.88B | 17.18B | 13.27B | 16.69B |
| Revenue Growth % | 3.71% | -0.34% | 9.11% | 20.56% | 3.19% | -0.98% | -13.14% | 4.2% | 33.17% | 29.47% | -20.49% | - |
| Cost of Goods Sold | 21.98B | 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 | 6.76B | 6.54B | 6.48B | 5.9B | 4.96B | 4.54B | 3.73B | 4.43B | 3.99B | 3.04B | 3.15B | 4.5B |
| Gross Margin % | 23.53% | 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 | 3.28B | 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 | 2.5B | 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 | 573M | 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 | 2M | 0 | 0 | 0 | 0 | 269M | 0 | -161M | -114M | 284M | 185M | 2.11B |
| Operating Income | 3.49B | 3.56B | 3.38B | 2.64B | 1.89B | 1.31B | 672M | 1.07B | 701M | -284M | 457M | -138M |
| Operating Margin % | 12.13% | 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 | 5B | 4.75B | 4.52B | 3.73B | 2.95B | 2.42B | 1.99B | 2.49B | 2.19B | 819M | 1.01B | 392M |
| EBITDA Margin % | 17.41% | 17.11% | 16.23% | 14.61% | 13.95% | 11.78% | 9.61% | 10.45% | 9.56% | 4.77% | 7.59% | 2.35% |
| EBITDA Growth % | 6.83% | 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) | 1.52B | 1.19B | 1.14B | 1.09B | 1.06B | 1.1B | 1.32B | 1.42B | 1.49B | 1.1B | 550M | 530M |
| EBIT | 3.6B | 3.1B | 3.46B | 2.87B | 274M | 727M | 672M | 990M | 764M | -215M | 686M | -38M |
| Net Interest Income | -390M | -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 | 390M | 222M | 198M | 216M | 252M | 299M | 264M | 237M | 223M | 131M | 102M | 120M |
| Other Income/Expense | -273M | -680M | -117M | 15M | -1.87B | -882M | -15.87B | -321M | -160M | -62M | -99M | -20M |
| Pretax Income | 3.21B | 2.88B | 3.27B | 2.65B | 22M | 428M | -15.2B | 753M | 541M | -346M | 358M | -158M |
| Pretax Margin % | 11.18% | 10.37% | 11.73% | 10.41% | 0.1% | 2.09% | -73.42% | 3.16% | 2.36% | -2.01% | 2.7% | -0.95% |
| Income Tax | -136M | 253M | 257M | 685M | 600M | 758M | 559M | 482M | 258M | 45M | 173M | 473M |
| Effective Tax Rate % | -4.23% | 8.79% | 7.87% | 25.8% | 2727.27% | 177.1% | -3.68% | 64.01% | 47.69% | -13.01% | 48.32% | -299.37% |
| Net Income | 2.9B | 2.59B | 2.98B | 1.94B | -601M | -219M | -9.94B | 128M | 195M | -61M | 254M | -606M |
| Net Margin % | 10.09% | 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 % | 0.28% | -13.13% | 53.32% | 423.29% | -174.43% | 97.8% | -7865.63% | -34.36% | 419.67% | -124.02% | 141.91% | - |
| Net Income (Continuing) | 3.35B | 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 | 428M | 176M | 160M | 151M | 131M | 1.92B | 5.35B | 12.57B | 17.55B | 24.13B | 167M | 157M |
| EPS (Diluted) | 2.90 | 2.60 | 2.98 | 1.91 | -0.61 | -0.27 | -14.73 | 0.23 | 0.45 | -0.24 | 0.94 | -1.41 |
| EPS Growth % | 0.34% | -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 | 998M | 994M | 1B | 1.01B | 987M | 824M | 675M | 557M | 433.33M | 427M | 430M | 430M |
| Basic Shares Outstanding | 993M | 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% | - | - | - |
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.
Key Metrics
Top Statement Risk
Non-operating drag on net margin
Metrics are mathematically derived from official filings.
Growth Reaccelerates After Flat Year
Baker Hughes posted $8.0B of revenue in 2026Q3, a 14.5% year-over-year increase that breaks sharply from the prior four quarters, which all printed growth at or below 1.5% per company-reported statements, suggesting top-line momentum has shifted meaningfully.
The jump from roughly flat organic-looking growth (0.3% to 2.5% range through 2025Q4-2026Q2) to 14.5% warrants scrutiny on composition: given the company's long-cycle IET mix, this likely reflects backlog conversion of LNG turbomachinery orders rather than a step-change in underlying OFSE demand. The durability question for investors is whether 2026Q3 marks the start of a multi-quarter conversion cycle or a lumpiness-driven spike, and prior quarters' stagnation suggests the latter cannot be ruled out without backlog disclosure.
Gross Margin Premium Over OFS Peers
At 24.0% in 2026Q3, Baker Hughes' gross margin sits roughly 580 basis points above SLB's 18.2% and 830 basis points above Halliburton's 15.7% per comparative peer disclosures, consistent with a richer industrial-technology revenue mix rather than pure oilfield services.
The margin band has been remarkably stable between 22.8% and 24.6% across all ten quarters, implying pricing power is holding despite flat volumes, which supports the thesis that proprietary turbomachinery commands premium economics over commodity pressure pumping. However, 2026Q3's 24.0% is actually below the 24.6% seen in 2024Q3, indicating the recent revenue acceleration is not yet translating into structural gross margin expansion, so investors should monitor whether project mix dilutes rather than enhances blended profitability.
Overhead Growth Outpaces Revenue Uptick
SG&A rose to $732.0M in 2026Q3 from $607.0M a year earlier, a 20.6% increase that outpaced the 14.5% revenue growth for the same period, according to Baker Hughes' quarterly income statement, pulling operating margin down to 13.0% from 13.5%.
This is a negative operating leverage data point in what was otherwise the strongest revenue quarter of the series: gross margin held near peak at 24.0%, yet operating margin slipped, meaning incremental overhead absorbed the benefit of volume. Combined with R&D at $150.0M versus $146.0M, the pattern suggests the company is investing ahead of revenue realization, which may be defensible for a backlog-driven business but compresses near-term conversion of top-line gains into operating income.
Net Income Diverges from Operating Gains
2026Q3 net income fell to $411.0M on $1.0B of operating income, a 5.1% net margin versus 13.0% operating margin, with diluted EPS declining 32.8% year over year despite 14.5% revenue growth as reported in Baker Hughes' financial statements.
The unusually wide gap between operating and net results implies a substantial non-operating charge, tax item, or minority-interest drag in the quarter, and since the operating lines look healthy, earnings quality rather than operations appears to be the issue. Stock-based compensation of $57.0M also represents a meaningful share of the $411.0M net figure, and given EPS has swung violently (from +132.5% in 2026Q1 to -32.8% in 2026Q3), investors should treat trailing P/E multiples cautiously until the volatility's source is clarified.
Skeptics Would Flag Earnings Durability
A short-seller would note that net margin ranged from 5.1% to 16.0% over ten quarters while revenue growth was negative in three of them, per Baker Hughes' reported results, arguing the earnings trajectory depends more on one-off items and mix than repeatable operating gains.
The strongest challenge is that 2026Q3's revenue beat sits atop a year of stagnant growth, coincides with SG&A outpacing revenue, and still produced the worst net margin of the series, which is a difficult combination to characterize as improving fundamentals. With guidance tone omitted from the latest report and Middle East execution risk unresolved per recent disclosures, the market may be underwriting a reacceleration story that has not yet been demonstrated through consecutive quarters of both growth and margin expansion.