Abstract
Baker Hughes will report its quarterly results on January 25, 2026 Post Market, with investors watching revenue, margins, and adjusted EPS against the prior quarter’s beat.
Market Forecast
Consensus and company-derived indicators point to revenue of $7.07 billion for the current quarter, adjusted EPS of $0.67, and EBIT of $0.98 billion, with year-over-year changes of -0.15% for revenue, 7.30% for adjusted EPS, and 1.03% for EBIT. The last quarter’s gross profit margin was 24.27% and the net profit margin was 8.69%, and the current quarter is expected to maintain margin stability supported by a mix shift toward higher-return offerings. Baker Hughes’s main businesses—Oilfield Services & Equipment and Industrial & Energy Technology—remain the focus, with the latter’s energy technology portfolio cited for stronger order momentum and potential mid-single-digit growth. The most promising segment is Industrial & Energy Technology with last quarter revenue of $3.37 billion and visible YoY expansion driven by LNG equipment, CCUS solutions, and electrification orders.
Last Quarter Review
Baker Hughes delivered last quarter revenue of $7.01 billion, a gross profit margin of 24.27%, GAAP net profit attributable to shareholders of $0.61 billion, a net profit margin of 8.69%, and adjusted EPS of $0.68, all reflecting year-over-year improvement at the headline level. The quarter also registered EBIT of $0.96 billion, exceeding preliminary estimates and supporting margin progress across core product lines and services. Main business highlights included Oilfield Services & Equipment revenue of $3.64 billion and Industrial & Energy Technology revenue of $3.37 billion, with orders and backlog trends suggesting healthy demand breadth.
Current Quarter Outlook (with major analytical insights)
Oilfield Services & Equipment
Oilfield Services & Equipment is set to be steady, with upstream spending patterns and international work driving activity, while North America remains mixed. Pricing discipline and efficiency gains should help protect margins, even as project timing introduces variability in completions and drilling services revenue. The segment’s revenue base of $3.64 billion last quarter provides a measure of resilience, and incremental pricing from selective new awards could offset seasonal project slowdowns. Risks include operational delays on large offshore programs and potential deferrals by customers; however, cross-border activity and integrated service offerings are likely to provide support. On balance, the segment’s contribution to consolidated EBIT should remain consistent, aided by a favorable mix of higher-technology services.
Industrial & Energy Technology
Industrial & Energy Technology carries the strongest growth potential this quarter, with last quarter’s $3.37 billion revenue anchored by LNG, compression, and emerging decarbonization solutions. Secular momentum in LNG capacity additions, demand for high-efficiency turbomachinery, and visible opportunities in carbon capture and hydrogen infrastructure suggest order progression and revenue conversion. The margin profile benefits from aftermarket services and installed-base upgrades that typically command higher returns than initial equipment projects. While order intake can be lumpy due to megaproject schedules, the backlog conversion cadence indicates supportive revenue mix, and management’s operational simplification initiatives continue to underpin cost control. A measured increase in EBIT contribution is likely if project milestones are met and service attachment rates remain favorable.
Stock Price Drivers This Quarter
The key stock price drivers will be the interplay between margin sustainability and revenue trajectory relative to guidance and consensus, with adjusted EPS sensitivity tied to segment mix and cost execution. Investors will monitor updates on LNG project timing, CCUS commercial wins, and broader decarbonization equipment demand, which influence the Industrial & Energy Technology growth narrative. Cash generation and order backlog quality will be important signals for durability of multi-quarter earnings visibility, while any commentary on pricing discipline in Oilfield Services & Equipment could shape expectations for margin carryover. A slight contraction in revenue versus last year’s level would likely be tolerated if EBIT and EPS exceed consensus through operational leverage and mix optimization.
Analyst Opinions
Across recently published institutional views, the majority stance is constructive on Baker Hughes, citing resilient margins and supportive backlog dynamics despite uneven macro signals. Several well-followed sell-side voices point to balanced risk-reward near term, with upside linked to execution in Industrial & Energy Technology and steady contributions from Oilfield Services & Equipment. Commentary emphasizes that the prior quarter’s upside on EBIT and adjusted EPS establishes a firmer baseline, while the current quarter’s forecasted EPS of $0.67 and EBIT of $0.98 billion would validate ongoing margin discipline. The prevailing view expects modest revenue variance to be outweighed by cost control, service attachment, and higher-return product mix, suggesting potential for adjusted EPS to meet or slightly exceed consensus if operational cadence holds. Institutional sentiment thus leans toward a cautiously bullish interpretation of near-term results, contingent on evidence of backlog conversion and margin carryover.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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