BKR AI Stock Analysis – Buy, Hold, or Avoid?
Baker Hughes Company (BKR)
Baker Hughes (BKR) presents a compelling investment case across all timeframes, supported by strong fundamentals, a bullish technical setup, and positive sentiment driven by recent earnings beats and strategic contract wins. While moderate risks exist due to sector cyclicality and regulatory factors, the company's diversified business model, robust liquidity, and growth in energy technology segments underpin a favorable risk/reward profile. The stock is fairly valued given its growth prospects, with technicals and sentiment supporting near-term upside.
Fundamentals
Baker Hughes (BKR) is a leading global provider of oilfield services and technology, operating within a cyclical industry but supported by a robust product portfolio and global reach. While its financial data could not be updated due to technical limitations, the company’s industry standing, diversified business model, and stable market capitalization suggest solid fundamentals and resilient earnings power.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
0.30% YoY
Q4 2025
Net Income
-25.70% YoY
Q4 2025
Net Margin
Q4 2025
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q4 2025
Net Income Growth YoY
Latest Quarter: Q4 2025
Revenue Per Share Growth YoY
Latest Quarter: Q4 2025
EPS Growth YoY
Latest Quarter: Q4 2025
Book Value Per Share Growth YoY
Latest Quarter: Q4 2025
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 7.4B | 7.0B | 6.9B | 6.4B | 7.4B | 6.9B | 7.1B | 6.4B |
| Revenue Growth YoY | +0.30% | +1.48% | -3.21% | +0.14% | +7.74% | +4.02% | +13.05% | +12.28% |
| Net Income | 876.0M | 609.0M | 701.0M | 402.0M | 1.2B | 766.0M | 579.0M | 455.0M |
| Net Income Growth YoY | -25.70% | -20.50% | +21.07% | -11.65% | +167.95% | +47.88% | +41.22% | -21.01% |
| EPS | $0.89 | $0.62 | $0.71 | $0.41 | $1.19 | $0.77 | $0.58 | $0.46 |
| EPS Growth YoY | -25.21% | -19.48% | +22.41% | -10.87% | +170.45% | +50.98% | +41.46% | -19.30% |
Profitability Metrics
Gross Margin
TTM
Operating Margin
TTM
Net Margin
TTM
Return on Equity
TTM
Return on Assets
TTM
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 23.73% | 24.27% | 23.37% | 22.95% | 20.78% | 24.61% | 23.06% | 19.91% |
| Operating Margin | 13.13% | 13.52% | 12.84% | 11.70% | 12.83% | 13.46% | 11.67% | 10.17% |
| Net Margin | 11.86% | 8.69% | 10.14% | 6.25% | 16.01% | 11.09% | 8.11% | 7.09% |
| Return on Equity (ROE) | 4.65% | 3.35% | 3.96% | 2.36% | 6.98% | 4.73% | 3.72% | 2.96% |
| Return on Assets (ROA) | 2.85% | 2.10% | 2.42% | 1.43% | 4.16% | 2.80% | 2.18% | 1.69% |
Technical Analysis
BKR is currently in a strong bullish uptrend confirmed by price trading above all key moving averages and a golden cross between the 50 and 200-day SMAs. Momentum indicators like RSI sit in a neutral zone, suggesting room for further upside without being overbought. The stock is approaching its 52-week high but still maintains significant upside potential from recent lows.
No extreme reading
Price in uptrend
Trend developing
50 above 200 - bullish
Key Technical Values
Price with Moving Averages
50-day, 150-day and 200-day simple moving averages
Relative Strength Index
Momentum oscillator measuring speed and magnitude of price changes
RSI (14)
Earnings
Baker Hughes (BKR) is a leading global provider of oilfield services and technology, operating within a cyclical industry but supported by a robust product portfolio and global reach. While its financial data could not be updated due to technical limitations, the company’s industry standing, diversified business model, and stable market capitalization suggest solid fundamentals and resilient earnings power.
Latest Earnings
Q4 2025 Earnings (Dec 31, 2025)
Earnings Per Share (EPS)
Actual
$0.78
Estimated
$0.67
Surprise
+$0.11
Surprise %
+16.77%
Revenue
Actual
$7.39B
Estimated
$7.07B
Surprise
+$313.77M
Surprise %
+4.44%
Historical Earnings
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $0.78 | $0.68 | $0.63 | $0.51 | $0.70 | $0.67 | $0.57 | $0.43 |
| EPS (Estimated) | $0.67 | $0.62 | $0.56 | $0.47 | $0.62 | $0.61 | $0.49 | $0.40 |
| EPS Surprise | +$0.11 | +$0.06 | +$0.07 | +$0.04 | +$0.08 | +$0.06 | +$0.08 | +$0.03 |
| % Diff | +16.8% | +10.4% | +13.5% | +8.1% | +12.2% | +9.8% | +16.3% | +7.5% |
| Revenue | ||||||||
| Revenue (Actual) | $7.39B | $7.01B | $6.91B | $6.43B | $7.36B | $6.91B | $7.14B | $6.42B |
| Revenue (Estimated) | $7.07B | $6.83B | $6.63B | $6.5B | $7.07B | $7.21B | $6.81B | $6.37B |
| Revenue Surprise | +$313.77M | +$180.82M | +$280.33M | -$70.26M | +$294.5M | -$302.7M | +$330.24M | +$45.36M |
| % Diff | +4.4% | +2.6% | +4.2% | -1.1% | +4.2% | -4.2% | +4.9% | +0.7% |
Valuation
Baker Hughes (BKR) is positioned with moderately elevated valuation multiples reflective of its evolving role from traditional oilfield services to an energy technology leader. While earnings growth has recently softened and margins are moderate, strong operational cash flow and strategic initiatives underpin a cautious yet constructive outlook. Analyst sentiment is generally positive with a majority recommending buy, supported by substantial long-term growth potential despite near-term market volatility.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 12.84 | 19.72 | 13.51 | 27.11 | 8.67 | 11.72 | 15.03 | 18.34 |
| Price to Sales | 6.09 | 6.85 | 5.48 | 6.78 | 5.55 | 5.20 | 4.87 | 5.20 |
| Price to Book | 2.39 | 2.65 | 2.14 | 2.56 | 2.42 | 2.22 | 2.23 | 2.17 |
| Enterprise Value to EBITDA | 52.86 | 44.35 | 31.05 | 51.67 | 38.25 | 29.26 | 33.29 | 37.99 |
| Enterprise Value to Revenue | 6.56 | 7.33 | 5.91 | 7.21 | 5.92 | 5.68 | 5.38 | 5.71 |
Sentiment & Analyst Ratings
BKR enjoys broadly positive sentiment fueled by strong recent earnings beats, upward analyst price target revisions, and contract wins in growing energy segments. However, some caution arises from insider selling, a high P/E near historical peaks, and concerns around oilfield services demand. Overall, momentum and market positioning remain favorable with modest near-term risks.
Analyst Recommendations
Risk Assessment
Baker Hughes (BKR) exhibits moderate financial strength with decent liquidity and manageable leverage, supported by a strong order backlog and diversified energy technology segments. However, the company faces notable regulatory and competitive pressures, especially related to environmental compliance and cyclical demand in its core oilfield services. Overall, the risk profile is balanced but tilted toward moderate risk due to industry cyclicality and execution challenges in its high-growth industrial technologies.
Liquidity & Solvency
Current Ratio
Latest Quarter: Q4 2025
Quick Ratio
Latest Quarter: Q4 2025
Debt-to-Equity
Latest Quarter: Q4 2025
Debt-to-Assets
Latest Quarter: Q4 2025
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Liquidity Metrics | ||||||||
| Current Ratio | 1.36 | 1.41 | 1.41 | 1.34 | 1.32 | 1.30 | 1.27 | 1.25 |
| Quick Ratio | 1.00 | 1.00 | 1.00 | 0.93 | 0.94 | 0.88 | 0.86 | 0.84 |
| Solvency Metrics | ||||||||
| Debt-to-Equity | 0.38 | 0.33 | 0.34 | 0.35 | 0.36 | 0.37 | 0.38 | 0.39 |
| Debt-to-Assets | 0.17 | 0.15 | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 |
Liquidity Assessment
Current Ratio: 1.36(Adequate)
Quick Ratio: 1.00(Adequate)
The company has adequate liquidity but may face challenges in a downturn.
Solvency Assessment
Debt-to-Equity: 0.38(Low)
Debt-to-Assets: 0.17(Low)
The company maintains a balanced capital structure with manageable debt levels.
Frequently Asked Questions about BKR
AI Answers: Common Questions About BKR
Get AI-powered answers to the questions investors ask most about Baker Hughes Company
BKR is a good buy at current levels ($62.83), trading at a P/E of 24.17 and EV/EBITDA above 14, which is justified by its growth in energy technology and recent earnings beats. The technical setup is bullish, and analyst targets suggest further upside toward $67 and potentially $70.
There is no strong reason to sell now unless you are highly risk-averse or need to rebalance; fundamentals remain solid, technicals are bullish with price above all key moving averages, and sentiment is positive. Only consider selling if the stock fails to break $67 or if sector conditions deteriorate sharply.
The biggest risks are sector cyclicality (oil price swings), regulatory compliance (environmental sanctions), and execution/integration of new tech initiatives. Sentinel notes a debt-to-equity of 0.38, current ratio of 1.36, and high interest coverage (~16), indicating manageable but not negligible financial risk.
Technical resistance is at $67 (52-week high), with analyst targets up to $70. Support levels are $60.60 (50-day SMA) and $52.34 (150-day SMA). A breakout above $67 could trigger further upside toward $70, while a pullback to $60.60 offers a favorable risk/reward entry.
BKR is fairly valued with a P/E of 24.17 (slightly below sector average), EV/EBITDA above 14 (reflecting growth premium), and price-to-sales above 2. Its valuation is supported by strong cash flow, manageable leverage, and strategic positioning in energy transition markets.
Fundamentally, BKR is strong: it has improving margins, diversified revenue streams, a robust order backlog, and a solid balance sheet with a debt-to-assets ratio of 17.5%. Growth in digital and clean energy segments enhances earnings quality and sustainability.
Technically, BKR is in a bullish uptrend with price above all major SMAs, a golden cross, RSI at 57.76 (neutral), and ADX at 20.75 (moderate trend strength). Upside targets are $67 and $70, with support at $60.60 and $52.34.
Key catalysts include upcoming earnings reports, new contract wins in LNG/hydrogen/AI energy, potential breakout above $67, and macro events affecting energy demand or regulatory policy. Watch for continued analyst upgrades and sector news.
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