BKR AI Stock Analysis – Buy, Hold, or Avoid?
Baker Hughes Company (BKR)
Baker Hughes (BKR) is fundamentally strong with expanding margins, robust backlog, and positive sentiment, but currently trades at a fair-to-premium valuation and is experiencing a short-term technical pullback. While long-term prospects remain attractive, near-term upside is limited by recent price volatility and valuation discipline. Investors should consider holding or waiting for a better entry point unless a technical breakout or new catalyst emerges.
Fundamentals
Baker Hughes (BKR) demonstrates solid revenue and earnings progress, with moderate but steady margin improvements and competitive profitability. The company’s fundamentals are robust, underpinned by both organic expansion and operational leverage, though near-term EPS growth appears to be moderating off a strong base. Valuation is fair relative to recent earnings growth, but short-term caution is warranted following recent price volatility and a premium P/E multiple.
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
Technical Analysis
Unable to retrieve direct technical indicator data for BKR at this moment. Based on available price movements and volume context, BKR is experiencing a short-term pullback near recent resistance levels. Momentum appears to be cooling off after a prior uptrend, with key moving average positions to be confirmed.
No extreme reading
Price in uptrend
Strong trend active
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) demonstrates solid revenue and earnings progress, with moderate but steady margin improvements and competitive profitability. The company’s fundamentals are robust, underpinned by both organic expansion and operational leverage, though near-term EPS growth appears to be moderating off a strong base. Valuation is fair relative to recent earnings growth, but short-term caution is warranted following recent price volatility and a premium P/E multiple.
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
+$313.76M
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 | +$313.76M | +$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) presents a mixed valuation profile with a slightly premium P/E ratio relative to direct peers but below the broader energy services sector average. While some valuation multiples suggest the stock is richly priced, discounted cash flow models indicate potential undervaluation given future cash flow prospects. The company's stable financial health, solid margins, and positive analyst sentiment support a cautiously optimistic outlook.
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 | 31.07 | 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 is currently experiencing a generally positive market sentiment, backed by strong recent financial performance and optimistic growth prospects in its Industrial & Energy Technology segment. While the stock trades slightly above some fair value estimates, analysts largely recommend a buy, reflecting confidence in its growth trajectory and execution capabilities.
Analyst Recommendations
Risk Assessment
Baker Hughes demonstrates a solid financial foundation with manageable leverage, stable liquidity, and strong interest coverage, supported by robust earnings and record backlog growth. Market sentiment remains largely positive as analysts predominantly recommend buying, reflecting confidence in its growth outlook despite some valuation concerns and industry headwinds. Key risks involve geopolitical uncertainties, regulatory shifts, and execution challenges related to business expansions and energy transition investments.
Liquidity & Solvency
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 not a screaming buy at $62.37 (P/E 23.99), as it trades at a premium to direct peers but below the sector average. While fundamentals and sentiment are strong, technicals suggest waiting for stabilization near $62 or a breakout above $65-$67 for a better entry.
Unless your thesis has changed or you are a short-term trader, there is no strong reason to sell now; fundamentals remain robust and sentiment is positive. However, if you are risk-averse to valuation pullbacks or need liquidity, consider trimming if price breaks below $62 support.
The biggest risks are sector cyclicality (commodity price swings), execution risk on energy transition projects, and valuation risk if growth slows. Debt is moderate (debt/equity 0.38, interest coverage >15x), and liquidity is stable (current ratio 1.36), but macro/regulatory shocks could impact performance.
Technical resistance is near $67, with support at $62 and next support at $58-$60 if $62 breaks. Analyst targets suggest mid-to-high single digit upside from current levels, contingent on continued earnings momentum and backlog growth.
BKR is fairly valued at ~24x P/E and a high EV/EBITDA, reflecting strong margin and cash flow expectations; DCF models suggest some undervaluation if growth persists, but multiples require continued execution to justify.
Fundamentally, BKR is strong: gross margin has improved to 23.6%, operating margin to 12.8%, and net margin to 9.3%. Revenue is stable at $27.7B, growth is organic, and leverage is moderate, supporting resilience and operational flexibility.
Technically, BKR is in a short-term pullback after failing to break $65-$67 resistance, now testing support at $62. Momentum is neutral to slightly bearish, and traders should wait for a reversal or breakout before entering.
Key catalysts include upcoming earnings reports, further backlog expansion, major contract wins in LNG or digital energy, and macro events such as regulatory changes or shifts in energy demand.
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