Baker Hughes (BKR)

NASDAQEnergyOil & Gas Equipment & ServicesSnapshot 2026-07-08

$57.58+5.71%

Close 2026-07-08 · 1-day change

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The thesis

The standing, falsifiable read: what has to stay true, and what would break it.

Turnaround → Compounder

The bull case

Baker Hughes is winning big contracts, boosting orders and margins. IET backlog hit $33.1 billion with a 1.5x book-to-bill ratio. Profit margins aim to expand to 20%. The company beat EPS estimates twice recently.

The bear case

The company is still fragile and loss-making. Market is selling off sharply, reflecting risks. EU scrutiny may hurt acquisition synergies. Revenue growth is slow at about 2%.

What's priced in

The price is about 15% below our fair value near $63. Analysts expect 2.4% revenue growth. Our fair value is 14% below the Street median, reflecting cautious optimism.

What has to stay true

Realize synergies from Chart Industries acquisitionUnder Pressure
Management Executionsupportingsynergies contribute positively to margins and revenue by end FY26 · FY26 (qualitative)
Breaks if: EU scrutiny blocks acquisition or synergies fail to materialize by FY26 end
Increase full-year orders significantlyUnder Pressure
Demand Cycleprimaryorders grow >=5% YoY · FY26 (qualitative)
Breaks if: full-year orders decline or fail to grow by 5% in FY26
Expand Industrial & Energy Technology (IET) margins to 20%Under Pressure
Marginprimary>=20% margin · FY26 (qualitative)
Breaks if: IET margin falls below 15% in FY26
Are they delivering?On Track this quarter· 1 tracked commitment
- Expand IET margins to 20%Growth
  Baker Hughes aims to expand Industrial & Energy Technology (IET) margins to 20%.
  On Track
  Stated in 4 of last 4 quarters. IET backlog reached $33.1 billion in 2026-Q1, with a book-to-bill ratio of 1.5x, indicating strong demand. The trajectory shows progress towards the 20% margin target, but financials do not yet confirm full delivery.

Standing thesis, reviewed periodically — not a price target or advice.

Read the full Outlook — the long-form 1–3 year hold read

Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.