Key Takeaways
- Baker Hughes shares fell 6% today, even though third-quarter adjusted EPS of $0.70 beat the $0.61 consensus.
- GAAP net income fell 33% to $411 million on costs tied to the Chart Industries purchase.
- GE Vernova’s results back Baker Hughes’ record $39.4 billion industrial backlog, while SLB and Eni point to a slow Middle East and careful oil spending.
- The selloff looks like a fair reset for a stock priced above its usual multiple.
Baker Hughes (BKR) fell 6% today, even though its third-quarter adjusted EPS of $0.70 beat the $0.61 consensus. But GAAP net income fell 33% from a year ago, to $411 million.
The drop came the same morning GE Vernova (GEV) reported a blowout quarter in gas turbines. It also came five days after SLB (SLB) said its Middle East business is only slowly recovering, and as Baker Hughes announced a subsea contract from Eni (E) for the Cronos gas field off Cyprus.
The bill for Chart
This was the first quarter to include Chart Industries. It brought $143 million of amortization, $158 million of deal costs and interest expense that more than tripled to $177 million.
Analysts expect adjusted EPS to dip slightly this year, to $2.55 from $2.60 in 2025, then climb to $3.54 by 2028.
The Middle East is a group problem
Baker Hughes’ Middle East/Asia revenue fell 13% to $1.26 billion, which the company puts down to selling its Surface Pressure Control business.
SLB’s Middle East business grew 13% from the second quarter “despite late-quarter disruptions,” CEO Olivier Le Peuch said on Oct. 23. Without its ChampionX deal, though, SLB’s international revenue was flat from a year ago. SLB is up [0.1%] today.
Eni is spending carefully. It cut its organic capital spending 14% in the first nine months of 2026, to €5.1 billion, even as it raised its buyback to €3.8 billion. Eni is up 2% today.
TIKR tracks 25 analysts on Baker Hughes. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on Baker Hughes, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Baker Hughes’ Analyst Ratings
Gas turbines are still selling
Baker Hughes’ industrial backlog hit a record $39.4 billion, and the company raised its industrial order outlook for 2026-2028 to “$50 billion plus.”
GE Vernova’s orders rose 96% organically to $29.3 billion, and it raised its 2026 guidance. Its stock is down only 1% today, so investors aren’t marking down gas-turbine backlogs across the group.
A premium price with a dip coming
Baker Hughes went into the report priced well above its usual multiple.
It closed Tuesday at 21x forward earnings, against a five-year average of 19x. Today’s drop takes it to about 20x.
My take: this is a fair reset, with $17.5 billion of long-term debt on the books. But nothing in this report hurt the record backlog you’re buying.
Of course, the Middle East could take longer to recover. The fourth-quarter report early next year is the next test of how quickly Chart’s costs fall away.
So what is Baker Hughes stock actually worth?
TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR’s valuation model and see what Baker Hughes could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It’s free to use.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
