Baker Hughes (BKR) opened Q1 2026 with total revenue of US$6.6 billion and basic EPS of US$0.94, supported by net income of US$930 million for the quarter. Over the past year, quarterly revenue has moved from US$6.4 billion in Q1 2025 to US$7.4 billion in Q4 2025 and US$6.6 billion in Q1 2026. Basic EPS has ranged from US$0.41 in Q1 2025 to US$0.89 in Q4 2025 and US$0.94 in the latest quarter, setting the scene for a results season where margins and earnings quality sit firmly in focus for investors.

See our full analysis for Baker Hughes.

With the headline numbers on the table, the next step is to see how this earnings print lines up with the most common stories around Baker Hughes, highlighting where the data supports those views and where it pushes back.

Margins Backed by 11.2% Net Profit Level

• Trailing 12 month net profit margin is 11.2%, compared with 10.5% a year earlier, on revenue of about US$27.9b and net income of US$3.1b.
• Consensus narrative suggests higher margin, more recurring revenue from energy transition and digital contracts, and the margin shift in the last year supports that idea, but
  • net profit margin moved by 0.7 percentage points while earnings over the same period rose 6.5%, so the improvement is gradual rather than rapid,
  • revenue growth of about 3% a year means any push toward higher margin, less cyclical business is still being built on relatively modest top line expansion.

Earnings Growth Outruns Revenue

• Over the last 12 months, earnings grew 6.5% while revenue growth was about 3% a year, and trailing basic EPS sits at US$3.16 on US$27.9b of revenue.
• Bulls argue that expanding into data center power, LNG and new energy infrastructure should support durable earnings, and the current numbers line up partly with that view, but
  • the IET and energy transition story points to higher margin and recurring revenue, which is consistent with margins at 11.2%,
  • at the same time, the business is still exposed to oil and gas spending and cost pressures, which is reflected in earnings growth that is slower than the historical 55.6% five year average.

For a deeper look at why some investors lean toward the optimistic side after this report, including how energy transition and digital contracts fit into the story, check out the dedicated bullish view 🐂 Baker Hughes Bull Case.

Valuation Gap With Slower Forecasts

• The current share price of US$68.94 is below a DCF fair value of about US$75.78 and under a price target of US$63.48, while the P/E of 21.9x is lower than both the 23.7x peer average and the 30.1x US Energy Services industry level.
• Bears focus on slower expected growth, with forecast earnings at 2.4% a year and revenue at 3% a year versus US market forecasts of 16.1% and 11%, and that concern shows up clearly in the data, but
  • the lower P/E and discount to DCF fair value indicate the market already prices in some of that slower outlook,
  • the gap between US$68.94 and the US$75.78 DCF fair value leaves room for different views on how much the growth profile should affect valuation.

If you want to see why some investors question the slower growth story even with this valuation gap, and what they are watching most closely, the cautious bear case lays it out in detail 🐻 Baker Hughes Bear Case.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Baker Hughes on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

The mix of positives and concerns in this report is clear. Now may be a good time to review the numbers yourself and shape your own view with 3 key rewards and 1 important warning sign

See What Else Is Out There

Baker Hughes pairs an 11.2% net margin with relatively modest revenue growth and slower forecast earnings, which leaves some investors questioning its long term growth profile.

If you are concerned about slower expected growth and want ideas with stronger potential upside already filtered for quality and value, the 55 high quality undervalued stocks is a fast way to surface alternatives before the next catalyst hits.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.