• In March 2026, XGS Energy announced a collaboration and initial order for Baker Hughes engineering services to advance XGS’s planned 150-megawatt geothermal project in New Mexico, while Baker Hughes also agreed to supply turbomachinery and long-term services for LNG and Petrobras offshore operations.
• Together with Baker Hughes’ new AI-focused partnership with Google Cloud for data center power optimization, these agreements highlight the company’s expanding role at the crossroads of conventional gas infrastructure and emerging low-carbon and digital energy solutions.
• We’ll now explore how Baker Hughes’ AI-enabled data center power optimization push with Google Cloud could influence its existing investment narrative.

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Baker Hughes Investment Narrative Recap

To own Baker Hughes, you need to believe it can keep turning its gas technology and services backbone into steadier, higher quality earnings while carefully managing exposure to volatile upstream spending and policy risk around gas and data center power. The latest geothermal, LNG, Petrobras and AI data center announcements strengthen the near term order book and service visibility, but do not materially change the key catalyst of backlog conversion or the core risks from cost inflation and shifting energy policy.

The new AI-focused power optimization collaboration with Google Cloud looks most relevant here, because it directly ties Baker Hughes’ turbomachinery and digital capabilities to growing data center power needs while reinforcing the catalyst of expanding higher margin service and software style revenue streams. How well Baker Hughes turns these kinds of AI and low carbon partnerships into durable contracts and follow on work will matter for how resilient earnings look if traditional upstream markets soften.

Yet while AI data centers and LNG orders are front and center, investors should also be aware that...

Baker Hughes' narrative projects $29.4 billion revenue and $3.2 billion earnings by 2029. This requires 2.0% yearly revenue growth and about a $0.6 billion earnings increase from $2.6 billion today.

Uncover how Baker Hughes' forecasts yield a $61.33 fair value, a 3% downside to its current price.

Exploring Other Perspectives

Four Simply Wall St Community fair value estimates for Baker Hughes span about US$51 to roughly US$78 per share, reflecting very different expectations. Against this wide range, the company’s growing reliance on LNG and data center power solutions as long term drivers means any policy shift that favors faster renewables adoption could matter more than many readers might first assume, so it is worth reviewing several of these viewpoints side by side.

Explore 4 other fair value estimates on Baker Hughes - why the stock might be worth 19% less than the current price!

Reach Your Own Conclusion

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your Baker Hughes research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Baker Hughes research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Baker Hughes' overall financial health at a glance.

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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.