• In late May 2026, Baker Hughes announced multi-year contract extensions with Equinor in the North Sea and Petrobras in Brazil’s Santos Basin, supplying integrated drilling, well services and advanced offshore technologies like Kantori, TRU-ARMS and AutoTrak to support offshore hydrocarbon development and production optimization.
• These extensions highlight how Baker Hughes is deepening its role as a long-term technology and services partner in key offshore basins, expanding its exposure to complex, higher-value well construction and intervention work across both the Norwegian Continental Shelf and Brazil’s pre-salt fields.
• Next, we’ll examine how these expanded Equinor and Petrobras contracts interact with Baker Hughes’ push into higher-margin integrated solutions.

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Baker Hughes Investment Narrative Recap

To own Baker Hughes, you generally need to believe in its ability to turn a large, technology-heavy backlog into steady cash flow while managing exposure to upstream spending and big-ticket energy projects. The new Equinor and Petrobras extensions reinforce that backlog story in offshore, but they do not clearly change the most important short term swing factor, which remains project timing and margins in its larger industrial and energy technology portfolio, or the key risk of cost and pricing pressure on long duration contracts.

The Equinor extensions in the North Sea are the clearest link to this, because they show Baker Hughes leaning further into integrated drilling, intervention and production optimization work using its PRIME-based technology stack. That ties directly into the existing catalyst of higher-margin, integrated solutions and recurring services, but also into the risk that long running offshore commitments could feel more pressure if input costs, tariffs or customer pricing demands move against what is currently assumed.

Yet investors should also weigh how sensitive these long dated offshore and LNG linked contracts are to cost inflation and project delays, because...

Baker Hughes' narrative projects $30.6 billion revenue and $3.3 billion earnings by 2029. This requires 3.1% yearly revenue growth and an earnings increase of about $0.2 billion from $3.1 billion today.

Uncover how Baker Hughes' forecasts yield a $69.33 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Some analysts are far more optimistic, assuming revenue could reach about US$34.3 billion and earnings about US$3.6 billion by 2029, but this upbeat view on backlog conversion and LNG or power projects could be challenged or reinforced as new offshore awards like Equinor and Petrobras are digested, so it is worth comparing these bullish expectations with more cautious scenarios before you decide what seems realistic.

Explore 3 other fair value estimates on Baker Hughes - why the stock might be worth just $69.33!

The Verdict Is Yours

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your Baker Hughes research is our analysis highlighting 4 key rewards 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.