Baker Hughes Q3 2026 Revenue and Orders Surge Past Estimates as AI Power Demand Drives Record Backlog

Baker Hughes posted third-quarter 2026 revenue of $8.0 billion, beating analyst estimates of $7.7 billion and rising 14% year over year, while adjusted earnings per share of $0.70 topped the $0.61 consensus by a wide margin. GAAP EPS came in at $0.41 and net income was $411 million, which Reuters noted reflected lower reported profit compared to the prior year despite the headline beats.

Total orders reached $10.8 billion in the quarter, up 31% year over year, pushing the remaining performance obligation to a record $46.4 billion. The Industrial and Energy Technology segment booked $5.9 billion in orders, its second-largest quarter on record, and the company's book-to-bill ratio stood at 1.3. Baker Hughes raised its full-year IET order guidance to more than $50 billion and set a 2026-2028 IET order target above $50 billion, citing broad-based demand across data centers, LNG, space, and gas infrastructure.

Segment net revenue broke down as follows: Oilfield Services and Equipment contributed $3.7 billion, up 1% year over year; IET added $3.5 billion, up 3%; and Chart Industries, which Baker Hughes completed acquiring in an all-cash deal during the quarter, contributed $888 million. Free cash flow rose 10% year over year to $769 million, and operating cash flow grew 8% to $1.0 billion. Adjusted EBITDA was $1.4 billion, also up 14%.

Separately, Baker Hughes announced it had secured a 1.1 gigawatt power generation order and a cooling equipment order from an unnamed major U.S. technology company to support high-density AI computing. The power generation order was booked in Q3 2026 and the cooling order, which will use Chart dry coolers, was booked in Q4 2026. The company also declared a quarterly dividend of $0.23 per share. Baker Hughes stock outperformed sector peers on the trading day of the announcement.