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FY2026 Q2
Raised
Baker Hughes Company earnings call
Buzzberg read
IET orders hit record $7.1B, RPO up 19%
Baker Hughes reported a strong Q2 2026, beating expectations on the back of resilient OFSE performance and record IET orders, which doubled year-over-year to $7.1 billion. The company raised its full-year IET orders target to $17.5-19.5 billion and is expanding gas turbine capacity to meet unprecedented demand from data centers and LNG, while the closure of the Chart acquisition is set to create new cross-selling opportunities. Record IET orders of $7.1 billion in Q2, with a book-to-bill of 2.2x, driven by power systems, LNG, and gas infrastructure demand.
Buzzberg read IET orders hit record $7.1B, RPO up 19% Baker Hughes reported a strong Q2 2026, beating expectations on the back of resilient OFSE performance and record IET orders, which doubled year-over-year to $7.1 billion. The company raised its full-year IET orders target to $17.5-19.5 billion and is expanding gas turbine capacity to meet unprecedented demand from data centers and LNG, while the closure of the Chart acquisition is set to create new cross-selling opportunities. Record IET orders of $7.1 billion in Q2, with a book-to-bill of 2.2x, driven by power systems, LNG, and gas infrastructure demand. Read full analysisCollapse analysis
Baker Hughes reported a strong Q2 2026, beating expectations on the back of resilient OFSE performance and record IET orders, which doubled year-over-year to $7.1 billion. The company raised its full-year IET orders target to $17.5-19.5 billion and is expanding gas turbine capacity to meet unprecedented demand from data centers and LNG, while the closure of the Chart acquisition is set to create new cross-selling opportunities. Record IET orders of $7.1 billion in Q2, with a book-to-bill of 2.2x, driven by power systems, LNG, and gas infrastructure demand.
- IET orders guidance for 2026 raised to $17.5-19.5 billion, and Horizon 2 target raised to $45 billion.
- Power systems capacity expansion to support a revenue opportunity of $5 billion by 2029, a 3-4x increase from 2025.
- Chart Industries acquisition closed, with cost synergies of $325 million expected by year three and commercial opportunities in data centers, space, and geothermal.
IET Revenue$3.3B-1% QoQ
OFSE Revenue$3.45B+6% QoQ
Revenue$6.742B+2% QoQ
EPS$0.64+10% QoQ
6 grounded callouts
What matters now
The highest-signal changes from the call.
Capex
Power systems capacity expansion to drive 3-4x revenue
M&A
Chart acquisition closed, $325M synergies targeted
Show 3 more callouts
AI
Hyperscaler capex to double, driving AI power demand
Operations
Middle East disruptions manageable, OFSE resilient
Guidance
Full-year IET orders guidance raised to $17.5-19.5B
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| IET Revenue | $3.3B | -1% QoQ |
| OFSE Revenue | $3.45B | +6% QoQ |
| Revenue | $6.742B | +2% QoQ |
| EPS | $0.64 | +10% QoQ |
| Gross margin | 23.39% | Reported |
| IET Operating margin | $0.678B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Operating margin | FY2026 | $4.85B | $4.85B | Raised |
| Revenue | FY2026 | $27.35B | $27.35B | Raised |
| RevenueIET | FY2026 | $17.5B–$19.5B | $18.5B | Raised |
| RevenueIET | FY2026 | $13.5B | $13.5B | Maintained |
AI, capex & demand read
Management read
Confident
Management expressed strong confidence in the growth outlook, citing record orders, expanding capacity, and successful Chart integration, while maintaining a measured approach to geopolitical risks.
Management AI read
Management highlighted accelerating AI-driven data center power demand as a key growth driver, with hyperscaler capex expected to nearly double by 2028 and data center power demand growing at an 18% annual rate through 2030. They secured major power generation awards for data centers and see a large addressable market for power systems, expanding capacity to capture this demand.
Investment and capacity
Management is expanding gas turbine and generator capacity, with incremental capacity coming online by 2029 to support a potential $5 billion annual power systems revenue opportunity, representing a 3-4x increase over 2025. The capex spend is phased between 2026-2028, with paybacks below two years, leveraging existing roofline and strategic supplier partnerships.
all 7 named companies below
Companiesreturns since call
Customers
Customers
Lorenzo Simonelli
Kodiak is securing BKR's gas turbines for a large, multi-year power build-out in North America, a positive signal for their fleet expansion.
Evidence
“we signed a multi-year strategic agreement with Kodiak Gas Services anchored by an initial award for approximately one gigawatt of power generation capacity and a framework for up to 1.8 gigawatt over time.”
Customers
Lorenzo Simonelli
Aramco's massive gas expansion program is generating ongoing demand for BKR's compression technology.
Evidence
“we secured two significant awards for electric motor-driven compression trains, supporting the brownfield expansion of a large offshore field in the Middle East and Aramco's Ufania onshore gas development.”
Customers
Lorenzo Simonelli
Petrobras' offshore developments in the Santos Basin remain a key source of demand for BKR's oilfield services.
Evidence
“we secured a major award for Petrobras for well construction solutions across Brazil Santos Basin”
Customers
Lorenzo Simonelli
Equinor's long-term offshore commitments in Norway continue to provide a stable revenue base for BKR's services.
Evidence
“Equinor extended key contracts for integrated drilling, well services, and wireline intervention in Norway.”
Customers
Lorenzo Simonelli
IET orders, excluding data center activity, still matched the prior record of $4.9 billion, indicating the demand cycle is broad-based and not solely dependent on the AI buildout. — This separates BKR's order strength from the AI-related power demand narrative, showing LNG and broader gas infrastructure are also driving growth.
Evidence
“we secured multiple awards supporting Chenier's Sabine Pass LNG facility, including aeroderivative gas turbines and compression equipment for Train 7, a boil-off gas reliquifaction unit, and fleet-wide gas turbine enhancements”
Customers
Lorenzo Simonelli
IET orders, excluding data center activity, still matched the prior record of $4.9 billion, indicating the demand cycle is broad-based and not solely dependent on the AI buildout. — This separates BKR's order strength from the AI-related power demand narrative, showing LNG and broader gas infrastructure are also driving growth.
Evidence
“We also booked a significant award from GOLA to provide four aeroderivative gas turbine-driven refrigerant compressor trains for a floating LNG facility, marking the fourth GOLA vessel to feature Baker Hughes' gas technology solutions.”
Supply chain
Supply chain
Lorenzo Simonelli
The final investment decision (FID) for Venture Global's LNG projects is confirmed by BKR booking a major $1.8B equipment order, including 12 liquefaction modules. — This validates Venture Global's project execution and de-risks its future cash flows, confirming they are firmly on track with their expansion plans.
Evidence
“We received a major award from Venture Global, including six LNG blocks comprising of 12 liquefaction modules”
External signals
Supply-chain alpha · 4returns since call
IET orders, excluding data center activity, still matched the prior record of $4.9 billion, indicating the demand cycle is broad-based and not solely dependent on the AI buildout.
The final investment decision (FID) for Venture Global's LNG projects is confirmed by BKR booking a major $1.8B equipment order, including 12 liquefaction modules.
BKR's power systems capacity expansion is expected to support a revenue opportunity of $5 billion by 2029, a 3-4x increase from 2025 levels, indicating a massive build-out of manufacturing capacity.
The Chart acquisition is seen as a key enabler for cross-selling into data centers (power + cooling) and the space sector (cryogenics), creating new revenue streams beyond BKR's traditional energy footprint.
Methodology & coverage
Management-only analysis. All 7 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.