Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Baker Hughes (BKR) delivered strong Q1 FY2026 results with revenue up 2.5% YoY to $6.59B and net income surging 131.3% to $930M, while total assets expanded 33.6% to $50.9B, largely driven by significant financing activity.
Revenue
$6.59B
+2.49% YoY
Source: SEC XBRL
Baker Hughes (BKR) reported Q1 FY2026 revenue of $6.59B, up 2.5% year over year. Operating cash flow was $500M, down 29.5% year over year. BKR's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.64 | 0.51 | Beat +26.2% |
| Mar 2026This filing | 0.58 | 0.50 | Beat +16.2% |
| Dec 2025 | 0.78 | 0.68 | Beat +15.1% |
| Sep 2025 | 0.68 | 0.62 | Beat +9.3% |
Reported EPS of $0.58 versus the $0.50 analyst consensus — a +16.2% beat for Mar 2026.
Compiled by AI from this SEC filing
BKR grew total revenue by 2.5% YoY to $6.59B in Q1 FY2026, up from $6.43B in the prior-year period, reflecting steady demand across its oilfield services and industrial energy technology segments.
Source: 10-Q Income Statement
Net income surged 131.3% YoY to $930M from $402M, indicating significant improvement in profitability, potentially driven by favorable mix shift, cost discipline, or one-time gains. Net margin expanded to approximately 14.1%.
Source: 10-Q Income Statement
R&D expenses declined 8.9% YoY to $133M and SG&A fell 2.6% to $562M, demonstrating ongoing cost management efforts that contributed to the improved bottom-line performance.
Source: 10-Q Income Statement
Total assets grew 33.6% YoY to $50.9B, with current assets nearly doubling to $28.6B. This was accompanied by extraordinary financing cash inflows of $9.52B (vs. -$502M prior year), suggesting a major capital raise, debt issuance, or acquisition-related financing event during the quarter.
Source: 10-Q Balance Sheet & Cash Flow Statement
Operating cash flow fell 29.5% YoY to $500M from $709M, a notable divergence from the strong net income figure, which may reflect working capital build-up or timing of cash collections associated with business expansion.
Source: 10-Q Cash Flow Statement
Compiled by AI from this SEC filing · 2 high, 2 medium, 1 low
Despite net income of $930M, operating cash flow was only $500M — a 29.5% YoY decline. This gap may indicate significant working capital consumption or non-cash income items, raising questions about the quality and sustainability of reported earnings.
Source: 10-Q Cash Flow Statement
Financing cash flows of $9.52B in Q1 FY2026 represent an extraordinary increase from -$502M in the prior year. If this reflects new debt issuance, BKR's leverage profile may have materially changed, potentially increasing interest expense and financial risk going forward.
Source: 10-Q Cash Flow Statement & Balance Sheet
Total assets grew by over $12.8B YoY to $50.9B, a 33.6% increase. Such rapid expansion — particularly in current assets — may signal an acquisition or major business combination, introducing integration, goodwill impairment, and execution risks.
Source: 10-Q Balance Sheet
Share repurchases dropped to $0 in Q1 FY2026 from $188M in the prior-year period, a 100% decline. This may reflect capital being redirected toward acquisitions or debt service, potentially signaling a shift in capital allocation priorities that could affect shareholder returns.
Source: 10-Q Cash Flow Statement
Despite the strong net income result, ROE stands at only 4.8% and ROA at 1.8%, reflecting the capital-intensive nature of BKR's business and the dilutive effect of the significantly expanded asset base. Sustained low returns on capital may weigh on long-term valuation.
Source: 10-Q Key Ratios
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 6.59 $B | 6.43 $B | +2.49% |
Net Income $M | 930.00 $M | 402.00 $M | +131.34% |
R&D Expense $M | 133.00 $M | 146.00 $M | -8.90% |
SG&A Expense $M | 562.00 $M | 577.00 $M | -2.60% |
Answers draw on this SEC filing and the data on this page
Baker Hughes posted broadly flat Q2 FY2026 revenue ($6.7B, -2.4% YoY) and net income ($681M, -2.9% YoY) as OFSE declines from asset dispositions offset IET segment EBITDA growth, while the company raised roughly $9.6B in new debt to fund the subsequently closed $13.6B Chart Industries acquisition.
Baker Hughes (BKR) delivered a resilient FY2025 with roughly flat revenue of $27.7B and strong operating cash flow growth of 14.3% to $3.8B, though net income declined 13.1% to $2.6B amid higher investing activity and cost pressures.
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