Baker Hughes is expected to report Q3 2026 revenue of $7.74 billion and adjusted earnings of $0.61 per share on October 27, with the stock currently trading at $55.86 against a consensus price target of $72.10.
Investors are primarily focused on the integration of Chart Industries and its impact on corporate margins and free cash flow conversion. Management recently warned that higher integration costs and initial 17% margins for the new unit would likely weigh on near-term profitability, leading to a lowered 2026 free cash flow conversion target of 40% to 45%.
Despite these margin headwinds, the Industrial & Energy Technology segment continues to benefit from record order momentum driven by global LNG and data center power demand.