Giant oilfield services company, Baker Hughes (NYSE:BKR), has reported robust first quarter results, with Q1 2026 revenue of $6.59B (+2.5% Y/Y) beating by $260 million; Q1 non-GAAP EPS of $0.58 beat by $0.09 while adjusted net income of $573 million was good for 12% Y/Y increase. The growth was mainly driven by the Industrial & Energy Technology (IET) segment, where orders surged on demand for LNG and gas equipment offset weakness in Oilfield Services caused by Middle East disruptions.While earnings beat expectations, drilling activity was impacted by Middle East tensions, similar to challenges flagged by peers SLB (NYSE:SLB) and Halliburton (NYSE:HAL).
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The IET segment posted revenue growth of 14% Y/Y to $3.35 billion thanks to strong demand for data center electricity and LNG, helping to overcome a 7% decline in the Oilfield Services and Equipment (OFSE) segment.
Major contracts included the provision of compressor technology for QatarEnergy LNG’s North Field West project as well as securing a massive 5-year services award from Petrobras (NYSE:PBR). The segment recorded orders rising to $4.89B, representing solid 54% year-over-year growth driven by LNG, gas technologies, and sub-utility power generation, including a major deal for 25 BRUSH generators for a data center project. IET, Baker Hughes industrial and energy technology segment, is heavily involved in decarbonization, with New Energy bookings reaching over $2 billion in 2025, exceeding targets.
Baker Hughes is pivoting towards a diversified energy and industrial technology company, targeting 20% EBITDA margins by 2026-2028 through expansion in LNG, digital solutions, and new energy frontiers like hydrogen and carbon capture. The IET segment is the company’s primary growth driver, focusing on LNG infrastructure, high-efficiency gas turbines and industrial decarbonization.
The company is also investing in digital-first asset management through Cordant and AI partnerships such as C3 AI to improve customer efficiency, emissions reduction and operational uptime. Baker Hughes is investing in hydrogen-ready turbines, carbon capture, utilization, and storage (CCUS) technologies to support net-zero ambitions.
By Alex Kimani for Oilprice.com
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