The quarter cleared expectations on both earnings and revenue. Adjusted diluted EPS was $0.64 versus a published consensus of roughly $0.50, while revenue was $6.742 billion versus approximately $6.52 billion expected. The core operating result also exceeded management’s own high-end EBITDA guidance, making this more than a simple revenue beat. (Financial Highlights)
| Metric | Q2 2026 | Q2 2025 | Sequential / YoY | Expectation or context |
|---|---|---|---|---|
| Revenue | $6,742M (Financial Highlights) | $6,910M (Income Statement) | +2% / -2% | ~ $6.52B consensus |
| Adjusted diluted EPS | $0.64 (Reconciliation of GAAP to non-GAAP Financial Measures) | $0.63 (Reconciliation of GAAP to non-GAAP Financial Measures) | +12% / +2% | ~ $0.50 consensus |
| Adjusted EBITDA | $1,231M (Financial Highlights) | $1,212M (Financial Highlights) | +6% / +2% | Above high end of company guidance |
| Total orders | $10,501M (Financial Highlights) | $7,032M (Financial Highlights) | +29% / +49% | IET drove the upside |
| Free cash flow | $1,109M (Cash Flow statement) | $239M (Cash Flow statement) | Favorable / favorable | Strong working-capital contribution |
IET was the decisive upside driver. Industrial & Energy Technology orders reached $7.088 billion, up 101% year over year, with gas technology equipment orders at $4.913 billion versus $1.824 billion a year earlier. IET backlog/RPO also reached a record $37.1 billion, up $4.0 billion sequentially. That supports a materially better demand picture in power generation, LNG, and data-center infrastructure, although the order surge will convert to revenue over time rather than immediately. (IET Segment Results; Orders by Product Line; Financial Highlights)
The company raised the most important forward indicator rather than merely repeating its outlook. Baker Hughes raised full-year IET order guidance and lifted its Horizon 2 IET orders outlook to more than $45 billion, while retaining confidence in reaching the midpoint of full-year company guidance. (Management Commentary) This is a genuine estimate reset, not just favorable language, but the filing does not provide a new consolidated revenue or EBITDA range.
OFSE improved sequentially but remains the offsetting weakness. OFSE revenue rose 7% sequentially and EBITDA rose 7%, yet revenue was still down 5% year over year and EBITDA margin declined to 17.5% from 18.7%. Middle East disruption, inflation, lower volume, and disposed businesses remain pressure points. The net read is still a clear beat because IET bookings, profitability, cash generation, and raised order expectations outweigh the softer year-over-year OFSE and consolidated revenue comparisons. (OFSE Segment Results; Revenue by Geographic Region)
Read the original 8-K on SEC EDGAR ↗