Baker Hughes (BKR) Valuation After Earnings Beat And Boom Supersonic AI Data Center Contract

Simply Wall St

Thu, February 26, 2026 at 12:11 PM GMT+9 3 min read

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Baker Hughes (BKR) is back in focus after beating fourth quarter 2025 earnings and revenue estimates, and after winning a new contract to supply BRUSH Power Generation equipment for Boom Supersonic’s AI focused data center turbines.

See our latest analysis for Baker Hughes.

The latest earnings beat and the Boom Supersonic AI data center contract arrive during a strong run, with a 30-day share price return of 15.14% and a 1-year total shareholder return of 51.97% suggesting momentum has been building rather than fading.

If this energy and AI data center story has your attention, it could be a good moment to see what else is powering the trend through our list of 33 AI infrastructure stocks.

With Baker Hughes trading around $64.81 and carrying an estimated 18% intrinsic discount but sitting above its average analyst target, you have to ask: Is there still value here, or is the market already pricing in future growth?

Most Popular Narrative: 6.6% Overvalued

The most followed valuation narrative puts Baker Hughes’ fair value at $60.80, a touch below the recent $64.81 close. This creates an interesting tension between model and market.

The analysts have a consensus price target of $50.545 for Baker Hughes based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $60.0, and the most bearish reporting a price target of just $37.0.

Read the complete narrative.

Want to see what justifies a fair value above that consensus? The narrative focuses on modest revenue growth, steady margins, and a richer future earnings multiple. Curious which assumptions carry the most weight?

Result: Fair Value of $60.80 (OVERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, if tariffs, cost inflation, or policy swings hit margins harder than expected, that 6.6% overvaluation call could start to look conservative.

Find out about the key risks to this Baker Hughes narrative.

Another View: Cash Flows Tell a Different Story

While the most popular narrative sees Baker Hughes as 6.6% overvalued at around $64.81 versus a $60.80 fair value, our DCF model points in the opposite direction, with a future cash flow value of $79.20 and an 18.2% intrinsic discount. When earnings and cash flows disagree like this, which signal do you trust more?

Story Continues  

Look into how the SWS DCF model arrives at its fair value.

BKR Discounted Cash Flow as at Feb 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Baker Hughes for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 53 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

If this mix of opportunity and concern feels familiar, take a moment to look through the data yourself and decide where you stand, starting with 2 key rewards and 1 important warning sign.

Looking for more investment ideas?

If you stop with just one stock, you risk missing other opportunities quietly lining up, so broaden your watchlist with a few targeted idea lists.

Target potential mispricings by scanning the market for 53 high quality undervalued stocks that combine quality fundamentals with room for a re rating.

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Protect your downside by considering 80 resilient stocks with low risk scores that score well on balance sheet strength and risk factors.

_ This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

Companies discussed in this article include BKR.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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