Baker Hughes Company

The Beneish M-Score is -2.687, which the label places below -1.78 and not in the elevated manipulation-risk zone. That is a screening result, not proof that the numbers are clean. The Piotroski F-Score is 4 of 6 computable signals, meaning four of the six signals that could be calculated from the data passed, and it is not a score out of nine. The Fog Index of 18.18 falls in the band above 18, labeled very hard to read, so the MD&A requires more effort than a typical filing. No Altman Z-score is on file for this review, so no solvency zone is assessed. Operating cash flow of $3.81 billion in 2025, up from $3.33 billion in 2024, is 1.47 times net income, which supports the reported earnings. Equity rose to $18.83 billion from $16.89 billion. In the 10-Q, the company made no open-market repurchases in the quarter ended June 30, 2026, leaving $1,348,978,828 under its $4 billion repurchase program. The filing also lists a Term Loan Facility Credit Agreement dated July 15, 2026, with Bank of America and UniCredit as administrative agents. The excerpt does not show its terms, so readers may want to check the referenced 8-K exhibits. Legal proceedings are cross-referenced to Note 16, which is not reproduced here. The data center order figures are management forecasts, so readers may want to compare them against future quarterly filings.

Catalyst.According to the 10-K business section, Baker Hughes is pursuing three pillars: transforming the core, driving profitable growth, and delivering results in new energy. The most concrete demand item is data center power. The company says it booked $1 billion of data center-related orders in 2025 and now expects about $3 billion between 2025 and 2027. Revenue was essentially flat, at $27.73 billion in 2025 versus $27.83 billion in 2024, while operating cash flow rose to $3.81 billion from $3.33 billion. The 10-Q also notes that the surface pressure control joint venture with Cactus was completed on January 1, 2026, and lists a merger agreement with Chart Industries dated July 28, 2025 among its exhibits.

Hidden risk.The most material tension is between earnings and the headline growth story. Revenue slipped 0.3% in 2025, and net income fell from $2.98 billion in 2024 to $2.59 billion, a drop of about 13.1%, even though operating cash flow rose. The excerpt does not explain the earnings decline. The 10-Q says the SAP Central Finance (cFIN) rollout modified certain finance processes and related internal controls, though management concluded disclosure controls were effective. Its risk factors are incorporated by reference from the 2025 Annual Report rather than restated, and the MD&A's Fog Index of 18.18 makes the text harder for a casual reader to parse.