About $500 million of its new orders were related to data center projects.

Baker Hughes stock gained 1.6% in premarket trading on Wednesday after the oilfield technology firm’s second-quarter profit topped Wall Street estimates amid strong data center-related orders.

The company reported adjusted earnings of $0.63 per share for the three months ended June 30, while analysts expected it to post $0.55 per share in earnings, according to Fiscal.ai data. Its revenue of $6.9 billion also topped estimates, but came in lower than a year earlier.

Similar to its rivals, SLB and Halliburton, Baker Hughes projected a decline in oilfield activity amid concerns about oil demand. The firm expects upstream spending in North America to be down low-double digit percentage points and international to decline by high-single digit percentage points.

However, the company is banking on growing power demand to mitigate the impact of a weak outlook for its core oilfield services segment. According to a report by Deloitte, power demand from AI data centers in the United States is expected to grow more than thirtyfold, reaching 123 gigawatts, up from 4 gigawatts in 2024.

The company said that orders at its Industrial & Energy Technology reached $3.5 billion in the second quarter, resulting in another record backlog for the segment. About $500 million of the new orders were related to data center projects. The company raised the full-year revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) forecast for the IET segment.

Retail sentiment on Stocktwits was in the ‘bullish’ territory at the time of writing, while retail chatter was ‘high.’

The company also said it expects to "meet or exceed" its three-year goal to confirm $1.5 billion of orders in data center equipment ahead of prior expectations. It also continues to expect tariff impact between $100 million and $200 million on consolidated 2025 core earnings.

“We remain confident in our ability to deliver solid performance in 2025, with continued growth in IET helping to offset softness in more market-sensitive areas of OFSE – underscoring the strength of our portfolio and the benefits of our strategic diversification,” CEO Lorenzo Simonelli said.

Baker Hughes stock has fallen 3.8% this year.

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