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GE Healthcare Technologies Inc
(NASDAQ:GEHC)
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Rating:74Outperform
Price Target:
$85.00
▲(15.95% Upside)
Action:Reiterated
Date:10/29/26
GEHC scores well primarily due to a strong, guidance-raising earnings update and solid overall financial footing. Offsetting factors include recent margin and cash-conversion pressure in TTM results and a technically overbought setup that can increase near-term pullback risk. Valuation appears reasonable, but the low dividend yield offers limited downside support.
Positive Factors
Broad-based growth and guidance
Broad-based revenue growth paired with significant EBIT and EPS expansion indicates improving operating leverage and strong execution across the portfolio. The raised full-year outlook reinforces management confidence that commercial momentum and productivity gains can support durable performance over the next several quarters.
Negative Factors
Profitability and cash-conversion pressure
Recent deterioration in net margin and cash conversion suggests that reported earnings are translating less efficiently into cash, despite positive free cash flow. If this persists, it could constrain internal funding for innovation, debt reduction, and shareholder returns while increasing sensitivity to cost pressures.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad-based growth and guidance
Broad-based revenue growth paired with significant EBIT and EPS expansion indicates improving operating leverage and strong execution across the portfolio. The raised full-year outlook reinforces management confidence that commercial momentum and productivity gains can support durable performance over the next several quarters.
Read all positive factors
GE Healthcare Technologies Inc Key Performance Indicators (KPIs)
Any
Remaining Performance Obligations by Type
Represents the value of contracted work yet to be completed, indicating future revenue streams and the company's ability to secure long-term commitments.
Represents the value of contracted work yet to be completed, indicating future revenue streams and the company's ability to secure long-term commitments.
Data provided by:
The Fly
The FlyGE Healthcare Technologies Inc (GEHC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$34.25B
Dividend Yield0.19%
Average Volume (3M)3.68M
Price to Earnings (P/E)19.6
Beta (1Y)1.31
Revenue Growth6.87%
EPS Growth-2.26%
CountryUS
Employees54,000
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)3.86
Shares Outstanding451,686,250
10 Day Avg. Volume3,265,437
30 Day Avg. Volume3,681,029
Financial Highlights & Ratios
PEG Ratio4.14
Price to Book (P/B)3.61
Price to Sales (P/S)1.82
P/FCF Ratio24.86
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue1.82
Enterprise Value/Gross Profit4.20
Enterprise Value/Ebitda11.66
Forecast
1Y Price Target
$84.15Price Target Upside14.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)4.92
Revenue Forecast (FY)$21.72B
GE Healthcare Technologies Inc Business Overview & Revenue Model
Company Description
GE HealthCare Technologies Inc. is a global medical technology company that creates, manufactures, and markets a diverse range of medical devices, services, and integrated digital solutions. These offerings are designed to assist in the diagnosis,...
How the Company Makes Money
GEHC primarily makes money by selling healthcare equipment, related consumables, and services to providers and other healthcare customers, with revenue generally coming from three major areas: (1) Capital equipment and associated software: GEHC se...
GE Healthcare Technologies Inc Earnings Call Summary
Earnings Call Date:Oct 28, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 10, 2027
Earnings Call Sentiment Positive
The call was strongly positive. Highlights significantly outweighed the lowlights, with strong organic revenue growth, broad-based segment performance, margin and EPS expansion, higher free cash flow, raised full-year guidance, regulatory progress, expanding radiopharmaceutical adoption, and confidence in the 2027 and 2028 outlook. The company acknowledged inflation, tariff uncertainty, PCS recovery work, China execution challenges, and generic competition, but management described mitigation actions and maintained confidence in the business trajectory.Positive Updates
Strong Third-Quarter Revenue and Profit Growth
Third-quarter revenue was $5.5 billion, up 6.2% organically, with growth across all segments. Reported product revenue increased 6.7% and service revenue increased 8.1%. Adjusted EBIT margin expanded 180 basis points to 16.6%, adjusted EPS increased 25.1% to $1.34, and free cash flow rose $310 million year over year to $793 million.
Negative Updates
Inflation and Component Cost Pressures
Third-quarter margin was negatively impacted by inflationary costs for memory chips and higher oil prices across the supply chain. Management also said tariffs and inflation are expected to remain persistent.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Revenue and Profit Growth
Third-quarter revenue was $5.5 billion, up 6.2% organically, with growth across all segments. Reported product revenue increased 6.7% and service revenue increased 8.1%. Adjusted EBIT margin expanded 180 basis points to 16.6%, adjusted EPS increased 25.1% to $1.34, and free cash flow rose $310 million year over year to $793 million.
Read all positive updates
Company Guidance
For full year 2026, GE Healthcare expects organic revenue growth of approximately 4%, adjusted EBIT margin in the range of 15.5% to 15.7%, adjusted EPS in the range of $4.95 to $5.05 per share, free cash flow in excess of $1.6 billion, an adjusted effective tax rate in the range of 20% to 21%, and a foreign exchange tailwind to revenue of approximately 75 basis points; the implied Q4 growth range is 3% to 4%. Management will provide 2027 guidance in February, but said the momentum this year will continue, medium-term targets remain intact through 2028, and the top line is a mid single digit grower; Vercado is expected to reach a $500 million exit rate in fiscal 2028, while SoFi's revenue is expected to add approximately 1% of total company revenue on an annualized basis and grow in low double digits in the full year of ownership, with accretive adjusted EBIT margin and adjusted EPS.GE Healthcare Technologies Inc Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
68
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.61B | 20.63B | 19.67B | 19.55B | 18.34B | 17.59B |
| Gross Profit | 8.92B | 8.25B | 8.21B | 7.92B | 7.18B | 7.17B |
| EBITDA | 3.21B | 3.79B | 3.67B | 3.51B | 3.17B | 3.54B |
| Net Income | 1.76B | 2.08B | 1.99B | 1.57B | 1.92B | 2.25B |
Balance Sheet | ||||||
| Total Assets | 38.37B | 36.91B | 33.09B | 32.45B | 27.54B | 26.31B |
| Cash, Cash Equivalents and Short-Term Investments | 2.85B | 4.51B | 2.89B | 2.50B | 1.45B | 556.00M |
| Total Debt | 10.41B | 10.00B | 9.38B | 9.86B | 8.63B | 437.00M |
| Total Liabilities | 26.51B | 26.31B | 24.44B | 25.14B | 17.95B | 9.41B |
| Stockholders Equity | 11.61B | 10.38B | 8.45B | 7.13B | 9.36B | 16.66B |
Cash Flow | ||||||
| Free Cash Flow | 1.21B | 1.51B | 1.55B | 1.71B | 1.80B | 1.36B |
| Operating Cash Flow | 1.73B | 1.99B | 1.95B | 2.10B | 2.11B | 1.61B |
| Investing Cash Flow | -3.00B | -1.05B | -914.00M | -558.00M | -398.00M | -1.76B |
| Financing Cash Flow | -758.00M | 617.00M | -573.00M | -478.00M | -822.00M | -263.00M |
GE Healthcare Technologies Inc Technical Analysis
Positive
73.31
Price Trends
68.33
Positive
67.17
Positive
69.83
Positive
Market Momentum
1.65
Negative
72.82
Negative
79.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GEHC, the sentiment is Positive. The current price of 73.31 is above the 20-day moving average (MA) of 68.42, above the 50-day MA of 68.33, and above the 200-day MA of 69.83, indicating a bullish trend. The MACD of 1.65 indicates Negative momentum. The RSI at 72.82 is Negative, neither overbought nor oversold. The STOCH value of 79.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GEHC.
GE Healthcare Technologies Inc Risk Analysis
GE Healthcare Technologies Inc disclosed 32 risk factors in its most recent earnings report. GE Healthcare Technologies Inc reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
GE Healthcare Technologies Inc Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $52.90B | 52.75 | 9.69% | ― | 14.55% | 15.09% | |
80 Outperform | $121.24B | 23.17 | 10.60% | 3.02% | 9.77% | 12.28% | |
74 Outperform | $34.25B | 19.64 | 16.14% | 0.19% | 6.87% | -2.26% | |
70 Outperform | $177.61B | 38.03 | 9.12% | 2.46% | 10.00% | ― | |
67 Neutral | $61.49B | 17.11 | 14.90% | ― | 8.88% | 25.77% | |
65 Neutral | $26.27B | 20.72 | 10.05% | 3.66% | ― | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
GEHC
GE Healthcare Technologies Inc
76.42
1.57
2.10%
ABT
Abbott Laboratories
104.57
-17.08
-14.04%
BSX
Boston Scientific
42.69
-57.88
-57.55%
EW
Edwards Lifesciences
94.44
10.96
13.13%
PHG
Koninklijke Philips
27.12
0.72
2.73%
MDT
Medtronic
97.11
9.06
10.29%
GE Healthcare Technologies Inc Corporate Events
Business Operations and StrategyExecutive/Board Changes
GE HealthCare Announces Leadership Change in Patient Care Solutions
Neutral
Oct 28, 2026
On October 22, 2026, GE HealthCare Technologies Inc. announced that Jeannette Bankes had informed the company of her decision to resign as President and CEO of its Patient Care Solutions segment. Her departure is scheduled for November 15, 2026, m...
Executive/Board ChangesRegulatory Filings and Compliance
GE HealthCare Appoints Pascal Desroches to Board Committees
Positive
Sep 22, 2026
On September 22, 2026, GE HealthCare Technologies Inc. announced that its Board of Directors has appointed Pascal Desroches as a director, effective January 4, 2027. He will join both the Audit Committee and the Talent, Culture, and Compensation C...
Business Operations and StrategyExecutive/Board Changes
GE HealthCare Appoints William Grogan as New CFO
Positive
Aug 18, 2026
On August 13, 2026, GE HealthCare Technologies Inc. appointed William K. Grogan as Chief Financial Officer, effective September 14, 2026, succeeding interim CFO George A. Newcomb, who will return full-time to his roles as Controller and Chief Acco...
Business Operations and StrategyFinancial Disclosures
GE HealthCare unveils new Advanced Imaging Solutions segment
Positive
Jul 29, 2026
In the second quarter of 2026, GE HealthCare reorganized its operations by combining its Imaging and Advanced Visualization Solutions businesses into a new Advanced Imaging Solutions segment, alongside Pharmaceutical Diagnostics and Patient Care S...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.