GE Healthcare Technologies Inc (GEHC) AI Stock Analysis

• Market Cap: $31.74B
• Dividend Yield: 0.17%
• Average Volume (3M): 3.37M
• Price to Earnings (P/E): 50.9
• Beta (1Y): 1.31
• Revenue Growth: 3.52%
• EPS Growth: 32.21%
• Country: US
• Employees: 53,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 1.44
• Shares Outstanding: 455,749,760
• 10 Day Avg. Volume: 3,711,136
• 30 Day Avg. Volume: 3,370,479
• PEG Ratio: 4.13
• Price to Book (P/B): 3.61
• Price to Sales (P/S): 1.82
• P/FCF Ratio: 24.86
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 1.90
• Enterprise Value/Gross Profit: 4.37
• Enterprise Value/Ebitda: 10.40
• 1Y Price Target: $92.71
• Price Target Upside: 33.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 5.07
• Revenue Forecast (FY): $21.67B

• Rating: 64 Neutral
• Price Target: $75.00 ▲(7.68% Upside)
• Action: Downgraded Date: 02/05/26
• Date: Action: Downgraded 02/05/26

The score is driven primarily by mixed financial performance—especially the 2025 cash flow deterioration—offset by a stronger balance sheet and supportive 2026 guidance for growth, margins, and free cash flow. Technicals are neutral with negative MACD, and valuation appears reasonable but not notably attractive given the low dividend yield.

Positive Factors

Strong balance sheet and low leverage

Debt fell from roughly $9–10B pre-2025 to about $0.5B, and equity rose to ~$10.4B. This materially improves financial flexibility for capital allocation, lowers solvency risk, and supports multi-year investments, M&A, and payoff of cyclical shocks without forcing distress-driven actions.

Large backlog and recurring revenue traction

A record $21.8B backlog and book-to-bill above 1.0 indicate durable demand and order visibility. Combined with multiyear enterprise deals and service revenue growth, this increases recurring revenue share and smooths capital-equipment cyclicality, improving medium-term revenue predictability.

Pharma/radiopharma and NPI product momentum

Strong pharma diagnostics growth and a clear radiopharma ramp (operational CMO progress and product revenue targets) create a multi-year, higher-margin growth vector. Coupled with multiple NPIs cleared/on-track, the portfolio expansion supports structural revenue and margin improvement over time.

Negative Factors

Sharp cash generation deterioration

Cash conversion collapsed in 2025 versus prior years' robust FCF, reducing internal funding for R&D, M&A, share repurchases, and dividends. Restoring consistent operating cash flow is essential; until then the company faces higher execution and liquidity risk despite a stronger balance sheet.

Material tariff-related margin and cash hits

Sustained tariff exposure meaningfully erodes margins and cash flow. Mitigation (line moves, contract manufacturing) raises costs and operational complexity, making margins more vulnerable to geopolitics and supply-chain shifts and forcing ongoing investments to preserve competitiveness.

China weakness and investment-driven margin pressure

A planned China decline combined with high ongoing R&D/M&A spending compresses near-term margins and growth. Heavy investment and lumpy order timing (enterprise bookings, regulatory waits) increase execution risk and reduce near-term visibility on sustainable profit recovery.

GE Healthcare Technologies Inc Business Overview & Revenue Model

Company Description

GE HealthCare Technologies Inc. engages in the development, manufacture, and marketing of products, services, and complementary digital solutions used in the diagnosis, treatment, and monitoring of patients in the United States, Canada, Europe, the Middle East, Africa, China, Taiwan, Mongolia, Hong Kong, and internationally. The company operates through four segments: Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics. The Imaging segment offers molecular imaging, computed tomography (CT) scanning, magnetic resonance (MR) imaging, image-guided therapy, and X-ray systems, as well as women's health products. The Ultrasound segment provides screening, diagnosis, treatment, and monitoring of certain diseases through radiology and primary care, women's health, cardiovascular, and point of care and handheld ultrasound solutions, as well as surgical visualization and guidance products. The Patient Care Solutions segment involved in the provision of medical devices, consumable products, services, and digital solutions through patient monitoring, anesthesia delivery and respiratory care, diagnostic cardiology, and maternal infant care products. The Pharmaceutical Diagnostics supplies diagnostic agents, including CT, angiography and X-ray, MR, single-photon emission computed tomography, positron emission tomography, and ultrasound to the radiology and nuclear medicine industry. The segment also provides contrast media pharmaceuticals, administered to a patient prior to certain diagnostic scans to increase the visibility of tissues or structures during imaging exams; and molecular imaging agents, or radiopharmaceuticals, which are molecular tracers labeled with radioisotopes that are injected into a patient prior to a diagnostic imaging scan. The company was incorporated in 2022 and is headquartered in Chicago, Illinois.

How the Company Makes Money

GEHC primarily makes money by selling and supporting healthcare technology used in clinical settings. Key revenue streams include: (1) Equipment and system sales: one-time sales of capital equipment such as imaging systems (e.g., CT, MRI, X-ray), ultrasound systems, and patient monitoring and related care devices. (2) Recurring services and support: multi-year service contracts, maintenance, repairs, parts replacement, and upgrades tied to its installed base; this typically provides more recurring revenue than new equipment sales. (3) Consumables and pharmaceutical diagnostics: ongoing sales of contrast agents and radiopharmaceuticals used in certain imaging procedures, as well as other procedure-related consumables. (4) Software and digital solutions: sales and subscriptions/licenses for software used for imaging workflow, data management, and clinical/operational analytics; offerings may be sold standalone or bundled with equipment and services. Revenue is influenced by the size of the installed base (driving service, parts, and upgrades), hospital capital spending cycles (affecting equipment purchases), procedure volumes (affecting consumables/diagnostics), and long-term customer relationships established through service agreements and enterprise-level arrangements. Specific material partnerships or contract terms: null.

GE Healthcare Technologies Inc Financial Statement Overview

Summary

Strong balance-sheet improvement with sharply reduced debt and higher equity supports financial stability, but 2025 fundamentals are mixed: revenue turned negative, margins softened, and cash flow is the key concern (reported zero operating cash flow and negative free cash flow), creating near-term execution risk despite prior-year strength.

Income Statement

Revenue has been broadly stable over the last several years (~$17.2B in 2020 to ~$19.6B in 2025), but growth has slowed and turned negative in 2025 (-3.186%). Profitability is generally solid with gross margin improving to ~43.5% in 2025, though operating and net profitability weakened versus 2024 (net margin down from ~10.1% to ~8.6%). Overall, the income statement reflects a steady, profitable business with a recent deceleration and some margin pressure.

Balance Sheet

Leverage has improved dramatically, with total debt dropping from ~9.9B in 2023/ ~9.4B in 2024 to ~0.5B in 2025, bringing debt-to-equity down to ~0.05. Equity also increased meaningfully in 2025 (~$10.4B), supporting a stronger capital position. A key watch item is that returns on equity eased in 2025 (~16.2%) versus 2024 (~23.6%), reflecting lower earnings power despite the cleaner balance sheet.

Cash Flow

Cash generation shows a sharp deterioration in 2025: operating cash flow is reported at 0 and free cash flow is negative (-$482M), versus positive operating cash flow (~$2.0–$2.1B) and healthy free cash flow (~$1.6–$1.8B) in 2022–2024. As a result, cash conversion from earnings fell materially in 2025 (free cash flow relative to net income at 0.0). While prior years indicate solid cash productivity, the latest period introduces meaningful uncertainty and execution risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	20.63B	19.67B	19.55B	18.34B	17.59B
Gross Profit	8.25B	8.21B	7.92B	7.18B	7.17B
EBITDA	3.79B	3.67B	3.51B	3.17B	3.54B
Net Income	2.08B	1.99B	1.57B	1.92B	2.25B
Balance Sheet
Total Assets	36.91B	33.09B	32.45B	27.54B	26.31B
Cash, Cash Equivalents and Short-Term Investments	4.51B	2.89B	2.50B	1.45B	556.00M
Total Debt	10.00B	9.38B	9.86B	8.63B	437.00M
Total Liabilities	26.31B	24.44B	25.14B	17.95B	9.41B
Stockholders Equity	10.38B	8.45B	7.13B	9.36B	16.66B
Cash Flow
Free Cash Flow	1.51B	1.55B	1.71B	1.80B	1.36B
Operating Cash Flow	1.99B	1.95B	2.10B	2.11B	1.61B
Investing Cash Flow	-1.05B	-914.00M	-558.00M	-398.00M	-1.76B
Financing Cash Flow	617.00M	-573.00M	-478.00M	-822.00M	-263.00M

GE Healthcare Technologies Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 69.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GEHC, the sentiment is Negative. The current price of 69.65 is below the 20-day moving average (MA) of 76.29, below the 50-day MA of 79.49, and below the 200-day MA of 76.85, indicating a bearish trend. The MACD of -2.98 indicates Positive momentum. The RSI at 29.71 is Positive, neither overbought nor oversold. The STOCH value of 14.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GEHC.

GE Healthcare Technologies Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HQY	78 Outperform	$6.84B	34.29	10.11%	―	12.20%	98.75%
VEEV	75 Outperform	$30.26B	36.72	13.41%	―	15.96%	27.91%
DOCS	71 Outperform	$4.51B	33.71	22.89%	―	20.21%	44.14%
GEHC	64 Neutral	$31.74B	50.87	17.11%	0.17%	3.52%	32.21%
HNGE	64 Neutral	$3.35B	-6.96	-132.16%	―	50.67%	-578.00%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TEM	49 Neutral	$8.40B	-42.00	-59.95%	―	72.58%	76.81%

GE Healthcare Technologies Inc Corporate Events

GE HealthCare Announces Board Changes and New Director Appointment

On March 13, 2026, GE HealthCare Technologies Inc. appointed Kevin A. Lobo to its Board of Directors, with his term running until the 2026 Annual Meeting of Stockholders, and named him to the Talent, Culture, and Compensation Committee, with compensation and indemnification aligned to the company’s existing non-employee director framework. The company noted there were no special arrangements or related-party transactions tied to his selection, while directors Risa Lavizzo-Mourey and Tomislav Mihaljevic informed the Board on the same date that they would not stand for re-election in 2026 due to other commitments, and on March 17, 2026, GE HealthCare issued a press release formalizing these board changes, which were not attributed to any disagreements over corporate operations or policies.

The most recent analyst rating on (GEHC) stock is a Buy with a $79.00 price target. To see the full list of analyst forecasts on GE Healthcare Technologies Inc stock, see the GEHC Stock Forecast page.

GE HealthCare Establishes New 364-Day Revolving Credit Facility

On February 26, 2026, GE HealthCare Technologies Inc. entered into a new 364-day senior unsecured revolving credit agreement with JPMorgan Chase Bank and a syndicate of lenders, establishing a $0.5 billion committed facility that matures on February 25, 2027. The facility allows multi-currency borrowing in U.S. Dollars, Euros, and Pound Sterling at benchmark-linked floating rates plus a margin tied to the company’s long-term debt ratings.

The new agreement replaces a similar $0.5 billion 364-day revolving credit facility dated March 27, 2025, which was terminated without penalty on February 26, 2026, effectively rolling over the company’s short-term liquidity backstop. The facility includes customary covenants on leverage, liens, subsidiary indebtedness, and change of control, reinforcing GE HealthCare’s financial flexibility and providing lenders with standard protections through detailed default and covenant structures.

The most recent analyst rating on (GEHC) stock is a Buy with a $105.00 price target. To see the full list of analyst forecasts on GE Healthcare Technologies Inc stock, see the GEHC Stock Forecast page.