GE Healthcare Technologies Inc (GEHC)
NASDAQ:GEHC
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GE Healthcare Technologies Inc
(NASDAQ:GEHC)
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Rating:64Neutral
Price Target:
$74.00
▲(6.89% Upside)
Action:DowngradedDate: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
Balance-sheet strength
Material deleveraging and a larger equity base provide durable financial flexibility. With minimal net debt the company can fund R&D, tuck-in M&A, and working capital through cycles, lowering refinancing risk and supporting multi‑year strategic investments and resilience.
Negative Factors
Cash flow deterioration
A sharp cash generation reversal undermines capital allocation flexibility: negative FCF and zero operating cash flow in 2025 reduce the company's ability to self‑fund R&D, acquisitions, and shareholder returns without greater external financing, raising execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength
Material deleveraging and a larger equity base provide durable financial flexibility. With minimal net debt the company can fund R&D, tuck-in M&A, and working capital through cycles, lowering refinancing risk and supporting multi‑year strategic investments and resilience.
Read all positive factors
GE Healthcare Technologies Inc (GEHC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.55B
Dividend Yield0.17%
Average Volume (3M)3.45M
Price to Earnings (P/E)18.0
Beta (1Y)1.30
Revenue Growth3.52%
EPS Growth32.21%
CountryUS
Employees53,000
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)1.44
Shares Outstanding455,749,760
10 Day Avg. Volume4,122,919
30 Day Avg. Volume3,450,697
Financial Highlights & Ratios
PEG Ratio4.13
Price to Book (P/B)3.61
Price to Sales (P/S)1.82
P/FCF Ratio24.86
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue1.88
Enterprise Value/Gross Profit4.32
Enterprise Value/Ebitda10.29
Forecast
1Y Price Target
$92.71Price Target Upside33.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)5.07
Revenue Forecast (FY)$21.68B
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, th...
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), ...
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 Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call emphasized meaningful commercial momentum (record backlog, mid-single-digit organic growth in key areas, strong pharma/radiopharma growth, substantial free cash flow and enterprise deals) and clear progress on product launches and operational improvements (Heartbeat). However, the company faces meaningful near-term headwinds from tariffs, ongoing investments weighing on margins, and a cautious outlook for China that management explicitly budgeted as a decline for 2026. On balance the company communicated positive execution and a credible path to margin recovery and midterm targets, while flagging tangible near-term risks.Positive Updates
Strong Q4 Top-Line and Backlog
Q4 revenue of $5.7B with 4.8% organic year-over-year growth; product revenue +7.9% and service revenue +5.5%. Orders grew 2% in the quarter and the company exited with a record backlog of $21.8B (up $2.0B year-over-year and $600M sequentially) and a book-to-bill of 1.06x (TTM 1.07x).
Negative Updates
Significant Tariff Headwinds
Tariffs materially pressured results: Q4 margin impacted by ~ $100M of tariff expense and ~17¢ of adjusted EPS headwind; FY2025 tariffs ~ $245M to EBIT and ~ $0.43 to adjusted EPS. Tariffs also reduced free cash flow (company cited ~$90M Q4 and ~$285M FY impacts). Adjusted EBIT margin was 16.7% in Q4 (down 200 bps) and 15.3% for the year (down 100 bps).
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Q4-2025 Updates
Positive
Negative
Strong Q4 Top-Line and Backlog
Q4 revenue of $5.7B with 4.8% organic year-over-year growth; product revenue +7.9% and service revenue +5.5%. Orders grew 2% in the quarter and the company exited with a record backlog of $21.8B (up $2.0B year-over-year and $600M sequentially) and a book-to-bill of 1.06x (TTM 1.07x).
Read all positive updates
Company Guidance
GE HealthCare guided 2026 to organic revenue growth of 3–4% (Q1 at 2–3%), with a ~150 bps favorable FX tailwind, adjusted EBIT margin of 15.8–16.1% (implying 50–80 bps expansion), an adjusted effective tax rate of 20–21%, adjusted EPS of $4.95–$5.15 (up ~8–12%, mid‑point ≈ +45¢ driven ~30¢ by volume and ~30¢ by cost/productivity offset by investments), and free cash flow of about $1.7 billion (≈+13%); management expects tariffs to be less impactful than in 2025 (largest tariff hit in Q1) and projected mid‑single‑digit adjusted EPS growth in Q1 despite that timing, while noting potential incremental benefit from new products and the planned IntelliRed close (first full‑year revenue ~ $270M, low double‑digit growth, adjusted EBITDA >30%) and a strong starting position (2025 revenue $20.6B, organic +3.5%, adj. EBIT margin 15.3%, adj. EPS $4.59, record backlog $21.8B, book‑to‑bill ~1.06–1.07, and 2025 FCF $1.5B with 72% conversion).GE Healthcare Technologies Inc Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
28
Negative
| 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
Negative
69.23
Price Trends
77.95
Negative
79.22
Negative
76.84
Negative
Market Momentum
-2.50
Negative
34.09
Neutral
40.70
Neutral
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 69.23 is below the 20-day moving average (MA) of 73.06, below the 50-day MA of 77.95, and below the 200-day MA of 76.84, indicating a bearish trend. The MACD of -2.50 indicates Negative momentum. The RSI at 34.09 is Neutral, neither overbought nor oversold. The STOCH value of 40.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $6.97B | 34.29 | 10.11% | ― | 12.20% | 98.75% | |
75 Outperform | $28.19B | 36.72 | 13.41% | ― | 15.96% | 27.91% | |
71 Outperform | $4.38B | 33.71 | 22.89% | ― | 20.21% | 44.14% | |
64 Neutral | $31.55B | 17.97 | 17.11% | 0.17% | 3.52% | 32.21% | |
64 Neutral | $2.86B | -6.96 | -132.16% | ― | 50.67% | -578.00% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $7.62B | ― | -59.95% | ― | 72.58% | 76.81% |
* Healthcare Sector Average
GEHC
GE Healthcare Technologies Inc
69.23
-11.33
-14.07%
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GE Healthcare Technologies Inc Corporate Events
Executive/Board Changes
GE HealthCare Announces Board Changes and New Director Appointment
Neutral
Mar 17, 2026
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 compe...
Business Operations and StrategyPrivate Placements and Financing
GE HealthCare Establishes New 364-Day Revolving Credit Facility
Neutral
Feb 27, 2026
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 Februa...
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.