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GE Healthcare Technologies Inc (GEHC) AI Stock Analysis

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GEHC

GE Healthcare Technologies Inc

(NASDAQ:GEHC)

Rating:74Outperform
Price Target:
$80.00
▲(13.25% Upside)
GE Healthcare Technologies Inc. shows strong financial fundamentals and a positive corporate event profile, contributing to a solid stock score. However, technical indicators suggest bearish momentum, and some risks in market dynamics, such as tariff impacts and China market challenges, temper the overall outlook.
Positive Factors
Financial Performance
GEHC's Q2 revenue and EPS both exceeded expectations, with revenue beating the Street by 1% and EPS by 15%.
Guidance and Forecast
GEHC raised its full-year organic revenue growth guidance to around 3%, indicating confidence in its performance despite moderating expectations in China.
Negative Factors
China Market Recovery
The recovery of the China market is taking longer than expected, with extended tender cycles delaying purchase orders and buying activities.
Market Concerns
Despite a beat and raise, it declined post-print on concerns about the order book, more tepid China commentary, and the post-Liberation-Day recovery.

GE Healthcare Technologies Inc (GEHC) vs. SPDR S&P 500 ETF (SPY)

GE Healthcare Technologies Inc Business Overview & Revenue Model

Company DescriptionGE Healthcare Technologies Inc (GEHC) is a leading global medical technology and digital solutions innovator. The company operates in various sectors including imaging, ultrasound, life care solutions, and pharmaceutical diagnostics. GEHC is committed to transforming healthcare by leveraging its expertise in data analytics, artificial intelligence, and innovative technologies to improve patient outcomes and enhance the efficiency of healthcare systems worldwide.
How the Company Makes MoneyGE Healthcare Technologies Inc generates revenue through the sale of medical devices and diagnostic imaging equipment, such as MRI machines, CT scanners, ultrasound systems, and X-ray machines. The company also provides software and digital solutions for healthcare providers to improve operational efficiency and patient care. Additionally, GEHC earns income from service contracts, maintenance agreements, and training services for the installed base of its equipment. Pharmaceutical diagnostics, including contrast media and molecular imaging agents, also contribute to its revenue streams. GEHC's earnings are further supported by strategic partnerships and collaborations with hospitals, research institutions, and technology companies to drive innovation and expand its market reach.

GE Healthcare Technologies Inc Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: -9.11%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong order growth, strategic wins, and an optimistic financial outlook, particularly in the Imaging and Nuclear Medicine sectors. However, these positives were tempered by tariff impacts, challenges in the China market, and flat performance in Patient Care Solutions, which affected margins.
Q2-2025 Updates
Positive Updates
Strong Order and Revenue Growth
GE HealthCare reported record backlog of $21.3 billion, with organic order growth of 3% year-over-year and first half order growth of 7%. The company secured significant wins including a $250 million 5-year collaboration in Europe.
Strategic Collaborations and Wins
GE HealthCare secured its largest order ever of Omni Legend PET/CT systems and a strategic collaboration with Ascension valued up to $90 million in the first year.
Positive Financial Outlook
The company raised its full-year 2025 organic revenue growth guidance to approximately 3% and adjusted EPS guidance to between $4.43 and $4.63, up from the prior estimate of $3.90 to $4.10.
Advancements in Nuclear Medicine
Orders grew strong double digits across GE HealthCare's diagnostic imaging agents and molecular imaging solutions. The company is well-positioned in the nuclear medicine sector with new product launches and regulatory approvals.
Negative Updates
Tariff Impacts and Margin Pressure
Adjusted EBIT margin in the quarter was 14.6%, down 80 basis points year-over-year, primarily due to tariff impacts. Adjusted gross margin declined 180 basis points year-over-year.
China Market Challenges
Organic revenue growth in Imaging was largely offset by headwinds in China. The market recovery in China is taking longer than expected, affecting overall growth.
Flat Performance in Patient Care Solutions
Organic revenue in Patient Care Solutions was flat year-over-year, with segment EBIT margin declining 240 basis points due to inflation and unfavorable portfolio mix.
Company Guidance
In the second quarter of fiscal year 2025, GE HealthCare reported strong financial performance, evidenced by a 2% organic revenue growth, reaching $5 billion, with service revenue increasing by 7% and product revenue by 2%. The company achieved a healthy book-to-bill ratio of 1.07x, exiting the quarter with a record backlog of $21.3 billion, up $2.2 billion year-over-year. Adjusted EBIT margin was reported at 14.6%, despite an 80 basis point year-over-year decline due to tariff impacts. Adjusted EPS grew by 6% to $1.06 per share, aided by a $0.08 tariff impact and a $0.07 benefit from an improved tax rate. Free cash flow for the quarter was $7 million, an increase of $189 million compared to the previous year. The company raised its full-year 2025 organic revenue growth guidance to approximately 3%, with an adjusted EBIT margin forecast between 15.2% and 15.4%, and an anticipated adjusted EPS range of $4.43 to $4.63. GE HealthCare remains focused on mitigating tariff impacts and continues to execute on its D3 strategy, which has been instrumental in securing significant collaborations and expanding its product portfolio.

GE Healthcare Technologies Inc Financial Statement Overview

Summary
GE Healthcare Technologies Inc. demonstrates robust financial performance with consistent revenue and profit growth, healthy profit margins, and effective debt management. While revenue growth is moderate, the overall financial health is strong, positioning the company well for future opportunities.
Income Statement
85
Very Positive
GE Healthcare Technologies Inc. shows strong financial performance with consistent revenue growth, achieving a TTM revenue of $19.97 billion. Gross and net profit margins remain healthy at 41.56% and 11.23% respectively, indicating effective cost management and profitability. The EBIT and EBITDA margins of 13.82% and 18.09% further reinforce operational efficiency. The revenue growth rate from 2024 to TTM is 1.49%, demonstrating moderate upward momentum.
Balance Sheet
78
Positive
The balance sheet reveals a solid financial structure with a debt-to-equity ratio of 0.21, highlighting low leverage and financial stability. The equity ratio stands at 27.36%, indicating a substantial proportion of assets funded by equity. The return on equity is robust at 23.07%, showcasing effective utilization of shareholders' equity to generate profits. Overall, the balance sheet reflects a strong financial position with manageable debt levels.
Cash Flow
80
Positive
The cash flow statement indicates healthy liquidity with a free cash flow of $1.22 billion in TTM. The free cash flow to net income ratio is 0.54, and the operating cash flow to net income ratio is 0.74, demonstrating efficient cash generation relative to earnings. However, there is a decline in free cash flow from the previous year, indicating potential areas for improvement in cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue19.96B19.67B19.55B18.34B17.59B17.16B
Gross Profit8.30B8.21B7.92B7.18B7.17B6.77B
EBITDA3.83B3.67B3.51B3.17B3.54B3.41B
Net Income2.24B1.99B1.57B1.92B2.25B13.85B
Balance Sheet
Total Assets35.50B33.09B32.45B27.54B26.31B24.23B
Cash, Cash Equivalents and Short-Term Investments3.74B2.89B2.49B1.45B554.00M994.00M
Total Debt10.72B9.38B9.86B8.25B437.00M468.00M
Total Liabilities25.55B24.44B25.14B18.18B9.63B9.48B
Stockholders Equity9.71B8.45B7.13B9.36B16.66B14.73B
Cash Flow
Free Cash Flow1.22B1.55B1.71B1.80B1.36B1.43B
Operating Cash Flow1.65B1.95B2.10B2.11B1.61B1.69B
Investing Cash Flow-1.01B-914.00M-558.00M-398.00M-1.76B19.99B
Financing Cash Flow712.00M-573.00M-478.00M-822.00M-263.00M-21.54B

GE Healthcare Technologies Inc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price70.64
Price Trends
50DMA
73.44
Negative
100DMA
72.47
Negative
200DMA
78.86
Negative
Market Momentum
MACD
-0.66
Positive
RSI
38.17
Neutral
STOCH
13.64
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 70.64 is below the 20-day moving average (MA) of 74.76, below the 50-day MA of 73.44, and below the 200-day MA of 78.86, indicating a bearish trend. The MACD of -0.66 indicates Positive momentum. The RSI at 38.17 is Neutral, neither overbought nor oversold. The STOCH value of 13.64 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 Risk Analysis

GE Healthcare Technologies Inc disclosed 33 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$45.99B59.8914.07%14.78%39.33%
76
Outperform
$10.86B52.3122.50%19.98%53.10%
74
Outperform
$7.87B66.205.77%19.21%50.06%
74
Outperform
$32.30B14.4825.60%0.19%2.30%41.46%
68
Neutral
$2.37B157.362.53%6.79%-18.52%
66
Neutral
$3.52B69.351.60%20.60%
51
Neutral
$7.38B0.42-62.86%2.37%15.61%-1.95%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GEHC
GE Healthcare Technologies Inc
70.64
-11.54
-14.04%
VEEV
Veeva Systems
281.46
96.00
51.76%
HQY
Healthequity
91.01
19.09
26.54%
PRVA
Privia Health Group
19.45
0.10
0.52%
DOCS
Doximity
57.93
32.27
125.76%
BTSG
BrightSpring Health Services, Inc.
19.85
8.33
72.31%

GE Healthcare Technologies Inc Corporate Events

Executive/Board Changes
GE Healthcare Board Member Resigns Abruptly
Neutral
Jul 24, 2025

On July 23, 2025, Lloyd W. Howell, Jr. resigned from GE Healthcare Technologies Inc.’s Board of Directors, effective immediately. His departure was not due to any disagreement with the company’s operations, policies, or practices.

The most recent analyst rating on (GEHC) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on GE Healthcare Technologies Inc stock, see the GEHC Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
GE Healthcare Issues $1.5 Billion in Senior Notes
Neutral
Jun 9, 2025

On June 9, 2025, GE Healthcare Technologies Inc. issued $1.5 billion in senior notes, divided into $650 million due in 2031 and $850 million due in 2035. These senior unsecured notes are part of the company’s strategy to manage its debt portfolio and maintain its financial flexibility, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (GEHC) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on GE Healthcare Technologies Inc stock, see the GEHC Stock Forecast page.

Private Placements and Financing
GE Healthcare Announces $1.5 Billion Notes Offering
Positive
Jun 4, 2025

On June 3, 2025, GE Healthcare Technologies Inc. announced the commencement and pricing of an underwritten offering of $1.5 billion in aggregate principal amount of notes. This offering, which includes $650 million of 4.800% Notes due in 2031 and $850 million of 5.500% Notes due in 2035, is expected to be issued around June 9, 2025, and aims to strengthen the company’s financial position. The offering is managed by major financial institutions including Citigroup, J.P. Morgan, and Morgan Stanley, indicating a strong market interest and confidence in GE Healthcare’s financial strategies.

The most recent analyst rating on (GEHC) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on GE Healthcare Technologies Inc stock, see the GEHC Stock Forecast page.

Executive/Board ChangesShareholder Meetings
GE Healthcare Holds Annual Stockholders Meeting
Neutral
May 30, 2025

On May 28, 2025, GE Healthcare Technologies Inc. held its annual stockholders meeting where 10 directors were elected for a one-year term. Stockholders also approved executive compensation and ratified Deloitte & Touche LLP as the independent auditor for 2025, while a proposal on termination pay arrangements was not approved.

The most recent analyst rating on (GEHC) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on GE Healthcare Technologies Inc stock, see the GEHC Stock Forecast page.

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.Date of analysis: Aug 01, 2025