tiprankstipranks
Trending News
More News >
GE Healthcare Technologies Inc (GEHC)
NASDAQ:GEHC
US Market

GE Healthcare Technologies Inc (GEHC) AI Stock Analysis

Compare
1,474 Followers

Top Page

GE

GE Healthcare Technologies Inc

(NASDAQ:GEHC)

Rating:75Outperform
Price Target:
$80.00
▲(12.47%Upside)
GE Healthcare Technologies Inc shows strong financial fundamentals and positive corporate actions, but faces challenges from tariff impacts and market conditions in China. Solid valuation metrics and successful product launches provide support, while technical analysis indicates a balanced outlook.
Positive Factors
Demand environment
Demand from the US is robust, with acceleration in the EU, suggesting a constructive demand environment.
Financial performance
GEHC delivered 1Q25 revenue of $4.78B, besting consensus’s $4.66B, with organic orders increasing 10% y/y organic.
Orders and sales performance
GEHC's orders, sales, and margins exceeded expectations, indicating strong company performance.
Negative Factors
EPS guidance
GEHC lowered its EPS guide by $0.68 or 15% to $3.90-4.10, with $0.85 because of tariffs, partially offset by the strong Q1, lower tax and interest expense.
Guidance reduction
GE Healthcare Technologies Inc. cut its 2025 guidance due to the impact of tariffs.
Tariff impact
GE Healthcare Technologies Inc was one of the companies most negatively impacted by tariffs, affecting its financial outlook.

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. 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 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:Apr 30, 2025
(Q1-2025)
|
% Change Since: 4.46%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
GE Healthcare reported strong top-line growth and record orders, driven by robust demand in imaging and successful product launches. However, significant challenges remain due to tariff impacts on profit and cash flow, as well as market challenges in China.
Q1-2025 Updates
Positive Updates
Record Double-Digit Orders Growth
GE Healthcare experienced record double-digit orders growth driven by strong U.S. market performance, particularly in imaging products for cardiology and oncology.
Strong Financial Performance
First quarter revenues were $4.8 billion with a 4% organic revenue growth. Adjusted EBIT margin increased by 30 basis points year-over-year, leading to a 12% year-over-year increase in adjusted EPS to $1.01.
Robust Demand in Imaging Segment
Imaging organic revenue grew by 5% year-over-year, and segment EBIT margin increased by 130 basis points due to productivity, volume, and price improvements.
Successful Product Launches
Launched Flyrcado, a new radiopharmaceutical product, and introduced Revolution Vibe, a dedicated cardiac CT system.
Significant Backlog Increase
Exited the quarter with a record backlog of $20.6 billion, an increase of $1.9 billion year-over-year.
Negative Updates
Tariff Impact on Profit and Cash Flow
Tariffs are expected to negatively impact adjusted EPS by $0.85 and adjusted EBIT by approximately $475 million for the full year.
Reduced Free Cash Flow Guidance
Free cash flow guidance for the full year was reduced to at least $1.2 billion from the prior expectation of $1.75 billion due to tariff payments.
Challenges in China Market
Anticipated mid-single-digit decline in China sales performance for the first half of 2025 with a low-single-digit decline for the full year.
Patient Care Solutions Segment Challenges
EBIT margin for the Patient Care Solutions segment declined by 450 basis points year-over-year due to investments, tariff impact, and product mix.
Company Guidance
During the GE HealthCare First Quarter 2025 Earnings Conference Call, the company provided updated guidance reflecting the impact of tariffs on their financial performance. The company reported an adjusted EPS impact of $0.85 due to tariffs for 2025, with a gross impact estimated at $1.75 per share before mitigation efforts. They have already managed to mitigate over 50% of the gross exposure, resulting in a net incremental impact of $0.80 per share, on top of the $0.05 impact included in February's guidance. GE HealthCare also forecasted full-year organic revenue growth between 2% and 3%, unchanged from prior estimates, and adjusted EBIT margin guidance was revised to a range of 14.2% to 14.4%, down from 16.7% to 16.8%. Additionally, the company anticipates delivering free cash flow of at least $1.2 billion for the full year, reduced from the previous expectation of $1.75 billion, primarily due to tariff-related costs.

GE Healthcare Technologies Inc Financial Statement Overview

Summary
GE Healthcare Technologies Inc. demonstrates strong financial performance with steady revenue growth and high operational efficiency, as evidenced by a robust gross profit margin and a solid net profit margin. The balance sheet shows reduced leverage and strong return on equity, while cash flow management supports operational initiatives, despite some pressure from increased capital expenditures.
Income Statement
85
Very Positive
GE Healthcare Technologies Inc shows a strong financial performance with a consistent revenue growth trajectory. The TTM (Trailing-Twelve-Months) revenue grew by 0.64% compared to the previous year. The company maintains a solid gross profit margin of 41.97% and a net profit margin of 11.03% TTM, reflecting strong operational efficiency. However, the EBITDA margin decreased slightly from 18.71% last year to 17.72% TTM, indicating some pressure on earnings before interest, taxes, depreciation, and amortization.
Balance Sheet
78
Positive
The balance sheet of GE Healthcare exhibits a robust equity position with an equity ratio of 27.35% in the TTM period. The debt-to-equity ratio decreased significantly to 0.22 TTM, indicating reduced leverage and enhanced financial stability. Return on equity is strong at 23.76% TTM, showcasing effective utilization of equity to generate profits. The improvements in the leverage metrics are notable, although the overall equity ratio remains modest, suggesting room for strengthening capital structure further.
Cash Flow
80
Positive
The cash flow analysis reveals a solid ability to generate free cash flow, with a TTM free cash flow of $1.124 billion, despite a decline from last year. The operating cash flow to net income ratio is 0.70, indicating a strong cash conversion capability. However, the free cash flow to net income ratio has decreased, reflecting higher capital expenditures relative to net income. Overall, the company's cash flow management remains strong, supporting its operational and strategic initiatives.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
19.80B19.67B19.55B18.34B17.59B17.16B
Gross Profit
8.31B8.21B7.92B7.18B7.17B6.77B
EBIT
2.77B2.63B2.44B2.52B2.79B2.72B
EBITDA
3.51B3.68B3.51B3.17B3.54B3.41B
Net Income Common Stockholders
2.18B1.99B1.57B1.92B2.25B2.06B
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.47B2.89B2.49B1.45B554.00M994.00M
Total Assets
33.59B33.09B32.45B27.54B26.31B24.23B
Total Debt
9.18B9.38B9.86B8.25B437.00M468.00M
Net Debt
6.73B6.50B7.37B6.80B-117.00M-526.00M
Total Liabilities
24.17B24.44B25.14B18.18B9.63B9.48B
Stockholders Equity
9.19B8.45B7.13B9.36B16.66B14.73B
Cash FlowFree Cash Flow
1.37B1.55B1.71B1.80B1.36B1.43B
Operating Cash Flow
1.53B1.95B2.10B2.11B1.61B1.69B
Investing Cash Flow
-1.13B-914.00M-558.00M-398.00M-1.76B19.99B
Financing Cash Flow
-706.00M-573.00M-478.00M-822.00M-263.00M-21.54B

GE Healthcare Technologies Inc Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price71.13
Price Trends
50DMA
69.53
Positive
100DMA
78.12
Negative
200DMA
81.79
Negative
Market Momentum
MACD
0.21
Negative
RSI
53.01
Neutral
STOCH
80.70
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GEHC, the sentiment is Neutral. The current price of 71.13 is below the 20-day moving average (MA) of 71.43, above the 50-day MA of 69.53, and below the 200-day MA of 81.79, indicating a neutral trend. The MACD of 0.21 indicates Negative momentum. The RSI at 53.01 is Neutral, neither overbought nor oversold. The STOCH value of 80.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$46.53B60.0914.07%14.78%39.33%
80
Outperform
$10.05B49.2722.50%19.98%53.10%
75
Outperform
$32.58B14.9626.32%0.18%1.55%38.51%
HQHQY
73
Outperform
$8.99B82.295.77%19.21%50.06%
69
Neutral
$2.80B186.172.53%6.79%-18.52%
69
Neutral
$4.12B83.802.30%23.40%
53
Neutral
$5.25B3.24-45.38%2.81%16.79%-0.06%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GEHC
GE Healthcare Technologies Inc
71.55
-5.32
-6.92%
VEEV
Veeva Systems
289.94
104.93
56.72%
HQY
Healthequity
112.70
29.01
34.66%
PRVA
Privia Health Group
22.80
5.31
30.36%
DOCS
Doximity
57.34
28.14
96.37%
BTSG
BrightSpring Health Services, Inc.
23.50
12.02
104.70%

GE Healthcare Technologies Inc Corporate Events

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.

Private Placements and FinancingBusiness Operations and Strategy
GE Healthcare’s New $3.5 Billion Credit Agreements
Neutral
Mar 31, 2025

On March 27, 2025, GE Healthcare Technologies Inc. entered into two new credit agreements with JPMorgan Chase Bank, N.A., providing a total of $3.5 billion in senior unsecured revolving credit facilities. These agreements replace previous credit facilities and include various covenants and events of default, reflecting the company’s strategic financial restructuring. The termination of the previous credit agreements, which provided a combined $3.5 billion in credit, was completed without penalty, marking a significant shift in the company’s financial management approach.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.