Start here if you're new
what it is
GE HealthCare sells the machines, scanners, and drug tools hospitals use to find problems before they get worse.
how it gets paid
Last year Ge Health. Tech made $20.6B in revenue. Imaging was the main engine at $9.9B, or 48% of sales.
why it's growing
Revenue grew 4.8% last year. The $0.45 tariff hit matters most because it equals 9.0% of the $5.00 full-year 2026 EPS estimate.
what just happened
GE HealthCare posted quarterly EPS of $1.44, just below the $1.46 estimate.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
17.4x trailing p/e — the market's not buying it — or you found a deal
0.2% dividend yield — cash in your pocket every quarter
16.5% return on capital — nothing to write home about
xvary composite: 55/100 — below average
What they do
GE HealthCare sells the machines, scanners, and drug tools hospitals use to find problems before they get worse.
GE HealthCare sits inside four hospital-critical businesses: Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics. Once your hospital builds workflows around its scanners and monitoring systems, switching costs (changing vendors is expensive and annoying) rise fast. That helps support a 19.0% operating margin and 16.5% return on capital, which is better than the average industrial business and proof customers keep paying.
How they make money
$20.6B
annual revenue · their business grew +4.8% last year
Imaging
$9.9B
Ultrasound
$3.9B
Patient Care Solutions
$3.2B
Pharmaceutical Diagnostics
$3.6B
The products that matter
MRI, CT, and x-ray systems
Imaging
$14.4B · ~70% of revenue
this is the center of gravity. when a segment drives roughly 70% of a $20.6B business, you do not get to ignore it.
core franchise
contrast agents and tracers
Pharmaceutical Diagnostics
$2.9B · +16% growth
this $2.9B business grew 16% last year. it is smaller than imaging, but it is the part of the story the market could rerate if the growth holds.
faster grower
monitoring and care systems
Patient Care Solutions
$3.1B · -1.2% growth
this $3.1B segment shrank 1.2%. it is not big enough to define the company, but it is weak enough to complicate the clean growth narrative.
needs work
Key numbers
17.4x
trailing p/e
P/E → how many dollars you pay for one dollar of profit → so what: 17.4x is not expensive for a company with a 19.0% operating margin and a $103 18-month target.
$8.2B
long-term debt
Long-term debt → money owed over years → so what: debt is 18% of capital, which says leverage is present but not running the story.
19.0%
operating margin
Operating margin → the slice left after running the business → so what: keeping 19 cents of every sales dollar is solid for medical equipment.
16.5%
return on capital
Return on capital → profit earned on money invested → so what: 16.5% says this business is productive, not just large.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 55 / 100
- long-term debt $8.2B (18% of capital)
- net profit margin 11.7% — keeps 12 cents of every dollar in revenue
- return on equity 24% — $0.24 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for GEHC right now.
source: institutional data · return history unavailable
What just happened
missed estimates
GE HealthCare posted quarterly EPS of $1.44, just below the $1.46 estimate.
The miss was small at 1.37%, but tariffs mattered. Management flagged a full-year tariff impact of $0.45, which helps explain why investors are watching execution instead of cheering revenue growth.
$14.9B
revenue
$1.44
eps
40.1%
gross margin
the number that mattered
The $0.45 tariff hit matters most because it equals 9.0% of the $5.00 full-year 2026 EPS estimate.
-
the healthcare innovator likely closed last year’s final stanza with mixed results.
-
an estimated full-year tariff impact of $0.45 is expected to have contributed to the fourth-quarter decline.on a brighter note, we are optimistic that both revenues and earnings increased at single-digit paces last year.
-
the investment community does not appear too concerned, at the moment.
-
in fact, these shares have increased slightly in value since our november report.
-
the top and bottom lines are likely to progress at single-digit clips in 2026 and 2027.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the top risk is hospital capital spending slowing in imaging equipment.
med
imaging budgets get delayed
GEHC still leans on imaging for roughly 70% of revenue, or about $14.4B of a $20.6B business. when hospitals stretch replacement cycles, this company feels it.
if that spend slips, the biggest revenue engine slows first. that is the risk that matters most because scale cuts both ways.
med
pharmaceutical diagnostics cools off
the quiet bull case is a $2.9B consumables business growing 16%. if that drops back toward the rest of the portfolio, the rerating argument gets thinner fast.
the multiple only gets more generous if the faster-growing piece stays faster. otherwise you are left with a good equipment company at an equipment-company valuation.
med
patient care solutions stays negative
this $3.1B segment declined 1.2%. one year of softness is manageable. repeated softness starts to look structural.
if the lagging businesses do not stabilize, pharmaceutical diagnostics has to carry more of the portfolio by itself.
med
debt limits the margin for error
$8.2B of long-term debt is not a crisis, but it does mean mediocre execution is less forgivable than it would be on a cleaner balance sheet.
with an 11.3% net margin, there is profitability to defend. if growth stalls and debt stays put, the stock can stay cheap for longer than you want.
between imaging at $14.4B and pharmaceutical diagnostics at $2.9B, roughly $17.3B of revenue — about 84% of the company — sits in the two segments carrying the story.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next print on segment mix
you want to see whether pharmaceutical diagnostics keeps growing faster than the rest of the portfolio. 16% versus 4.4% is the gap to defend.
metric
imaging demand
roughly 70% of revenue still comes from imaging. if hospital ordering slows, the whole income statement notices.
risk
patient care solutions stabilization
the $3.1B segment declined 1.2%. another weak update would make the portfolio look more one-legged than management wants.
trend
earnings follow-through
FY2025 EPS was $4.60 and Q4 EPS was $1.46. you want that stronger finish to be a trend, not a single quarter cameo.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts see a stock behaving pretty normally right now.
risk profile
average
stability score 3 — neither especially defensive nor especially wild. middle of the road fits the numbers.
chart momentum
top 20%
technical score 2 — the chart looks better than the composite score suggests, which means price action has been firmer than the fundamentals story alone.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 574 buyers vs. 521 sellers in 3q2025. total institutional holdings: 0.4B shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$64
$141
$80
current price
$103
target midpoint · +28% from current · 3-5yr high: $180 (+125% · 23% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive