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GE HealthCare (GEHC) Up 3.3% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for GE HealthCare Technologies (GEHC - Free Report) . Shares have added about 3.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is GE HealthCare due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for GE HealthCare Technologies Inc. before we dive into how investors and analysts have reacted as of late.
GEHC Q1 Earnings Miss Estimates, Revenues Beat, Net Margin Declines
GE HealthCare Technologies reported first-quarter 2026 adjusted earnings per share of 99 cents, which missed the Zacks Consensus Estimate of $1.07 by 7.5%. Also, the bottom line declined 1.9% year over year.
GAAP earnings per share in the quarter was 85 cents, down 30.9% from the year-ago level.
GEHC’s Q1 Revenue Details
Revenues of $5.13 billion were up 7.4% year over year on a reported basis and 2.9% organically. The top line beat the Zacks Consensus Estimate by 1.5%. Total company orders increased 1.1% year over year organically. The book-to-bill was 1.07X, reflecting rising orders compared to shipments.
Revenues were supported by strong performance in the United States, EMEA and Rest of World markets, primarily across three segments — Pharmaceutical Diagnostics (PDx), Imaging and Advanced Visualization Solutions (“AVS”) — partially offset by a decline in the Patient Care Solutions segment.
GE HealthCare’s Segmental Details
Imaging
Revenues from this segment totaled $2.29 billion, up 7.4% year over year on a reported basis and 3.8% organically.
Segment EBIT was $180 million, down 9.4% year over year.
Advanced Visualization Solutions
Revenues totaled $1.34 billion, up 8.2% year over year on a reported basis and 4.4% organically.
Segment EBIT was $299 million, up 14.5% year over year.
Patient Care Solutions
Revenues amounted to $704 million, down 6.5% year over year on a reported basis and down 8.1% organically.
Segment EBIT was $10 million, down 79.8% year over year.
Pharmaceutical Diagnostics
Revenues totaled $770 million, up 21.7% year over year and 9.7% on an organic basis.
Segment EBIT was $197 million, down 3.9% year over year.
GEHC’s Q1 Margin Analysis
Net income margin was 7.6%, down 420 basis points from the prior-year level due to the unfavorable impact of tariffs, a decline in Patient Care Solutions (PCS) and the PDx supplier issue.
Cumulative cash flow from operating activities at the end of the first quarter was $290 million compared with $250 million a year ago.
GE HealthCare’s Financial Position
GEHC exited the first quarter with cash, cash equivalents and investments of $2.28 billion compared with $4.51 billion in the previous quarter.
Total assets increased to $37.12 billion from $36.91 billion on a sequential basis.
GEHC’s 2026 Guidance
GE HealthCare updated its adjusted earnings per share guidance for 2026.
The company expects organic revenue growth of 3-4% in 2026. It anticipates adjusted earnings per share to be in the range of $4.80-$5.00, implying 4.6%-9.0% year-over-year growth. However, the guidance range is down from $4.95-$5.15, as expected previously. At current tariff rates, GEHC expects a lower impact in 2026 versus 2025.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -10.79% due to these changes.
VGM Scores
At this time, GE HealthCare has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock has a score of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise GE HealthCare has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
GE HealthCare is part of the Zacks Medical - Products industry. Over the past month, Zimmer Biomet (ZBH - Free Report) , a stock from the same industry, has gained 0.5%. The company reported its results for the quarter ended March 2026 more than a month ago.
Zimmer reported revenues of $2.09 billion in the last reported quarter, representing a year-over-year change of +9.3%. EPS of $2.09 for the same period compares with $1.81 a year ago.
Zimmer is expected to post earnings of $1.99 per share for the current quarter, representing a year-over-year change of -3.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.3%.
Zimmer has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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GE HealthCare (GEHC) Up 3.3% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for GE HealthCare Technologies (GEHC - Free Report) . Shares have added about 3.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is GE HealthCare due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for GE HealthCare Technologies Inc. before we dive into how investors and analysts have reacted as of late.
GEHC Q1 Earnings Miss Estimates, Revenues Beat, Net Margin Declines
GE HealthCare Technologies reported first-quarter 2026 adjusted earnings per share of 99 cents, which missed the Zacks Consensus Estimate of $1.07 by 7.5%. Also, the bottom line declined 1.9% year over year.
GAAP earnings per share in the quarter was 85 cents, down 30.9% from the year-ago level.
GEHC’s Q1 Revenue Details
Revenues of $5.13 billion were up 7.4% year over year on a reported basis and 2.9% organically. The top line beat the Zacks Consensus Estimate by 1.5%. Total company orders increased 1.1% year over year organically. The book-to-bill was 1.07X, reflecting rising orders compared to shipments.
Revenues were supported by strong performance in the United States, EMEA and Rest of World markets, primarily across three segments — Pharmaceutical Diagnostics (PDx), Imaging and Advanced Visualization Solutions (“AVS”) — partially offset by a decline in the Patient Care Solutions segment.
GE HealthCare’s Segmental Details
Imaging
Revenues from this segment totaled $2.29 billion, up 7.4% year over year on a reported basis and 3.8% organically.
Segment EBIT was $180 million, down 9.4% year over year.
Advanced Visualization Solutions
Revenues totaled $1.34 billion, up 8.2% year over year on a reported basis and 4.4% organically.
Segment EBIT was $299 million, up 14.5% year over year.
Patient Care Solutions
Revenues amounted to $704 million, down 6.5% year over year on a reported basis and down 8.1% organically.
Segment EBIT was $10 million, down 79.8% year over year.
Pharmaceutical Diagnostics
Revenues totaled $770 million, up 21.7% year over year and 9.7% on an organic basis.
Segment EBIT was $197 million, down 3.9% year over year.
GEHC’s Q1 Margin Analysis
Net income margin was 7.6%, down 420 basis points from the prior-year level due to the unfavorable impact of tariffs, a decline in Patient Care Solutions (PCS) and the PDx supplier issue.
Cumulative cash flow from operating activities at the end of the first quarter was $290 million compared with $250 million a year ago.
GE HealthCare’s Financial Position
GEHC exited the first quarter with cash, cash equivalents and investments of $2.28 billion compared with $4.51 billion in the previous quarter.
Total assets increased to $37.12 billion from $36.91 billion on a sequential basis.
GEHC’s 2026 Guidance
GE HealthCare updated its adjusted earnings per share guidance for 2026.
The company expects organic revenue growth of 3-4% in 2026. It anticipates adjusted earnings per share to be in the range of $4.80-$5.00, implying 4.6%-9.0% year-over-year growth. However, the guidance range is down from $4.95-$5.15, as expected previously. At current tariff rates, GEHC expects a lower impact in 2026 versus 2025.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -10.79% due to these changes.
VGM Scores
At this time, GE HealthCare has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock has a score of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise GE HealthCare has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
GE HealthCare is part of the Zacks Medical - Products industry. Over the past month, Zimmer Biomet (ZBH - Free Report) , a stock from the same industry, has gained 0.5%. The company reported its results for the quarter ended March 2026 more than a month ago.
Zimmer reported revenues of $2.09 billion in the last reported quarter, representing a year-over-year change of +9.3%. EPS of $2.09 for the same period compares with $1.81 a year ago.
Zimmer is expected to post earnings of $1.99 per share for the current quarter, representing a year-over-year change of -3.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.3%.
Zimmer has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.