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Why Is GE HealthCare (GEHC) Up 3.6% Since Last Earnings Report?
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It has been about a month since the last earnings report for GE HealthCare Technologies (GEHC - Free Report) . Shares have added about 3.6% in that time frame, underperforming the S&P 500.
But investors have to be wondering, 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 its latest earnings report in order to get a better handle on the recent catalysts for GE HealthCare Technologies Inc. before we dive into how investors and analysts have reacted as of late.
GEHC Q2 Earnings & Revenues Beat Estimates
GE HealthCare reported second-quarter 2026 adjusted earnings per share of $1.13, which beat the Zacks Consensus Estimate of $1.04 by 8.7%. The bottom line increased 6.6% year over year, aided by commercial execution, pricing and productivity gains.
GAAP EPS in the quarter was $1.24, up 16.5% from the year-ago level.
GEHC's Revenue Growth Gains Momentum
Revenues of $5.29 billion increased 5.7% year over year on a reported basis and 3.5% organically. The top line surpassed the Zacks Consensus Estimate by 0.7%. Revenue growth was led by Pharmaceutical Diagnostics (PDx) and Advanced Imaging Solutions (AIS), along with strength in the United States, EMEA and Rest of World markets. However, growth was partially offset by a decline in the Patient Care Solutions (PCS) segment.
Total company orders increased 11.1% year over year organically. The book-to-bill ratio was 1.15X, indicating rising orders compared to shipments, with backlog reaching a record $23.9 billion. Management cited order growth across every segment, supported by strong commercial execution and adoption of new products.
GE HealthCare’s Q2 Segmental Details
Pharmaceutical Diagnostics revenues increased 15.6% year over year to $843 million. Growth was supported by higher contrast-media volumes, pricing and U.S. radiopharmaceutical demand. Segment EBIT was $250 million, up 16.9% year over year.
Advanced Imaging Solutions revenues increased 7.9% year over year to $3.77 billion. Growth was supported by CardioVascular and Interventional Solutions, computed tomography and Molecular Imaging. Segment EBIT was $525 million, up 15.4% year over year.
Patient Care Solutions revenues declined 13.3% year over year to $675 million. Management attributed the decline primarily to operational and fulfillment challenges, despite strong first-half orders that indicated healthy customer demand.
GEHC's Margin and Cash Flow Improve
Net income margin expanded 90 basis points to 10.6%. However, net income margin was negatively impacted due to PCS weakness and inflation in memory chips, oil and freight costs.
Cumulative cash flow from operating activities at the end of the second quarter was $458 million compared with $344 million a year ago.
GE HealthCare’s Financial Position
GEHC exited the second quarter with cash, cash equivalents and restricted cash of $2.11 billion compared with $2.28 billion in the previous quarter.
Total assets increased to $37.25 billion from $37.12 billion on a sequential basis.
GE HealthCare Reaffirms 2026 Guidance
GE HealthCare reaffirmed its guidance for 2026.
The company still 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, as expected previously.
Management anticipates approximately $250 million of inflation associated with memory chips, oil and freight and other components, but expects pricing and cost actions to offset more than half of that impact.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, GE HealthCare has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
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. Notably, GE HealthCare has a Zacks Rank #2 (Buy). We expect an above 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, Abbott (ABT - Free Report) , a stock from the same industry, has gained 5.7%. The company reported its results for the quarter ended June 2026 more than a month ago.
Abbott reported revenues of $12.59 billion in the last reported quarter, representing a year-over-year change of +13%. EPS of $1.31 for the same period compares with $1.26 a year ago.
Abbott is expected to post earnings of $1.43 per share for the current quarter, representing a year-over-year change of +10%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Abbott. Also, the stock has a VGM Score of B.
View the Zacks #1 Rank List
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Why Is GE HealthCare (GEHC) Up 3.6% Since Last Earnings Report?
It has been about a month since the last earnings report for GE HealthCare Technologies (GEHC - Free Report) . Shares have added about 3.6% in that time frame, underperforming the S&P 500.
But investors have to be wondering, 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 its latest earnings report in order to get a better handle on the recent catalysts for GE HealthCare Technologies Inc. before we dive into how investors and analysts have reacted as of late.
GEHC Q2 Earnings & Revenues Beat Estimates
GE HealthCare reported second-quarter 2026 adjusted earnings per share of $1.13, which beat the Zacks Consensus Estimate of $1.04 by 8.7%. The bottom line increased 6.6% year over year, aided by commercial execution, pricing and productivity gains.
GAAP EPS in the quarter was $1.24, up 16.5% from the year-ago level.
GEHC's Revenue Growth Gains Momentum
Revenues of $5.29 billion increased 5.7% year over year on a reported basis and 3.5% organically. The top line surpassed the Zacks Consensus Estimate by 0.7%. Revenue growth was led by Pharmaceutical Diagnostics (PDx) and Advanced Imaging Solutions (AIS), along with strength in the United States, EMEA and Rest of World markets. However, growth was partially offset by a decline in the Patient Care Solutions (PCS) segment.
Total company orders increased 11.1% year over year organically. The book-to-bill ratio was 1.15X, indicating rising orders compared to shipments, with backlog reaching a record $23.9 billion. Management cited order growth across every segment, supported by strong commercial execution and adoption of new products.
GE HealthCare’s Q2 Segmental Details
Pharmaceutical Diagnostics revenues increased 15.6% year over year to $843 million. Growth was supported by higher contrast-media volumes, pricing and U.S. radiopharmaceutical demand. Segment EBIT was $250 million, up 16.9% year over year.
Advanced Imaging Solutions revenues increased 7.9% year over year to $3.77 billion. Growth was supported by CardioVascular and Interventional Solutions, computed tomography and Molecular Imaging. Segment EBIT was $525 million, up 15.4% year over year.
Patient Care Solutions revenues declined 13.3% year over year to $675 million. Management attributed the decline primarily to operational and fulfillment challenges, despite strong first-half orders that indicated healthy customer demand.
GEHC's Margin and Cash Flow Improve
Net income margin expanded 90 basis points to 10.6%. However, net income margin was negatively impacted due to PCS weakness and inflation in memory chips, oil and freight costs.
Cumulative cash flow from operating activities at the end of the second quarter was $458 million compared with $344 million a year ago.
GE HealthCare’s Financial Position
GEHC exited the second quarter with cash, cash equivalents and restricted cash of $2.11 billion compared with $2.28 billion in the previous quarter.
Total assets increased to $37.25 billion from $37.12 billion on a sequential basis.
GE HealthCare Reaffirms 2026 Guidance
GE HealthCare reaffirmed its guidance for 2026.
The company still 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, as expected previously.
Management anticipates approximately $250 million of inflation associated with memory chips, oil and freight and other components, but expects pricing and cost actions to offset more than half of that impact.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, GE HealthCare has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
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. Notably, GE HealthCare has a Zacks Rank #2 (Buy). We expect an above 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, Abbott (ABT - Free Report) , a stock from the same industry, has gained 5.7%. The company reported its results for the quarter ended June 2026 more than a month ago.
Abbott reported revenues of $12.59 billion in the last reported quarter, representing a year-over-year change of +13%. EPS of $1.31 for the same period compares with $1.26 a year ago.
Abbott is expected to post earnings of $1.43 per share for the current quarter, representing a year-over-year change of +10%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Abbott. Also, the stock has a VGM Score of B.