Back to top

Image: Bigstock

GEHC Ahead of Q3 Earnings: Can Strong Demand Offset Macro Headwinds?

Read MoreHide Full Article

Key Takeaways

  • GEHC's Q3 earnings are expected to rise 13.1% to $1.21 per share, with revenues growing 4.2% to $5.36 billion.
  • Strong imaging demand, 11.1% organic order growth and a record $23.9B backlog could support GEHC's Q3 sales.
  • PCS weakness, supply constraints and rising component costs may hurt GEHC's margins despite pricing actions.

GE HealthCare Technologies Inc. (GEHC - Free Report) is scheduled to report third-quarter 2026 results on Oct. 28, before the market opens. The figures are likely to reflect healthy demand for advanced imaging and pharmaceutical diagnostics, alongside efforts to recover from operational challenges in Patient Care Solutions (“PCS”). Investors will focus on order conversion, margin improvement and management’s progress in addressing supply constraints.

GEHC’s shares gained 2.1% during the three-month period through the end of September 2026, outperforming the Zacks Medical - Products industry’s 1.3% growth and the S&P 500 Index's 1.5% gain.

Zacks Investment Research
Image Source: Zacks Investment Research

Earnings Surprise History

GEHC beat on earnings in three of the trailing four quarters and missed in one, delivering an average surprise of 0.94%.

Zacks Investment Research
Image Source: Zacks Investment Research

Consensus Estimates and Revisions

The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.21 per share, while the same for revenues is pinned at $5.36 billion. The consensus estimates indicate year-over-year growth of 13.1% in earnings and 4.2% in sales.

Earnings estimates have remained unchanged over the past seven days, indicating no recent revisions. This stability provides a benchmark for evaluating whether operational performance and business mix can support expectations.

Zacks Investment Research
Image Source: Zacks Investment Research

Key Factors Shaping GEHC’s Q3 Results

Imaging and Pharmaceutical Diagnostics: Strong demand for differentiated imaging technologies and pharmaceutical diagnostics should have supported GEHC’s quarterly performance. In the second quarter, Pharmaceutical Diagnostics revenues grew 14.6% organically, supported by contrast media and U.S. radiopharmaceuticals. Management also reported continued progress in Flyrcado, with 545 doses delivered for the week ended July 24, approximately 40% above April levels. New customer additions likely supported further utilization growth, although the ramp-up might not have been linear.

Orders and Backlog Conversion: GEHC’s second-quarter organic orders increased 11.1% year over year, while book-to-bill reached 1.15x and backlog rose to a record $23.9 billion. Management indicated that strong orders and improved equipment shipment visibility supported confidence in the second half. This strength should have driven sales during the third quarter. However, longer-cycle imaging orders may contribute more meaningfully to 2027 revenues, limiting their immediate impact.

Patient Care Solutions: Organic revenues declined 13.5% in the second quarter because of operational fulfillment challenges, and segment operating profit was negative. PCS performance is likely to have remained weak during the third quarter. However, through better supply availability and shipment execution should have helped offset some weakness. Investors are likely to focus on any update related to the strategic review of PCS, including potential continued ownership or a sale.

Margins: Inflation in memory chips, oil, freight and other components pressured second-quarter margins, which is likely to have continued in the third quarter amid the continued AI boom and Iran war. The impact of GEHC’s pricing and cost actions to offset these pressures remains to be seen. Management expects the benefits to become more meaningful in the second half. Execution remains critical to achieving the company’s profitability objectives.

What Our Model Unveils for Goldman Stock

Our proven model does not conclusively predict an earnings beat for GEHC this time around. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here, as you can see below.

Earnings ESP: GE Healthcare has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: GEHC carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Some stocks worth considering from the broader medical space are Glaukos (GKOS - Free Report) , Edward Lifesciences (EW - Free Report) and Globus Medical (GMED - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Glaukos reported second-quarter 2026 earnings per share of 14 cents, which beat the Zacks Consensus Estimate by 50.00%. Revenues of $186 million surpassed the Zacks Consensus Estimate by 24.1%.

Glaukos has an estimated earnings growth rate of 268.8% for 2027. GKOS’ earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 25.87%.

Edward Lifesciences reported second-quarter 2026 adjusted EPS of 78 cents, which beat the Zacks Consensus Estimate by 6.85%. Revenues of $1.74 billion surpassed the Zacks Consensus Estimate by 2.45%.

Edward Lifesciences has an estimated long-term earnings growth rate of 12.7%. EW’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.49%.

Globus Medical reported a second-quarter fiscal 2026 adjusted EPS of $1.34, which beat the Zacks Consensus Estimate by 19.6%. Revenues of $790 million missed the Zacks Consensus Estimate by 0.35%.

Globus Medical has an estimated long-term earnings growth rate of 12.4%. GMED’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 27.88%.

Published in