GE HealthCare Technologies (NASDAQ:GEHC) Posts Earnings Results

Key Points

• GE HealthCare reported Q1 EPS of $0.99, missing estimates and cut FY‑2026 adjusted EPS guidance to $4.80–$5.00 while trimming free cash flow to about $1.6B, blaming a resolved supplier recall and roughly $250M of inflationary headwinds.
• Top‑line strength included revenue of $5.13B (up 7.4% YoY, 2.9% organic) and a record backlog of $21.8 billion, with regulatory clearances for photon‑counting CT, multiple next‑gen MR approvals, and progress in pharmaceutical diagnostics positioning the company for higher‑margin revenue starting in 1H 2027.
• Shares plunged on the news (trading down to about $59.93 on heavy volume); the company declared a $0.035 quarterly dividend and Street consensus remains a "Hold" with a target near $89.77.

GE HealthCare Technologies (NASDAQ:GEHC - Get Free Report) announced its quarterly earnings results on Wednesday. The company reported $0.99 earnings per share for the quarter, missing analysts' consensus estimates of $1.07 by ($0.08), FiscalAI reports. GE HealthCare Technologies had a return on equity of 21.35% and a net margin of 10.11%.The company had revenue of $5.13 billion during the quarter, compared to analyst estimates of $5.03 billion. During the same period in the prior year, the firm earned $1.01 EPS. GE HealthCare Technologies's quarterly revenue was up 7.4% on a year-over-year basis. GE HealthCare Technologies updated its FY 2026 guidance to 4.800-5.000 EPS.

Here are the key takeaways from GE HealthCare Technologies' conference call:

• GE HealthCare reported a strong start to 2026 with $5.1B revenue, 2.9% organic growth, broad geographic strength (double-digit EMEA/ROW, mid-single U.S.) and a record backlog of $21.8 billion.
• Profitability disappointed in Q1 due to a PDX supplier recall (now resolved) and rising material costs, prompting management to lower full-year guidance to an adjusted EPS range of $4.80–$5.00 and reduced free cash flow to about $1.6B.
• Management quantified inflationary headwinds as roughly $250M (≈$0.43/share) — ~ $100M memory chips, ~ $100M oil/freight, and ~$50M other commodities — and expects to offset more than half via price and cost actions, with most mitigation and benefits back‑loaded into H2 and 2027.
• Strategic product and organizational milestones — U.S. and Japan clearances for the Photonova Spectra photon‑counting CT, multiple next‑gen MR FDA clearances, and the creation of a combined Advanced Imaging Solutions segment — position the company to accelerate adoption of high‑margin NPIs that should begin contributing revenue in 1H 2027.
• Progress in Pharmaceutical Diagnostics includes Flyrcado ramping (~80% dose increase since late January, 390 doses the week of April 17) on a path to management's $500M+ 2028 target, accelerating Vizamyl demand, and a manganese‑based, gadolinium‑free MRI contrast now in combined Phase II/III with FDA Fast Track status.

GE HealthCare Technologies Stock Performance

GE HealthCare Technologies stock traded down $8.57 during trading hours on Wednesday, hitting $59.93. The stock had a trading volume of 17,745,414 shares, compared to its average volume of 3,736,889. The company has a 50-day moving average of $74.19 and a two-hundred day moving average of $77.76. The company has a quick ratio of 1.13, a current ratio of 1.37 and a debt-to-equity ratio of 0.91. The company has a market cap of $27.35 billion, a PE ratio of 13.14, a price-to-earnings-growth ratio of 1.55 and a beta of 1.17. GE HealthCare Technologies has a fifty-two week low of $58.75 and a fifty-two week high of $89.77.

GE HealthCare Technologies Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, May 15th. Shareholders of record on Friday, April 3rd will be issued a $0.035 dividend. The ex-dividend date of this dividend is Thursday, April 2nd. This represents a $0.14 annualized dividend and a yield of 0.2%. GE HealthCare Technologies's dividend payout ratio is 3.07%.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on GEHC shares. Evercore boosted their price objective on GE HealthCare Technologies from $95.00 to $98.00 and gave the stock an "outperform" rating in a research report on Thursday, February 5th. Barclays boosted their price objective on GE HealthCare Technologies from $86.00 to $87.00 and gave the stock an "equal weight" rating in a research report on Friday, February 6th. Mizuho cut their price objective on GE HealthCare Technologies from $95.00 to $90.00 and set an "outperform" rating for the company in a research report on Monday, April 13th. Wells Fargo & Company boosted their price objective on GE HealthCare Technologies from $95.00 to $97.00 and gave the stock an "overweight" rating in a research report on Thursday, February 5th. Finally, Piper Sandler cut their price objective on GE HealthCare Technologies from $96.00 to $88.00 and set an "overweight" rating for the company in a research report on Friday, April 17th. Eight investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $89.77.

GE HealthCare Technologies News Summary

Here are the key news stories impacting GE HealthCare Technologies this week:

• Positive Sentiment: Top‑line strength — Revenue grew ~7.4% year‑over‑year and came in slightly above Street estimates, showing demand momentum in Imaging and Pharmaceutical Diagnostics. GE HealthCare Q1 press releaseView press release
• Positive Sentiment: Executive/operational changes — Company announced leadership and operating-structure updates intended to improve execution and efficiency, which could help margin recovery longer term. BusinessWire: executive updatesBusinessWire announcement
• Neutral Sentiment: Quarterly disclosure materials available — Conference call, slide deck and filings are posted for further detail on segment performance and cost drivers (useful for modeling and upcoming analyst updates). GE HealthCare slide deckSlide deck & call materials
• Negative Sentiment: EPS miss — Reported EPS of $0.99 missed consensus ($1.07), weighing on near‑term sentiment and valuation assumptions. Zacks: EPS missZacks coverage
• Negative Sentiment: Guidance cut — FY‑2026 EPS guidance revised to $4.80–$5.00, below consensus (~$5.05), directly reducing forward earnings expectations used by investors and analysts. Reuters: guidance cutReuters report
• Negative Sentiment: Cost/inflation pressure — Management blamed higher memory chip, oil and freight costs and ongoing supply‑chain pressures for margin compression, signaling possible sustained cost headwinds. WSJ: cost pressuresWSJ analysis
• Negative Sentiment: Market reaction — Multiple outlets report shares fell sharply in premarket/morning trading after the release and guidance cut, reflecting investor concern about near‑term profitability. Proactive: shares tumbleProactive report

Hedge Funds Weigh In On GE HealthCare Technologies

Several large investors have recently added to or reduced their stakes in the company. Compound Planning Inc. raised its holdings in GE HealthCare Technologies by 22.6% in the 4th quarter. Compound Planning Inc. now owns 3,299 shares of the company's stock valued at $271,000 after acquiring an additional 609 shares in the last quarter. Invesco Ltd. grew its stake in shares of GE HealthCare Technologies by 1.6% in the 4th quarter. Invesco Ltd. now owns 7,003,172 shares of the company's stock valued at $574,400,000 after purchasing an additional 112,028 shares during the period. Axxcess Wealth Management LLC grew its stake in shares of GE HealthCare Technologies by 34.4% in the 4th quarter. Axxcess Wealth Management LLC now owns 3,640 shares of the company's stock valued at $299,000 after purchasing an additional 931 shares during the period. Corient Private Wealth LLC grew its stake in shares of GE HealthCare Technologies by 84.7% in the 4th quarter. Corient Private Wealth LLC now owns 101,191 shares of the company's stock valued at $8,300,000 after purchasing an additional 46,394 shares during the period. Finally, Ameriflex Group Inc. grew its stake in shares of GE HealthCare Technologies by 146.0% in the 4th quarter. Ameriflex Group Inc. now owns 1,358 shares of the company's stock valued at $111,000 after purchasing an additional 806 shares during the period. Institutional investors and hedge funds own 82.06% of the company's stock.

About GE HealthCare Technologies

GE HealthCare Technologies NASDAQ: GEHC is a global medical technology and diagnostics company that develops, manufactures and markets a broad range of products and services for healthcare providers. Its portfolio centers on diagnostic imaging systems, including MRI, CT, PET and X-ray modalities, as well as ultrasound equipment. The company also supplies patient monitoring and anesthesia delivery systems, interventional and surgical imaging solutions, and molecular imaging technologies used in both clinical care and research settings.

In addition to hardware, GE HealthCare offers software, analytics and lifecycle services aimed at improving clinical workflows and equipment uptime.

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