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1. Company Snapshot

1.a. Company Description

GE HealthCare Technologies Inc.engages in the development, manufacture, and marketing of products, services, and complementary digital solutions used in the diagnosis, treatment, and monitoring of patients in the United States, Canada, Europe, the Middle East, Africa, China, Taiwan, Mongolia, Hong Kong, and internationally.The company operates through four segments: Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics.


The Imaging segment offers molecular imaging, computed tomography (CT) scanning, magnetic resonance (MR) imaging, image-guided therapy, and X-ray systems, as well as women's health products.The Ultrasound segment provides screening, diagnosis, treatment, and monitoring of certain diseases through radiology and primary care, women's health, cardiovascular, and point of care and handheld ultrasound solutions, as well as surgical visualization and guidance products.The Patient Care Solutions segment involved in the provision of medical devices, consumable products, services, and digital solutions through patient monitoring, anesthesia delivery and respiratory care, diagnostic cardiology, and maternal infant care products.


The Pharmaceutical Diagnostics supplies diagnostic agents, including CT, angiography and X-ray, MR, single-photon emission computed tomography, positron emission tomography, and ultrasound to the radiology and nuclear medicine industry.The segment also provides contrast media pharmaceuticals, administered to a patient prior to certain diagnostic scans to increase the visibility of tissues or structures during imaging exams; and molecular imaging agents, or radiopharmaceuticals, which are molecular tracers labeled with radioisotopes that are injected into a patient prior to a diagnostic imaging scan.The company was incorporated in 2022 and is headquartered in Chicago, Illinois.

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1.b. Last Insights on GEHC

GE HealthCare Technologies Inc.'s recent performance was positively driven by its Q3 earnings beat, with adjusted earnings of $1.07 per share, surpassing the consensus estimate of $1.05. The company's steady growth in Imaging and Diagnostics is expected to continue. Additionally, GE HealthCare announced a cash dividend of $0.035 per share for Q4 2025. The company also made strategic moves, including the acquisition of Intelerad for $2.3B to boost cloud imaging growth. Its presentation at investor conferences, including the Jefferies London Healthcare Conference, also garnered attention. (Source: Zacks)

1.c. Company Highlights

2. GE HealthCare Reports Solid Q2 2025 Earnings

GE HealthCare reported a solid second quarter in 2025, with revenues of $5 billion, up 2% organically, and orders growth across all segments. The company's backlog reached a record $21.3 billion, up $2.2 billion year-over-year. Adjusted EPS was $1.06, up 6% year-over-year, despite a mixed macroeconomic landscape. The company secured significant wins, including its largest order ever of Omni Legend PET/CT systems in the US and a $250 million, 5-year collaboration in Europe.

Publication Date: Aug -01

📋 Highlights
  • Revenue Growth: Reported $5 billion in Q2 revenue, up 2% organically, driven by strong performance across all segments.
  • Record Backlog: Backlog reached $21.3 billion, up $2.2 billion year-over-year, reflecting strong demand and orders growth.
  • Profitability: Adjusted EPS of $1.06, up 6% year-over-year, despite macroeconomic challenges and tariff impacts.
  • Raised Guidance: Increased 2025 organic revenue growth guidance to 3% and adjusted EPS to $4.43-$4.63, up from $3.90-$4.10.
  • Strong Book-to-Bill: Book-to-bill ratio of 1.07x, with equipment orders exceeding 1.1x in the last three quarters, signaling future growth momentum.

Segment Performance

The Imaging segment saw organic revenue growth of 1%, driven by strong execution in EMEA and the US, while Advanced Visualization Solutions grew 2% organically, with continued strong performance in the US. Patient Care Solutions was flat year-over-year, while Pharmaceutical Diagnostics grew 5% organically.

Guidance and Outlook

The company raised its 2025 organic revenue growth guidance to approximately 3% and adjusted EBIT margin to a range of 15.2% to 15.4%. Adjusted EPS is now expected to be between $4.43 and $4.63, up from the prior estimate of $3.90 to $4.10. The company also expects to deliver free cash flow of at least $1.4 billion for the full year.

Tariff Impacts and Gross Margin

Tariff impacts are expected to be less than $0.45 of adjusted EPS in 2026. The company reported a book-to-bill ratio of 1.07x, with equipment book-to-bill above 1.1 in the last three quarters. The tariff impact in Q2 was around $50 million, with a guidance of $30 million for 2025 for Flyrcado. Gross margin declined 180 basis points year-over-year, impacted by tariffs, a shift of $25 million from R&D to cost of goods sold, and negative mix in the service business.

Orders Growth and China Outlook

Orders growth was 3% in Q2, with a 7% growth in the first half and a mid-single-digit growth over the last year. The company expects mid-single-digit growth in orders going forward. In China, activity is picking up, but the pace of recovery is taking longer. The company has a cautious view on China for the second half, expecting some softness.

Valuation and Estimates

The company's valuation metrics suggest that there is room for upside, with a P/E Ratio of 14.54 and a P/S Ratio of 1.64. Analysts estimate next year's revenue growth at 4.6%. The actual EPS of $1.06 came out better than estimates of $0.918, which could lead to upward revisions in earnings estimates.

3. NewsRoom

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GEHC and Mayo Clinic Launch GEMINI-RT to Aid Personalized Cancer Care

Dec -04

Source: zacks.com

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Breakfast News: SNOW's Growth Outlook Cools

Dec -04

Source: fool.com

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GE HealthCare and Mayo Clinic unveil GEMINI-RT: A bold research collaboration in radiation therapy and advanced cancer care

Dec -03

Source: businesswire.com

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University of Rochester Medical Center and GE HealthCare form seven-year Care Alliance to build advanced capabilities across system

Dec -03

Source: businesswire.com

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GEHC Unveils Allia Moveo to Elevate Mobility in Interventional Care

Dec -02

Source: zacks.com

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GE HealthCare introduces advanced imaging solutions powered by NVIDIA technology to support timely diagnoses and streamlined clinical workflows

Dec -02

Source: businesswire.com

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30% of the S&P 500 Is Mag 7 Tech Stocks, but This ETF Refuses to Own a Single One

Dec -02

Source: 247wallst.com

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GE HealthCare Unveils Next-Gen SIGNA MRI Systems to Elevate Efficiency

Dec -01

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.88%)

6. Segments

Imaging

Expected Growth: 3.5%

The imaging segment growth of 3.5% for GE HealthCare Technologies Inc. is driven by increasing demand for advanced medical imaging technologies, rising healthcare expenditure, and a growing geriatric population. Additionally, the company's innovation in AI-powered imaging solutions and strategic partnerships are expected to contribute to its growth.

Advanced Visualization Solutions

Expected Growth: 4.2%

The advanced visualization solutions from GE HealthCare Technologies Inc. are driven by increasing demand for precision medicine, rising adoption of AI and machine learning, and growing need for data-driven insights in healthcare. Additionally, the company's strategic partnerships and investments in R&D have enhanced its product offerings, contributing to a growth rate of 4.2%.

Pharmaceutical Diagnostics

Expected Growth: 3.8%

The 3.8% growth in Pharmaceutical Diagnostics from GE HealthCare Technologies Inc. is driven by increasing demand for precision medicine, rising adoption of advanced diagnostic technologies, and expanding applications of pharmaceutical diagnostics in cancer treatment and research.

Patient Care Solutions

Expected Growth: 4.5%

The 4.5% growth in Patient Care Solutions from GE HealthCare Technologies Inc. is driven by increasing demand for healthcare digitalization, rising hospitalizations, and expanding use of precision medicine. Additionally, the segment's innovative solutions, such as digital health platforms and data analytics, enhance patient outcomes and streamline care delivery, contributing to its growth.

Other

Expected Growth: 2.8%

GE HealthCare's 2.8% growth is driven by increased demand for healthcare services, technological advancements in medical imaging and diagnostics, and a strong backlog of orders. Additionally, the company's focus on digital transformation and precision health solutions has contributed to its growth, as well as a recovering global healthcare market.

7. Detailed Products

Medical Imaging Solutions

GE HealthCare's medical imaging solutions include a wide range of technologies such as CT scanners, MRI machines, X-ray machines, and ultrasound systems. These solutions enable healthcare professionals to visualize the body's internal structures and diagnose diseases.

HealthCare Information Technology (HIT) Solutions

GE HealthCare's HIT solutions include electronic health records (EHRs), clinical decision support systems, and data analytics platforms. These solutions enable healthcare providers to manage patient data, streamline clinical workflows, and make informed decisions.

Monitoring Solutions

GE HealthCare's monitoring solutions include patient monitoring systems, anesthesia machines, and ventilators. These solutions enable healthcare professionals to continuously monitor patients' vital signs and respond to changes in their condition.

Surgical Solutions

GE HealthCare's surgical solutions include surgical navigation systems, robotic-assisted surgery systems, and imaging systems for the operating room. These solutions enable surgeons to perform complex procedures with greater precision and accuracy.

Life Sciences Solutions

GE HealthCare's life sciences solutions include research imaging systems, laboratory information systems, and data analytics platforms. These solutions enable researchers to analyze biological data, conduct research studies, and develop new treatments.

8. GE HealthCare Technologies Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

GE HealthCare Technologies Inc. operates in the healthcare technology industry, where substitutes exist but are not easily available. While there are alternative medical imaging and diagnostic equipment providers, switching costs and the need for compatibility with existing systems reduce the threat of substitutes.

Bargaining Power Of Customers

The customers of GE HealthCare Technologies Inc. are primarily healthcare providers, which have limited bargaining power due to the critical nature of the equipment and the high stakes involved in patient care. Additionally, the company's strong brand reputation and wide range of products reduce customer bargaining power.

Bargaining Power Of Suppliers

GE HealthCare Technologies Inc. relies on a network of suppliers for components and materials. While some suppliers may have significant bargaining power due to the uniqueness of their products, the company has a large supplier base and can negotiate favorable terms.

Threat Of New Entrants

The healthcare technology industry has significant barriers to entry, including high R&D costs, regulatory hurdles, and the need for established relationships with healthcare providers. These barriers limit the threat of new entrants.

Intensity Of Rivalry

The healthcare technology industry is highly competitive, with several established players competing for market share. GE HealthCare Technologies Inc. competes with companies like Siemens Healthineers, Philips Healthcare, and Medtronic, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 52.61%
Debt Cost 6.78%
Equity Weight 47.39%
Equity Cost 10.90%
WACC 8.73%
Leverage 111.01%

11. Quality Control: GE HealthCare Technologies Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Veeva Systems

A-Score: 5.4/10

Value: 0.5

Growth: 8.2

Quality: 8.8

Yield: 0.0

Momentum: 9.0

Volatility: 6.0

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HealthEquity

A-Score: 4.8/10

Value: 1.4

Growth: 8.3

Quality: 7.1

Yield: 0.0

Momentum: 6.5

Volatility: 5.3

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HealthStream

A-Score: 4.8/10

Value: 3.7

Growth: 5.2

Quality: 6.9

Yield: 0.0

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Mettler-Toledo

A-Score: 4.4/10

Value: 3.0

Growth: 6.3

Quality: 7.1

Yield: 0.0

Momentum: 3.5

Volatility: 6.7

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Danaher

A-Score: 3.8/10

Value: 1.6

Growth: 4.0

Quality: 6.8

Yield: 1.0

Momentum: 1.5

Volatility: 7.7

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GE HealthCare

A-Score: 3.7/10

Value: 4.4

Growth: 3.8

Quality: 6.8

Yield: 0.0

Momentum: 2.5

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

85.46$

Current Price

85.46$

Potential

-0.00%

Expected Cash-Flows