GE HealthCare (GEHC) — Company Research
Last Updated: 23 June 2026
GE HealthCare Technologies (Nasdaq: GEHC) is one of the world's largest medical-technology companies, supplying imaging systems (MRI, CT, X-ray, ultrasound), patient-monitoring equipment, pharmaceutical diagnostics (imaging agents) and a growing layer of AI, cloud and enterprise-imaging software. Spun out of General Electric in January 2023, it generated $20.6 billion of revenue in FY2025 across roughly 54,000 employees. The shares have de-rated sharply over the past year — from a 52-week high near $90 to the low-$60s — as tariffs, input-cost inflation and a softer Patient Care Solutions unit pressured margins, even as orders, backlog and the diagnostics pipeline stayed healthy. This report walks through the business, the numbers and the risks using only primary-source company filings.
1. Company Snapshot
| Field | Value |
|---|---|
| Company | GE HealthCare Technologies Inc. |
| Ticker | GEHC (Nasdaq) |
| Sector | Healthcare — Medical Devices & Diagnostics |
| CEO | Peter Arduini (President & CEO) |
| Headquarters | Chicago, Illinois, USA |
| Employees | ~54,000 |
| Became independent | January 2023 (spun off from General Electric) |
| Market cap | ~$28.0bn (June 2026) |
| Revenue (FY2025) | $20,625M ($20.6bn) |
| Net income (FY2025) | $2,084M attributable to GE HealthCare |
| GAAP diluted EPS (FY2025) | $4.55 |
| Dividend | $0.035 per quarter ($0.14 annualised) |
2. Bull / Bear Case
Bull Case
- Cheap relative to peers: at roughly 15x trailing earnings and ~11x EV/EBITDA, GEHC trades at a sizeable discount to medtech peers and to its own history after a ~30% de-rating from the 52-week high.
- Record backlog and recurring revenue: a $21.8bn backlog and a book-to-bill above 1.0 give multi-quarter revenue visibility, with services and software an increasing share of the mix.
- Innovation pipeline ramping: photon-counting CT (Photonova Spectra), next-generation SIGNA MRI, the Flyrcado cardiac-PET agent and the Intelerad cloud-imaging acquisition broaden the platform beyond legacy hardware.
- Self-help on margins: management expects price and cost actions to offset more than half of 2026 inflation, with the "Heartbeat" operating system targeting structural productivity gains.
Bear Case
- Margin compression is real: tariffs, memory-chip, oil and freight inflation and a discrete supplier issue cut Q1 FY2026 adjusted EBIT margin 150bps and forced a guidance reduction.
- Patient Care Solutions weakness: the PCS segment shrank organically again, dragging on group growth and mix.
- Rising leverage: total debt of roughly $10.1bn after the $2.3bn Intelerad deal raises interest costs and integration risk.
- China and policy exposure: a meaningful slice of revenue is tied to Chinese hospital capex and to government reimbursement budgets that can swing on policy.
3. Segment Breakdown
GE HealthCare reports four operating segments. Figures below are FY2025 segment revenue and share of the $20.6bn total.
| Segment | % of revenue (FY2025) | What it is |
|---|---|---|
| Imaging | ~45% ($9,245M) | MRI, CT, X-ray, molecular imaging and interventional systems — the core hardware franchise. |
| Advanced Visualization Solutions | ~26% ($5,354M) | Ultrasound and image-guided / interventional visualization devices and software. |
| Patient Care Solutions | ~15% ($3,086M) | Monitoring, anaesthesia, respiratory and diagnostic-cardiology equipment and consumables. |
| Pharmaceutical Diagnostics | ~14% ($2,900M) | Contrast media and molecular-imaging agents (including Flyrcado) — high-growth, recurring. |
4. Business Model
GE HealthCare runs a classic "razor-and-blade" medtech model layered with services and software. It sells high-value capital equipment to hospitals and imaging centres, then earns durable, higher-margin revenue from multi-year service contracts, software subscriptions, spare parts and — in Pharmaceutical Diagnostics — recurring sales of imaging agents consumed with every scan.
How it makes money: the installed base of imaging and monitoring systems generates a long tail of service, upgrade and consumable revenue, while new-equipment orders (tracked via book-to-bill and a $21.8bn backlog) drive the growth engine. Capital-equipment sales are cyclical with hospital budgets; services and PDx provide ballast.
Unit economics and moat: the moat rests on a vast global installed base, deep clinical relationships, regulatory approvals, brand and an expanding software/AI layer that raises switching costs. Gross margins run in the high-30s to ~40% range, with profitability levered to volume, mix and the company's ability to pass through input-cost inflation.
5. Financial Health
The annual table covers FY2021–FY2025 (GE HealthCare became an independent public company in January 2023; per-share earnings before then reflect pre-spin combined/carve-out periods and are not comparable). The quarterly table shows the most recent five quarters, most recent first.
| Fiscal Year | Revenue ($M) | YoY % | GAAP EPS | Adjusted EPS | Dividend/share | Long-term debt ($M) |
|---|---|---|---|---|---|---|
| 2021 | $17,585M | — | n/a¹ | n/a¹ | — | — |
| 2022 | $18,341M | +4.3% | n/a¹ | n/a¹ | — | — |
| 2023 | $19,552M | +6.6% | $3.04 | $3.93 | $0.09 | $8,436M |
| 2024 | $19,672M | +0.6% | $4.34 | $4.49 | $0.12 | $7,449M |
| 2025 | $20,625M | +4.8% | $4.55 | $4.59 | $0.14 | $9,495M |
¹ FY2021–FY2022 are pre-spin combined/carve-out periods; standalone per-share earnings are not comparable. Long-term debt shown is year-end long-term borrowings per the consolidated balance sheet.
| Quarter | Revenue ($M) | Adjusted EPS | GAAP EPS |
|---|---|---|---|
| Q1 2026 | $5,131M | $0.99 | $0.85 |
| Q4 2025 | $5,698M | $1.44 | $1.29 |
| Q3 2025 | $5,143M | $1.07 | $0.98 |
| Q2 2025 | $5,007M | $1.06 | $1.06 |
| Q1 2025 | $4,777M | $1.01 | $1.23 |
| FY2025 total | $20,625M | $4.59 | $4.55 |
FY2025 cash flow from operating activities was $1,987M and free cash flow $1,505M (operating CF $1,987M less capex $482M). The company ended Q1 FY2026 with cash of $2,285M and total debt of roughly $10.1bn. See Live Charts for current price action.
6. Valuation
Raw metrics, June 2026. Not opinions on whether the stock is cheap or expensive.
| Metric | Value |
|---|---|
| Market cap | ~$28.0bn (≈457M shares × ~$61.59, 19 Jun 2026) |
| Enterprise value | ~$35.8bn (market cap $28.0bn + total debt $10.13bn − cash $2.29bn, per Q1 FY2026 balance sheet 31 Mar 2026) |
| Trailing P/E (GAAP) | ~14.8x (price $61.59 / TTM GAAP diluted EPS $4.17) |
| P/E (forward) | ~12.6x (price $61.59 / FY2026 adjusted EPS guidance midpoint $4.90, non-GAAP) |
| P/S (TTM) | ~1.3x (market cap $28.0bn / TTM revenue $20.98bn) |
| EV/EBITDA (TTM) | ~10.7x (EV $35.8bn / EBITDA ~$3.34bn; EBITDA = FY2025 operating income $2,763M + D&A $578M) |
| P/FCF | ~18.6x (market cap $28.0bn / FY2025 FCF $1.51bn; FCF = operating CF $1,987M − capex $482M) |
| 52-week high | $89.77 |
| 52-week low | $58.75 |
| Short interest (% of float) | ~2.2% of float (most recent settlement available) |
| Days to cover | ~2 days |
7. What They're Building
GE HealthCare describes itself as entering "a new wave of innovation" funded by increased R&D. Recent and pipeline highlights span all four segments: in imaging, FDA clearances for the Photonova Spectra photon-counting CT system and next-generation SIGNA MRI; in software, the cloud-first Genesis Radiology Workspace, the "View" diagnostic viewer and the $2.3bn Intelerad acquisition that adds cloud-enabled enterprise imaging. In pharmaceutical diagnostics, the Flyrcado cardiac-PET agent is ramping across US cardiac-PET centres, and a Phase 2/3 LUMINA trial is testing a manganese-based MRI contrast agent under FDA Fast Track. The strategic thread is a shift from hardware toward an AI, cloud and recurring-agent platform, with a $35m BARDA award also funding AI-powered ultrasound for trauma care.
8. Competitive Landscape
GE HealthCare is one of the "big three" in medical imaging alongside Siemens Healthineers and Philips, holding an estimated 20–25% share of core imaging and diagnostics, with growing pressure from United Imaging, Mindray and Canon Medical.
| Peer | Market cap (Jun 2026) | Key 2025 metric |
|---|---|---|
| Siemens Healthineers | ~$41bn (€38.0bn) | FY2024 revenue €22.36bn — global imaging leader, strong AI integration |
| Koninklijke Philips | ~$26.3bn | 2024 sales ~€18.0bn ($19.6bn) — imaging, monitoring & informatics |
| Canon Inc (Canon Medical) | ~$23.1bn | Diversified group; Medical Systems competes in CT/MRI/ultrasound |
9. Leadership & Ownership
GE HealthCare is led by President & CEO Peter Arduini, with Jay Saccaro as Vice President and CFO. Recent Form 4 activity has featured open-market director purchases — a constructive signal — alongside routine equity-compensation grants to executives.
| Name | Date | Type | Shares | Price | Value | Plan Type |
|---|---|---|---|---|---|---|
| Kevin Lobo (Director) | 19 May 2026 | Buy | 10,000 | $64.18 | ~$641,800 | Open market |
| Rodney F. Hochman (Director, family trust) | May 2026 | Buy | 1,618 | $62.03 | ~$100,365 | Open market |
| Jay Saccaro (CFO) | Mar 2026 | Buy | 3,310 | — | — | Open market |
| Taha Kass-Hout (CTO) | 02 Mar 2026 | Grant | 13,254 RSUs | — | — | Comp award |
10. Key Risks
- Tariffs & input-cost inflation (Macro): tariffs plus memory-chip, oil and freight costs hit FY2026 margins and forced a profit-guidance cut.
- China demand & geopolitics (Macro): Chinese hospital capex and trade tensions can swing a meaningful slice of revenue.
- Patient Care Solutions weakness (Operational): the PCS segment continues to decline organically, weighing on group growth and mix.
- M&A integration (Operational): the $2.3bn Intelerad acquisition and other deals carry execution and goodwill risk.
- Reimbursement & government budgets (Regulatory): changes to third-party and government reimbursement or shutdowns can delay equipment purchases.
- Leverage (Financial): roughly $10.1bn of total debt increases interest expense and reduces flexibility if cash flow softens.
11. Recent Developments
- 29 Apr 2026 — Q1 FY2026 results; profit outlook trimmed. Revenue rose 7.4% to $5.13bn but management cut FY2026 adjusted EPS guidance to $4.80–5.00 and free cash flow to ~$1.6bn on more pronounced inflation.
- 18 Mar 2026 — Completed $2.3bn Intelerad acquisition. Adds cloud-enabled enterprise imaging across care settings within the Imaging segment.
- 04 Feb 2026 — Q4 & FY2025 results. FY revenue $20.6bn (+4.8%), adjusted EPS $4.59; record backlog and 2026 guidance introduced.
- Feb 2026 — Multiple FDA clearances. Photonova Spectra photon-counting CT, next-generation SIGNA MRI and the "View" diagnostic viewer cleared in the US.
- 2026 — Flyrcado cardiac-PET ramp. Broader US rollout of the molecular-imaging agent continues to drive Pharmaceutical Diagnostics growth.
12. Key Dates
- 28 Jul 2026 — Q2 FY2026 earnings (expected, pre-market)
- Expected Oct 2026 — Q3 FY2026 earnings
- Expected Feb 2027 — Q4 & full-year 2026 results
Track macro catalysts on the Economic Calendar and discuss this name in the Forum.
Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.
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13. Thesis Verdict
The central thesis. GE HealthCare is a global leader in medical imaging, ultrasound, patient monitoring and pharmaceutical diagnostics, earning durable revenue from a large installed base of equipment plus services, software and recurring imaging agents. In FY2025 it delivered $20.6bn of revenue (+4.8%) and adjusted EPS of $4.59; for FY2026 management guides to 3–4% organic growth and adjusted EPS of $4.80–5.00 after trimming the outlook for inflation. The key driver is a record $21.8bn backlog and a ramping innovation pipeline (photon-counting CT, next-generation MRI, Flyrcado and the Intelerad cloud-imaging deal).
What would confirm or break it. Continued backlog conversion, margin recovery as price and cost actions offset tariffs, and Pharmaceutical Diagnostics momentum would confirm the bull case. The thesis would weaken if tariff and input-cost inflation keep compressing margins, Patient Care Solutions stays in decline, or rising debt from M&A pressures the balance sheet.
Watchpoints
- ConfirmsQ2 FY2026 earnings (35 days) landing in line with or above management guidance.
- ConfirmsEvidence supporting the "Cheap relative to peers:" thesis continuing to build across subsequent filings.
- InvalidatesMaterialisation of the "Tariffs & input-cost inflation (Macro):" risk, or any disclosure that fundamentally alters the capital-return or growth profile stated by management.
Diagnostic grid
Generated by ChartsView research tooling. Thesis strength measures how well the evidence in this report supports the company's stated thesis — it is NOT a buy/sell rating or price target. ChartsView is not authorised by the FCA to provide regulated investment advice. Generated 23 Jun 2026.