GE HealthCare Stock Before Q4 Earnings: To Buy or Not to Buy?

GE HealthCare Technologies Inc. GEHC is scheduled to report fourth-quarter 2025 results on Feb. 04, before market open.

In the last reported quarter, the company’s adjusted earnings per share (EPS) of $1.06 surpassed the Zacks Consensus Estimate by 1.90%. The company beat on earnings in each of the trailing four quarters, delivering an average surprise of 11.11%.

Let’s check out the factors that might have shaped GEHC’s performance prior to the announcement.

GEHC’s Estimate Picture

For fourth-quarter 2025, the Zacks Consensus Estimate for revenues is pegged at $5.59 billion, implying an improvement of 5.2% from the prior-year quarter’s reported figure.

The consensus estimate for EPS is pegged at $1.43, indicating a decrease of 1.4% from the prior-year period’s reported number.

GE HealthCare Technologies Inc. Price and EPS Surprise

GE HealthCare Technologies Inc. price-eps-surprise | GE HealthCare Technologies Inc. Quote

Factors Likely to Have Driven GEHC’s Q4 Performance

GE HealthCare is expected to have delivered a steady fourth-quarter performance, supported by resilient customer demand, a healthy capital equipment environment and increasing traction from recent product launches. Organic revenue growth is likely to have remained robust, with execution strength across Imaging, Advanced Visualization Solutions (“AVS”), and Pharmaceutical Diagnostics offsetting margin pressure from tariffs and continued investment spending.

Revenue growth is expected to have been driven by strong order momentum and backlog conversion, with book-to-bill remaining above parity. Service revenues are likely to have continued to outpace product growth, reflecting multiyear service agreements and a growing installed base. However, adjusted profitability is expected to have remained under pressure, primarily due to tariffs and cost headwinds tied to new product commercialization, partially offset by pricing actions and productivity initiatives.

Imaging

In the Imaging segment, revenue growth should have been supported by solid demand in the U.S. and EMEA markets, as customers must have continued to upgrade their aging diagnostic imaging equipment portfolio. Order trends were strong during the third quarter, supported by large system deals and a healthy capital spending backdrop. This trend is likely to have continued in the fourth quarter. Imaging margins are likely to have faced headwinds from tariffs, even as sequential improvement reflected disciplined price management and early benefits from platforming and operational efficiency initiatives.

The upcoming wave of innovation, including photon-counting CT and next-generation PET systems, is expected to reinforce long-term growth but may continue to pressure near-term margins as programs move closer to commercialization.

Advanced Visualization Solutions

This segment is likely to post a solid performance. Strong adoption of AI-enabled ultrasound and image-guided solutions, including recent cardiovascular launches, should have driven above-average revenue growth and margin expansion. Favorable mix, higher software content, and productivity gains are likely to have supported profitability, reinforcing AVS as one of GE HealthCare’s most consistent growth and margin contributors.

Patient Care Solutions

In Patient Care Solutions, quarterly performance is expected to have been softer, largely reflecting the impact of a temporary product hold that constrained shipments and weighed on margins. While this disruption hurt sales during the third quarter, the resolution of the hold late in the quarter positions the segment for sequential improvement in the fourth quarter. Management’s renewed focus on commercial execution, portfolio optimization, and cost structure under new leadership could begin to stabilize performance, though a full recovery may take time.

Pharmaceutical Diagnostics

The segment is expected to have delivered another strong quarter, driven by growth in contrast media and radiopharmaceuticals. Increasing demand for PET tracers, including early traction for Flyrcado, alongside higher utilization of molecular imaging equipment, should have supported revenue growth. Strong margin performance, however, is likely to have been tempered by planned investments and integration costs related to recent acquisitions.

Margin & EPS Outlook

GE HealthCare’s margins and EPS are expected to have shown sequential improvement, supported by volume recovery in Patient Care Solutions following the resolution of the product hold and continued productivity actions. While tariff-related headwinds are likely to have persisted, management expects incremental mitigation and a favorable mix to have driven margin expansion compared to the third quarter. As a result, adjusted EPS should have improved sequentially, keeping the company on track to deliver full-year earnings within its updated guided range.

What Our Model Suggests for GE HealthCare

Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will 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’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

GEHC’s Share Price Performance

Over the past six months, GE HealthCare’s shares have gained 13.4%, against the industry’s 9.6% decline. The S&P 500 has gained 13.1% during the period.

Stocks Worth a Look

Here are some medical product stocks worth considering as these have the right combination of elements to post an earnings beat this reporting cycle.

Masimo MASI has an Earnings ESP of +8.04% and a Zacks Rank #2 at present. The company is set to release fourth-quarter 2025 results on Feb. 26.

MASI’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 12.39%. According to the Zacks Consensus Estimate, MASI’s fourth-quarter EPS is expected to decline 20.6% from the year-ago reported figure.

Cardinal Health CAH has an Earnings ESP of +0.46% and a Zacks Rank of 2 at present. The company is set to release second-quarter fiscal 2026 results on Feb. 05.

CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 9.36%. According to the Zacks Consensus Estimate, CAH’s fiscal second-quarter EPS may improve 22.8% from the year-ago reported figure.

DexCom DXCM has an Earnings ESP of +4.75% and a Zacks Rank of 3 at present. The company is slated to release fourth-quarter 2025 results on Feb. 12.

DXCM’s earnings surpassed estimates in two of the trailing four quarters and missed in the other two, the average surprise being 0.17%. According to the Zacks Consensus Estimate, DXCM’s fourth-quarter EPS is expected to gain 44.4% from the year-ago reported figure.

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This article originally published on Zacks Investment Research (zacks.com).

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