GE HealthCare Q4 Earnings and Revenues Beat Estimates, Net Margin Falls

GE HealthCare GEHC reported fourth-quarter 2025 adjusted earnings per share (EPS) of $1.44, which beat the Zacks Consensus Estimate of $1.43 by 0.7%. However, the bottom line declined 0.7% year over year.

GAAP EPS in the quarter was $1.29, down 17.8% from the year-ago level.

For the full year, adjusted EPS was $4.59, up 2.2%. GAAP EPS rose 4.8% to $4.55.

Revenue Details

Revenues of $5.7 billion were up 7.1% year over year on a reported basis and 4.8% organically. The top line beat the Zacks Consensus Estimate by 1.9%. Total company orders increased 2% year over year organically. The book-to-bill was 1.06X, reflecting rising orders compared to shipments.

Revenues were supported by strong performance in the U.S. and EMEA markets, primarily across three segments — Pharmaceutical Diagnostics (PDx), Imaging and Advanced Visualization Solutions (“AVS”) — partially offset by a decline in the Patient Care Solutions segment.

For the full year, total revenues were up 4.8% to $20.6 billion. Organically, sales increased 3.5%.

GE HealthCare Technologies Inc. Price, Consensus and EPS Surprise

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

Segmental Details

Imaging

Revenues from this segment totaled $2.55 billion, up 6.6% year over year on a reported basis and 5.3% organically.

Segment EBIT was $264 million, down 12.5% year over year.

Advanced Visualization Solutions

Revenues totaled $1.53 billion, up 5.9% year over year on a reported basis and 4.2% organically.

Segment EBIT was $376 million, up 0.7% year over year.

Patient Care Solutions

Revenues amounted to $825 million, down 0.3% year over year on a reported basis and down 1.1% organically.

Segment EBIT was $74 million, down 29.6% year over year.

Pharmaceutical Diagnostics

Revenues totaled $790 million, up 22.3% year over year and 12.7% on an organic basis.

Segment EBIT was $234 million, up 10% year over year.

Margins

Net income margin was 10.3%, down 320 basis points from the prior-year level due to the unfavorable impact of tariffs and product mix, partially offset by benefits from volume and price.

Cumulative cash flow from operating activities at the end of the third quarter was $937 million compared with $1.96 billion a year ago.

Financial Position

GEHC exited the fourth quarter with cash, cash equivalents and investments of $4.51 billion compared with $4.03 billion in the previous quarter.

Total assets increased to $36.91 billion from $36.13 billion on a sequential basis.

2026 Guidance

GE HealthCare issued its organic revenue growth and adjusted EPS guidance for 2026.

The company expects organic revenue growth of 3-4% in 2026. It anticipates adjusted EPS to be in the range of $4.95-$5.15, implying 7.9-12.3% year-over-year growth. At current tariff rates, GEHC expects a lower impact in 2026 versus 2025. The Zacks Consensus Estimate for 2026 revenues and EPS is pegged at $21.38 billion and $4.94, respectively.

Our Take

GE HealthCare delivered robust fourth-quarter results, wherein both earnings and revenues beat estimates. The company’s strong quarterly performance was driven by healthy capital investment trends, optimized commercial execution and demand for new products. The strength in business performance was partially offset by continued unfavorable tariff impact. Although the unfavorable impact of tariffs is expected to continue in 2026, GEHC’s mitigation initiatives are likely to reduce the effect.

The company’s shares were up 3.5% in pre-market trading following a strong quarterly performance and better-than-expected EPS guidance for 2026. In the past six months, shares of the company have gained 11.5% against the industry’s 10.2% decline. The S&P 500 Index has risen 12.2% in the same period.

GE HealthCare’s strong order book with a book-to-bill of 1.06 times implies continued demand for its products in 2026. The company is also focused on inorganic growth through acquisitions. It acquired Nihon Medi-Physics and icometrix in 2025, boosting its radiopharmaceutical and neurology portfolios, respectively. GEHC has signed an agreement to acquire Intelerad, with the deal expected to be closed in the first half of 2026. This buyout will advance the company’s cloud-enabled enterprise imaging across care settings.

Continued investment in R&D and new product introductions, such as advanced imaging systems and AI-enabled diagnostics, reflect GE HealthCare’s commitment to driving precision care and digital transformation in clinical workflows.

GEHC’s Zacks Rank & Stocks to Consider

GE HealthCare has a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the broader medical space are Boston Scientific Corporation BSX, Phibro Animal Health PAHC and AtriCure ATRC, each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Boston Scientific shares have lost 12% in the past six months. Estimates for the company’s fourth-quarter 2025 EPS have remained constant at 78 cents in the past 30 days. BSX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 7.36%. In the last reported quarter, it posted an earnings surprise of 5.63%.

Estimates for Phibro Animal Health’s second-quarter fiscal 2026 EPS have remained constant at 69 cents in the past 30 days. Shares of the company have risen 50.5% in the past six months compared with the industry’s 11.1% growth. PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 20.77%. In the last reported quarter, it delivered an earnings surprise of 23.73%.

AtriCure shares have risen 5.2% in the past six months. Estimates for the company’s fourth-quarter 2025 loss per share have remained stable at 4 cents in the past 30 days. ATRC’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 67.06%. In the last reported quarter, it posted an earnings surprise of 90.91%.

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