GE HealthCare (GEHC) on Wednesday reported better second-quarter results than analysts had expected and lifted its outlook for the full year.
GE HealthCare Technologies (GEHC) came out with quarterly earnings of $1.06 per share, beating the Zacks Consensus Estimate of $0.91 per share. This compares to earnings of $1 per share a year ago.
Wednesday, GE HealthCare reported earnings per share of $1.06 from sales of just over $5 billion. Wall Street was looking for EPS of 92 cents from sales of just under $5 billion.
GEHC leans on Imaging and PDx strength for Q2, but tariff headwinds and margin pressures could test investor confidence.
GE HealthCare Technologies is one of the leaders in the healthcare sector, with a strong position in the global molecular imaging market. GE HealthCare's Pharmaceutical Diagnostics segment's EBIT was $205 million in Q1 2025, up 15.2% year over year. I expect it to rise to $245 million in Q2, driven by increased sales of Vizamyl, which is used to prescribe anti-amyloid drugs for the treatment of Alzheimer's disease.
GE HealthCare gains FDA nod to expand Vizamyl's use, unlocking new diagnostic and therapy-monitoring capabilities.
GE Healthcare is well-positioned for growth, driven by a strong backlog, product innovation, and potential pent-up demand in China as stimulus funding is deployed. Margin headwinds from tariffs are expected to bottom in Q3, with management actively mitigating impacts through cost controls, local manufacturing, and pricing actions. Valuation is attractive versus peers, with current prices reflecting tariff risks and offering upside as margins recover and growth accelerates post-Q3.
GEHC expands its bkPortfolio with the AI-powered bkActiv S Series to advance ultrasound-guided procedures.
GE HealthCare integrates proprietary algorithms into MIM Encore to advance digital imaging and workflow precision.
GE HealthCare's diverse business model, strong demand, and leadership in key segments position it well for long-term growth, especially with an aging population tailwind. Recent tariff volatility has pressured margins and guidance, but GEHC's global supply chain efficiency and margin recovery potential remain attractive for patient investors. Valuation is compelling at 17x forward PE, with buybacks and robust demand supporting an 18% CAGR outlook to 2029, signaling strong upside potential.
GE HealthCare launches CleaRecon DL, an AI-powered 3D imaging tech that enhances cone-beam CT scans by reducing artifacts, improving clarity for better interventional care.
GEHC's Optison ultrasound agent receives FDA approval for pediatric use, improving echocardiogram clarity and advancing heart diagnostics for children with safer imaging.