GE HealthCare (GEHC) Up 7.5% Since Last Earnings Report: Can It Continue?

28.11.25 17:30 Uhr

A month has gone by since the last earnings report for GE HealthCare Technologies (GEHC). Shares have added about 7.5% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is GE HealthCare due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.GE HealthCare Q3 Earnings and Revenues Beat Estimates, Net Margin FallsGE HealthCare reported third-quarter 2025 adjusted earnings per share of $1.07, which beat the Zacks Consensus Estimate of $1.05 by 1.9%. However, the bottom line declined 6.1% year over year.GAAP earnings per share in the quarter was 98 cents, down 3.9% from the year-ago level.Revenue DetailsRevenues of $5.14 billion were up 6% year over year on a reported basis and 4% organically. The top line beat the Zacks Consensus Estimate by 1.4%. Total company orders increased 6% organically year over year.Revenues were driven by strength in the U.S. market as well as in the EMEA markets.Segmental DetailsImagingRevenues from this segment totaled $2.35 billion, up 5% year over year on a reported basis and 4% organically.Segment EBIT was $240 million, down 16% year over year.Advanced Visualization SolutionsRevenues totaled $1.3 billion, up 7% year over year on a reported basis and 6% on an organic basis.Segment EBIT was $271 million, up 17% year over year.Patient Care SolutionsRevenues amounted to $731 million, down 6% year over year on a reported basis and down 7% organically.Segment EBIT was $27 million, down 67% year over year.Pharmaceutical DiagnosticsRevenues totaled $749 million, up 20% year over year and 10% on an organic basis.Segment EBIT was $220 million, up 14% year over year.MarginsNet income margin was 8.7%, down 100 basis points from the prior-year level, due to unfavorable impact of tariffs, 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 $1.04 billion a year ago.Financial PositionGEHC exited the third quarter with cash, cash equivalents and investments of $4.03 billion compared with $3.76 billion in the previous quarter.Total assets increased to $36.13 billion from $35.5 billion on a sequential basis.2025 GuidanceGE HealthCare updated its earnings guidance for 2025.The company now expects adjusted earnings per share to be in the range of $4.51-$4.63 compared with the previous guidance of $4.43-$4.63. The guidance includes approximately 45 cents of unfavorable impact of tariffs. The company continues to estimate revenue growth at 3% organically.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.VGM ScoresAt this time, GE HealthCare has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock has a score of B on the value side, putting it in the second quintile for value investors.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, GE HealthCare has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerGE HealthCare belongs to the Zacks Medical - Products industry. Another stock from the same industry, Abbott (ABT), has gained 3.1% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.Abbott reported revenues of $11.37 billion in the last reported quarter, representing a year-over-year change of +6.9%. EPS of $1.30 for the same period compares with $1.21 a year ago.For the current quarter, Abbott is expected to post earnings of $1.50 per share, indicating a change of +11.9% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Abbott. Also, the stock has a VGM Score of C.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GE HealthCare Technologies Inc. (GEHC): Free Stock Analysis Report Abbott Laboratories (ABT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks

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