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 DetailsRevenues 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. QuoteSegmental DetailsImagingRevenues 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 SolutionsRevenues 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 SolutionsRevenues 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 DiagnosticsRevenues 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.MarginsNet 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 PositionGEHC 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 GuidanceGE 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 TakeGE 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.Image Source: Zacks Investment ResearchGE 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 ConsiderGE 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%.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>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 Boston Scientific Corporation (BSX): Free Stock Analysis Report AtriCure, Inc. (ATRC): Free Stock Analysis Report Phibro Animal Health Corporation (PAHC): Free Stock Analysis Report GE HealthCare Technologies Inc. (GEHC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks