GEHC AI Stock Analysis – Buy, Hold, or Avoid?
GE HealthCare Technologies Inc. (GEHC)
GE HealthCare (GEHC) is fundamentally strong with steady growth, fair valuation, and positive sentiment, but faces near-term margin pressures and moderate risk. The technical setup is neutral with consolidation near support, while medium- and long-term prospects remain constructive due to innovation and recurring revenues. Investors should expect moderate upside potential, but near-term volatility and external risks warrant a patient, balanced approach.
Fundamentals
GE HealthCare (GEHC) demonstrates solid financial fundamentals with consistent revenue growth, expanding annual earnings, and ongoing investments in innovation. While quarterly margins show some volatility, overall profitability metrics remain healthy with decent returns for shareholders. The stock currently trades at a moderate P/E, reflecting balanced valuation relative to growth.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
-12.13% YoY
Q4 2025
Net Income
-74.44% YoY
Q4 2025
Net Margin
Q4 2025
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q4 2025
Net Income Growth YoY
Latest Quarter: Q4 2025
Revenue Per Share Growth YoY
Latest Quarter: Q4 2025
EPS Growth YoY
Latest Quarter: Q4 2025
Book Value Per Share Growth YoY
Latest Quarter: Q4 2025
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 4.7B | 5.1B | 5.0B | 4.8B | 5.3B | 4.9B | 4.8B | 4.7B |
| Revenue Growth YoY | -12.13% | +5.76% | +3.45% | +2.73% | +2.17% | +0.85% | +0.46% | -1.21% |
| Net Income | 184.0M | 446.0M | 486.0M | 564.0M | 720.0M | 471.0M | 428.0M | 374.0M |
| Net Income Growth YoY | -74.44% | -5.31% | +13.55% | +50.80% | +78.66% | +25.60% | +2.39% | +0.54% |
| EPS | $0.41 | $0.98 | $1.06 | $1.23 | $1.58 | $1.03 | $0.94 | $0.82 |
| EPS Growth YoY | -74.05% | -4.85% | +12.77% | +50.00% | +77.53% | +25.61% | +2.17% | +95.24% |
Profitability Metrics
Gross Margin
TTM
Operating Margin
TTM
Net Margin
TTM
Return on Equity
TTM
Return on Assets
TTM
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 54.30% | 38.69% | 39.65% | 42.12% | 42.77% | 41.66% | 41.37% | 40.90% |
| Operating Margin | 14.21% | 12.70% | 13.06% | 13.17% | 15.06% | 13.90% | 12.56% | 11.61% |
| Net Margin | 3.94% | 8.67% | 9.71% | 11.81% | 13.54% | 9.69% | 8.84% | 8.04% |
| Return on Equity (ROE) | 1.77% | 4.46% | 5.00% | 6.14% | 8.52% | 5.66% | 5.49% | 5.05% |
| Return on Assets (ROA) | 0.83% | 2.07% | 2.33% | 2.97% | 3.81% | 2.40% | 2.44% | 2.07% |
Technical Analysis
GEHC is currently in an overall positive intermediate to long-term uptrend, trading near key support levels around $79.00. The recent breakouts above resistance levels and a double bottom formation signal growing bullish momentum, though short-term momentum indicators show mixed signals with some bearish cues. Volume and moving averages suggest consolidation and a potential buildup for another leg higher beyond the near-term resistance at $82.63 to $86.51.
No extreme reading
Mixed signals
Range-bound market
Watching for cross
Key Technical Values
Price with Moving Averages
50-day, 150-day and 200-day simple moving averages
Relative Strength Index
Momentum oscillator measuring speed and magnitude of price changes
RSI (14)
Earnings
GE HealthCare (GEHC) demonstrates solid financial fundamentals with consistent revenue growth, expanding annual earnings, and ongoing investments in innovation. While quarterly margins show some volatility, overall profitability metrics remain healthy with decent returns for shareholders. The stock currently trades at a moderate P/E, reflecting balanced valuation relative to growth.
Latest Earnings
Q4 2025 Earnings (Dec 31, 2025)
Earnings Per Share (EPS)
Actual
$1.44
Estimated
$1.40
Surprise
+$0.04
Surprise %
+2.86%
Revenue
Actual
$4.67B
Estimated
$5.61B
Surprise
-$939.05M
Surprise %
-16.73%
Historical Earnings
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $1.44 | $1.07 | $1.06 | $1.01 | $1.45 | $1.14 | $1.00 | $0.90 |
| EPS (Estimated) | $1.40 | $1.05 | $0.92 | $0.91 | $1.26 | $1.05 | $0.98 | $0.91 |
| EPS Surprise | +$0.04 | +$0.02 | +$0.14 | +$0.10 | +$0.19 | +$0.09 | +$0.02 | -$0.01 |
| % Diff | +2.9% | +1.9% | +15.5% | +10.5% | +15.1% | +8.6% | +2.0% | -1.1% |
| Revenue | ||||||||
| Revenue (Actual) | $4.67B | $5.14B | $5.01B | $4.78B | $5.32B | $4.86B | $4.84B | $4.65B |
| Revenue (Estimated) | $5.61B | $5.09B | $4.97B | $4.66B | $5.33B | $4.87B | $4.88B | $4.8B |
| Revenue Surprise | -$939.05M | +$55.87M | +$32.6M | +$117.21M | -$12.29M | -$5.34M | -$36.68M | -$151.37M |
| % Diff | -16.7% | +1.1% | +0.7% | +2.5% | -0.2% | -0.1% | -0.8% | -3.2% |
Valuation
GE Healthcare (GEHC) is currently trading at valuation multiples that align closely with sector medians, reflecting a stable position in the healthcare market. Despite recent mixed earnings growth and some margin pressure, the company's solid financial health and positive analyst sentiment support a constructive outlook with moderate upside potential.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 50.87 | 19.20 | 17.41 | 16.35 | 12.41 | 22.77 | 20.36 | 27.29 |
| Price to Sales | 8.01 | 6.66 | 6.76 | 7.72 | 6.72 | 8.82 | 7.20 | 8.78 |
| Price to Book | 3.61 | 3.43 | 3.49 | 4.01 | 4.23 | 5.16 | 4.47 | 5.51 |
| Enterprise Value to EBITDA | 49.64 | 45.44 | 46.83 | 46.43 | 38.91 | 53.76 | 49.53 | 60.06 |
| Enterprise Value to Revenue | 9.19 | 7.97 | 8.18 | 9.13 | 7.94 | 10.29 | 8.78 | 10.31 |
Sentiment & Analyst Ratings
Overall sentiment for GEHC is cautiously optimistic to positive, supported by strong analyst buy ratings and favorable news around FDA clearances and strategic partnerships. Social media reflects bullish retail interest, while technical indicators suggest near-term support with potential upside. The stock is perceived as undervalued relative to fair value estimates, driving positive investor sentiment.
Analyst Recommendations
Risk Assessment
GE Healthcare shows a moderate financial risk profile with liquidity metrics slightly below ideal thresholds, though improving recently. Its leverage is manageable with steady debt servicing capacity, but geopolitical, tariff, and competitive challenges impose caution. Market volatility and macroeconomic sensitivity add to investment considerations, balanced by a strong innovation pipeline signaling potential growth.
Liquidity & Solvency
Current Ratio
Latest Quarter: Q4 2025
Quick Ratio
Latest Quarter: Q4 2025
Debt-to-Equity
Latest Quarter: Q4 2025
Debt-to-Assets
Latest Quarter: Q4 2025
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Liquidity Metrics | ||||||||
| Current Ratio | 1.18 | 1.18 | 1.12 | 0.94 | 1.00 | 1.19 | 1.01 | 1.01 |
| Quick Ratio | 0.93 | 0.95 | 0.89 | 0.72 | 0.79 | 0.94 | 0.77 | 0.79 |
| Solvency Metrics | ||||||||
| Debt-to-Equity | 0.96 | 1.08 | 1.12 | 1.00 | 1.11 | 1.29 | 1.24 | 1.31 |
| Debt-to-Assets | 0.27 | 0.30 | 0.31 | 0.27 | 0.28 | 0.32 | 0.30 | 0.30 |
Liquidity Assessment
Current Ratio: 1.18(Adequate)
Quick Ratio: 0.93(Adequate)
The company has adequate liquidity but may face challenges in a downturn.
Solvency Assessment
Debt-to-Equity: 0.96(Moderate)
Debt-to-Assets: 0.27(Low)
The company maintains a balanced capital structure with manageable debt levels.
Frequently Asked Questions about GEHC
AI Answers: Common Questions About GEHC
Get AI-powered answers to the questions investors ask most about GE HealthCare Technologies Inc.
GEHC is fairly valued at a P/E of 17.35 and EV/EBITDA of 11-12x, with analyst targets as high as $105 (11-18% upside from current $78.92). While fundamentals and sentiment are positive, technicals are neutral and margin pressures persist, so it's a good buy primarily for long-term investors comfortable with moderate risk.
There is no strong reason to sell now unless your thesis has changed or you need to reduce risk exposure; fundamentals remain solid, and technicals do not show a breakdown below $78 support. However, short-term traders may consider trimming if the stock fails to hold support or if margin pressures worsen.
The biggest risks are margin compression (gross margin fell to 39.99% in 2025), moderate liquidity (current ratio ~1.18, quick ratio ~0.93), and exposure to geopolitical, regulatory, and supply chain disruptions. Debt is manageable (debt/equity ~1.0, interest coverage >6x), but external shocks could pressure earnings.
Technical resistance levels are $86.51 and $89.48, with analyst targets up to $105. Support is strong at $78.66-$79.00; a breakout above $82.63 could trigger a move toward $86.51, while a breakdown below $78 could signal further downside.
GEHC is fairly valued relative to sector peers, with a P/E of 17.35, P/S around 1.8-2.0, and EV/EBITDA of 11-12x. The stock is not priced at a premium, reflecting steady but unspectacular growth and moderate margin pressures.
Fundamentally, GEHC is strong: revenue grew 4.8% and net income 6.7% in 2025, with recurring service revenues and a robust market position. Margins are healthy but have compressed, and liquidity is improving but still below ideal.
Technically, the stock is consolidating near $79 support with a double bottom breakout and neutral RSI (59.7). Mixed MACD and moving averages suggest no clear short-term trend, but a break above $82.63 could open the path to $86.51 and $89.48.
Key catalysts include upcoming earnings releases, new FDA approvals (especially for AI-powered imaging), strategic partnerships, and macroeconomic events affecting healthcare spending. Watch for volume surges and technical breakouts above resistance for near-term moves.
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