GE HealthCare Technologies Inc. (GEHC)

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AI: Fair-priced

Price checkAt the recent price, solid earnings and cash prospects appear fairly valued.

Google Finance showed $73.69 at the August 14 close, the latest close before the stated August 17 research time. With roughly 451.7 million shares, that implies a $33.3 billion market value. Management’s 2026 adjusted earnings guidance of $4.80-$5.00 per share puts the price near 15 times the midpoint. Its $1.6 billion free-cash-flow target—cash left after running and investing in the business—implies a 4.8% yield. That is reasonable, not cheap, given moderate growth and about $8.0 billion of net debt.

Big pictureSales remain durable, while this year’s cash target depends heavily on the second half.

Revenue rose 4.8% to $20.63 billion in 2025, and first-half 2026 revenue climbed 6.6% to $10.43 billion. Yet attributable net income fell 9% to $950 million in the half, despite the second quarter benefiting from $129 million of tariff refunds. Annual free cash flow was fairly steady at $1.50-$1.71 billion during 2023-2025, but only $180 million was generated in first-half 2026. Reaching management’s $1.6 billion full-year target therefore requires about $1.42 billion during the second half, making normal seasonality and cash collection important.

Business strengthRecord orders show customer demand, but one troubled division and debt weaken the cushion.

Second-quarter organic orders, excluding acquisitions and currency moves, grew 11.1%; orders were 1.15 times revenue and backlog reached $23.9 billion. Advanced Imaging and Pharmaceutical Diagnostics grew revenue 7.9% and 15.6%, respectively. Patient Care Solutions instead shrank 13.3% and lost $26 million, showing demand is not uniform. The balance sheet is serviceable but not conservative: June cash was $2.1 billion versus $10.1 billion of debt, although a $3.5 billion credit line adds liquidity. Hospital equipment budgets and input costs can still make results cyclical.

What could change the storyIntelerad, the patient-care review, and debt choices will determine whether value improves.

The strongest bull case is that Intelerad adds cloud software and recurring revenue while the Patient Care Solutions review removes losses. GE HealthCare paid $2.3 billion for Intelerad, about 8.5 times its expected $270 million first-year revenue; 90% should recur and adjusted margins before interest, tax, depreciation and amortization were expected above 30%. The bear case is overpaying while carrying debt and failing to fix Patient Care. First-half buybacks of $300 million helped lower diluted average shares to 456 million from 459 million, although $80 million of share-based pay adds dilution pressure.

$73.69 price considered

AI: News

Second-quarter earnings beatStrong imaging demand and record orders beat expectations, while patient care remained a costly weak spot.

On July 29, 2026, GE HealthCare reported $5.30 billion of revenue and $1.13 of adjusted earnings per share, above LSEG expectations of $5.26 billion and $1.04. Organic orders rose 11.1%, and full-year guidance was reaffirmed. Patient Care Solutions revenue fell 13.3% and the segment lost $26 million, prompting a strategic review. Shares closed 12.15% higher at $71.90; the timing strongly supports, but does not prove, that the earnings beat and review drove the move.

Finance chief transitionThe finance chief left for another industry, adding leadership uncertainty alongside reassuring preliminary results.

On July 23, 2026, finance chief Jay Saccaro said he would step down for an outside role, remaining through August 14; controller George Newcomb became interim finance chief while the company began a search. The same announcement previewed 5.7% revenue growth, 3.5% growth excluding acquisitions and currency, and reaffirmed guidance. Shares rose about 0.9% that day. Because the release mixed leadership news with positive operating data, the market move cannot be attributed cleanly to either item.

Profit outlook cutCost inflation forced a profit reset, revealing how supply expenses can overwhelm healthy demand.

On April 29, 2026, GE HealthCare lowered adjusted earnings guidance to $4.80-$5.00 a share from $4.95-$5.15 after a first-quarter miss. Management expected about $250 million of 2026 inflation from memory chips, oil and freight, equal to roughly $0.43 a share, and planned to offset more than half through pricing and cost cuts. Reuters reported the stock down about 13% in morning trading. The event showed that strong orders do not automatically protect near-term profit.

Intelerad acquisition closedA large cloud-software purchase increased recurring revenue potential but also raised balance-sheet risk.

On March 18, 2026, GE HealthCare completed its $2.3 billion cash purchase of Intelerad, funded with cash and debt. Management expected about $270 million of first-year revenue, roughly 90% recurring, adjusted margins above 30% before interest, tax, depreciation and amortization, and a high-single-digit return by year five. Those goals are forecasts, not reported outcomes. The deal explains much of the 2026 cash draw and higher leverage; no reliable isolated share-price reaction was found.

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Financial statements

	2025	2024	2023	2022	2021
Revenue	$20.63B	$19.67B	$19.55B	$18.34B	$17.59B
Gross profit	$8.25B	$8.21B	$7.92B	$7.18B	$7.17B
Research & development	$1.26B	$1.31B	$1.21B	$1.03B	$816.0M
Operating expenses	$5.49B	$5.58B	$5.49B	$4.66B	$4.38B
Operating income	$2.76B	$2.63B	$2.44B	$2.52B	$2.79B
EBITDAderived	$3.34B	$3.21B	$3.04B	$3.15B	$3.42B
Net income	$2.08B	$1.99B	$1.57B	$1.92B	$2.25B
Basic EPSper diluted share	$4.56	$4.37	$3.05	$4.22	$4.95
Diluted EPSper diluted share	$4.55	$4.34	$3.03	$4.22	$4.95

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys8$6.42M disclosed value

Sells (SEC code S)5$2.38M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 22, 2026Form 4	Lobo KevinDirector	BuyCommon Stock, par value $0.01 per share	10.0K	$64.18	$641.8K	14.4K
May 12, 2026Form 4	Hochman Rodney FDirector	BuyCommon Stock, par value $0.01 per share · indirect	1.6K	$62.03	$100.4K	1.6K
May 8, 2026Form 4	Yang Watkin Phoebe L.Director	BuyCommon Stock, par value $0.01 per share	1.0K	$63.01	$63.0K	13.7K
May 6, 2026Form 4	Stromberg William JDirector	BuyCommon Stock, par value $0.01 per share	1.0K	$61.69	$61.7K	15.3K
May 6, 2026Form 4	CULP H LAWRENCE JRDirector	BuyCommon Stock, par value $0.01 per share · indirect	80.8K	$61.88	$5.00M	151.2K

Review ownership filings at SEC.gov ↗

GE HealthCare Technologies Inc. (GEHC)

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Insider buys & sells