GE HealthCare’s fourth quarter saw positive momentum, with the company surpassing Wall Street’s revenue and non-GAAP profit expectations. Management pointed to robust demand in pharmaceutical diagnostics and steady growth in imaging and advanced visualization solutions as key drivers. CEO Peter Arduini highlighted progress in bringing new products to market, including successful launches in Europe and advanced cardiovascular ultrasound systems. The company also benefited from large enterprise agreements and a record order backlog, with operational improvements helping to mitigate tariff impacts.
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GE HealthCare (GEHC) Q4 CY2025 Highlights:
- Revenue: $5.70 billion vs analyst estimates of $5.60 billion (7.1% year-on-year growth, 1.7% beat)
- Adjusted EPS: $1.44 vs analyst estimates of $1.40 (3% beat)
- Adjusted EBITDA: $1.06 billion vs analyst estimates of $1.06 billion (18.6% margin, in line)
- Adjusted EPS guidance for the upcoming financial year 2026 is $5.05 at the midpoint, beating analyst estimates by 2.5%
- Operating Margin: 14.5%, in line with the same quarter last year
- Organic Revenue rose 4.8% year on year (beat)
- Market Capitalization: $36.1 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From GE HealthCare’s Q4 Earnings Call
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Matthew Taylor (Jefferies) asked about the outlook for order growth and the timing of new product approvals. CEO Peter Arduini explained that while Q1 faces a tough comparison, new product launches and regulatory approvals are expected to drive stronger order growth in the second half of the year.
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Robbie Marcus (JPMorgan) questioned the assumptions behind China’s outlook and the drivers of EPS guidance. CFO Jay Saccaro emphasized a prudent approach to China, anticipating a decline but noting improved win rates in tenders, and outlined that EPS growth will be driven by volume, cost controls, and new products.
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Larry Biegelsen (Wells Fargo) inquired why revenue growth guidance is in line with last year. Saccaro replied that secured backlog and a conservative estimate for China set the baseline, but new product approvals and acquisitions could provide upside.
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Anthony Petrone (Mizuho Group) pressed on pricing assumptions and the IntelliRed acquisition’s expected impact. Arduini clarified that price gains will mainly come from new product mix, and Saccaro said IntelliRed will advance cloud-enabled AI solutions and expand recurring revenue, though initial financial impact is neutral.
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Joanne Wuensch (Citi) asked about the hospital capital equipment environment and ACA impacts. Saccaro said U.S. and European markets remain robust, with customer surveys indicating continued investment, and Arduini noted that demand for enabling technology keeps capital equipment spending resilient.
Catalysts in Upcoming Quarters
In the quarters ahead, the StockStory team will be closely tracking (1) the pace and breadth of regulatory approvals and subsequent ramp-up for recently launched imaging and diagnostic products, (2) the integration and impact of the IntelliRed acquisition on recurring revenue and digital platform adoption, and (3) progress in expanding service contract penetration and recurring revenue streams. Additionally, we will monitor any improvement in China as a potential upside catalyst to guidance.
GE HealthCare currently trades at $79.20, in line with $78.78 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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