Key Highlights

  • GEHC shares are indicated up 7.09% at $76.15 in premarket, against a prior close of $71.11.
  • Adjusted EPS of $1.34 beat the $1.20 consensus, and revenue of $5.5 billion beat the $5.35 billion estimate.
  • Full-year adjusted EPS guidance rose to $4.95 to $5.05, above the $4.92 consensus.
  • Organic orders rose 4.0%, with a book-to-bill of 1.03 and a backlog of $23.7 billion.
  • Free cash flow was $793 million, and the company plans to buy SOFIE Biosciences for $945 million.

Beat Across the Board Lifts Shares Premarket

GE HealthCare (NASDAQ:GEHC) shares are indicated up 7.09% at $76.15 in premarket after third-quarter results topped expectations and the company raised its 2026 outlook. Adjusted EPS of $1.34, up 25.1%, beat the $1.20 consensus, and revenue of $5.5 billion, up 7.2% with organic growth of 6.2%, beat the $5.35 billion estimate. The move stands out against a softer healthcare sector, with the sector ETF down about 0.7% in premarket.

GE HealthCare, headquartered in Chicago and spun off from its former parent in January 2023, develops, manufactures and markets medical imaging systems, ultrasound and image-guided therapy tools, patient monitoring, anesthesia and maternal-infant care devices, and pharmaceutical diagnostics such as contrast media and radiopharmaceuticals. It reports Advanced Imaging Solutions, Pharmaceutical Diagnostics and Patient Care Solutions segments under CEO Peter Arduini.

Guidance Is Raised Above Consensus

Full-year adjusted EPS guidance moved to $4.95 to $5.05 from $4.80 to $5.00, above the $4.92 consensus. Organic revenue growth is now expected at about 4.0%, adjusted EBIT margin at 15.5% to 15.7%, and free cash flow at $1.6 billion or more.

Margins, Orders and Cash Flow Improve

Adjusted EBIT margin rose 180 basis points to 16.6%, and net income margin rose to 11.1%. Organic orders grew 4.0% with a book-to-bill of 1.03 and a backlog of $23.7 billion. Operating cash flow was $907 million and free cash flow was $793 million, including a $55 million tariff refund.

Segment revenue rose 6.1% to $3.87 billion in Advanced Imaging Solutions, 13.0% to $846 million in Pharmaceutical Diagnostics and 8.5% to $793 million in Patient Care Solutions.

Patient Care Leadership Change and SOFIE Deal Add Context

The Patient Care Solutions chief executive, Jeannette Bankes, is leaving for another role, and Neal Sandy will take over on November 16. Investors had been watching order conversion, margin pressure from memory-chip, oil and freight inflation, the Patient Care Solutions turnaround and the strategic review of that unit.

GE HealthCare also plans to acquire SOFIE Biosciences for $945 million in cash, with closing expected in the first half of 2027, and raised its quarterly dividend 14% to $0.04 per share. The stock has a market cap of $32.12 billion, and the 52-week range runs from $58.75 to $89.77, with the average analyst target near $82.