GE HealthCare Shares Rise 7% On Higher Q3 Results, FY26 Outlook Upgrade

(RTTNews) - Shares of GE HealthCare Technologies Inc. were gaining around 7 percent in the morning trading on Nasdaq after the company on Wednesday reported higher third-quarter results and lifted fiscal 2026 outlook.

The Company also announced that Jeannette Bankes, President and CEO, Patient Care Solutions, will be leaving for a CEO role at another firm. Neal Sandy, currently head of PCS Product Strategy and Management, will assume the role of President and CEO of PCS on November 16.

GE HealthCare President and CEO Peter Arduini said, "We delivered strong top-line growth and margin expansion across all segments, and robust EPS growth in the third quarter. This reflects our teams' commercial execution, disciplined operational focus enabled by Heartbeat, and continued customer adoption of our innovations. With our improved performance year-to-date and momentum in the business, we are raising guidance for the year."

Looking ahead for fiscal 2026, the company now projects adjusted earnings in a range of $4.95 to $5.05 per share, representing 7.9 percent to 10.1 percent growth year-over-year; and adjusted EBIT margin of 15.5 percent to 15.7 percent, reflecting an expansion of 20 bps to 40 bps year-over-year.

The company now expects organic revenue growth of around 4.0 percent.

For fiscal 2026, the company previously projected adjusted earnings in a range of $4.80 to $5.00 per share, representing 4.6 percent to 9.0 percent growth year-over-year; adjusted EBIT margin of 15.4 percent to 15.7 percent, an expansion of 10 bps to 40 bps year-over-year; and organic revenue growth of 3.0 to 4.0 percent.

In fiscal 2025, the company's adjusted earnings were $4.59 per share, adjusted EBIT margin was 15.3 percent, and organic revenue growth was 3.5 percent.

In the third quarter, net income attributable to GE HealthCare totaled $615 million or $1.36 per share, higher than $446 million or $0.98 per share last year.

Adjusted earnings were $608 million or $1.34 per share for the period, compared to $1.07 last year.

Adjusted EBIT grew to $913 million versus $761 million a year ago. Adjusted EBIT margin of 16.6 percent improved 180 basis points from prior year's 14.8 percent. The improvement was driven by volume, price and cost productivity, and favorable year-over-year net tariff impact, partially offset by inflation.

The company's revenue for the period rose 7.2 percent to $5.513 billion from $5.143 billion last year.

Organic revenue growth was 6.2 percent, with growth across all segments.

Total orders went up 4.0 percent organically, and backlog was $23.7 billion, driven by healthy demand.

On the Nasdaq, the shares were trading at $76.36, up 7.39 percent.

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