GE HealthCare Stock Up 13% On Strong Q2 Profit & Orders, Positive Outlook

(RTTNews) - Shares of GE HealthCare Technologies, Inc. were gaining around 13 percent in the pre-market activity on Nasdaq, after the company reported Wednesday higher second quarter profit and orders. Further, the healthcare technology company reaffirmed fiscal 2026 outlook, expecting higher earnings and organic revenues.

GE HealthCare President and CEO Peter Arduini said, "We delivered record orders and backlog in the second quarter, with orders growth across every segment, demonstrating strong commercial execution, including the adoption of new products. In Patient Care Solutions, while we are focused on returning the business to growth and profitability, we are reviewing strategic options to maximize its long-term value."

For fiscal 2026, the company continues to project 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; and adjusted EBIT margin of 15.4 percent to 15.7 percent, reflecting an expansion of 10 bps to 40 bps year-over-year.

The company continues to expect organic revenue growth of 3.0 to 4.0 percent.

In the second quarter, net earnings attributable to the company were $561 million or $1.24 per share, higher than $486 million or $1.06 per share last year.

Adjusted earnings were $515 million or $1.13 per share for the period, compared to $1.06 per share a year ago.

Meanwhile, adjusted EBIT margin of 14.2 percent dropped 40 basis points from last year's 14.6 percent, negatively impacted by a decline in PCS and inflation related to memory chips, oil and freight costs.

The company's revenue for the period rose 5.8 percent to $5.295 billion from $5.007 billion last year.

Organic revenue growth was 3.5 percent, driven by Pharmaceutical Diagnostics and Advanced Imaging Solutions, with overall strength in the U.S., Europe, the Middle East, and Africa, and Rest of World.

Meanwhile, Patient Care Solutions' financial performance continued to be challenged, the company noted.

Total orders in the quarter were up 11.1 percent organically, compared to 3.4 percent growth in the year-ago period. Backlog was $23.9 billion.

In the pre-market activity on Nasdaq, GEHC shares were gaining around 12.6 percent, trading at $72.20, extending the 5 percent gain on Tuesday's regular close.

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