GE HealthCare Projects Strong 2026 Profit Above Estimates

Forecast Surpasses Market Expectations

GE HealthCare has issued a 2026 annual profit forecast that exceeds Wall Street estimates, projecting an adjusted profit per share in the range of $4.95 to $5.15. This is notably higher than the analyst consensus of $4.92 per share, according to LSEG data. The announcement was accompanied by a 2.4% rise in its premarket share price to $80.70.

Strong Demand Drives Financial Performance

The optimistic outlook is driven by robust and resilient demand for diagnostic and imaging devices such as CT and X-ray scanners. In the fourth quarter, the company's largest segment, imaging devices, saw revenue increase by 6.6% to $2.55 billion. Overall quarterly sales reached $5.7 billion, a 7.1% year-over-year increase, surpassing the average analyst estimate of $5.61 billion.

Positive Market Reaction and Outlook

The company also beat fourth-quarter earnings estimates, reporting an adjusted profit of $1.44 per share against an expected $1.40. CEO Peter Arduini attributed the growth to healthy capital investment trends and strong commercial execution. Looking ahead, GE HealthCare anticipates organic revenue growth of 3% to 4% for 2026 and expects a lower impact from tariffs based on current rates.

Summary

GE HealthCare's strong quarterly performance and positive 2026 forecast reflect a healthy market for medical devices, particularly in the U.S. and Europe. Investors will be watching to see if the company can maintain this growth trajectory amidst global economic conditions.

FAQ

Q: What is GE HealthCare's 2026 profit forecast?
A: The company forecasts an adjusted profit between $4.95 and $5.15 per share for 2026.

Q: What was the main driver for the company's revenue growth?
A: The primary driver was strong demand for its imaging and diagnostic devices, which led to a 6.6% revenue increase in its imaging unit during the fourth quarter.

Source: Investing.com