GE HealthCare Technologies Inc. (NASDAQ:GEHC) shares rose Wednesday after the company reported third-quarter results that topped Wall Street estimates.
The medical technology company reported adjusted earnings of $1.34 per share, beating the analyst consensus estimate of $1.20.
Revenue increased 5.7% year over year to $5.513 billion, beating the consensus estimate of $5.35 billion.
Strong Segment Performance And Robust Order Backlog
Total orders were up 4.0% organically, with a book-to-bill of 1.03 times and a backlog of $23.7 billion, driven by healthy demand.
Advanced Imaging Solutions sales reached $3.873 billion, up 4.5%, driven by strength in CT, cardiovascular and interventional solutions, and surgical innovations.
Pharmaceutical Diagnostics revenues jumped 13.8% to $846 million, with contributions from contrast media and radiopharmaceutical products.
Patient Care Solutions sales reached $793 million, up 8.8%, driven by improved operational performance, including better product fulfillment in monitoring solutions. Maternal infant care backlog continues to grow alongside revenue.
Raised Fiscal 2026 Guidance
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,” Arduini further added.
GE HealthCare raised its fiscal 2026 adjusted earnings guidance from $4.80-$5.00 per share to $4.95-$5.05 per share compared to the consensus of $4.92.
The company also revised its forecast for organic revenue growth from 3%-4% to approximately 4%, with an adjusted EBIT margin of 15.5%-15.7%.
Long-Term Ultrasound Strategy And Supply Chain Margin Pressures
In an earnings conference call, CEO Peter Arduini said, “We continue to see general imaging ultrasound as an attractive market where we’re investing for the long term. With growing demand, staffing constraints, and more distributed care, ultrasound’s versatility across a broad range of exams is increasingly valuable.”
Meanwhile, CFO Bill Grogan said, “Commercial execution helped us grow profitably as volume provided a healthy tailwind to margin. Additionally, the price and cost mitigation actions we’ve been taking across the business are starting to deliver a more meaningful benefit. Tariff expense was also lower than the prior year. Margin was negatively impacted by inflationary costs from memory chips as well as the impact of higher oil prices across our supply chain.”
GEHC Price Action: GE HealthCare shares were up 8.17% at $76.92 on Wednesday, according to Benzinga Pro data.
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