GE HealthCare Stock Before Q4 Earnings: To Buy or Not to Buy?

Core Viewpoint - GE HealthCare Technologies Inc. (GEHC) is expected to report its fourth-quarter 2025 results on February 4, with a history of exceeding earnings estimates in the previous four quarters, averaging an 11.11% surprise [1][2]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for GEHC's fourth-quarter 2025 revenues is $5.59 billion, reflecting a 5.2% increase from the prior-year quarter [2]. - The consensus estimate for adjusted earnings per share (EPS) is $1.43, indicating a 1.4% decrease from the prior-year period [2]. Performance Drivers - GE HealthCare's fourth-quarter performance is anticipated to be steady, driven by strong customer demand, a favorable capital equipment environment, and traction from recent product launches [3]. - Organic revenue growth is expected to remain robust, with strong execution across Imaging, Advanced Visualization Solutions (AVS), and Pharmaceutical Diagnostics, despite margin pressures from tariffs and investment spending [3][4]. Segment Analysis Imaging - Revenue growth in the Imaging segment is supported by strong demand in the U.S. and EMEA markets, with customers upgrading aging diagnostic imaging equipment [5]. - Order trends remained strong, bolstered by large system deals and a healthy capital spending backdrop, although margins faced headwinds from tariffs [5][6]. Advanced Visualization Solutions - The AVS segment is likely to show solid performance, driven by strong adoption of AI-enabled ultrasound and image-guided solutions, contributing to above-average revenue growth [7][8]. Patient Care Solutions - The Patient Care Solutions segment is expected to have softer performance due to a temporary product hold that constrained shipments, although improvements are anticipated following the resolution of this issue [9]. Pharmaceutical Diagnostics - The Pharmaceutical Diagnostics segment is projected to deliver strong results, driven by growth in contrast media and radiopharmaceuticals, despite some margin pressure from planned investments and integration costs [10]. Margin and EPS Outlook - GE HealthCare's margins and EPS are expected to show sequential improvement, supported by volume recovery in Patient Care Solutions and continued productivity actions, despite ongoing tariff-related headwinds [11]. Share Price Performance - Over the past six months, GE HealthCare's shares have increased by 13.4%, outperforming the industry, which saw a 9.6% decline, and the S&P 500, which gained 13.1% during the same period [14].