GE HealthCare Q4 Earnings and Revenues Beat Estimates, Net Margin Falls

Core Insights - GE HealthCare (GEHC) reported Q4 2025 adjusted EPS of $1.44, exceeding the Zacks Consensus Estimate of $1.43 by 0.7%, but down 0.7% year over year. GAAP EPS was $1.29, a decline of 17.8% from the previous year [1] - For the full year, adjusted EPS increased by 2.2% to $4.59, while GAAP EPS rose 4.8% to $4.55 [1] Revenue Details - Revenues reached $5.7 billion, reflecting a 7.1% year-over-year increase on a reported basis and 4.8% organically, surpassing the Zacks Consensus Estimate by 1.9%. Total company orders grew 2% year over year organically, with a book-to-bill ratio of 1.06X [2][7] - Full-year revenues increased by 4.8% to $20.6 billion, with organic sales growth of 3.5% [3] Segmental Performance - Imaging segment revenues were $2.55 billion, up 6.6% year over year, while segment EBIT decreased by 12.5% to $264 million [4] - Advanced Visualization Solutions generated $1.53 billion in revenues, a 5.9% increase year over year, with EBIT rising 0.7% to $376 million [4] - Patient Care Solutions revenues fell to $825 million, down 0.3% year over year, with EBIT declining 29.6% to $74 million [5] - Pharmaceutical Diagnostics saw revenues of $790 million, up 22.3% year over year, with EBIT increasing by 10% to $234 million [5] Margins and Financial Position - The net income margin was 10.3%, down 320 basis points from the prior year due to tariffs and product mix, although volume and pricing benefits partially offset this decline [6][7] - At the end of Q4, GEHC had cash, cash equivalents, and investments totaling $4.51 billion, an increase from $4.03 billion in the previous quarter. Total assets rose to $36.91 billion from $36.13 billion sequentially [9] 2026 Guidance - GE HealthCare anticipates organic revenue growth of 3-4% for 2026 and adjusted EPS in the range of $4.95-$5.15, indicating a year-over-year growth of 7.9-12.3%. The Zacks Consensus Estimate for 2026 revenues and EPS is $21.38 billion and $4.94, respectively [10] Strategic Initiatives - The company is focused on inorganic growth through acquisitions, having acquired Nihon Medi-Physics and icometrix in 2025, and is set to acquire Intelerad in the first half of 2026 to enhance its cloud-enabled enterprise imaging capabilities [14] - Continued investment in R&D and new product introductions, including advanced imaging systems and AI-enabled diagnostics, underscores GE HealthCare's commitment to precision care and digital transformation [15]