Investors in GE HealthCare Technologies Inc. (NASDAQ:GEHC) had a good week, as its shares rose 2.1% to close at US$80.65 following the release of its yearly results. GE HealthCare Technologies reported in line with analyst predictions, delivering revenues of US$21b and statutory earnings per share of US$4.55, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there’s been a strong change in the company’s prospects, or if it’s business as usual. Readers will be glad to know we’ve aggregated the latest statutory forecasts to see whether the analysts have changed their mind on GE HealthCare Technologies after the latest results.
This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.
Following the latest results, GE HealthCare Technologies’ 18 analysts are now forecasting revenues of US$21.6b in 2026. This would be a modest 4.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 4.9% to US$4.79. Before this earnings report, the analysts had been forecasting revenues of US$21.4b and earnings per share (EPS) of US$4.69 in 2026. So the consensus seems to have become somewhat more optimistic on GE HealthCare Technologies’ earnings potential following these results.
See our latest analysis for GE HealthCare Technologies
The consensus price target was unchanged at US$93.25, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company’s valuation. There are some variant perceptions on GE HealthCare Technologies, with the most bullish analyst valuing it at US$110 and the most bearish at US$75.00 per share. As you can see, analysts are not all in agreement on the stock’s future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting GE HealthCare Technologies’ growth to accelerate, with the forecast 4.8% annualised growth to the end of 2026 ranking favourably alongside historical growth of 3.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 7.8% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, GE HealthCare Technologies is expected to grow slower than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around GE HealthCare Technologies’ earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it’s tracking in line with expectations. Although our data does suggest that GE HealthCare Technologies’ revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year’s earnings. At Simply Wall St, we have a full range of analyst estimates for GE HealthCare Technologies going out to 2028, and you can see them free on our platform here..
Even so, be aware that GE HealthCare Technologies is showing 1 warning sign in our investment analysis , you should know about…
New: Manage All Your Stock Portfolios in One Place
We’ve created the ultimate portfolio companion for stock investors, and it’s free.
• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks
Try a Demo Portfolio for Free
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
link