GE HealthCare Technologies Inc. Just Beat EPS By 38%: Here’s What Analysts Think Will Happen Next

GE HealthCare Technologies Inc. (NASDAQ:GEHC) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of US$4.8b, some 2.6% above estimates, and statutory earnings per share (EPS) coming in at US$1.23, 38% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We’ve gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Our free stock report includes 1 warning sign investors should be aware of before investing in GE HealthCare Technologies. Read for free now.

Following the latest results, GE HealthCare Technologies’ 19 analysts are now forecasting revenues of US$20.3b in 2025. This would be an okay 2.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to drop 11% to US$4.23 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$20.0b and earnings per share (EPS) of US$4.46 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

Check out our latest analysis for GE HealthCare Technologies

The average price target fell 8.5% to US$89.26, with reduced earnings forecasts clearly tied to a lower valuation estimate. 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$74.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await GE HealthCare Technologies shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the GE HealthCare Technologies’ past performance and to peers in the same industry. We would highlight that GE HealthCare Technologies’ revenue growth is expected to slow, with the forecast 3.1% annualised growth rate until the end of 2025 being well below the historical 4.1% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.0% per year. So it’s pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than GE HealthCare Technologies.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for GE HealthCare Technologies. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of GE HealthCare Technologies’ future valuation.

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. We have estimates – from multiple GE HealthCare Technologies analysts – going out to 2027, and you can see them free on our platform here.

Don’t forget that there may still be risks. For instance, we’ve identified 1 warning sign for GE HealthCare Technologies that you should be aware of.

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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.