GE HealthCare expects 2026 profits to exceed forecasts, driven by strong demand for medical equipment
General Electric Healthcare on Wednesday projected full-year profits to surpass Wall Street expectations, as the company bets on continued strong demand for its diagnostic and imaging equipment.
In recent years, demand for medical diagnostics has remained robust, particularly among the elderly population in the United States, driving hospitals to increase investment in diagnostic and medical equipment. The company primarily manufactures CT scanners, X-ray machines, PET scanners, and a variety of other medical devices.
The largest of General Electric Healthcare’s four business segments, the imaging equipment division, saw revenue grow 6.6% year-on-year in the fourth quarter, reaching $2.55 billion.
As the company’s fourth quarter earnings also exceeded expectations, its share price rose 2.4% to $80.70 in pre-market trading.
The company stated that revenue growth was also supported by strong performance in both European and American markets.
CEO Peter Arduini said: “This reflects healthy capital investment trends, outstanding commercial execution, and market demand for new products.”
The company’s other three major business segments are advanced visualization solutions, patient care solutions, and pharmaceutical diagnostics.
Based on current tax rates, General Electric Healthcare expects the impact of tariffs in 2026 to be lower than last year.
The company had stated in October that, due to tariffs imposed by U.S. President Donald Trump on copper, steel, and aluminum derivatives, it expects to face a loss of $265 million in 2025, reducing earnings per share by $0.45.
According to data compiled by London Stock Exchange Group, this medical equipment manufacturer is projected to have adjusted earnings per share of $4.95 to $5.15 in 2026, higher than analysts’ forecast of $4.92.
The company also expects organic revenue growth of 3% to 4% year-on-year in 2026.
In the quarter ended December 31, General Electric Healthcare’s adjusted earnings per share reached $1.44, surpassing the market expectation of $1.40.
Total sales for the quarter reached $5.7 billion, up 7.1% year-on-year and higher than analysts’ average expectation of $5.61 billion.
Editor: Li Zaofu
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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