GEHC US S&P 500NASDAQ-100Russell 1000 Earnings call
GE HealthCare (GEHC) · Q2 2026 results and valuation
Share price: $82.60 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 29 Jul 2026 and 29 Apr 2026
Net income up 44.0% on the previous quarter. Management sounded upbeat, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+44.0%
Net income vs Q1 2026
Outlook given
Net income 560.0M vs 389.0M
Revenue +3.2%
Against the same quarter last year (Q2 2025) it is +15.2% — part of the move on last quarter is seasonal.
2 · How management spoke
Upbeat
More upbeat than 78% of company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out
Figure
Orders increased 11% and the backlog grew $2.6 billion year-over-year with a book-to-bill of 1.15x, all of which reached record levels.
Valuation
Is GE HealthCare undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 4.0% growth a year (3-year revenue growth), the model's fair value is $33.07 a share — the stock trades 150% above it. Today's price assumes 13.3% growth a year.
Current price
$82.60
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+13.3% for 10 yrs
Fair value / share
$33.07
Buy below
$24.81
Price vs fair value
Overvalued 150%
Price vs buy-below price
Overvalued >200%
Management expects
Sales +3.5% · from the Q2 2026 report: “GEHC maintained its full-year guidance following healthy end market demand, which reflects 3% to 4% organic sales growth and an adjusted EBIT margin expansion…”
A guidance figure for sales, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Guidance
As noted throughout the call, GE HealthCare is pleased with the momentum in its business, reflecting healthy end market demand and continued…
Source quote
“As noted throughout the call, we're pleased with the momentum in our business, reflecting healthy end market demand and continued... We're maintaining full year guidance, and this reflects 3% to 4% organic sales growth and 10 to 40 basis points adjusted EBIT margin expansion that gets us to a range of 15.4% to 15.7%.”
-
Guidance
The company reaffirmed its adjusted EPS guidance in the range of $4.80 to $5.
Source quote
“We're maintaining our adjusted EPS guidance in the range of $4.80 to $5.”
-
Fading
Adjusted ebit margin is expected to be slightly dilutive in the first year, which the company has already included in its forecast.
Source quote
“But in the first year, we're expecting this to be slightly dilutive, but we've kind of covered that in the forecast...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“We delivered particularly strong organic revenue growth of 14.6%, with strong volume and pricing in contrast media as well as robust growth in our U.S.”
“Orders increased 11% with strong backlog, which grew $2.6 billion year-over-year and book-to-bill of 1.15x, all of which were at record levels.”
“In the U.S., we're seeing strong interest in Photonova Spectra, our photon-counting CT platform, and we expect CE marking in the second half of 2026, which will expand our opportunity...”
Full figures
USD · ROIC.AI fundamentals (NASDAQ:GEHC, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 5.29B | 5.13B | +3.2% | 5.01B | +5.7% |
| Gross profit | 2.18B | 1.98B | +10.2% | 1.99B | +9.8% |
| Operating income | 738.0M | 515.0M | +43.3% | 654.0M | +12.8% |
| Net income | 560.0M | 389.0M | +44.0% | 486.0M | +15.2% |
| EPS | 1.24 | 0.85 | +45.4% | 1.06 | +16.6% |
| P/E today 15.8 | — | 17.1 | — | 15.2 | — |
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Latest announcements
Official filings, newest first.
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