GE HEALTHCARE TECHNOLOGIES INC. (GEHC): what the price assumes

In the published model solve dated 2026-Q2, anchored at $71.72, GE HEALTHCARE TECHNOLOGIES INC. (GEHC) is priced for +8.7% growth. boothcheck publishes no house fair value, target price, or buy/sell rating; individual model outputs and user-controlled scenarios are analytical inputs, not Boothcheck targets. Narrative composed 2026-07-26.

Generated: 2026-08-30 · Exported: 2026-08-31 · Source: https://boothcheck.com/report/GEHC

Headline

What The Price Assumes (Inversion)

The assumption today's price embeds, recovered by inverting the valuation.

The operating-margin figure is value-band context at year 12: derived from the framework's value band, a separate calculation — not part of the priced-in solve.

Solve inputs: computed at a 9.3% cost of capital with 4% terminal growth over a 5-year stage.

How unusual the bet is: within-range (limited comparison data)

Valuation X-Ray

Every valuation family lands below the price. The price therefore sits beyond what those standard frames encode.

How the valuation models price the stock relative to the market price. Price/FV above 1.0 means the market pays more than that lens defends (expensive); at or below 1.0 the lens can defend the price.

Families that call it expensive: Asset, Earnings, Growth

The models below discount at their own flat-beta convention rates (cost of equity 9.3%, WACC 8.0%); the inversion above states its own rate.

Per-Model Detail (n=9)

Economic-Unit Decomposition (Sum Of The Parts)

One or more material disclosed units has unresolved economics. Unknown/general is not evidence of homogeneity: segment SOTP is primary but incomplete, consolidated cash flow may remain only a secondary cross-check when every unit shares an enterprise basis, and one sector multiple or target margin is withheld.

No total common-equity value is stated. One or more material units lack a supported unit value. The displayed values are an indicative subtotal; consolidated debt and cash cannot be applied to a fraction of the company.

Solvency

Interest expense is not separately reported in the latest filings, so interest coverage cannot be computed.

Bullet Takeaways

• The profit does not sit where the revenue sits: Pharmaceutical Diagnostics, the injectable agents that make a scan readable, earned FY2025 segment profit of $872 million on $2,900 million of sales, almost matching the $891 million the Imaging equipment business earned on $9,245 million.
• Trade policy is the largest single swing on earnings, and the FY2025 annual report puts the damage plainly: tariffs materially impacted our Operating income by approximately $245 million and cash flows by approximately $285 million last year.
• Complete second-quarter numbers land July 29, 2026, and a finance-chief handover takes effect August 14, 2026, so the next two information events arrive within days of each other.

Bull Case

Sell a scanner and the customer pays once. Sell the agent that goes into the patient before every scan, and the customer pays again each time the machine is used. That second business is where GE HealthCare's economics have quietly improved. Pharmaceutical Diagnostics grew 15.6% in FY2025 to $2,900 million of segment revenue, and the annual report records that PDx Segment EBIT was $872 million, an increase of $89 million due to an increase in price and growth in sales volume. Close to a third of that segment's sales drops through to segment profit, the richest conversion of the four reporting lines. Imaging, more than three times larger at $9,245 million, produced $891 million. One line is the company's face; the other is increasingly its earnings.

The second support is already signed. At the end of December the company carried $15,729 million of remaining performance obligations, work under customer contracts not yet delivered, against $14,491 million a year earlier. Services account for $10,728 million of that figure, more than double the products piece. Roughly a third of what GE HealthCare books in a year is service work on equipment already installed, and that is the part a hospital cannot easily push out: a scanner nobody maintains is a scanner nobody bills through.

Advanced Visualization Solutions, the interventional and surgical imaging line, grew 4.3% to $5,354 million and lifted segment profit $58 million to $1,175 million. On its own revenue that is close to 22%, and it makes AVS the largest single profit contributor in the company. The cohort it sells against is priced for exactly that kind of economics: ISRG runs a 30.5% operating margin on 10.6 billion dollars of revenue and BSX 18.4% on 20.6 billion dollars, both well above the blended company figure GE HealthCare reports today. Every point AVS and PDx add to the mix pulls the consolidated number toward those peers rather than away from them.

Geography says the drag is concentrated rather than general. EMEA grew 7.4% to $5,425 million, Rest of World grew 4.2% to $3,418 million, and the USCAN region grew 6.1%. China went the other way, down 4.6% to $2,251 million. Three regions out of four are already growing faster than the pace the price needs, which means the bull case does not require a turn in the hardest market. It only requires that market to stop getting smaller. On July 23 management reaffirmed the full-year 2026 guidance issued in April and said preliminary second-quarter revenue grew 5.7% year over year, organic growth 3.5%.

Bear Case

Trade policy is doing more to this company's reported profit than anything management decides. The FY2025 annual report states that tariffs materially impacted our Operating income by approximately $245 million and cash flows by approximately $285 million for the year ended December 31, 2025. Set that against operating income of $2,763 million for the same year and close to a tenth of the year's operating profit went to customs. Nothing in the model absorbs it quietly. A scanner is a physical object with a global bill of materials, and the filing is direct about the fragility underneath: Disruptions or loss of any of our single- or sole-source suppliers, or capacity limitations of these suppliers, could increase our costs, curtail growth opportunities, cause material delays.

Two of the four segments went backwards on profit last year. Imaging earned $891 million against $962 million the year before, and its share of its own revenue slipped to 9.6% from 10.9%. Patient Care Solutions was worse: PCS Segment EBIT was $209 million, a decrease of $137 million due to unfavorable mix, cost inflation, including the impact of incremental tariffs, and a decline in sales volume. That is close to 40% of a segment's profit gone inside twelve months, on revenue that itself slipped 1.2% to $3,086 million. The bull case asks PDx and AVS to carry the other two. In 2025 they did. They did not carry them far.

Which is what makes the required pace uncomfortable rather than reassuring. Today's price embeds company-wide operating profit compounding at roughly 5.8% a year before settling into a slower long-run rate. Operating income went from $2,625 million in 2024 to $2,763 million in 2025, a shade over 5%. The required pace is therefore about the delivered pace, with nothing left over for the customs line to widen, for China to keep contracting, or for Patient Care Solutions to stay where it landed. When the required rate and the demonstrated rate are the same number, a miss does not shave the multiple. It resets it, because the multiple was only ever supported by the assumption that the recent pace continues.

The balance sheet is not fragile, but it has been getting heavier rather than lighter. Long-term borrowings stood above 10 billion dollars at the end of March against liquid balances of roughly 2.3 billion dollars, leaving net debt near 7.9 billion dollars, or roughly three times operating profit. That is carriable for a business with a contracted service book, and awkward if the tariff drag persists into a second and third year. The notes impose no discipline of their own: the indenture does not restrict the Company or its subsidiaries from incurring indebtedness, nor does it contain any financial covenants. And the finance chief announced his exit two days before the company pre-released a partial quarter, with no permanent successor named. A memorandum of confidence, not a contract.

Valuation

Begin with what the quoted price actually assumes rather than what it looks like. Inverted, it asks company-wide operating profit to compound at roughly 5.8% a year through a five-year stage before fading to a slower terminal pace. That is close to what the business has recently produced, so the demand is persistence rather than acceleration. Measured against the healthcare cohort, the multiple embedded in it sits in the lower half of the peer range.

The methods disagree here in an unusual direction. Peer-multiple approaches, which price the company off what the sector pays for a dollar of earnings and a dollar of EBITDA, land above the quote: on that lens the shares sit about a third below where the comparison places them. The earnings-power methods run the other way. Capitalizing normalized operating profit at the cost of capital, crediting no growth whatsoever, leaves the price roughly a third above what the current earnings stream alone defends. Book value plus profitability brackets it, with the versions that credit several years of returns above the cost of equity landing essentially on today's quote and the more conservative floors landing about a quarter under it.

That shape is the opposite of a growth premium. A stock priced on a story sits far above every static method and is held up only by forward projections. Here the forward projections are the weakest support and the sector comparison is the strongest. The question the price poses is not whether GE HealthCare accelerates; it is whether the trailing earnings base is real and whether the sector's multiple belongs on top of it.

The cohort makes the same point from the other side. GE HealthCare's trailing operating margin runs near 12%, which puts it under SYK at 19.7% and BSX at 18.4%, under MDT at 17.8%, and above BDX at 10.4%. It is a middling-margin business inside a high-margin sector, and the reason shows up in the segment table rather than in any ratio: the largest line by revenue is also the thinnest by margin. Invert to the diagnostics side and the ranking flips. PDx earned close to 30% of its own revenue in FY2025, ahead of the 18.8% whole-company operating margin LNTH reports.

Solvency bounds the downside without driving the story. Interest and other financial charges came to 440 million dollars in FY2025, a modest fraction of the year's operating profit. Share count has been effectively flat since the separation, so nothing here is being funded by issuing stock and not much is being returned by retiring it either. Borrowings are the one moving part, having risen through the first quarter of 2026 while liquid balances came down, and the indenture sets no covenant ceiling on adding more. For a company whose service obligations are contracted years forward, that is a posture to watch rather than a constraint that binds.

Catalysts

On July 23, 2026 the company pre-released part of its second quarter instead of waiting for the full print. Revenue is expected to show growth of 5.7% year over year, with organic growth of 3.5%, and management said both diluted and adjusted earnings per share came in above its prior expectation. Full-year 2026 guidance, issued on April 29, was reaffirmed unchanged.

The same filing carried the reason for the unusual timing. Jay Saccaro is stepping down as chief financial officer for a role outside medical technology, with his final day on August 14, 2026. George Newcomb, currently controller and chief accounting officer, becomes interim chief financial officer that day and keeps both existing titles while a search for a permanent successor runs.

Complete second-quarter results and the earnings call follow on July 29, 2026, and that is where the detail the pre-release skipped will appear: segment profit, how much the customs line took this time, and whether China stopped shrinking. Separately, the company retired the remaining 500 million dollars of its term loan facility at maturity on January 2, 2026, which is part of why borrowings and liquid balances both moved during the first quarter.

Peer Cohorts (Per Segment, With Filing Citations)

Imaging (reported)

• MDT (Medtronic plc)
• FY2025 10-K: …we expect Neuroscience could be affected by the following: • Continued adoption and growth of our integrated solutions through the AiBLE offering, which integrates spinal implants with enabling technologies (StealthStation, O-arm Imaging Systems, and Midas), Mazor robotics, and UNiD Adaptive Spine Intelligence…
• FY2025 10-K: …related to IP rights, or other claims asserted by competitors, individuals, or, consistent with a growing trend across technology-intensive industries, other entities created specifically to fund IP litigation. With respect to commercial disputes, antitrust and competition issues have gained increased prominence,…
• BAX (BAXTER INTERNATIONAL INC)
• FY2025 10-K: …and regional competitors continue to expand their manufacturing capacity and sales and marketing channels. We believe customer purchasing decisions are primarily focused on cost-effectiveness, price, service, product performance and technological innovation. There has been consolidation in our customer base and by…
• FY2025 10-K: …rulemaking, and guidance that are important to our operations and create uncertainty about the pace of upcoming healthcare regulatory developments or approvals, and timing of reimbursements which, if prolonged or repeated, can negatively impact our results of operations, financial position, and cash flows. As a…
• BDX (BECTON DICKINSON & CO)
• FY2025 10-K: …the prices customers are willing to pay for those products in a particular jurisdiction. In addition, third-party payers are increasingly challenging the reimbursement models and prices charged for medical products and services. Any changes to the reimbursement landscape, or adverse decisions relating to our products…
• FY2025 10-K: …bdx:MedicalMember 2023-10-01 2024-09-30 0000010795 us-gaap:OperatingSegmentsMember bdx:AdvancedPatientMonitoringMember bdx:MedicalMember 2023-10-01 2024-09-30 0000010795 us-gaap:OperatingSegmentsMember country:US bdx:AdvancedPatientMonitoringMember bdx:MedicalMember 2022-10-01 2023-09-30 0000010795…
• STE (STERIS plc)
• FY2025 10-K: …in quality control, Customer training programs, distribution systems, technical services, and other information services. In addition to organic opportunities, acquisitions are a key part of our long-term strategy for growth. There can be no assurance that we will develop significant new products or services, or that…
• FY2025 10-K: …and external resources and costs to respond to and comply with legal and regulatory issues and constraints; respond to claims, litigation, and other proceedings brought by Customers, users, governmental agencies, and others; disruption of product improvements and product launches; discontinuation of certain product…
• SOLV (SOLVENTUM CORPORATION)
• FY2025 10-K: …license from third parties IP that complements our internal R&D efforts and product offerings. While, in aggregate, our patents and other IP are vital to our operations, we do not consider any single IP asset or group of assets to be of material importance to any segment or to the business as a whole; rather, we…
• FY2025 10-K: …and manufacturing expertise. We serve a diverse customer base, ranging from multidisciplinary hospitals to local clinics/practices. Our long-tenured and collaborative customer relationships globally give us unique insights into their needs and preferences. These insights inform our innovation processes, drive…
• SYK (STRYKER CORP)
• FY2025 10-K: …technologies and, together with our customers, we are driven to make healthcare better. We offer innovative products and services in MedSurg, Neurotechnology and Orthopaedics that help improve patient and healthcare outcomes. Our products include surgical equipment and surgical navigation systems; endoscopic and…
• FY2025 10-K: …our ability to properly identify customer needs and predict future needs, including connectivity solutions; innovate and develop new technologies, services and applications at an accelerated pace; and appropriately allocate our research and development spending to products and services with higher growth. Our…
• ZBH (ZIMMER BIOMET HOLDINGS, INC.)
• FY2025 10-K: …the reasonableness of the significant assumptions used by management related to revenue growth rates and discount rate for a certain contingent consideration liability and revenue growth rates, obsolescence rate, discount rate, and contributory asset charge rate for the IPR&D intangible asset. Evaluating management's…
• FY2025 10-K: …be applied prospectively with an option to apply the guidance retrospectively or through a modified transition approach. Early adoption of this ASU is permitted. We are currently evaluating the impact this ASU will have on our consolidated financial statements. 3. Revenue Recognition We recognize revenue when our…
• SNN (Smith & Nephew plc)
• FY2025 20-F: …use in conjunction with the INTELLIO Connected Tower. From one centralised location, operating room staff have the ability to remotely control and adjust the INTELLIO 4K Surgical Imaging System, the DYONICS◊ POWER II Control System, the WEREWOLF COBLATION System and the DOUBLEFLO◊ Inflow/Outflow Pump. The INTELLIO 4K…
• FY2025 20-F: …based on Fluidjet technology. International Wound Journal. 2005;2(4): 307-314. 62 Murray F. Paper presented at: European Wound Management Association (EWMA); 2007; Glasgow. 63 Granick MS, Jacoby M, Noruthrun S, et al. Clinical and economic impact of hydrosurgical debridement on chronic wounds. Wounds.…

Advanced Visualization Solutions (AVS) (reported)

• MDT (Medtronic plc)
• FY2025 10-K: …a comprehensive line of medical devices and implants used in the treatment of the spine and musculoskeletal system. The division also provides biologic solutions for the orthopedic markets and offers unique and highly differentiated imaging, navigation, power instruments, and robotic guidance systems used in spine…
• FY2025 10-K: …growth from spinal cord stimulation (SCS) therapy for treating chronic pain and Diabetic Peripheral Neuropathy (DPN) on the Inceptiv closed-loop rechargeable neurostimulator, Intellis rechargeable neurostimulator and Vanta recharge-free neurostimulator. The Inceptiv closed-loop rechargeable SCS received U.S. FDA…
• BSX (BOSTON SCIENTIFIC CORP)
• FY2025 10-K: (EPS) that exclude certain charges (credits); operational net sales, which exclude the impact of foreign currency fluctuations; and organic net sales, which exclude the impact of foreign currency fluctuations as well as the impact of certain acquisitions and divestitures with less than a full period of comparable net…
• FY2025 10-K: …related to contracts with customers when the associated revenue is expected to be earned over a period that exceeds one year. Deferred commissions are primarily related to the sale of devices enabled with our LATITUDE™ Patient Management System. We have elected to expense commission costs when incurred for contracts…
• ISRG (Intuitive Surgical, Inc.)
• FY2025 10-K: …featured da Vinci 5 and da Vinci Xi surgical systems with advanced instruments (including the da Vinci energy and da Vinci stapler products) and our Integrated Table Motion product target the more complex procedure segment. Our da Vinci X surgical system is targeted toward price-sensitive customers and procedures.…
• FY2025 10-K: MIS products. We believe that the entrance or emergence of competition validates MIS and robotic-assisted surgery or robotic-assisted bronchoscopy. Moreover, as we add new robotically controlled products (e.g., da Vinci stapling and da Vinci energy products) that compete with product offerings traditionally within the…
• SNN (Smith & Nephew plc)
• FY2025 20-F: …chronic wounds and surgical site complications. We will support innovation by increasing investment in compelling clinical evidence to shift adoption of these advanced therapies by demonstrating lower cost of care and better patient outcomes. We will Scale by expanding our reach and deploying capital into high-growth…
• FY2025 20-F: …Information Security, Privacy and Legal, oversees governance to ensure that reviews are undertaken to establish appropriate controls across the Group, both for AI projects and for AI use by employees in their day-to-day work. For customer-facing delivery of products and services, we are strategically positioning AI…
• PEN (Penumbra, Inc)
• FY2025 10-K: …is subsequently resolved. During the year ended December 31, 2025, we made no material changes in estimates for variable consideration. Our terms and conditions permit product returns and exchanges. We base our estimates for sales returns on actual historical returns and they are recorded as reductions in revenue at…
• FY2025 10-K: …future forfeitures at the date of grant and revises the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. To the extent actual forfeiture results differ from the 81 Table of Contents Penumbra, Inc. Notes to Consolidated Financial Statements (Continued) estimates, the…

Patient Care Solutions (PCS) (reported)

• MASI (MASIMO CORP)
• FY2025 10-K: …to customers that are members of GPOs represent approximately 91.2% of our U.S. product sales. Our failure to renew our contracts with GPOs may cause us to lose market share and could have a material adverse effect on our business, financial condition and results of operations. In addition, if we are unable to…
• FY2025 10-K: …hospitals, emergency medical response organizations and other customers; and (iv) sales of integrated circuit boards to OEM customers who incorporate the Company's embedded software technology into their multiparameter monitoring devices. Subject to customer credit considerations, the majority of such sales are made…
• BAX (BAXTER INTERNATIONAL INC)
• FY2025 10-K: …of new customer centric connected care and core therapy offerings. Connected care offerings include devices or software that can digitally connect, communicate and/or analyze data to help transform healthcare and improve patient outcomes, and we are continuing to build out our connected care portfolio offerings,…
• FY2025 10-K: …Products We currently manage our global operations based on three reportable segments: Medical Products & Therapies, Healthcare Systems & Technologies and Pharmaceuticals. The Medical Products & Therapies segment includes sales of our sterile IV solutions, infusion systems, administration sets, parenteral nutrition…
• ICUI (ICU MEDICAL INC/DE)
• FY2025 10-K: …and other healthcare providers that typically bill various third-party payors, such as governmental programs, private insurance plans and managed care plans, for the healthcare services and products provided to their patients. The ability of our customers to obtain appropriate coverage and reimbursement for…
• FY2025 10-K: …("CMS") information related to payments or other "transfers of value" made to physicians (defined to include doctors, dentists, optometrists, podiatrists and chiropractors), certain non-physician health care professionals (physician assistants, nurse practitioners, clinical nurse specialists, anesthesiologist…
• MMSI (MERIT MEDICAL SYSTEMS INC)
• FY2025 10-K: …divisions; ● maintaining a highly disciplined, customer-focused enterprise guided by strong core values to globally address unmet or underserved healthcare needs; and ● creating a sustainable business for our employees, shareholders and community. We conduct our operations through a number of domestic and foreign…
• FY2025 10-K: …rhythm management; interventional pulmonology; interventional nephrology; orthopedic spine surgery; interventional oncology; pain management; breast cancer surgery; outpatient access centers; intensive care; imaging; and interventional gastroenterology. According to statistics published by the World Health…
• NVCR (NovoCure Limited)
• FY2025 10-K: …cancer treatment. Our intellectual property portfolio is continuously expanding as we find new and unique ways to improve TTFields therapy. We believe these intellectual property rights would provide an obstacle to the introduction of state of the art TTFields therapy devices by a competitor. However, competitors may…
• FY2025 10-K: …or we do not obtain coverage and reimbursement and we elect to continue providing financial assistance in those markets. Our failure to secure or maintain adequate coverage or reimbursement for our Products by third-party payers in the U.S. or in the other jurisdictions in which we market our Products could have a…

Pharmaceutical Diagnostics (PDx) (reported)

• LNTH (LANTHEUS HOLDINGS, INC.)
• FY2025 10-K: Comparison of the Periods Ended December 31, 2025 and 2024 Revenues We classify our revenues into three product categories: Radiopharmaceutical Oncology, Precision Diagnostics, and Strategic Partnerships and Other Revenue. Radiopharmaceutical Oncology consists of PYLARIFY and historically included AZEDRA. In the first…
• FY2025 10-K: …are approved, relative pricing, timing of market entry, our ability to enter into favorable commercial agreements, the effectiveness of our sales and distribution efforts, overall market conditions, and our ability to obtain and maintain adequate coding, coverage, and reimbursement, including the availability of TPT…
• BMY (Bristol-Myers Squibb Company)
• FY2025 10-K: …end of regulatory exclusivity or the COM patent expiration for the respective products and PTR if granted. In situations where there is only regulatory exclusivity without patent protection, a competitor could seek regulatory approval by submitting its own clinical study data to obtain marketing approval prior to the…
• FY2025 10-K: …Matter PBMs Pharmacy Benefit Managers COSO Committee of Sponsoring Organizations of the Treadway Commission PCAOB Public Company Accounting Oversight Board CRC colorectal carcinoma PD-1 programmed death receptor-1 DLBCL diffuse large B-cell lymphoma PDAC pancreatic ductal adenocarcinoma dMMR deficient DNA mismatch…
• GSK (GSK plc)
• FY2025 20-F: …3, Arquiparque, Miraflores, 1495-131, Alges, Portugal Bellus Health Inc Common 75 Rue Queen, Unité 1300, Montreal QC H3C2N6, Canada Biovesta Ilaçlari Ltd. Sti. (ii) Nominative Esentepe Mah, Bahar Sk. Ozdilek River Plaza, Vyndham Grand No: 13 Kat: 22, Kapi: 58, Sisli, Istanbul, 34394, Turkey BP Asset IX, Inc. Common…
• FY2025 20-F: …expected to influence decisions made by the users of these financial statements. The aggregate compensation of the Directors and senior management (members of the Executive Committee, formerly known as the GSK Leadership Team) is given in Note 9, ‘Employee costs' . 221 Strategic report Corporate governance Financial…

Methodology Note

• Priced-in inversion: the valuation is inverted on the current price to recover the operating-income growth, duration, and steady-state margin the price embeds (ROE for financials, FFO growth for REITs).
• Valuation x-ray: the valuation models, grouped into four families (asset, earnings, relative, growth). Each model is expressed as a price/FV ratio (distance from price), not a point fair-value estimate. The spread across families is the disagreement.
• Economic-unit decomposition (SOTP): each disclosed business unit is assigned its native valuation basis before any multiple is applied. Operating units are valued on enterprise value; funded financial units are valued on their own common equity, because their borrowings fund earning assets rather than levering the parent. A company total is stated only once every material unit carries a supported value and the parent capital bridge reconciles.
• Solvency: net cash/debt, net-debt-to-NOPAT, interest coverage, and share-count CAGR from EDGAR financials (net debt / FFO and fixed-charge coverage for REITs; regulatory-capital framing for financials).
• Peer cohorts: per-segment comparables with deep-linkable SEC filing citations.

Fundamentals sourced from SEC EDGAR filings. Current price from Databento. The priced-in inversion and valuation x-ray are computed by the boothcheck engine; narrative composed by AI from the structured data.