Long the laggard of the broken-up General Electric family, GE HealthCare Technologies delivered investors a dose of good news on Wednesday as the medical-device maker beat third-quarter forecasts and raised its annual guidance.
Quarterly revenue climbed 7.2% to $5.51 billion, including 6.2% organic revenue growth, with management touting improvement across all business segments. Wall Street was looking for revenue of $5.35 billion. Adjusted earnings of $1.34 a share surpassed analysts' calls for $1.20.
The medical-device maker boosted its full-year guidance on the back of the latest results. Management is now targeting 4% organic revenue growth for the year, up from 3% to 4% growth previously. The company sees adjusted earnings in the range of $4.95 to $5.05 a share versus a prior range of $4.80 to $5.
Shares climbed 6.4% to $75.69 in premarket trading Wednesday, handily outperforming S&P 500 futures, which rose 0.1%.
GE HealthCare has consistently trailed behind its former corporate siblings since the three-way split of the General Electric conglomerate in 2024. Heading into Wednesday's session, shares have fallen 13% this year, while GE Vernova and GE Aerospace are up 37% and down 3.3%, respectively. Shares have faced pressure due to a mix of macroeconomic headwinds, supply chain costs, and intense competition from local manufacturers in China.
As a stand-alone entity, GE HealthCare has leaned on acquisitions to stoke growth and expand its product portfolio, a playbook it revisited earlier this month when it agreed to buy radiopharmaceutical developer Sofie Biosciences for $945 million. The deal is slated to close in the first half of 2027, at which point Sofie will integrate into GE HealthCare's Pharmaceutical Diagnostics segment.
Citi analyst Joanne Wuensch noted that the deal "should be well-received" by investors, seeing as it adds in-house commercial assets and expands GE HealthCare's manufacturing capabilities. A radioactive diagnostic agent called Flyrcado was born out of the companies' partnership several years ago.
GE HealthCare operates through three core business segments: Advanced Imaging Solutions, Pharmaceutical Diagnostics, and Patient Care Solutions. Imaging, the largest division, reported revenue of $3.87 billion, up 6.1% from last year. Revenue across its diagnostics and PCS units rose 13% and 8.5%, respectively.
Separately on Wednesday, GE HealthCare announced that Jeannette Bankes was stepping down as PCS president and CEO to lead a different company. Neal Sandy, the division's current head of product strategy and management, will succeed her effective Nov. 16. The transition comes just a month after William Grogan took over as chief financial officer following Jay Saccaro's departure.
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