GE HealthCare (GEHC) Stock Falls After Earnings Miss and Guidance Cut

TLDR

• GE HealthCare reported Q1 adjusted EPS of $0.99, missing the $1.05 estimate
• Full-year EPS guidance cut to $4.80–$5.00, down from $4.95–$5.15
• Revenue of $5.13 billion beat estimates of $5.03 billion
• Stock fell roughly 9% in premarket trading
• Company is combining its two largest segments into a new $14.6 billion unit

GE HealthCare missed earnings estimates in the first quarter and cut its full-year profit outlook, sending the stock down sharply in premarket trading Wednesday.

The company posted adjusted earnings per share of $0.99, short of the $1.05 Wall Street expected. On the revenue side, it was a different story — total revenues came in at $5.13 billion, up 7.4% year-over-year and ahead of the $5.03 billion consensus.

Operating profit margins of 13.5% also missed estimates by about one percentage point.

The stock dropped around 9.6% in premarket trading to approximately $61.93, adding to a rough year. GEHC was already down 16% in 2026 coming into Wednesday.

GE HealthCare Technologies Inc., GEHC

CEO Peter Arduini pointed to rising costs as the driver behind the guidance cut. Prices for memory chips, oil, and freight all increased during the quarter. Arduini said the company expects to offset more than half of that inflation hit through pricing and cost actions.

Full-year adjusted EPS guidance was trimmed to $4.80–$5.00, down from the prior range of $4.95–$5.15. Analysts were looking for $5.06. The company kept its organic revenue growth forecast intact at 3% to 4%.

Orders rose 1.1% in Q1, while comparable sales grew 2.9%.

Segment Restructure

GE HealthCare announced it is combining its two largest units — imaging and advanced visualization solutions — into a single segment called Advanced Imaging Solutions, with a combined revenue base of $14.6 billion.

Phil Rackliffe, who previously ran advanced visualization solutions, will lead the new combined segment. Roland Rott, who headed imaging, will leave the company.

The company said the move is designed to create a more connected imaging ecosystem and generate operational efficiencies.

Catherine Estrampes, a 35-year company veteran, was named Chief Commercial and Growth Officer to head a newly created global markets region covering all markets outside of China.

Lagging Behind the Other GEs

GEHC has been the weakest performer of the three companies that came out of the old GE empire. Since its January 2023 spinoff, the stock is up only about 13%, trailing the S&P 500 by more than 70 percentage points over that stretch.

By contrast, GE Aerospace is up more than 110% since GE split in April 2024. GE Vernova has been the standout, surging over 675% in that same period.

GE Aerospace has benefited from strong jet engine demand. GE Vernova has ridden the wave of power generation spending. GE HealthCare has faced a tougher environment — sluggish demand, tariff pressures, and persistent inflation.

The company does carry a record backlog of nearly $22 billion entering 2026, which management has pointed to as a foundation for future growth.

GEHC stock was up just 1% over the past 12 months heading into Wednesday’s report.

The post GE HealthCare (GEHC) Stock Falls After Earnings Miss and Guidance Cut appeared first on CoinCentral.