GE HealthCare Technologies Inc.
Orin's own judgment of how firmly the evidence points one way — not the chance the price goes up.
GEHC remains a buy at $69.57, trading at 20.0x P/E and 12.8x EV/EBITDA—roughly 25% and 22% below peer medians—while quarterly revenue growth has accelerated to 7.4% YoY in Q1 2026 and 5.8% YoY in Q2 2026.
A cluster buy by six insiders totaling ~$5.7M in April–May 2026 and the $945M SOFIE Biosciences deal expanding PET radiopharma reach reinforce the growth narrative, but gross margin compression to 40.0% in FY2025 from 41.7% in FY2024, declining FCF from $1.80B in FY2022 to $1.51B in FY2025, and active securities fraud investigations announced October 5, 2026 create near-term risk ahead of Q3 2026 earnings on October 28.
What could go wrong
- Securities fraud investigations. Multiple law firms announced securities fraud investigations into GEHC on October 5, 2026, creating legal overhang and potential class-action exposure that could pressure the stock regardless of fundamentals.
- Margin compression. Gross margin declined from 41.7% in FY2024 to 40.0% in FY2025, and operating margin remains modest at 13.4%; continued cost pressure could erode the earnings growth thesis.
- FCF deterioration. Free cash flow has declined from $1.80B in FY2022 to $1.51B in FY2025, with capex rising from $310M to $482M over the same period, constraining financial flexibility given $10.0B in total debt.
- Technical overhead. Price at $69.57 remains below the 200-day MA of $70.47 as of October 16, 2026, and smart money score has declined to 0.02 as of Q2 2026 from 0.08 in Q4 2025, suggesting institutional conviction is waning.
What would change my mind
Where this comes from: peer comparison, 16 Oct · results, quarter to 30 Jun · insider trades, 12 May · news, 6 Oct. Orin's read on GEHC; not advice.
How has the share price moved?
Down 9.2% over twelve months, from $78.35 on 27 Oct 2025 to $71.11 at the Tue 27 Oct 2026 close. Its highest close in that time was $88.16 on 8 Jan 2026; the last close is 19.3% below it.
- Green line: the closing price each trading day.
- Grey line: the average closing price over the last 50 trading days.
- Dashed amber line: the same over the last 200 trading days — a slower, smoother line.
- Bars along the bottom: shares traded each day — green when it closed higher than the day before, rose when lower (the most, 23.5M, on 29 Apr 2026).
- Flags: the company's filings, on the day they were made (a 10-Q is the quarterly report and a 10-K the annual report; an 8-K reports a major event).
On file
All GEHC filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| BlackRock | $2.4B | 0.0% |
| Vanguard Capital Management | $1.9B | 0.0% |
| State Street | $1.3B | 0.0% |
| Vanguard Portfolio Management | $1.3B | 0.1% |
| Invesco | $1.2B | 0.1% |
| Harris Associates | $981.3M | 1.3% |
| Geode Capital Management | $820.8M | 0.0% |
| Hotchkis & Wiley Capital Management | $784.2M | 2.3% |
| JPMorgan Chase | $671.9M | 0.0% |
| Morgan Stanley | $398.4M | 0.0% |
100 of the 815 filers we track · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 118 Form 4 filings; open-market trades net $5.7M. Of the 50 on hand, 6 were open-market purchases and 0 sales — the rest are grants, option exercises and tax withholding.
Ask Orin about GEHC
Orin answers questions about GEHC from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →How is it priced, against its own past and its sector?
Priced at 20.4× its last 12 months of profit (Tue 27 Oct close); the typical Healthcare company on the NASDAQ is at 20.8×. It has too few years of its own for a usual level.
| Measure | Now | Its usual | Sector |
|---|---|---|---|
| P/E | 20.4× | — | 20.8× |
| P/S | 1.59× | — | — |
| EV/EBITDA | 13.1× | — | — |
| P/B | 2.9× | — | — |
- Listed on 15 Dec 2022 — earlier years are not shown.
- So it has no full fiscal year of its own on file yet — no usual level.
P/E: the share price divided by one year of profit per share — roughly how many years of today's profit the price pays for. A company that loses money has no P/E.
P/S: the company's total market value divided by one year of revenue. Used when there is no profit to measure.
EV/EBITDA: the price of the whole company (its shares plus its debt, minus its cash) divided by one year of operating profit before interest, tax and write-downs.
P/B: the share price divided by the book value per share — what the company owns minus what it owes, as its accounts record it. When book value is tiny, P/B swings wildly and says little.
What do the analysts who cover it publish?
The analysts' average 12-month price target is $78.80 (from $65 to $93) — 11% above the Tue 27 Oct close price. That is their published opinion, not Orin's.
$78.80
$65 – $93 · +11% against the last close
- 8 buy or overweight
- 7 hold
- 0 underweight or sell
Price target: the share price an analyst publishes for about 12 months ahead. It is the opinion of the firm that wrote it; the average is across the firms that cover the company.
Overweight / underweight: analysts' rating words: overweight means the firm expects the stock to do better than the others it covers, underweight worse. Their words, not Orin's.
How is it priced next to the companies it is compared to?
Priced at 20.4× its last 12 months of profit; the middle P/E of the 4 companies it is compared to that made a profit is 27.0×.
| Company | Market value | P/E | EV/EBITDA | Gross margin | Net margin | ROE |
|---|---|---|---|---|---|---|
| GEHCGE HealthCare Technologies Inc. | $32B | 20.4× | 13.1× | 42.9% | 7.9% | 15% |
| ABTAbbott Laboratories | $178B | 38.2× | 21.2× | 57.1% | 9.7% | 9% |
| BSXBoston Scientific Corporation | $65B | 18.2× | 13.3× | 71.2% | 17.5% | 15% |
| MDTMedtronic plc | $120B | 23.0× | 14.4× | 66.7% | 13.9% | 11% |
| SYKStryker Corporation | $116B | 31.0× | 19.0× | 65.2% | 14.4% | 16% |
- The list of companies is the data vendor's choice, so it can include a company a person would not have picked.
Market value: the share price times the number of shares — what the whole company is priced at.
P/E: the share price divided by one year of profit per share — roughly how many years of today's profit the price pays for. A company that loses money has no P/E.
EV/EBITDA: the price of the whole company (its shares plus its debt, minus its cash) divided by one year of operating profit before interest, tax and write-downs.
Gross margin: the share of each $1 of sales left after the direct cost of making what was sold.
Net margin: the share of each $1 of sales kept as profit after every cost. Below zero, the company lost money.
ROE: return on equity: one year of profit as a share of the shareholders' money in the business (its book value).
Is it priced high or low compared with its own past?
Priced at 20.4× its last 12 months of profit (Tue 27 Oct close). It has no full fiscal year on file since its history starts, so there is nothing of its own to compare with.
- Now20.4×
P/E: the share price divided by one year of profit per share — roughly how many years of today's profit the price pays for. A company that loses money has no P/E.
Fiscal year (FY): the company's own 12-month accounting year, which need not match the calendar year.
How has its sector been priced?
Healthcare companies on the NASDAQ were priced at a typical 20.8× their yearly profit (Tue 27 Oct close).
- Now20.8×
- Each year is the middle of that calendar year's daily sector P/E; "Now" is the Tue 27 Oct close figure, the same one in the table above.
Sector P/E: the middle P/E of the companies in the same sector on the same stock exchange, as the data vendor works it out each day.
What does a cash-flow model say a share is worth?
A standard cash-flow model puts it at $136 a share — 92% above the $70.59 price it was computed against (27 Oct).
| Model | Value a share | Against the price then |
|---|---|---|
| Standard | $136 | 92% above $70.59 |
| Levered | $88 | 25% above $70.59 |
Discounted cash flow: a model's estimate of what the company is worth today, from the cash it is forecast to make in future years. Small changes in the forecast move it a lot, and it says little about a company that loses money.
Standard / levered: two versions of the cash-flow model: the standard one counts the cash before the company pays its lenders, the levered one after.