Feb 4 (Reuters) – GE HealthCare on Wednesday forecast annual profit above Wall Street estimates, betting on robust demand for its diagnostic and imaging devices.
Resilient demand for medical procedures, particularly from older Americans, has prompted hospitals to invest in diagnostic and medical devices over the past couple of years. The company makes CT, X-ray and PET scanners as well as range of other devices.
Revenue at GE HealthCare’s imaging devices unit — the largest of its four segments — rose 6.6% to $2.55 billion in the fourth quarter.
Shares were up up 2.4% at $80.70 in premarket trading, after the company also beat fourth-quarter earnings estimates.
The revenue growth was also driven by strength in U.S. and European markets, it said.
“This reflects healthy capital investment trends, commercial execution and demand for new products,” said CEO Peter Arduini.
Its other three businesses are advanced visualization solutions, patient care solutions and pharmaceutical diagnostics.
The company said it anticipates 2026 tariff impact to be lower than last year, based on current rates.
GE HealthCare in October said it expected a $265 million, or 45-cents-per-share, impact in 2025 from U.S. President Donald Trump’s tariffs on copper, steel and aluminum derivatives.
The medical device maker expects 2026 adjusted profit per share in the range of $4.95 to $5.15, compared with analysts’ estimates of $4.92 per share, according to data compiled by LSEG.
The company also expects 2026 organic revenue growth of 3% to 4% year-over-year.
On an adjusted basis, GE HealthCare earned a profit of $1.44 per share during the quarter ended December 31, compared with estimates of $1.40 per share.
Total quarterly sales came in at $5.7 billion, up 7.1% from a year ago and higher than analysts’ average estimate of $5.61 billion.
(Reporting by Sneha S K; Editing by Sahal Muhammed)
Comments