GE HealthCare rises after quarterly results beat estimates and guidance is raised

What happened

GE HealthCare (GEHC) rose 6.6% on October 28, 2026, after third-quarter results beat expectations and management raised 2026 guidance on stronger imaging and pharmaceutical-diagnostics demand. Trading volume was 2.8 times its 20-day average as investors reacted to higher-than-expected earnings and an improved outlook.

How big was the move

The stock opened 6.9% above the previous close and finished the session up, part of a five-session gain of 9.9%. The move was 4.0 times a typical daily move for this stock, and its market sensitivity — a beta of 1.33 — means the stock tends to move more than the market. The S&P 500 rose 0.3% on the day while the healthcare sector median rose 1.7%, so the stock’s performance was 5.0 percentage points better than the sector median.

Volume that was 2.8 times its 20-day average underscores the strength of the market reaction to the company’s quarterly report. In the past five years the stock had six sessions with a gain of at least 6.6%; twenty trading days later the median result was a gain of 6.9%, and five of six were higher.

The technical picture

The stock was trading 10.8% above its 20-day moving average, 10.9% above its 50-day moving average and 8.5% above its 200-day moving average. The 50-day average is below the 200-day average, a sign of a weak longer-term trend, though the stock had been above the 200-day average for 5 consecutive trading days. The Relative Strength Index (14 days) was 73, above 70, a level often called overbought.

Over shorter horizons the stock rose 14.1% over one month and 8.4% over three months; over one year it fell 3.2% and is 15.9 percentage points behind the S&P 500. Volatility was 26% annualized over 60 days, lower than 76% of its own readings over five years. The stock was 15.5% below its 52-week high.

Fundamentals and valuation

For the four quarters through September 30, 2026, GE HealthCare reported revenue of $20.61 billion, which grew 1.8% from a year earlier and followed growth of 1.4% one quarter earlier. Diluted earnings per share for that period were $3.83, which fell 20.9% from a year earlier, even as gross margin expanded to 43.3% from 40.8% a year earlier. Operating margin was 13.2%, compared with 13.5% a year earlier, and free-cash-flow margin was 5.8%.

Return on invested capital was 8.1% and the balance sheet showed net debt of 2.4 times EBITDA. Share count over one year decreased by 0.9%. On valuation metrics the stock traded at 19.8 times trailing earnings, a level described in the data as lower than 55% of its own readings over the past five years where the five-year median is 19.8 times earnings. Price to forward earnings was 15.4 times expected earnings and free-cash-flow yield was 3.7%.

Those measures imply investors are paying a roughly market-level multiple for current profit but a more modest multiple for expected earnings, reflecting the mix of improving margins and softer recent earnings growth. Market value at the close on October 28, 2026, was $32.27 billion.

Earnings and analyst expectations

On October 28, 2026, GE HealthCare reported third-quarter earnings per share of $1.34 against $1.20 expected, a result 11.7% above estimates. Quarterly EPS was $1.34 versus $1.07 a year ago, and management raised 2026 guidance following the quarter. The company has beaten estimates for two consecutive quarters and the average surprise over the last four reports was 4.6% above estimates.

Typical two-day reactions after recent reports were a rise of 1.5%; the October 28 move was larger because the results and outlook surprised to the upside. Analysts covering the stock numbered 19, with a consensus rating of Buy and 58% of ratings at Buy or Strong Buy. The consensus price target was $78.80, 3.9% above the closing price of $75.82 on October 28, 2026. The next report date shown is November 4, 2026.

What to watch

• October 28, 2026: Quarterly EPS of $1.34 against $1.20 expected, 11.7% above estimates, and management raised 2026 guidance
• Trading volume on October 28, 2026: 2.8 times its 20-day average
• Valuation: 19.8 times trailing earnings and 15.4 times price to forward earnings
• Technical: Relative Strength Index (14 days) 73 (above 70)
• Next report: November 4, 2026