GEHC · GE HealthCare Technologies Inc.

Medical - Healthcare Information Services · mkt cap $28.2B · calls: Q1 FY2023 vs Q1 FY2026

38.0 conviction · conf-adj 38

conf 3/10 1-model

enthusiasm:21.0 · trend:-5 · quantifies:0 · impact:0 · under_radar:14 · credibility:0 · business_impact:8 · disruption:0 · commitment:-4 · confirmation:4

Enthusiasm latest 7 / prev 9 (falling)

The latest call’s AI thesis is real but early: GEHC highlights Caption Health, Edison-enabled monitoring, and digital AI innovations as workflow and diagnostic-confidence tools, with little direct financial quantification. The previous call is more commercially explicit, tying embedded AI to product differentiation, higher price, and margin uplift, while Intelerad adds a SaaS/cloud route for AI deployment. Credibility is higher in the previous call because management links AI to named products, regulatory clearances, and economics.

GROUNDED NEXT-FY IMPACT vs CONSENSUS

Grounded on actual base — revenue $20.6B · net income $2.1B · net margin 10.1% · diluted EPS 4.55

These are next-fiscal-year annual uplift estimates, not next-quarter numbers.

Aggregate next-FY est. rev uplift: % · next-FY EPS uplift: % · vs analysts: unclear · priced in: low (model's call-read: medium; verdict above is the hard-data one used for ranking) · confidence: 3/10

Claim	Figure	Arithmetic
7 AI-enabled assets across portfolio other · soft	7 AI-enabled assets	Asset count only; no revenue, margin, ASP, adoption, or cost base disclosed. Cannot compute $ impact against $20.625B revenue or $2.084B net income.
Vivid Pioneer has 4-5 embedded AI algorithms other · soft	4, 5 algorithms	Algorithm count only; no Vivid Pioneer revenue base, growth rate, price uplift, or margin dollar impact disclosed. Cannot compute uplift.
AI-inside product gets higher price and multiple hundred bps margin uplift other · soft	higher price; multiple hundred basis points improvement in margin	Margin uplift is directionally quantified but product revenue/base is not disclosed. Example arithmetic would require affected revenue * bps uplift; without that base, no company-level EPS uplift can be computed versus $2.084B net income.
Listed products have a couple to 4-5 embedded AI algorithms other · soft	a couple of algorithms; 4 or 5	Algorithm counts across products; no affected product revenue, incremental units, ASP uplift, or margin dollars disclosed. Cannot compute against $20.625B revenue.
Key imaging NPIs begin revenue contribution in first half 2027 revenue · soft	first half of 2027	Timing disclosed but no revenue amount disclosed. For next fiscal year FY2026, stated contribution begins after FY2026, so no quantified FY2026 uplift can be calculated.

Assumptions: Default incremental net margin would be current net margin of 10.104% and tax rate 21% for savings, but no disclosed revenue/cost base is available. Next fiscal year is FY2026; the disclosed NPI timing begins in H1 2027, so it does not provide a quantified FY2026 revenue contribution.

Top line: No quantified next-FY revenue uplift can be calculated. The only explicit revenue timing says key imaging NPI revenue begins in H1 2027, with no dollar amount.

Bottom line: No quantified EPS uplift can be calculated. The strongest margin claim is multiple hundred bps on an AI-inside product, but the affected product revenue base is undisclosed.

[impact n/m (all claims soft/unanchored)] Consensus already models revenue rising from $20.625B in FY2025 to $21.801B in FY2026, a $1.176B increase or 5.70%, and EPS rising from $4.55 to $4.88117, or 7.30%. FY2027 consensus revenue rises to $22.816B, up 10.63% versus FY2025, and EPS to $5.40491, up 18.79%. GEHC's AI claims do not disclose enough dollars to show upside beyond that trajectory.

MODEL CONSENSUS (impact)

1-model degraded to composer only

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QUANTIFICATIONS

AI-enabled assets counted by analyst: 7 AI-enabled assets (Q1 FY2026 discussion, topline)
“But when you think about AI-enabled platforms, you have Intelerad in there, it's coming in as a Software-as-a-Service model, but we count 7 AI-enabled assets across the portfolio at this point, various different programs.”

Embedded AI algorithms in Vivid Pioneer: 4, 5 algorithms (Q1 FY2026 current, both)
“It's why things like Vivid Pioneer are growing at a very high rate right now because of 4, 5 algorithms that make this product better than its competition.”

Price and margin uplift from AI-inside product: higher price; multiple hundred basis points improvement in margin (Q1 FY2026 current, both)
“So we get a higher price for it. We get multiple hundred points -- basis points improvement in margin, which is a combination of its cost, but it's really about its value.”

Embedded AI algorithms across listed products: a couple of algorithms; 4 or 5 (Q1 FY2026 current, both)
“All of those products that I had on the page in the deck all have embedded AI. Some of them have a couple of algorithms. Some of them had 4 or 5.”

Revenue contribution from differentiated NPIs with AI capabilities: first half of 2027 (first half of 2027, topline)
“Aligned to typical imaging order conversion time lines, we expect revenue contribution from our key imaging NPIs to begin in the first half of 2027.”

PAST (realized)

During the quarter, we also announced our acquisition of Caption Health, which expands access to Artificial Intelligence powered ultrasound imaging guidance for novice users.
Last week, we met with many customers and collaborators at the Healthcare Information and Management Systems Society, the HIMSS Meeting, where we featured our growing portfolio of digital and AI innovations to help increase operational efficiencies, improve diagnostic confidence and support early interventions.
In MR, we received multiple FDA clearances for next-generation technologies, including a new 3T and reduced Helium platform and state-of-the-art AI-powered workflow solution.
We also completed the acquisition of Intelerad in the first quarter.

CURRENT (now)

We're utilizing AI to provide real-time expert guidance to the user, and this helps us obtain diagnostic images providing advancements for patient care outside the typical hospital-only setting.
We're excited about the opportunity to grow our AI, cloud and software capabilities, leveraging our Intelerad platform.
It's why things like Vivid Pioneer are growing at a very high rate right now because of 4, 5 algorithms that make this product better than its competition.
So we get a higher price for it. We get multiple hundred points -- basis points improvement in margin, which is a combination of its cost, but it's really about its value.

FORWARD (guidance)

And while we'll be starting with cardiac care pathway, we expect to extend this to other specialties in the future through continued R&D investment.
This series of MPIs represent initial steps towards realizing mission-critical infrastructure transformation that leverages the Edison platform and enables artificial intelligence in patient monitoring.
But it's also designed for a future where you can actually gather the data on the patient and be able to apply artificial intelligence against it to actually predict when that patient is going to have issues.
Aligned to typical imaging order conversion time lines, we expect revenue contribution from our key imaging NPIs to begin in the first half of 2027.
We also are big believers that artificial intelligence breakthroughs are also going to change traditional CT.
part of our vision is to be able to sell the hardware, have it more standardized of what that feature set is and then have a wide menu of other SaaS cloud-enabled applications that customers can customize by that individual scanner or by their fleet.

TRACK RECORD — PROMISE vs DELIVERY

—/100 (no quantified promises) no-quantified-promises 6 calls reviewed

Across these transcripts, GE HealthCare discussed AI-enabled devices, digital tools, cloud software, FDA AI authorizations, and AI-related NPIs, but did not make a quantified AI promise with both a numeric target and a timeframe/milestone that can be audited later in the set.

PRICED-IN (REFINED)

LOW (room left)

Est. revisions flat · Fwd P/E 14.5 · EV/Sales 1.9x

AI claim maps to Imaging Segment, PCS Segment, PDx Segment

Estimate revisions do not show clear upward momentum: ratings are broadly stable, last-month price targets are only slightly above last-quarter levels but below the last-year average, and forward revenue/EPS growth is modest. Valuation is not stretched at 14.5x forward P/E and 1.9x EV/Sales for a mature healthcare technology business. AI upside would most plausibly flow through Imaging first, with possible workflow and monitoring contributions in PCS and diagnostics productivity in PDx. Because estimates are flat and valuation is reasonable, the AI upside does not appear heavily reflected in the stock.

COVERAGE — ENTHUSIASM TRAJECTORY + CATALYSTS

4Q1 FY20255Q2 FY20258Q3 FY20257Q4 FY20257Q1 FY20265Q1 FY2023

AI enthusiasm across 6 calls — trend ↗ rising

AI moved from portfolio-level digital mentions to named AI-enabled products, acquisitions, workflows, and revenue/margin contribution.

RECENT AI CATALYSTS & NEWS

BUSINESS IMPACT - QUALITATIVE MATERIALITY

7/10 qualitative impact material medium-term · mixed evidence

Where AI matters: AI-enabled imaging, ultrasound guidance, monitoring and SaaS workflow

GEHC has concrete AI deployment in core products: Caption-guided ultrasound, Edison-enabled monitoring, AI-powered imaging workflow, Intelerad cloud/SaaS distribution, and Vivid Pioneer algorithms that management says support higher price and multiple-hundred-bps margin improvement. The company-level dollar impact is still unquantified and key NPI revenue is mostly a 2027 story, so this is material to important lines rather than transformational today.

Caveats: Company-level revenue and EPS contribution from AI is not disclosed; Regulatory clearance, clinical validation, and hospital procurement cycles can delay adoption; AI features may become table stakes, reducing pricing power over time; Third-party imaging AI vendors could capture some workflow/software economics

AI DISRUPTION / CANNIBALIZATION RISK tailwind · 2/10

AI does not obviously commoditize GEHC's core model because regulated imaging hardware, clinical workflow integration, installed base, service relationships, and FDA-cleared algorithms make AI more likely to differentiate equipment and software than replace it. Some third-party AI could pressure standalone software features, but the core imaging and monitoring franchise is durable.

OPTIONS / MARKET STRUCTURE

option liquidity: good

ATM IV

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TYPICAL BID-ASK

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OPEN INTEREST

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proxy inputs — dollar-ADV $329M · beta 0.862 · px $65.76

source: proxy (no options chain on FMP)
FMP /stable/ exposes no options-chain endpoint on this key, so ATM IV, bid-ask spread and open interest are unavailable. Liquidity below is a PROXY from dollar-ADV, beta and price level (a stand-in for option depth), not measured option-market data.

CONFIRMATION — INSIDERS · 13F · LANGUAGE

Mixed — insiders buying, institutions flat, management language 2/10 hedged.

INSIDERS buying 8 open-market buy(s) vs 0 sell(s) — net accumulation

INSTITUTIONS (13F) flat as of 2026-03-31: 126 new / 195 closed positions; 514 increased / 490 reduced; institutional ownership -10.75pp; -65 net 13F holders

MGMT LANGUAGE 2/10 hedged AI is barely discussed; language is broad focus-area framing with no quantified impact, timeline, or business-driver ownership.

hedge “We continue to focus on patients and customer-centric innovation, especially digital and artificial intelligence solutions.”

VERBATIM AI QUOTES

“We continue to focus on patients and customer-centric innovation, especially digital and artificial intelligence solutions.”
— Helmut Zodl, Q1 FY2023

“During the quarter, we also announced our acquisition of Caption Health, which expands access to Artificial Intelligence powered ultrasound imaging guidance for novice users.”
— Peter Arduini, Q1 FY2023

“We're utilizing AI to provide real-time expert guidance to the user, and this helps us obtain diagnostic images providing advancements for patient care outside the typical hospital-only setting.”
— Peter Arduini, Q1 FY2023

“This series of MPIs represent initial steps towards realizing mission-critical infrastructure transformation that leverages the Edison platform and enables artificial intelligence in patient monitoring.”
— Peter Arduini, Q1 FY2023

“Last week, we met with many customers and collaborators at the Healthcare Information and Management Systems Society, the HIMSS Meeting, where we featured our growing portfolio of digital and AI innovations to help increase operational efficiencies, improve diagnostic confidence and support early interventions.”
— Peter Arduini, Q1 FY2023

“But it's also designed for a future where you can actually gather the data on the patient and be able to apply artificial intelligence against it to actually predict when that patient is going to have issues.”
— Peter Arduini, Q1 FY2023

“I talked about capturing bringing artificial intelligence into point of care ultrasound to start, to make it more usable into populations of non-sonographers, which we think is a huge opportunity.”
— Peter Arduini, Q1 FY2023

“In MR, we received multiple FDA clearances for next-generation technologies, including a new 3T and reduced Helium platform and state-of-the-art AI-powered workflow solution.”
— Peter Arduini, Q1 FY2026

“We're excited about the opportunity to grow our AI, cloud and software capabilities, leveraging our Intelerad platform.”
— Peter Arduini, Q1 FY2026

“You may recall, all of these innovations are differentiated because of a unique design or AI capabilities and have higher margins than our predicate products.”
— Peter Arduini, Q1 FY2026

“We also are big believers that artificial intelligence breakthroughs are also going to change traditional CT.”
— Peter Arduini, Q1 FY2026

“Relative to AI, it comes in 2 flavors today. One is it's the AI inside.”
— Peter Arduini, Q1 FY2026

“It's why things like Vivid Pioneer are growing at a very high rate right now because of 4, 5 algorithms that make this product better than its competition.”
— Peter Arduini, Q1 FY2026

“So we get a higher price for it. We get multiple hundred points -- basis points improvement in margin, which is a combination of its cost, but it's really about its value.”
— Peter Arduini, Q1 FY2026

“All of those products that I had on the page in the deck all have embedded AI. Some of them have a couple of algorithms. Some of them had 4 or 5.”
— Peter Arduini, Q1 FY2026

“The other part you hit on, which is, again, we're doing more and more, which is actually having SaaS-based capabilities for specific features.”
— Peter Arduini, Q1 FY2026

“Back to Intelerad, why is that important? Because not only in outpatient, but an inpatient, the more that we integrate those tools, that will be the reading interface, not only for the diagnosis, but also, in many cases, deploying the AI tools.”
— Peter Arduini, Q1 FY2026

ANALYST QUESTIONS ON AI

Q (Q1 FY2023, Jason Bednar): And I wanted to ask a follow-up just actually on Portrait Mobile. I think it was introduced almost a year ago. It's still pending 510(k), but you were showing it at HIMSS here recently. Can you discuss where you're at with the FDA in securing the approval? And then what early feedback can you share on Portrait Mobile for the markets in which it's available?
A: And what customers have told us is the challenge they have is you have to buy a different box from everybody for the different areas. And CARESCAPE is one of those first platforms that enables you based on the acuity of the patient to add on more parameters. But it's also designed for a future where you can actually gather the data on the patient and be able to apply artificial intelligence against it to actually predict when that patient is going to have issues.

Q (Q1 FY2023, Larry Biegelsen): And Pete, obviously, we've seen immediate speculation on M&A involving GE Healthcare. And I know you won't comment on that specific asset. But can you comment on your thoughts on M&A in terms of deal size, areas of interest and financial criteria?
A: I talked about capturing bringing artificial intelligence into point of care ultrasound to start, to make it more usable into populations of non-sonographers, which we think is a huge opportunity.

Q (Q1 FY2026, Anthony Petrone): And just on AIS, and I don't know if this is across the portfolio or in AI specifically. But when you think about AI-enabled platforms, you have Intelerad in there, it's coming in as a Software-as-a-Service model, but we count 7 AI-enabled assets across the portfolio at this point, various different programs. So will it all show up as Software-as-a-Service? What are the milestones we should look for, for AI-enabled capabilities? What does the economic model look like over time?
A: Relative to AI, it comes in 2 flavors today. One is it's the AI inside. It's why things like Vivid Pioneer are growing at a very high rate right now because of 4, 5 algorithms that make this product better than its competition. So we get a higher price for it. We get multiple hundred points -- basis points improvement in margin, which is a combination of its cost, but it's really about its value.