Key Takeaways:
- GE Healthcare stock could reach $101 per share by December 2027, based on valuation assumptions.
- This implies a 23% total return from today’s price of $82, with an 11% annualized return over 2 years.
- The medical imaging leader is launching a dozen major AI-powered products at RSNA 2025 to accelerate growth.
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GE Healthcare (GEHC) is entering a new wave of innovation after investing over $3 billion in R&D since 2022. The company plans to unveil significant AI-enabled products at the Radiological Society of North America conference in December.
The medical imaging leader reported third-quarter revenue of $5.1 billion, up 4% organically. Orders surged 6% with book-to-bill at 1.06x. Backlog reached $21.2 billion, demonstrating robust customer demand.
CEO Peter Arduini emphasized three focus areas: strong commercial execution, the launch of transformative new products, and the navigation of tariff challenges while maintaining margin expansion.
Here’s why GE Healthcare stock could provide solid returns through 2027 as it monetizes years of R&D investment.
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What the Model Says for GEHC Stock
We analyzed GE Healthcare stock using valuation assumptions based on its upcoming product launches, market leadership in imaging equipment, and the Flyrcado radiopharmaceutical opportunity driving pharmaceutical diagnostics growth.
Based on estimates of 4.4% annual revenue growth, 16% operating margins, and a normalized P/E multiple of 18x, the model projects GE Healthcare stock could rise from $82 to $101 per share.
That would be a 23% total return, or an 11% annualized return over 2 years.
Our Valuation Assumptions
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Our Valuation Assumptions
TIKR’s Valuation Model lets you plug in your own assumptions for a company’s revenue growth, operating margins, and P/E multiple, and calculates the stock’s expected returns.
Here’s what we used for GEHC stock:
1. Revenue Growth: 4.4%
GE Healthcare posted 6% growth in trailing four-quarter orders, positioning the company well to support future revenue expansion. The company grew 3% organically this year but expects acceleration in 2026.
Advanced Visualization Solutions delivered 6% growth in Q3, the fourth consecutive quarter of year-over-year sales and margin growth. The segment launched AI-powered ultrasound and interventional cardiology systems, commanding premium pricing.
Imaging grew 4% with strength in EMEA and the U.S. The company will launch photon-counting CT, whole-body PET, and next-generation MR systems at RSNA. Management expects order impact in the second half of 2026, with sales impact in 2027.
Pharmaceutical Diagnostics surged 10% organically, driven by contrast media and radiopharmaceuticals. Flyrcado partnerships now cover approximately 300,000 cardiac imaging procedures annually.
We used a 4.4% forecast, reflecting acceleration from 3% growth due to new product launches and the Flyrcado ramp, while acknowledging China market challenges.
2. Operating margins: 16%
GE Healthcare achieved an adjusted EBIT margin of 14.8% in Q3. Excluding tariffs, margins would have expanded 30 basis points. The company targets 17% to 20%-plus margins in the medium term.
Management expects a lower tariff impact in 2026 versus 2025. The company mitigated approximately 50% of gross tariff exposure through USMCA certification, supplier negotiations, and supply chain optimization.
New products launch at higher prices and lower costs than predecessors. The company is consolidating platforms to reduce complexity and cost structures.
AI deployment is driving efficiency. Nearly 80% of managed leads were handled by AI in October, enabling a 40% reduction in outsourced teams. Engineering productivity also rose 25% through AI coding tools.
We forecast 16% operating margins, reflecting a new product mix, AI-driven efficiency, platforming benefits, and abating tariff headwinds.
3. Exit P/E Multiple: 18x
GE Healthcare stock trades at a P/E multiple of 17.1x, in line with historical averages. The company has consistently demonstrated execution since spinning from General Electric in 2023.
We maintain an 18x exit multiple given market leadership in diagnostic imaging, the Flyrcado opportunity targeting $500 million by 2028, and strong competitive positioning through AI-enabled products.
Management repurchased approximately $100 million of shares in Q3. The strong balance sheet positions the company well for disciplined capital allocation, including tuck-in M&A opportunities.
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What Happens If Things Go Better or Worse?
Different scenarios for GEHC stock through 2028 show varied outcomes: (these are estimates, not guaranteed returns):
- Low Case: Product launches underwhelm, and China stays weak → 2% annual returns
- Mid Case: New products drive market share gains, and Flyrcado reaches targets → 7% annual returns
- High Case: Photon counting CT creates new markets, and Flyrcado exceeds expectations → 11% annual returns
Even in the conservative case, GE Healthcare offers positive returns supported by its durable installed base, expanding recurring revenue, and a healthy capital equipment environment with improving global tender activity.
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How Much Upside Does GEHC Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
