GE HealthCare

GE HealthCare just turned its rough start to the year into a comeback. Third quarter sales hit 5.5 billion dollars, up 7.2 percent with every division growing, and profit jumped to 615 million dollars from 446 million a year ago. Management raised its full-year outlook to 4.95 to 5.05 dollars of adjusted profit per share, up from 4.80 to 5.00, and 23.7 billion dollars of orders are already waiting to be filled.

The imaging dyes doctors inject before a scan brought in 846 million dollars this quarter, up 13 percent. This part of the business keeps almost 30 cents of every dollar as profit, more than any other part of the company. GE HealthCare is doubling down by buying SOFIE for 945 million dollars, which will help it get these short-lived scan drugs to hospitals across the US faster.

New orders grew just 4 percent this quarter, slower than the roughly 6 percent pace of sales, so growth over the next few quarters could slow down. For the full year, management expects only about 4 percent underlying sales growth. This is a steady grower, not a rocket ship, and inflation is still eating into some of the gains.

Buying Intelerad earlier this year cost about 2.3 billion dollars, and the company's cash has dropped from 4.5 billion to 2.9 billion dollars since January while debt sits at 10.0 billion. The 945 million dollar SOFIE deal is expected to close in the first half of 2027. Piling up deals leaves less room for error if hospitals cut spending or costs jump again.