GEHC Stock May Gain as Genesis Portfolio Expands Cloud Offerings

Zacks
03-12

GE HealthCare Technologies Inc. GEHC has recently unveiled the Genesis portfolio, a portfolio of cloud enterprise imaging software-as-a-service (SaaS) solutions designed to modernize healthcare data management. Genesis is likely to offer scalable, secure, and interoperable solutions that help hospitals and health systems streamline workflows, enhance patient data access, and reduce operational costs.

As healthcare organizations face increasing data complexity and IT challenges, Genesis provides a flexible and cost-effective alternative to traditional on-premises solutions. By integrating cloud-based enterprise imaging with AI-driven automation, the platform optimizes resource utilization while ensuring high security and compliance standards.

Likely Trend of GEHC Stock Following the News

Following the announcement, shares of the company closed flat at $85.36 on Monday. In the past six months, GEHC shares have lost 2.1% against the industry’s 5.2% growth. The S&P 500 increased 4.6% in the same time frame.

The launch of the Genesis portfolio can boost GEHC's stock price in the long run by driving recurring revenue through cloud-based services and SaaS (Software-as-a-Service) models. As hospitals and healthcare providers increasingly adopt digital and AI-driven solutions, Genesis offers a cost-effective and scalable way to manage medical imaging and patient data. This not only strengthens GE HealthCare’s market position but also creates a steady stream of subscription-based income, reducing reliance on one-time equipment sales.

Meanwhile, GEHC currently has a market capitalization of $39.59 billion. In the last reported quarter, GEHC delivered an earnings surprise of 15.1%.


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More on GEHC’s Genesis Portfolio

Hospitals are dealing with an increasing number of complex patient cases, putting a heavy strain on their IT systems. To keep up, healthcare organizations must adopt new digital technologies and upgrade their operational infrastructure. Traditional on-site data storage and IT solutions are expensive and require significant resources, making it harder for hospitals to quickly expand or upgrade their systems. As healthcare networks become more distributed, there is a greater need for flexible, scalable, and secure solutions that allow medical professionals to access and share patient information more efficiently.

GEHC’s Genesis portfolio is designed to help hospitals and healthcare systems address these challenges by streamlining workflows and improving patient care. By offering cloud-based storage and AI-powered data management, Genesis makes it easier for radiologists and medical teams to access and analyze patient information quickly and accurately. The platform also enhances efficiency by integrating various hospital IT systems, allowing for better coordination and smoother operations. With hybrid cloud deployment options, hospitals can reduce their reliance on expensive infrastructure while adopting the latest technological innovations more easily.

Additionally, Genesis is built with strong security features to protect sensitive healthcare data, ensuring business continuity even in challenging situations. This cloud-based approach not only cuts costs but also improves overall patient care by making critical medical data more accessible and manageable.

Genesis portfolio enhances healthcare data management with four key solutions. The Edge feature securely connects hospital systems to the cloud, enabling a hybrid approach. The Storage feature reduces imaging data management burdens, allowing for a focus on higher-value IT projects. Vendor Neutral Archive unifies patient data for seamless EHR integration. Lastly, the Data migration feature, powered by AI and Enlitic, ensures efficient, high-quality imaging transfers, streamlining cloud adoption for hospitals.

GEHC’s Recent Developments in Imaging Space

In recent months, GEHC has made strategic moves to expand its imaging services and AI capabilities. In March, GEHC unveiled Freelium, a next-generation sealed magnet platform at ECR 2025, designed to revolutionize Magnetic Resonance (MR) imaging. The platform uses less than 1% of helium compared to traditional systems, promoting sustainability and expanding access to quality imaging in helium-scarce regions. In January, GEHC partnered with Sutter Health in a seven-year Care Alliance to enhance access to innovative imaging services and improve the patient and clinician experience across the Sutter Health network. This collaboration aims to create a more seamless and coordinated healthcare system.

GEHC is also advancing its AI-driven technologies. In December 2024, the company submitted CleaRecon DL to the FDA for 510(k) clearance. This deep-learning technology is designed to enhance cone-beam computed tomography image quality by bringing AI-based 3D reconstruction to the interventional suite, offering more precise imaging.

GEHC’s Zacks Rank & Stocks to Consider

GEHC carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the broader medical space are Masimo MASI, Boston Scientific BSX and Cardinal Health CAH. At present, Masimo sports a Zacks Rank #1 (Strong Buy), whereas Boston Scientific and Cardinal Health carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Masimo’s shares have rallied 30.1% in the past year. Estimates for MASI’s 2024 earnings per share (EPS) have increased 1.2% to $4.10 in the past 30 days. MASI’s earnings beat estimates in each of the trailing four quarters, the average surprise being 17.1%. In the last reported quarter, it posted an earnings surprise of 16.6%.

Estimates for Boston Scientific’s 2025 EPS have jumped 2.9% to $2.85 in the past 30 days. Shares of the company have surged 56.7% in the past year compared with the industry’s growth of 12.5%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.25%. In the last reported quarter, it delivered an earnings surprise of 7.69%.

Estimates for Cardinal Health’s fiscal 2025 EPS have increased 1.5% to $7.94 in the past 30 days. Shares of the company have gained 15.2% in the past year against the industry’s 4.1% decline. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%. In the last reported quarter, it delivered an earnings surprise of 10.3%.

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This article originally published on Zacks Investment Research (zacks.com).

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