General Electric's Healthcare division soared nearly 9% after its earnings guidance surpassed expectations.

General Electric Healthcare's fourth-quarter earnings report showcased a strong performance, with its stock price surging nearly 9%. The company's revenue slightly missed expectations at $5.32 billion, but its adjusted EPS of $1.45 far exceeded expectations of $1.26, up 22.9% YoY. The positive news boosted the company's stock price to a new high, breaking through $90, reversing its downward trend at the end of 2024. The highlights of the report were the company's 2025 guidance, which estimated adjusted EPS between $4.61 and $4.75, higher than market expectations. The company expects its full-year adjusted operating margin to rise to 16.7% to 16.8%, and it made estimates for the negative impacts of the weak Chinese market and US tariffs on imported goods. Despite the sluggish Chinese demand, the company expects its sales in China to gradually improve in the second half of the year. Moreover, the company's order growth momentum is strong, up 6%, the best since the second quarter of 2023. The total backlog reached a record $19.8 billion. Looking ahead, the company plans to launch several new products this year, with the most noteworthy being Flyrcado for diagnosing coronary artery disease. The product is expected to officially launch in April and is expected to bring in about $30 million in revenue this year, with annual sales potentially reaching $500 million or even $1 billion by 2028. Based on the strong performance and positive outlook, analysts raised GE Healthcare's target price to $100, believing that the company's management's cautious expectations for the Chinese market and its consideration of the impact of tariffs help to mitigate potential downside risks.