GE HealthCare vs Medtronic
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KIRA’s take AI analyst
I put GE HealthCare and Medtronic side by side, using each one’s latest annual report. Here is what stands out:
- Medtronic is the larger business, with $36.4B of revenue in fiscal 2026 against $20.6B for GE HealthCare, about 1.8 times as much.
- Medtronic grew revenue faster (8.4%, against 4.8%).
- Medtronic kept more of each dollar of sales as operating profit (17.8% operating margin, against 13.4%).
- Medtronic turned more of its sales into free cash flow (14.9% FCF margin, against 7.3%).
- GE HealthCare earned a higher return on the capital invested in it (13.3%, against 7.7%).
- Investors pay more for each dollar of Medtronic’s earnings: a P/E of 23.3x against 17.2x for GE HealthCare.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
GE HealthCare
GEHC
3/10
Return on capitalReturn on equityShare count change
Medtronic
MDT
5/10
Revenue growthGross marginOperating marginNet marginFCF margin
Side by side
Best in the row
| Latest fiscal year | GEHC FY25 | MDT FY26 |
|---|---|---|
| Size | ||
| Market cap | $32.9B | $121.8B |
| Revenue | $20.6B | $36.4B |
| Free cash flow | $1.5B | $5.4B |
| Net income | $2.1B | $4.8B |
| Growth | ||
| Revenue growth | 4.8% | 8.4% |
| 5-year growth | — | 3.8% |
| Share count change | −0.2% | −0.1% |
| Profitability | ||
| Gross margin | 40.0% | 65.0% |
| Operating margin | 13.4% | 17.8% |
| Net margin | 10.1% | 13.2% |
| FCF margin | 7.3% | 14.9% |
| Return on capital | 13.3% | 7.7% |
| Return on equity | 22.1% | 9.9% |
| Balance sheet | ||
| Net debt | $6.0B | $17.0B |
| Net debt / EBITDA | 1.8x | 1.8x |
| Dividends and buybacks | $264M | $4.7B |
| Valuation & quality | ||
| P/E | 17.2x | 23.3x |
| Piotroski F-score | 7 | 7 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.