GE, Danaher, Fresenius, Enhertu: This Week in Healthcare

CNBC's Jim Cramer recommended buying GE Aerospace (GE) shares, citing strong commercial engine and equipment orders despite a recent stock drop. He believes Boeing (BA) will take longer to recover due to lowered cash flow outlook. Both stocks fell post-earnings.

GE Vernova reported Q3 2026 earnings with a $196.7B order backlog and 122 GW of gas turbine capacity under contract. The company announced a $9B deal to acquire Trench Group, a high-voltage equipment manufacturer, expected to close in late 2027. GE Vernova anticipates continued growth in gas power orders in 2027, despite a slowdown in gas turbine orders and slot reservation agreements. The Wind segment turned a profit due to increased orders, primarily in North America.

Honeywell Aerospace (HON) shares fell 11% despite Q3 earnings beat, citing supply constraints. Adjusted EPS was $2.21, topping estimates, but organic sales growth remained at 2%. The company maintained its 2026 outlook, with bottlenecks affecting GE Aerospace (GE) and RBC Bearings (RBC).

GE Aerospace reported a 17.2% rise in costs to $9.1B in Q3 2026, with operating profit margin falling 80 bps to 19.9%. The company plans over $1B in global MRO facility investments over five years and a $11.75B acquisition. LEAP shop visit volume rose 40% YoY, but higher production and inflation pressures persist.

GE Vernova's Wind segment reported a 16% increase in orders to $2.1B and a 3% revenue rise to $2.7B in Q3 2026. EBITDA improved to $72M from a $61M loss in Q3 2025. Full-year revenue is expected to decline mid-single-digit, with an EBITDA loss of $400M-$500M.

GE Vernova agreed to acquire Trench Group from Triton Partners for $9bn, aiming to bolster its Electrification segment. Trench, with $1.9bn projected 2028 revenue and 36% EBITDA margin, supplies high-voltage grid equipment. The deal, expected to close in late 2027, will be funded equally with cash and debt.