GE may have found the next big thing, analyst Nicholas Heymann said Friday, after the company's latest earnings report beat expectations.
"That's GE's software data analytics, which could become as important early next decade as GE Capital was over the last couple of decades," the William Blair analyst told "Squawk Box."
Last April, General Electric shares spiked after the company announced plans to sell its financial subsidiary, GE Capital.
"Predictive analytics for them is now moving way beyond their $1 trillion installed base of industrial products. In fact, they are able to ... use their predicting software to predict what's going on all around the world with virtually all industrial equipment," Heymann said.
He spoke after General Electric delivered a quarterly earnings report that beat expectations, as stronger performance in its power division offset weak oil segment results. The company also raised its 2015 outlook for its industrial manufacturing businesses.
GE posted a second-quarter net loss of $1.36 billion, or 13 cents per share. Results were weighed down by charges related to GE's massive pullback from its financial services businesses announced in April.
Excluding items, the multinational conglomerate posted second-quarter earnings of 31 cents per share, down from 39 cents a share in the year-earlier period.
Revenue fell to $29.663 billion from $36.23 billion a year ago.
Analysts polled by Reuters expected the company to post profits excluding items of 28 cents per share on revenue of $28.7 billion.
Shares of GE were flat in early trading. (Get the latest quote here.)