- Delivers top- and bottom-line growth ahead of Company expectations and raises full-year 2026 guidance
- Revenue growth of 7.2%, and Organic revenue growth* of 6.2%
- Organic orders growth of 4.0%, book-to-bill of 1.03 times and backlog of $23.7 billion
- Net income margin of 11.1% and Adjusted earnings before interest and taxes (EBIT) margin* of 16.6%; diluted EPS of $1.36 grew 39.1% and Adjusted EPS* of $1.34 grew 25.1%
- Cash flow from operating activities of $907 million and Free cash flow* of $793 million
CHICAGO–(BUSINESS WIRE)–GE HealthCare (Nasdaq: GEHC) today reported financial results for the third quarter ended September 30, 2026.
GE HealthCare President and CEO Peter Arduini said, “We delivered strong top-line growth and margin expansion across all segments, and robust EPS growth in the third quarter. This reflects our teams’ commercial execution, disciplined operational focus enabled by Heartbeat, and continued customer adoption of our innovations. With our improved performance year-to-date and momentum in the business, we are raising guidance for the year.”
Third quarter 2026 total company financial performance(1)
- Revenues of $5.5 billion, up 7.2%, including Organic revenue growth* of 6.2%, with growth across all segments.
- Total orders up 4.0% organically, book-to-bill of 1.03 times and backlog of $23.7 billion, driven by healthy demand.
- Net income attributable to GE HealthCare of $615 million versus $446 million, and Adjusted EBIT* of $913 million versus $761 million.
- Net income margin of 11.1% versus 8.7%, up 250 basis points (bps). Adjusted EBIT margin* of 16.6% versus 14.8%, up 180 bps, with both measures driven by volume, price and cost productivity, and favorable year-over-year net tariff impact, partially offset by inflation.
- Diluted EPS of $1.36 versus $0.98, up $0.38; Adjusted EPS* of $1.34 versus $1.07, up $0.27.
|
(1) All comparisons to prior-year period unless otherwise noted. |
Third quarter 2026 segment financial performance (Unaudited)
|
Segment ($ in millions) |
Advanced Imaging Solutions (AIS) |
Pharmaceutical Diagnostics (PDx) |
Patient Care Solutions (PCS) |
|
Segment Revenues |
$3,873 |
$846 |
$793 |
|
YoY % change |
6.1% |
13.0% |
8.5% |
|
YoY % Organic* change |
4.5% |
13.8% |
8.8% |
|
Segment EBIT |
$593 |
$253 |
$68 |
|
YoY % change |
15.8% |
14.9% |
148.8% |
|
Segment EBIT Margin |
15.3% |
29.9% |
8.6% |
|
YoY change |
130 bps |
50 bps |
480 bps |
|
YoY refers to year-over-year comparison |
|||
The Company announced that Jeannette Bankes, President and CEO, Patient Care Solutions, will be leaving for a CEO role at a publicly traded company. Neal Sandy, currently head of PCS Product Strategy and Management, brings more than 30 years of industry experience and will assume the role of President and CEO of PCS on November 16, 2026.
Third quarter capital deployment(1)
- Cash flow from operating activities of $907 million, up $314 million. Free cash flow* of $793 million, up $310 million. Both measures include a tariff refund of $55 million.
- Capital expenditures of $114 million compared to $110 million in the prior year.
- Cash and cash equivalents of $2.9 billion and access to $3.5 billion of revolving credit facilities. Total debt outstanding of $10.0 billion.
- Declared quarterly dividend of $0.04 per share to stockholders of record as of October 23, 2026, an increase of 14% from the previous quarter.
- In October 2026, the Company announced plans to acquire SOFIE Biosciences from Trilantic North America for a purchase price of $945 million paid in cash. The transaction is expected to close in the first half of 2027, subject to customary closing conditions, including regulatory approvals.
Recent innovation and commercial highlights
- GE HealthCare expands general imaging ultrasound portfolio with LOGIQ Focus, elevating everyday ultrasound performance
- GE HealthCare to acquire SOFIE Biosciences, establishing a ‘final mile’ footprint for PET radiopharmaceutical supply in the U.S.
- GE HealthCare expands research collaboration to explore using generative ai for more personalized radiation therapy
- GE HealthCare announces CareIntellect for operations, helping health systems optimize resources and expand access to care
- GE HealthCare aims to advance a new era in theranostics with StarGuide™ GX 4D SPECT/CT, now 510(k) pending with the U.S. FDA
- GE HealthCare’s Photonova™ Spectra gains CE Mark, expanding international access
- GE HealthCare unveils the next generation of the Vivid cardiovascular ultrasound portfolio, enabling advanced cardiac imaging across care settings
- GE HealthCare expands breast imaging portfolio with Invenia ABUS Prime and launch of ABUS StreamVue
2026 guidance
For the full-year 2026, the Company raises guidance as follows:
|
|
2025A |
Previous 2026E |
Updated 2026E |
|
Organic Revenue Growth*(1) |
3.5% |
3.0% – 4.0% |
~4.0% |
|
Adjusted EBIT Margin* |
15.3% |
15.4% – 15.7% 10 – 40 bps |
15.5% – 15.7% 20 – 40 bps |
|
Adjusted ETR* |
20.2% |
20.0% – 21.0% |
Reaffirmed |
|
Adjusted EPS* |
$4.59 |
$4.80 – $5.00 4.6% – 9.0% |
$4.95 – $5.05 7.9% – 10.1% |
|
Free Cash Flow* |
$1.5B |
~$1.6B |
$1.6B+ |
The Company provides its outlook on a non-GAAP basis. Refer to the Non-GAAP financial measures in outlook section below for more details.
|
(1) All comparisons to prior-year period unless otherwise noted. |
Financial rounding
Certain columns and rows in this document may not sum due to the use of rounded numbers. Percentages presented are calculated from the underlying whole-dollar amounts.
Financial statements
|
Condensed Consolidated Statements of Income (Unaudited) |
|
|
|||||||||||
|
|
For the three months ended September 30 |
|
For the nine months ended September 30 |
||||||||||
|
(In millions, except per share amounts) |
2026 |
2025 |
|
2026 |
2025 |
||||||||
|
Sales of products |
$ |
3,602 |
|
$ |
3,375 |
|
|
$ |
10,364 |
|
$ |
9,755 |
|
|
Sales of services |
|
1,911 |
|
|
1,769 |
|
|
|
5,575 |
|
|
5,172 |
|
|
Total revenues |
|
5,513 |
|
|
5,143 |
|
|
|
15,939 |
|
|
14,927 |
|
|
Cost of products |
|
2,373 |
|
|
2,270 |
|
|
|
6,873 |
|
|
6,392 |
|
|
Cost of services |
|
916 |
|
|
884 |
|
|
|
2,685 |
|
|
2,549 |
|
|
Gross profit |
|
2,224 |
|
|
1,990 |
|
|
|
6,381 |
|
|
5,987 |
|
|
Selling, general, and administrative |
|
1,100 |
|
|
1,045 |
|
|
|
3,334 |
|
|
3,114 |
|
|
Research and development |
|
320 |
|
|
292 |
|
|
|
988 |
|
|
937 |
|
|
Total operating expenses |
|
1,419 |
|
|
1,337 |
|
|
|
4,322 |
|
|
4,051 |
|
|
Operating income |
|
805 |
|
|
653 |
|
|
|
2,058 |
|
|
1,936 |
|
|
Interest and other financial charges – net |
|
122 |
|
|
111 |
|
|
|
332 |
|
|
335 |
|
|
Non-operating benefit (income) costs |
|
(50 |
) |
|
(75 |
) |
|
|
(146 |
) |
|
(222 |
) |
|
Other (income) expense – net |
|
(19 |
) |
|
(26 |
) |
|
|
(78 |
) |
|
(124 |
) |
|
Income before income taxes |
|
752 |
|
|
643 |
|
|
|
1,950 |
|
|
1,947 |
|
|
Benefit (provision) for income taxes |
|
(129 |
) |
|
(179 |
) |
|
|
(342 |
) |
|
(395 |
) |
|
Net income |
|
623 |
|
|
464 |
|
|
|
1,608 |
|
|
1,552 |
|
|
Net (income) loss attributable to noncontrolling interests |
|
(9 |
) |
|
(18 |
) |
|
|
(44 |
) |
|
(57 |
) |
|
Net income attributable to GE HealthCare |
$ |
615 |
|
$ |
446 |
|
|
$ |
1,564 |
|
$ |
1,495 |
|
|
|
|
|
|
|
|
||||||||
|
Earnings per share attributable to GE HealthCare: |
|
|
|
|
|
||||||||
|
Basic |
$ |
1.36 |
|
$ |
0.98 |
|
|
$ |
3.45 |
|
$ |
3.27 |
|
|
Diluted |
|
1.36 |
|
|
0.98 |
|
|
|
3.44 |
|
|
3.26 |
|
|
Weighted-average number of shares outstanding: |
|
|
|
|
|
||||||||
|
Basic |
|
452 |
|
|
456 |
|
|
|
454 |
|
|
457 |
|
|
Diluted |
|
453 |
|
|
457 |
|
|
|
455 |
|
|
458 |
|
|
Condensed Consolidated Statements of Financial Position (Unaudited) |
||||||
|
|
As of |
|||||
|
(In millions, except share and per share amounts) |
September 30, 2026 |
December 31, 2025 |
||||
|
Cash, cash equivalents, and restricted cash |
$ |
2,854 |
|
$ |
4,512 |
|
|
Receivables – net of allowances of $101 and $103 |
|
3,925 |
|
|
3,955 |
|
|
Inventories |
|
2,628 |
|
|
2,234 |
|
|
Contract and other deferred assets |
|
1,365 |
|
|
1,073 |
|
|
All other current assets |
|
723 |
|
|
726 |
|
|
Current assets |
|
11,495 |
|
|
12,501 |
|
|
Property, plant, and equipment – net |
|
3,219 |
|
|
3,092 |
|
|
Goodwill |
|
15,140 |
|
|
13,489 |
|
|
Other intangible assets – net |
|
1,812 |
|
|
1,130 |
|
|
Deferred income taxes |
|
4,423 |
|
|
4,491 |
|
|
All other non-current assets |
|
2,283 |
|
|
2,205 |
|
|
Total assets |
$ |
38,371 |
|
$ |
36,906 |
|
|
Short-term borrowings |
$ |
3 |
|
$ |
508 |
|
|
Accounts payable |
|
3,320 |
|
|
3,250 |
|
|
Contract liabilities |
|
2,251 |
|
|
2,095 |
|
|
Current compensation and benefits |
|
1,626 |
|
|
1,666 |
|
|
All other current liabilities |
|
1,615 |
|
|
1,587 |
|
|
Current liabilities |
|
8,815 |
|
|
9,105 |
|
|
Long-term borrowings |
|
9,970 |
|
|
9,495 |
|
|
Non-current compensation and benefits |
|
5,107 |
|
|
5,453 |
|
|
Deferred income taxes |
|
318 |
|
|
193 |
|
|
All other non-current liabilities |
|
2,297 |
|
|
2,061 |
|
|
Total liabilities |
|
26,508 |
|
|
26,307 |
|
|
Commitments and contingencies |
|
|
||||
|
Redeemable noncontrolling interests |
|
234 |
|
|
209 |
|
|
Common stock, par value $0.01 per share, 1,000,000,000 shares authorized, 459,920,180 shares issued as of September 30, 2026; 458,844,209 shares issued as of December 31, 2025 |
|
5 |
|
|
5 |
|
|
Treasury stock, at cost, 7,785,199 shares as of September 30, 2026 and 3,107,626 shares as of December 31, 2025 |
|
(525 |
) |
|
(225 |
) |
|
Additional paid-in capital |
|
6,797 |
|
|
6,707 |
|
|
Retained earnings |
|
6,795 |
|
|
5,281 |
|
|
Accumulated other comprehensive income (loss) – net |
|
(1,459 |
) |
|
(1,388 |
) |
|
Total equity attributable to GE HealthCare |
|
11,614 |
|
|
10,379 |
|
|
Noncontrolling interests |
|
17 |
|
|
11 |
|
|
Total equity |
|
11,630 |
|
|
10,390 |
|
|
Total liabilities, redeemable noncontrolling interests, and equity |
$ |
38,371 |
|
$ |
36,906 |
|
|
Condensed Consolidated Statements of Cash Flows (Unaudited) |
||||||
|
|
For the nine months ended September 30 |
|||||
|
(In millions) |
2026 |
2025 |
||||
|
Net income |
$ |
1,608 |
|
$ |
1,552 |
|
|
Adjustments to reconcile Net income to Cash from (used for) operating activities: |
|
|
||||
|
Depreciation of property, plant, and equipment |
|
235 |
|
|
213 |
|
|
Amortization of intangible assets |
|
241 |
|
|
219 |
|
|
Gain on remeasurement of Nihon Medi-Physics equity method investment |
|
— |
|
|
(97 |
) |
|
Net periodic postretirement benefit plan (income) expense |
|
(140 |
) |
|
(208 |
) |
|
Postretirement plan contributions |
|
(243 |
) |
|
(260 |
) |
|
Share-based compensation |
|
116 |
|
|
94 |
|
|
Provision for income taxes |
|
342 |
|
|
395 |
|
|
Cash paid during the year for income taxes |
|
(301 |
) |
|
(353 |
) |
|
Changes in operating assets and liabilities, excluding the effects of acquisitions: |
|
|
||||
|
Receivables |
|
3 |
|
|
(6 |
) |
|
Inventories |
|
(430 |
) |
|
(217 |
) |
|
Contract and other deferred assets |
|
(265 |
) |
|
(111 |
) |
|
Accounts payable |
|
82 |
|
|
(119 |
) |
|
Contract liabilities |
|
130 |
|
|
1 |
|
|
Current compensation and benefits |
|
(44 |
) |
|
(29 |
) |
|
All other operating activities – net |
|
33 |
|
|
(136 |
) |
|
Cash from (used for) operating activities |
|
1,365 |
|
|
937 |
|
|
Cash flows – investing activities |
|
|
||||
|
Additions to property, plant and equipment and internal-use software |
|
(392 |
) |
|
(348 |
) |
|
Purchases of businesses, net of cash acquired |
|
(2,293 |
) |
|
(279 |
) |
|
Purchases of investments |
|
(52 |
) |
|
(82 |
) |
|
All other investing activities – net |
|
10 |
|
|
(69 |
) |
|
Cash from (used for) investing activities |
|
(2,726 |
) |
|
(778 |
) |
|
Cash flows – financing activities |
|
|
||||
|
Net increase (decrease) in borrowings (maturities of 90 days or less) |
|
(1 |
) |
|
— |
|
|
Newly issued debt, net of debt issuance costs (maturities longer than 90 days) |
|
1,151 |
|
|
1,494 |
|
|
Repayments and other reductions (maturities longer than 90 days) |
|
(1,013 |
) |
|
(265 |
) |
|
Dividends paid to stockholders |
|
(48 |
) |
|
(48 |
) |
|
Repurchase of common stock |
|
(300 |
) |
|
(200 |
) |
|
Proceeds from stock issued under employee benefit plans |
|
12 |
|
|
25 |
|
|
Taxes paid related to net share settlement of equity awards |
|
(36 |
) |
|
(41 |
) |
|
All other financing activities – net |
|
(20 |
) |
|
(56 |
) |
|
Cash from (used for) financing activities |
|
(255 |
) |
|
910 |
|
|
Effect of foreign currency rate changes on cash, cash equivalents, and restricted cash |
|
(42 |
) |
|
68 |
|
|
Increase (decrease) in cash, cash equivalents, and restricted cash |
|
(1,658 |
) |
|
1,137 |
|
|
Cash, cash equivalents, and restricted cash at beginning of year |
|
4,515 |
|
|
2,893 |
|
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
2,857 |
|
$ |
4,030 |
|
|
|
|
|
||||
|
Supplemental disclosure of cash flows information |
|
|
||||
|
Cash paid during the year for interest |
$ |
(364 |
) |
$ |
(327 |
) |
|
Non-cash investing activities |
|
|
||||
|
Acquired but unpaid property, plant, and equipment |
$ |
124 |
|
$ |
111 |
|
Non-GAAP financial measures
The non-GAAP financial measures presented in this press release are supplemental measures of GE HealthCare’s performance and its liquidity that the Company believes will help investors understand its financial condition, cash flows, and operating results, and assess its future prospects. When read in conjunction with the Company’s U.S. GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in GE HealthCare’s underlying businesses and can be used by management as one basis for making financial, operational, and planning decisions. Descriptions of the reported non-GAAP measures are included below.
The Company reports Organic revenue and Organic revenue growth rate to provide management and investors with additional understanding and visibility into the underlying revenue trends of the Company’s established, ongoing operations, as well as provide insights into overall demand for its products and services. To calculate these measures, the Company excludes the effect of acquisitions, dispositions, and foreign currency rate fluctuations.
The Company reports EBIT, Adjusted EBIT, Adjusted EBIT margin, Adjusted net income, and Adjusted earnings per share to provide management and investors with an additional understanding of its business by highlighting the results from ongoing operations and the underlying profitability factors, on a normalized basis. To calculate these measures the Company excludes, and reflects in the detailed reconciliations below, the following adjustments as applicable: Interest and other financial charges – net, Net (income) loss attributable to noncontrolling interests, Non-operating benefit (income) costs, Benefit (provision) for income taxes and certain tax related adjustments, and certain non-recurring and/or non-cash items. GE HealthCare may from time to time consider excluding other non-recurring items to enhance comparability between periods. Adjusted EBIT margin is calculated by taking Adjusted EBIT divided by Total revenues for the same period.
The Company reports Adjusted tax expense and Adjusted ETR to provide management and investors with a better understanding of the normalized tax rate applicable to the business and provide more consistent comparability across periods. Adjusted tax expense excludes the income tax related to the pre-tax income adjustments included as part of Adjusted net income and certain income tax adjustments, such as adjustments to deferred tax assets or liabilities. The Company may from time to time consider excluding other non-recurring tax items to enhance comparability between periods. Adjusted ETR is Adjusted tax expense divided by income before income taxes less the pre-tax income adjustments referenced above.
The Company reports Free cash flow and Free cash flow conversion to provide management and investors with an important measure of the ability to generate cash on a normalized basis and provide insight into the Company’s flexibility to allocate capital. Free cash flow is Cash from (used for) operating activities – continuing operations including cash flows related to the additions and dispositions of property, plant, and equipment (“PP&E”) and additions of internal-use software. Free cash flow does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the capital required for debt repayments. Free cash flow conversion is calculated by taking Free cash flow divided by Adjusted net income.
Management recognizes that these non-GAAP financial measures have limitations, including that they may be calculated differently by other companies or may be used under different circumstances or for different purposes. In order to compensate for the discussed limitations, management does not consider these measures in isolation from or as alternatives to the comparable financial measures determined in accordance with U.S. GAAP. The detailed reconciliations of each non-GAAP financial measure to the most directly comparable U.S. GAAP financial measure are provided below, and no single financial measure should be relied on to evaluate our business.
Non-GAAP financial reconciliations
|
Organic Revenue* |
|
|
|
|
|
|
|
|||||||
|
Unaudited |
For the three months ended |
|
For the nine months ended |
|||||||||||
|
($ in millions) |
2026 |
2025 |
% change |
|
2026 |
2025 |
% change |
|||||||
|
AIS revenues |
$ |
3,873 |
|
$ |
3,649 |
6.1 |
% |
|
$ |
11,284 |
$ |
10,522 |
7.2 |
% |
|
Less: Acquisitions(1) |
|
68 |
|
|
— |
|
|
|
140 |
|
— |
|
||
|
Less: Dispositions(2) |
|
— |
|
|
— |
|
|
|
— |
|
— |
|
||
|
Less: Foreign currency exchange |
|
(8 |
) |
|
— |
|
|
|
148 |
|
— |
|
||
|
AIS Organic revenue* |
$ |
3,814 |
|
$ |
3,649 |
4.5 |
% |
|
$ |
10,996 |
$ |
10,522 |
4.5 |
% |
|
PDx revenues |
$ |
846 |
|
$ |
749 |
13.0 |
% |
|
$ |
2,458 |
$ |
2,110 |
16.5 |
% |
|
Less: Acquisitions(1) |
|
— |
|
|
— |
|
|
|
50 |
|
1 |
|
||
|
Less: Dispositions(2) |
|
— |
|
|
— |
|
|
|
— |
|
— |
|
||
|
Less: Foreign currency exchange |
|
(6 |
) |
|
— |
|
|
|
29 |
|
— |
|
||
|
PDx Organic revenue* |
$ |
852 |
|
$ |
749 |
13.8 |
% |
|
$ |
2,379 |
$ |
2,109 |
12.8 |
% |
|
PCS revenues |
$ |
793 |
|
$ |
731 |
8.5 |
% |
|
$ |
2,171 |
$ |
2,262 |
(4.0 |
)% |
|
Less: Acquisitions(1) |
|
— |
|
|
— |
|
|
|
— |
|
— |
|
||
|
Less: Dispositions(2) |
|
— |
|
|
— |
|
|
|
— |
|
— |
|
||
|
Less: Foreign currency exchange |
|
(2 |
) |
|
— |
|
|
|
12 |
|
— |
|
||
|
PCS Organic revenue* |
$ |
795 |
|
$ |
731 |
8.8 |
% |
|
$ |
2,159 |
$ |
2,262 |
(4.5 |
)% |
|
Other revenues |
$ |
2 |
|
$ |
15 |
(89.4 |
)% |
|
$ |
26 |
$ |
33 |
(23.6 |
)% |
|
Less: Acquisitions(1) |
|
— |
|
|
— |
|
|
|
— |
|
— |
|
||
|
Less: Dispositions(2) |
|
— |
|
|
— |
|
|
|
— |
|
— |
|
||
|
Less: Foreign currency exchange |
|
— |
|
|
— |
|
|
|
— |
|
— |
|
||
|
Other Organic revenue* |
$ |
2 |
|
$ |
15 |
(89.4 |
)% |
|
$ |
26 |
$ |
33 |
(23.6 |
)% |
|
Total revenues |
$ |
5,513 |
|
$ |
5,143 |
7.2 |
% |
|
$ |
15,939 |
$ |
14,927 |
6.8 |
% |
|
Less: Acquisitions(1) |
|
68 |
|
|
— |
|
|
|
190 |
|
1 |
|
||
|
Less: Dispositions(2) |
|
— |
|
|
— |
|
|
|
— |
|
— |
|
||
|
Less: Foreign currency exchange |
|
(16 |
) |
|
— |
|
|
|
189 |
|
— |
|
||
|
Organic revenue* |
$ |
5,462 |
|
$ |
5,143 |
6.2 |
% |
|
$ |
15,560 |
$ |
14,926 |
4.2 |
% |
|
(1) Represents revenues attributable to acquisitions from the date the Company completed the transaction through the end of four quarters following the transaction, excluding the impact of Foreign currency exchange already captured in lines elsewhere. |
||||||||||||||
|
(2) Represents revenues attributable to dispositions for the four quarters preceding the disposition date. |
||||||||||||||
| Adjusted EBIT* |
|
|
|||||||||||||||
|
Unaudited |
For the three months ended |
|
For the nine months ended |
||||||||||||||
|
($ in millions) |
2026 |
2025 |
% change |
|
2026 |
2025 |
% change |
||||||||||
|
Net income attributable to GE HealthCare |
$ |
615 |
|
$ |
446 |
|
37.9 |
% |
|
$ |
1,564 |
|
$ |
1,495 |
|
4.6 |
% |
|
Add: Interest and other financial charges – net |
|
122 |
|
|
111 |
|
|
|
|
332 |
|
|
335 |
|
|
||
|
Add: Non-operating benefit (income) costs |
|
(50 |
) |
|
(75 |
) |
|
|
|
(146 |
) |
|
(222 |
) |
|
||
|
Less: Benefit (provision) for income taxes |
|
(129 |
) |
|
(179 |
) |
|
|
|
(342 |
) |
|
(395 |
) |
|
||
|
Less: Net (income) loss attributable to noncontrolling interests |
|
(9 |
) |
|
(18 |
) |
|
|
|
(44 |
) |
|
(57 |
) |
|
||
|
EBIT* |
|
824 |
|
|
679 |
|
21.3 |
% |
|
|
2,136 |
|
|
2,060 |
|
3.7 |
% |
|
Add: Restructuring costs(1) |
|
17 |
|
|
31 |
|
|
|
|
92 |
|
|
71 |
|
|
||
|
Add: Acquisition and disposition-related charges (benefits)(2) |
|
11 |
|
|
9 |
|
|
|
|
57 |
|
|
24 |
|
|
||
|
Add: Spin-Off and separation costs and other adjustments(3) |
|
4 |
|
|
6 |
|
|
|
|
2 |
|
|
35 |
|
|
||
|
Add: (Gain) loss on business and asset dispositions(4) |
|
(2 |
) |
|
— |
|
|
|
|
(2 |
) |
|
(5 |
) |
|
||
|
Add: Amortization of acquisition-related intangible assets |
|
61 |
|
|
41 |
|
|
|
|
169 |
|
|
116 |
|
|
||
|
Add: Investment revaluation (gain) loss(5) |
|
6 |
|
|
(4 |
) |
|
|
|
14 |
|
|
(96 |
) |
|
||
|
Less: Tariff refunds(6) |
|
9 |
|
|
— |
|
|
|
|
115 |
|
|
— |
|
|
||
|
Adjusted EBIT* |
$ |
913 |
|
$ |
761 |
|
19.9 |
% |
|
$ |
2,353 |
|
$ |
2,205 |
|
6.7 |
% |
|
Net income margin |
|
11.1 |
% |
|
8.7 |
% |
250 bps |
|
|
9.8 |
% |
|
10.0 |
% |
(20) bps |
||
|
Adjusted EBIT margin* |
|
16.6 |
% |
|
14.8 |
% |
180 bps |
|
|
14.8 |
% |
|
14.8 |
% |
— bps |
||
|
(1) Consists of severance, facility closures, and other charges associated with restructuring programs. |
|||||||||||||||||
|
(2) Consists of legal, consulting, and other transaction and integration fees, and adjustments to contingent consideration, as well as other purchase accounting related charges and other costs directly related to the transactions. |
|||||||||||||||||
|
(3) Costs and other adjustments related to the Spin-Off and separation from GE, including system implementations, audit and advisory fees, legal entity separation, Founders Grant equity awards, separation agreements with GE, and other one-time costs. |
|||||||||||||||||
|
(4) Consists of gains and losses resulting from the sale of assets and investments. |
|||||||||||||||||
|
(5) Primarily relates to valuation adjustments for equity investments and for the nine months ended September 30, 2025, includes the impact from the revaluation of our existing 50% interest in NMP as part of the acquisition transaction. |
|||||||||||||||||
|
(6) Consists of the pre-tax impact of refunds pertaining to IEEPA tariffs incurred in the year ended December 31, 2025. |
|||||||||||||||||
| Adjusted Net Income* |
|
|
|||||||||||||||
|
Unaudited |
For the three months ended September 30 |
|
For the nine months ended September 30 |
||||||||||||||
|
($ in millions) |
2026 |
2025 |
% change |
|
2026 |
2025 |
% change |
||||||||||
|
Net income attributable to GE HealthCare |
$ |
615 |
|
$ |
446 |
|
37.9 |
% |
|
$ |
1,564 |
|
$ |
1,495 |
|
4.6 |
% |
|
Add: Non-operating benefit (income) costs |
|
(50 |
) |
|
(75 |
) |
|
|
|
(146 |
) |
|
(222 |
) |
|
||
|
Add: Restructuring costs(1) |
|
17 |
|
|
31 |
|
|
|
|
92 |
|
|
71 |
|
|
||
|
Add: Acquisition and disposition-related charges (benefits)(2) |
|
11 |
|
|
9 |
|
|
|
|
57 |
|
|
24 |
|
|
||
|
Add: Spin-Off and separation costs and other adjustments(3) |
|
4 |
|
|
6 |
|
|
|
|
2 |
|
|
40 |
|
|
||
|
Add: (Gain) loss on business and asset dispositions(4) |
|
(2 |
) |
|
— |
|
|
|
|
(2 |
) |
|
(5 |
) |
|
||
|
Add: Amortization of acquisition-related intangible assets |
|
61 |
|
|
41 |
|
|
|
|
169 |
|
|
116 |
|
|
||
|
Add: Investment revaluation (gain) loss(5) |
|
6 |
|
|
(4 |
) |
|
|
|
14 |
|
|
(96 |
) |
|
||
|
Less: Tariff refunds(6) |
|
9 |
|
|
— |
|
|
|
|
115 |
|
|
— |
|
|
||
|
Add: Tax effect of reconciling items(7) |
|
(7 |
) |
|
(2 |
) |
|
|
|
(16 |
) |
|
(3 |
) |
|
||
|
Add: Spin-Off and other tax adjustments(8) |
|
(37 |
) |
|
39 |
|
|
|
|
(45 |
) |
|
22 |
|
|
||
|
Adjusted net income* |
$ |
608 |
|
$ |
490 |
|
24.0 |
% |
|
$ |
1,575 |
|
$ |
1,441 |
|
9.3 |
% |
|
(1) Consists of severance, facility closures, and other charges associated with restructuring programs. |
|||||||||||||||||
|
(2) Consists of legal, consulting, and other transaction and integration fees, and adjustments to contingent consideration, as well as other purchase accounting related charges and other costs directly related to the transactions. |
|||||||||||||||||
|
(3) Costs and other adjustments related to the Spin-Off and separation from GE, including system implementations, audit and advisory fees, legal entity separation, Founders Grant equity awards, separation agreements with GE, and other one-time costs. For the nine months ended September 30, 2025, an adjustment is included to eliminate the associated impact on Net (income) loss attributable to noncontrolling interests for applicable costs that impact earnings attributable to noncontrolling interests. |
|||||||||||||||||
|
(4) Consists of gains and losses resulting from the sale of assets and investments. |
|||||||||||||||||
|
(5) Primarily relates to valuation adjustments for equity investments and for the nine months ended September 30, 2025, includes the impact from the revaluation of our existing 50% interest in NMP as part of the acquisition transaction. |
|||||||||||||||||
|
(6) Consists of the pre-tax impact of refunds pertaining to IEEPA tariffs incurred in the year ended December 31, 2025. The associated tax effect is presented on the Tax effect of reconciling items line. The net of tax impact of tariff refunds is $7 million and $88 million for the three and nine months ended September 30, 2026, respectively. |
|||||||||||||||||
|
(7) The tax effect of reconciling items is calculated using the statutory tax rate, taking into consideration the nature of the items and the relevant taxing jurisdiction. |
|||||||||||||||||
|
(8) Consists of certain income tax adjustments, including foreign income tax reserve releases and discrete tax impacts resulting from the Spin-Off and separation from GE. Additionally, includes the impact of a foreign tax audit settlement for the three and nine months ended September 30, 2026; impacts from tax law changes for the three and nine months ended September 30, 2025; and tax impacts of the NMP acquisition for the nine months ended September 30, 2025. |
|||||||||||||||||
| Adjusted Earnings Per Share* |
|
|
|
|
|
|
|||||||||||
|
Unaudited |
For the three months ended September 30 |
|
For the nine months ended September 30 |
||||||||||||||
|
(In dollars, except shares outstanding presented in millions) |
2026 |
2025 |
$ change |
|
2026 |
2025 |
$ change |
||||||||||
|
Diluted earnings per share |
$ |
1.36 |
|
$ |
0.98 |
|
$ |
0.38 |
|
$ |
3.44 |
|
$ |
3.26 |
|
$ |
0.18 |
|
Add: Non-operating benefit (income) costs |
|
(0.11 |
) |
|
(0.16 |
) |
|
|
|
(0.32 |
) |
|
(0.49 |
) |
|
||
|
Add: Restructuring costs(1) |
|
0.04 |
|
|
0.07 |
|
|
|
|
0.20 |
|
|
0.16 |
|
|
||
|
Add: Acquisition and disposition-related charges (benefits)(2) |
|
0.03 |
|
|
0.02 |
|
|
|
|
0.13 |
|
|
0.05 |
|
|
||
|
Add: Spin-Off and separation costs and other adjustments(3) |
|
0.01 |
|
|
0.01 |
|
|
|
|
0.00 |
|
|
0.09 |
|
|
||
|
Add: (Gain) loss on business and asset dispositions(4) |
|
(0.00 |
) |
|
— |
|
|
|
|
(0.00 |
) |
|
(0.01 |
) |
|
||
|
Add: Amortization of acquisition-related intangible assets |
|
0.13 |
|
|
0.09 |
|
|
|
|
0.37 |
|
|
0.25 |
|
|
||
|
Add: Investment revaluation (gain) loss(5) |
|
0.01 |
|
|
(0.01 |
) |
|
|
|
0.03 |
|
|
(0.21 |
) |
|
||
|
Less: Tariff refunds(6) |
|
0.02 |
|
|
— |
|
|
|
|
0.25 |
|
|
— |
|
|
||
|
Add: Tax effect of reconciling items(7) |
|
(0.02 |
) |
|
(0.00 |
) |
|
|
|
(0.03 |
) |
|
(0.01 |
) |
|
||
|
Add: Spin-Off and other tax adjustments(8) |
|
(0.08 |
) |
|
0.09 |
|
|
|
|
(0.10 |
) |
|
0.05 |
|
|
||
|
Adjusted earnings per share* |
$ |
1.34 |
|
$ |
1.07 |
|
$ |
0.27 |
|
$ |
3.46 |
|
$ |
3.15 |
|
$ |
0.32 |
|
Diluted weighted-average shares outstanding |
|
453 |
|
|
457 |
|
|
|
|
455 |
|
|
458 |
|
|
||
|
(1) Consists of severance, facility closures, and other charges associated with restructuring programs. |
|||||||||||||||||
|
(2) Consists of legal, consulting, and other transaction and integration fees, and adjustments to contingent consideration, as well as other purchase accounting related charges and other costs directly related to the transactions. |
|||||||||||||||||
|
(3) Costs and other adjustments related to the Spin-Off and separation from GE, including system implementations, audit and advisory fees, legal entity separation, Founders Grant equity awards, separation agreements with GE, and other one-time costs. For the nine months ended September 30, 2025, an adjustment is included to eliminate the associated impact on Net (income) loss attributable to noncontrolling interests for applicable costs that impact earnings attributable to noncontrolling interests. |
|||||||||||||||||
|
(4) Consists of gains and losses resulting from the sale of assets and investments. |
|||||||||||||||||
|
(5) Primarily relates to valuation adjustments for equity investments and for the nine months ended September 30, 2025, includes the impact from the revaluation of our existing 50% interest in NMP as part of the acquisition transaction. |
|||||||||||||||||
|
(6) Consists of the pre-tax impact of refunds pertaining to IEEPA tariffs incurred in the year ended December 31, 2025. The associated tax effect is presented on the Tax effect of reconciling items line. The net of tax impact of tariff refunds is $0.02 and $0.19 for the three and nine months ended September 30, 2026, respectively. |
|||||||||||||||||
|
(7) The tax effect of reconciling items is calculated using the statutory tax rate, taking into consideration the nature of the items and the relevant taxing jurisdiction. |
|||||||||||||||||
|
(8) Consists of certain income tax adjustments, including foreign income tax reserve releases and discrete tax impacts resulting from the Spin-Off and separation from GE. Additionally, includes the impact of a foreign tax audit settlement for the three and nine months ended September 30, 2026; impacts from tax law changes for the three and nine months ended September 30, 2025; and tax impacts of the NMP acquisition for the nine months ended September 30, 2025. |
|||||||||||||||||
Contacts
Investor Relations Contact:
Carolynne Borders
+1-631-662-4317
[email protected]
Media Contact:
Jennifer Fox
+1-414-530-3027
[email protected]