GE HealthCare reports first quarter 2026 financial results

Revenue growth of 7.4%, including Organic revenue growth* of 2.9%
Total orders up 1.1% organically versus 10.3% growth in the year-ago period; book-to-bill of 1.07 times and backlog of $21.8 billion
Profitability in the quarter was impacted by a discrete PDx supplier issue that has since been resolved
Net income margin of 7.6% and Adjusted earnings before interest and taxes (EBIT) margin* of 13.5%; diluted earnings per share (EPS) of $0.85 and Adjusted EPS* of $0.99
Cash flow from operating activities of $290 million and Free cash flow* of $112 million
For the full-year 2026, Company reaffirms topline growth driven by healthy global end market demand; reduces profit and Free cash flow* outlook as assumptions for inflation became more pronounced during the quarter; including inflation impact, expect to deliver mid- to high-single digit Adjusted EPS* growth

CHICAGO–(BUSINESS WIRE)–GE HealthCare (Nasdaq: GEHC) today reported financial results for the first quarter ended March 31, 2026.

GE HealthCare President and CEO Peter Arduini said, “As we start the year, we’re pleased with topline performance, which came in at the high end of our expectations. Growth was driven by strong commercial execution in Pharmaceutical Diagnostics, including Flyrcado, Advanced Visualization Solutions, and Imaging, as well as services. We are maintaining our topline growth guidance driven by healthy customer demand globally.

“Profitability in the first quarter was impacted by a PDx supplier issue that has since been resolved. We saw significant increases in memory chips, oil and freight costs during the first quarter that we assume will impact the rest of 2026. Given these dynamics, we are taking a prudent approach and reducing our profit outlook but expect to offset more than half of the inflation impact with price and cost actions. Importantly, we are making meaningful progress executing on our new wave of innovation to accelerate future revenue and margin growth.”

First quarter 2026 total company financial performance⁽¹⁾

Revenues of $5.1 billion, up 7.4%, including Organic revenue growth* of 2.9%, driven by Pharmaceutical Diagnostics (PDx), Advanced Visualization Solutions (AVS), and Imaging, with overall strength in U.S., EMEA, and Rest of World.
Total orders up 1.1% organically versus 10.3% growth in the year-ago period, book-to-bill of 1.07 times and backlog of $21.8 billion.
Net income attributable to GE HealthCare of $389 million versus $564 million, and Adjusted EBIT* of $691 million versus $715 million.
Net income margin of 7.6% versus 11.8%, down 420 basis points (bps); Adjusted EBIT margin* of 13.5% versus 15.0%, down 150 bps, with both measures negatively impacted by tariffs, a decline in Patient Care Solutions (PCS) and the PDx supplier issue.
Diluted EPS of $0.85 versus $1.23, down $0.38; Adjusted EPS* of $0.99 versus $1.01, down $0.02.

First quarter 2026 segment financial performance (Unaudited)

Segment *($ in millions)*	Imaging	Advanced Visualization Solutions	Patient Care Solutions	Pharmaceutical Diagnostics
Segment Revenues	$2,299	$1,341	$704	$770
YoY % change	7.4%	8.2%	(6.5)%	21.7%
YoY % Organic* change	3.8%	4.4%	(8.1)%	9.7%
Segment EBIT	$180	$299	$10	$197
YoY % change	(9.4)%	14.5%	(79.8)%	(3.9)%
Segment EBIT Margin	7.8%	22.3%	1.4%	25.6%
YoY change	(150) bps	120 bps	(500) bps	(680) bps
YoY refers to year-over-year comparison

First quarter capital deployment⁽¹⁾

Cash flow from operating activities of $290 million, up $40 million. Free cash flow* of $112 million, up $13 million.
The Company closed the acquisition of Intelerad, for a purchase price of $2.3 billion, which is expected to advance its cloud-enabled enterprise imaging across care settings.
Capital expenditures⁽²⁾ of $178 million compared to $152 million in the prior year. The Company continues to prioritize investment in innovation and capacity expansion.
Cash and cash equivalents of $2.3 billion and access to $3.5 billion of revolving credit facilities. Total debt outstanding of $10.1 billion.
The Company repurchased 1.4 million shares for total consideration of $100 million.
Declared quarterly dividend of $0.035 per share to stockholders of record as of April 3, 2026.

* Non-GAAP financial measure.

(1) All comparisons to prior year period unless otherwise noted.

(2) Capital Expenditures represent Additions to property, plant and equipment and internal-use software as disclosed on the Condensed Consolidated Statements of Cash Flows.

Recent innovation and commercial highlights

2026 guidance

For the full-year 2026, guidance is as follows:

Organic revenue growth* of 3.0% to 4.0% year-over-year; unchanged
Adjusted EBIT margin* of 15.4% to 15.7%, reflecting an expansion of 10 bps to 40 bps year-over-year; this compares to previous Adjusted EBIT margin* guidance of 15.8% to 16.1%
Adjusted effective tax rate (ETR)* in the range of 20.0% to 21.0%; unchanged
Adjusted EPS* in the range of $4.80 to $5.00, representing 4.6% to 9.0% growth year-over-year; this compares to previous Adjusted EPS* guidance in the range of $4.95 to $5.15
Free cash flow* of approximately $1.6 billion, in-line with profit outlook; this compares to previous guidance of approximately $1.7 billion

Expect tariff impact in 2026 to be lower than 2025. While the Company has begun to apply for refunds in the new Customs and Border Patrol portal, no International Emergency Economic Powers Act (IEEPA) tariff refund is assumed in guidance. Guidance includes contribution from Intelerad as of March 18, 2026.

The Company provides its outlook on a non-GAAP basis. Refer to the Non-GAAP financial measures in outlook section below for more details.

* Non-GAAP financial measure.

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 March 31
*(In millions, except per share amounts)*		2026			2025
Sales of products	$	3,345		$	3,117
Sales of services		1,786			1,660
Total revenues		5,131			4,777
Cost of products		2,283			1,963
Cost of services		871			802
Gross profit		1,977			2,012
Selling, general, and administrative		1,117			1,040
Research and development		345			344
Total operating expenses		1,462			1,383
Operating income		515			629
Interest and other financial charges – net		96			110
Non-operating benefit (income) costs		(51	)		(74	)
Other (income) expense – net		(36	)		(99	)
Income before income taxes		505			692
Benefit (provision) for income taxes		(94	)		(104	)
Net income		411			588
Net (income) loss attributable to noncontrolling interests		(22	)		(24	)
Net income attributable to GE HealthCare	$	389		$	564

Earnings per share attributable to GE HealthCare:
Basic	$	0.85		$	1.23
Diluted		0.85			1.23
Weighted-average number of shares outstanding:
Basic		456			457
Diluted		457			459

Condensed Consolidated Statements of Financial Position (Unaudited)
	As of
*(In millions, except share and per share amounts)*	March 31, 2026			December 31, 2025
Cash, cash equivalents, and restricted cash	$	2,285		$	4,512
Receivables – net of allowances of $100 and $103		3,786			3,955
Inventories		2,353			2,234
Contract and other deferred assets		1,159			1,073
All other current assets		842			726
Current assets		10,426			12,501
Property, plant, and equipment – net		3,095			3,092
Goodwill		15,060			13,489
Other intangible assets – net		1,908			1,130
Deferred income taxes		4,383			4,491
All other non-current assets		2,254			2,205
Total assets	$	37,125		$	36,906
Short-term borrowings	$	7		$	508
Accounts payable		3,410			3,250
Contract liabilities		2,153			2,095
Current compensation and benefits		1,418			1,666
All other current liabilities		1,542			1,587
Current liabilities		8,529			9,105
Long-term borrowings		10,127			9,495
Non-current compensation and benefits		5,300			5,453
Deferred income taxes		256			193
All other non-current liabilities		2,015			2,061
Total liabilities		26,227			26,307
Commitments and contingencies
Redeemable noncontrolling interests		218			209
Common stock, par value $0.01 per share, 1,000,000,000 shares authorized, 459,398,178 shares issued as of March 31, 2026; 458,844,209 shares issued as of December 31, 2025		5			5
Treasury stock, at cost, 4,509,195 shares as of March 31, 2026 and 3,107,626 shares as of December 31, 2025		(325	)		(225	)
Additional paid-in capital		6,733			6,707
Retained earnings		5,654			5,281
Accumulated other comprehensive income (loss) – net		(1,398	)		(1,388	)
Total equity attributable to GE HealthCare		10,668			10,379
Noncontrolling interests		12			11
Total equity		10,680			10,390
Total liabilities, redeemable noncontrolling interests, and equity	$	37,125		$	36,906

Condensed Consolidated Statements of Cash Flows (Unaudited)
	For the three months ended March 31
*(In millions)*		2026			2025
Net income	$	411		$	588
Adjustments to reconcile Net income to Cash from (used for) operating activities:
Depreciation of property, plant, and equipment		78			66
Amortization of intangible assets		75			70
Gain on remeasurement of Nihon Medi-Physics equity method investment		—			(97	)
Net periodic postretirement benefit plan (income) expense		(47	)		(70	)
Postretirement plan contributions		(97	)		(98	)
Share-based compensation		35			22
Provision for income taxes		94			104
Cash paid during the year for income taxes		(92	)		(91	)
Changes in operating assets and liabilities, excluding the effects of acquisitions:
Receivables		141			81
Inventories		(171	)		(154	)
Contract and other deferred assets		(46	)		52
Accounts payable		221			146
Contract liabilities		35			(68	)
Current compensation and benefits		(250	)		(200	)
All other operating activities – net		(99	)		(101	)
Cash from (used for) operating activities		290			250
Cash flows – investing activities
Additions to property, plant and equipment and internal-use software		(178	)		(152	)
Purchases of businesses, net of cash acquired		(2,297	)		(269	)
Purchases of investments		(13	)		(20	)
All other investing activities – net		(13	)		34
Cash from (used for) investing activities		(2,500	)		(407	)
Cash flows – financing activities
Net increase (decrease) in borrowings (maturities of 90 days or less)		(1	)		1
Newly issued debt, net of debt issuance costs (maturities longer than 90 days)		1,152			—
Repayments and other reductions (maturities longer than 90 days)		(1,003	)		(257	)
Dividends paid to stockholders		(16	)		(16	)
Repurchase of common stock		(100	)		—
Proceeds from stock issued under employee benefit plans		10			20
Taxes paid related to net share settlement of equity awards		(19	)		(28	)
All other financing activities – net		(2	)		(6	)
Cash from (used for) financing activities		21			(286	)
Effect of foreign currency rate changes on cash, cash equivalents, and restricted cash		(37	)		27
Increase (decrease) in cash, cash equivalents, and restricted cash		(2,227	)		(416	)
Cash, cash equivalents, and restricted cash at beginning of year		4,515			2,893
Cash, cash equivalents, and restricted cash at end of period	$	2,288		$	2,476

Supplemental disclosure of cash flows information
Cash paid during the year for interest	$	(87	)	$	(78	)
Non-cash investing activities
Acquired but unpaid property, plant, and equipment	$	86		$	86

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 March 31
*($ in millions)*		2026		2025	% change
Imaging revenues	$	2,299	$	2,140	7.4	%
Less: Acquisitions⁽¹⁾		11		—
Less: Dispositions⁽²⁾		—		—
Less: Foreign currency exchange		68		—
Imaging Organic revenue*	$	2,220	$	2,140	3.8	%
AVS revenues	$	1,341	$	1,239	8.2	%
Less: Acquisitions⁽¹⁾		—		—
Less: Dispositions⁽²⁾		—		—
Less: Foreign currency exchange		46		—
AVS Organic revenue*	$	1,294	$	1,239	4.4	%
PCS revenues	$	704	$	753	(6.5	)%
Less: Acquisitions⁽¹⁾		—		—
Less: Dispositions⁽²⁾		—		—
Less: Foreign currency exchange		12		—
PCS Organic revenue*	$	692	$	753	(8.1	)%
PDx revenues	$	770	$	632	21.7	%
Less: Acquisitions⁽¹⁾		50		1
Less: Dispositions⁽²⁾		—		—
Less: Foreign currency exchange		28		—
PDx Organic revenue*	$	692	$	631	9.7	%
Other revenues	$	18	$	13	37.7	%
Less: Acquisitions⁽¹⁾		—		—
Less: Dispositions⁽²⁾		—		—
Less: Foreign currency exchange		—		—
Other Organic revenue*	$	18	$	13	37.7	%
Total revenues	$	5,131	$	4,777	7.4	%
Less: Acquisitions⁽¹⁾		60		1
Less: Dispositions⁽²⁾		—		—
Less: Foreign currency exchange		155		—
Organic revenue*	$	4,916	$	4,776	2.9	%
(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 March 31
*($ in millions)*		2026			2025		% change
Net income attributable to GE HealthCare	$	389		$	564		(31.0	)%
Add: Interest and other financial charges – net		96			110
Add: Non-operating benefit (income) costs		(51	)		(74	)
Less: Benefit (provision) for income taxes		(94	)		(104	)
Less: Net (income) loss attributable to noncontrolling interests		(22	)		(24	)
EBIT*		551			728		(24.3	)%
Add: Restructuring costs⁽¹⁾		49			22
Add: Acquisition and disposition-related charges (benefits)⁽²⁾		35			8
Add: Spin-Off and separation costs⁽³⁾		2			24
Add: (Gain) loss on business and asset dispositions⁽⁴⁾		—			(10	)
Add: Amortization of acquisition-related intangible assets		47			35
Add: Investment revaluation (gain) loss⁽⁵⁾		8			(92	)
Adjusted EBIT*	$	691		$	715		(3.4	)%
Net income margin		7.6	%		11.8	%	(420) bps
Adjusted EBIT margin*		13.5	%		15.0	%	(150) 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 incurred in 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 three months ended March 31, 2025, includes the impact from the revaluation of our existing 50% interest in NMP as part of the acquisition transaction.

Adjusted Net Income*
Unaudited	For the three months ended March 31
*($ in millions)*		2026			2025		% change
Net income attributable to GE HealthCare	$	389		$	564		(31.0	)%
Add: Non-operating benefit (income) costs		(51	)		(74	)
Add: Restructuring costs⁽¹⁾		49			22
Add: Acquisition and disposition-related charges (benefits)⁽²⁾		35			8
Add: Spin-Off and separation costs⁽³⁾		2			29
Add: (Gain) loss on business and asset dispositions⁽⁴⁾		—			(10	)
Add: Amortization of acquisition-related intangible assets		47			35
Add: Investment revaluation (gain) loss⁽⁵⁾		8			(92	)
Add: Tax effect of reconciling items⁽⁶⁾		(19	)		—
Add: Spin-Off and other tax adjustments⁽⁷⁾		(7	)		(17	)
Adjusted net income*	$	452		$	464		(2.5	)%
(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 incurred in 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 three months ended March 31, 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 three months ended March 31, 2025, includes the impact from the revaluation of our existing 50% interest in NMP as part of the acquisition transaction.
(6) 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.
(7) Consists of certain income tax adjustments, including tax reserve releases in a foreign jurisdiction for tax years no longer subject to an assessment from the local taxing authorities and discrete tax impacts resulting from the Spin-Off and separation from GE.

Adjusted Earnings Per Share*
Unaudited	For the three months ended March 31
*(In dollars, except shares outstanding presented in millions)*		2026			2025		$ change
Diluted earnings per share	$	0.85		$	1.23		$	(0.38	)
Add: Non-operating benefit (income) costs		(0.11	)		(0.16	)
Add: Restructuring costs⁽¹⁾		0.11			0.05
Add: Acquisition and disposition-related charges (benefits)⁽²⁾		0.08			0.02
Add: Spin-Off and separation costs⁽³⁾		0.01			0.06
Add: (Gain) loss on business and asset dispositions⁽⁴⁾		—			(0.02	)
Add: Amortization of acquisition-related intangible assets		0.10			0.08
Add: Investment revaluation (gain) loss⁽⁵⁾		0.02			(0.20	)
Add: Tax effect of reconciling items⁽⁶⁾		(0.04	)		—
Add: Spin-Off and other tax adjustments⁽⁷⁾		(0.02	)		(0.04	)
Adjusted earnings per share*	$	0.99		$	1.01		$	(0.02	)
Diluted weighted-average shares outstanding		457			459
(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 incurred in 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 three months ended March 31, 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 three months ended March 31, 2025, includes the impact from the revaluation of our existing 50% interest in NMP as part of the acquisition transaction.
(6) 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.
(7) Consists of certain income tax adjustments, including tax reserve releases in a foreign jurisdiction for tax years no longer subject to an assessment from the local taxing authorities and discrete tax impacts resulting from the Spin-Off and separation from GE.

Contacts

Investor Relations Contact:
Carolynne Borders

+1-631-662-4317

[email protected]

Media Contact:
Jennifer Fox

+1-414-530-3027

[email protected]

Read full story here

Cookie	Duration	Description
cookielawinfo-checkbox-analytics	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional	11 months	The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy	11 months	The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.

GE HealthCare reports first quarter 2026 financial results

Are you in?