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 GE HealthCare announces first patient dosed in Phase 2/3 LUMINA trial for manganese-based MRI contrast agent under FDA Fast Track designation, further advancing its innovation pipeline of novel imaging agents GE HealthCare announces digital integration between bkActiv TM intraoperative ultrasound system and Medtronic Stealth AXiS TM surgical navigation system GE HealthCare announces lead industrial role in largest EU-funded IHI consortium to advance cardio-oncology care across Europe GE HealthCare to showcase comprehensive cardiology portfolio at ACC.26, including its latest AI-enabled imaging technologies, advanced software solutions, and key collaborations . GE HealthCare completes Intelerad acquisition - accelerating shift to cloud-first enterprise solutions to deliver precision care GE HealthCare announces U.S. FDA 510(k) clearance for View, a next generation diagnostic viewer enabling anywhere access to radiologists GE HealthCare spotlights its innovation renaissance designed to advance precision care at ECR 2026 GE HealthCare achieves MRI portfolio milestone with FDA clearances for next-generation SIGNA MRI technology designed to enhance precision imaging and clinical efficiency The University of South Florida, Tampa General Hospital and GE HealthCare further relationship to advance next-generation surgical training and clinical innovation GE HealthCare’s Photonova Spectra photon-counting CT receives FDA clearance 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 carolynne.borders@gehealthcare.com Media Contact: Jennifer Fox +1-414-530-3027 jennifer.r.fox@gehealthcare.com Read full story here