GE HealthCare reports first quarter 2026 financial results
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 w...
- 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: 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 | Imaging | Advanced | Patient Care | Pharmaceutical |
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 bkActivTM intraoperative ultrasound system and Medtronic Stealth AXiSTM 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 | |||||
(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, | December 31, | ||||
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 |
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