GE HealthCare reports second quarter 2026 financial results
GE HealthCare (Nasdaq: GEHC) today reported financial results for the second quarter ended June 30, 2026. GE HealthCare President and CEO Peter Arduini said, “We delivered record orders and backlog ...
- Revenue growth of 5.7%, and Organic revenue growth* of 3.5%
- Record organic orders growth of 11.1%, book-to-bill of 1.15 times and backlog of $23.9 billion
- Net income margin of 10.6% and Adjusted earnings before interest and taxes (EBIT) margin* of 14.2%; diluted earnings per share (EPS) of $1.24 grew 16.5% and Adjusted EPS* of $1.13 grew 6.6%
- Cash flow from operating activities of $168 million and Free cash flow* of $68 million
- Reaffirms full-year 2026 guidance
CHICAGO: GE HealthCare (Nasdaq: GEHC) today reported financial results for the second quarter ended June 30, 2026.
GE HealthCare President and CEO Peter Arduini said, “We delivered record orders and backlog in the second quarter, with orders growth across every segment, demonstrating strong commercial execution, including the adoption of new products. In Patient Care Solutions, while we are focused on returning the business to growth and profitability, we are reviewing strategic options to maximize its long-term value. Our continued investment in precision innovation is expanding our addressable markets, strengthening our competitive position and supporting durable short- and long-term growth.”
Second quarter 2026 total company financial performance(1)
- Revenues of $5.3 billion, up 5.7%, including Organic revenue growth* of 3.5%, driven by Pharmaceutical Diagnostics (PDx) and Advanced Imaging Solutions (AIS), with overall strength in the U.S., Europe, the Middle East, and Africa (EMEA), and Rest of World. Patient Care Solutions (PCS) financial performance continued to be challenged.
- Total orders up 11.1% organically versus 3.4% growth in the year-ago period, book-to-bill of 1.15 times and backlog of $23.9 billion.
- Net income attributable to GE HealthCare of $561 million versus $486 million, and Adjusted EBIT* of $750 million versus $729 million, with current period measures benefiting from International Emergency Economic Powers Act (IEEPA) tariff refunds recognized of $129 million for net income and $23 million for Adjusted EBIT*. Tariff refunds of $106 million related to 2025 were excluded from Adjusted EBIT* results.
- Net income margin of 10.6% versus 9.7%, up 90 basis points (bps). Adjusted EBIT margin* of 14.2% versus 14.6%, down 40 bps, with both measures negatively impacted by a decline in PCS and inflation related to memory chips, oil and freight costs.
- Diluted EPS of $1.24 versus $1.06, up $0.18; Adjusted EPS* of $1.13 versus $1.06, up $0.07, with both measures benefiting from tariff refunds as well as a lower tax rate.
Second quarter 2026 segment financial performance (Unaudited)
In the second quarter of 2026, GE HealthCare combined its Imaging and Advanced Visualization Solutions businesses into a new operating and reportable segment, Advanced Imaging Solutions. Following this organizational change, the Company has three reportable segments: Advanced Imaging Solutions, Pharmaceutical Diagnostics and Patient Care Solutions. Historical segment financial information presented herein has been recast to conform to the new reportable segments structure.
Segment ($ in millions) | Advanced Imaging Solutions | Pharmaceutical Diagnostics | Patient Care Solutions |
Segment Revenues | $3,771 | $843 | $675 |
YoY % change | 7.9% | 15.6% | (13.3)% |
YoY % Organic* change | 5.0% | 14.6% | (13.5)% |
Segment EBIT | $525 | $250 | $(26) |
YoY % change | 15.4% | 16.9% | (143.0)% |
Segment EBIT Margin | 13.9% | 29.6% | (3.8)% |
YoY change | 90 bps | 30 bps | (1,150) bps |
YoY refers to year-over-year comparison | |||
Second quarter capital deployment(1)
- Cash flow from operating activities of $168 million, up $74 million. Free cash flow* of $68 million, up $61 million. Cash flow from operating activities includes a tariff refund of $107 million.
- Capital expenditures of $100 million compared to $87 million in the prior year. The Company continues to prioritize investment in capacity expansion and innovation.
- Cash and cash equivalents of $2.1 billion and access to $3.5 billion of revolving credit facilities. Total debt outstanding of $10.1 billion.
- The Company repurchased 3.3 million shares for total consideration of $200 million; $500 million remaining in the share repurchase program authorized by the Board of Directors in April 2025.
- Declared quarterly dividend of $0.035 per share to stockholders of record as of July 24, 2026.
(1) All comparisons to prior year period unless otherwise noted. |
Recent innovation and commercial highlights
- Catholic Health and GE HealthCare partner to expand patient access across Long Island
- GE HealthCare and Mayo Clinic aim to advance personalized cancer care through new theranostics research collaboration
- GE HealthCare and University Hospital Essen collaborate to advance theranostics and personalized cancer care with new Nuclear Medicine Center
- GE HealthCare advancing enterprise imaging with cloud-enabled solutions
- GE HealthCare receives FDA 510(k) clearance for MIM Contour ProtégéAI+ 2.0, advancing AI-enabled radiation therapy planning with expanded clinical capabilities
- GE HealthCare focuses on expanding access to nuclear medicine through AI, radiopharmaceutical and imaging innovations
- GE HealthCare advances 4D dynamic PET imaging with U.S. FDA 510(k) submission of MIM KineticID, designed to bring quantitative insight to disease assessment
2026 guidance
For the full-year 2026, the Company reaffirms guidance as follows:
- Organic revenue growth* of 3.0% to 4.0% year-over-year
- Adjusted EBIT margin* of 15.4% to 15.7%, reflecting an expansion of 10 bps to 40 bps year-over-year. Continue to expect approximately $250 million of inflation associated with memory chips, oil and freight and other components.
- Adjusted effective tax rate (ETR)* in the range of 20.0% to 21.0%
- Adjusted EPS* in the range of $4.80 to $5.00, representing 4.6% to 9.0% growth year-over-year
- Free cash flow* of approximately $1.6 billion
The benefits of refunds for tariffs incurred in 2025 are not included in guidance for 2026 Adjusted EBIT margin* ($106 million to date) and Adjusted EPS* ($0.18 to date). The benefits of refunds for tariffs incurred in 2026 are included in guidance for 2026 Adjusted EBIT margin* ($23 million) and Adjusted EPS* ($0.04). We do not expect a material benefit to Adjusted EBIT margin* and Adjusted EPS* from additional refunds for tariffs incurred in 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.
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 June 30 |
| For the six months ended June 30 | ||||||||||
(In millions, except per share amounts) |
| 2026 |
|
| 2025 |
|
|
| 2026 |
|
| 2025 |
|
Sales of products | $ | 3,416 |
| $ | 3,263 |
|
| $ | 6,762 |
| $ | 6,380 |
|
Sales of services |
| 1,878 |
|
| 1,743 |
|
|
| 3,664 |
|
| 3,404 |
|
Total revenues |
| 5,295 |
|
| 5,007 |
|
|
| 10,425 |
|
| 9,784 |
|
Cost of products |
| 2,217 |
|
| 2,160 |
|
|
| 4,500 |
|
| 4,122 |
|
Cost of services |
| 898 |
|
| 863 |
|
|
| 1,769 |
|
| 1,665 |
|
Gross profit |
| 2,180 |
|
| 1,985 |
|
|
| 4,157 |
|
| 3,997 |
|
Selling, general, and administrative |
| 1,118 |
|
| 1,029 |
|
|
| 2,235 |
|
| 2,069 |
|
Research and development |
| 323 |
|
| 302 |
|
|
| 668 |
|
| 646 |
|
Total operating expenses |
| 1,441 |
|
| 1,331 |
|
|
| 2,903 |
|
| 2,714 |
|
Operating income |
| 739 |
|
| 654 |
|
|
| 1,254 |
|
| 1,283 |
|
Interest and other financial charges – net |
| 114 |
|
| 113 |
|
|
| 210 |
|
| 224 |
|
Non-operating benefit (income) costs |
| (45 | ) |
| (73 | ) |
|
| (96 | ) |
| (148 | ) |
Other (income) expense – net |
| (22 | ) |
| 1 |
|
|
| (58 | ) |
| (98 | ) |
Income before income taxes |
| 693 |
|
| 613 |
|
|
| 1,198 |
|
| 1,304 |
|
Benefit (provision) for income taxes |
| (119 | ) |
| (113 | ) |
|
| (213 | ) |
| (216 | ) |
Net income |
| 573 |
|
| 500 |
|
|
| 985 |
|
| 1,088 |
|
Net (income) loss attributable to noncontrolling interests |
| (13 | ) |
| (14 | ) |
|
| (35 | ) |
| (39 | ) |
Net income attributable to GE HealthCare | $ | 561 |
| $ | 486 |
|
| $ | 950 |
| $ | 1,049 |
|
|
|
|
|
|
| ||||||||
Earnings per share attributable to GE HealthCare: |
|
|
|
|
| ||||||||
Basic | $ | 1.24 |
| $ | 1.06 |
|
| $ | 2.09 |
| $ | 2.30 |
|
Diluted |
| 1.24 |
|
| 1.06 |
|
|
| 2.08 |
|
| 2.29 |
|
Weighted-average number of shares outstanding: |
|
|
|
|
| ||||||||
Basic |
| 453 |
|
| 457 |
|
|
| 454 |
|
| 457 | If you liked this article and want to stay up to date with news from InnovationOpenLab.com subscribe to ours Free newsletter. Related news
Last NewsRSA at Cybertech Europe 2024Alaa Abdul Nabi, Vice President, Sales International at RSA presents the innovations the vendor brings to Cybertech as part of a passwordless vision for… Italian Security Awards 2024: G11 Media honours the best of Italian cybersecurityG11 Media's SecurityOpenLab magazine rewards excellence in cybersecurity: the best vendors based on user votes How Austria is making its AI ecosystem growAlways keeping an European perspective, Austria has developed a thriving AI ecosystem that now can attract talents and companies from other countries Sparkle and Telsy test Quantum Key Distribution in practiceSuccessfully completing a Proof of Concept implementation in Athens, the two Italian companies prove that QKD can be easily implemented also in pre-existing… Most readAlibaba Group Announces June Quarter 2026 Results$BABA #AI--Alibaba Group Holding Limited (NYSE: BABA and HKEX: 9988 (HKD Counter) and 89988 (RMB Counter), “Alibaba” or “Alibaba Group”) today announced… SimpleClosure Releases H1 2026 Shutdown Report with SaaS Startups Closing…SimpleClosure, the industry standard for responsible company shutdowns, today published its H1 2026 Shutdown Report highlighting data trends from the… Orvera AI Featured as Core Performing on the CMP Prism for Voicebot/Conversational…#AIAgents--Orvera AI proudly announces its placement on the CMP Prism, for Voicebot/Conversational IVR. The CMP Prism is an independent, analyst-led evaluation… CrowdStrike’s Fal.Con 2026 Unites Cybersecurity’s Ecosystem to Secure…CrowdStrike (NASDAQ: CRWD) today announced that Fal.Con 2026 will feature a record 150+ ecosystem sponsors, led by Amazon Web Services (AWS), Accenture,… G11 Media Networks
InnovationOpenLab is a channel of BitCity, a newspaper registered at the court of Como , 
|