GE HealthCare reports third quarter 2026 financial results
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...
- 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: 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: |
|
|
|
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Basic |
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