GE HealthCare reports first quarter 2026 financial results

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)

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.

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.

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

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