GE HealthCare Technologies Inc.
GEHC · NASDAQ-GS
Dec 2026
Next quarter
Expected to report Feb 3, 2027 — estimated from last year’s reporting date.
Consensus is $1.55 EPS for Dec 2026 across 6 estimates, ranging $1.53 to $1.59.
GEHC Sep 2026
- 10.74%
- $1.21
- $1.34
- —
- $5.51B
Reported results
- $5.51B
- 40.34%
- $805.00M
- 14.60%
- $615.00M
- $1.36
Highlights
- Earnings beat: Adjusted EPS of $1.34 exceeded the $1.21 consensus by 10.7% and rose 25.1% year over year; diluted GAAP EPS was $1.36, up 39.1% from $0.98.
- Revenue growth: Q3 revenue increased 7.2% to $5.51 billion, or 6.2% organically, compared with $5.14 billion a year ago and $5.29 billion in Q2.
- Margin expansion: Adjusted EBIT rose 19.9% to $913 million, lifting margin 180 basis points to 16.6%; GAAP net income attributable to GE HealthCare was $615 million, up from $446 million.
- Demand and backlog: Organic orders grew 4.0% against a 5.7% year-ago comparison; book-to-bill was 1.03x and backlog reached $23.7 billion, up $2.5 billion, or 12%, year over year.
- Segment breadth: Organic revenue grew 4.5% in AIS, 13.8% in PDx and 8.8% in PCS; PCS EBIT margin improved 480 basis points to 8.6% as fulfillment and productivity improved.
- Higher 2026 outlook: GE HealthCare now expects organic revenue growth of about 4%, adjusted EBIT margin of 15.5%–15.7%, adjusted EPS of $4.95–$5.05 and free cash flow above $1.6 billion.
- Cash generation and investment: Free cash flow was $793 million, up $310 million year over year and including a $55 million tariff refund; the company also agreed to acquire SOFIE Biosciences for $945 million in cash.
Analysis
GE HealthCare delivered a broad-based growth and margin-expansion quarter, ahead of company expectations and analyst EPS estimates. Revenue of $5.51 billion grew 7.2% year over year, including 6.2% organic growth, and was up from $5.29 billion in Q2. Adjusted EPS of $1.34 beat the $1.21 consensus by 10.7% and increased 25.1% from $1.07 a year earlier. Diluted GAAP EPS was $1.36 versus $0.98 a year ago and $1.24 in Q2. Adjusted EBIT margin increased 180 basis points to 16.6%, supported by volume, pricing, productivity and lower tariff expense, partly offset by inflation.
The print was notable for growth across all segments, a sharp operational improvement in PCS and continued strength in Pharmaceutical Diagnostics. Organic orders rose 4.0% despite a tougher year-ago comparison, while backlog grew 12% to $23.7 billion, supporting management’s view of a healthy pipeline. The company raised its full-year outlook, including adjusted EPS to $4.95–$5.05 from $4.80–$5.00 and free cash flow to more than $1.6 billion from about $1.6 billion. Cash generation benefited from tariff refunds and collections timing, while the planned SOFIE acquisition extends GE HealthCare’s radiopharmaceutical supply footprint.
Revenue and demand
- Organic growth: Total revenue was $5.51 billion, up 7.2% reported and 6.2% organically. Product revenue grew 6.7% and services 8.1% on a reported basis; Intelerad contributed $68 million of revenue in AIS.
- Orders: Organic orders increased 4.0%, below the 5.7% growth in Q3 2025 but extending the trailing-12-month growth rate to 4.6%. Management attributed quarter-to-quarter order variability to the timing of large equipment contracts and said its opportunity pipeline remained strong.
- Backlog: Backlog ended at $23.7 billion, up $2.5 billion, or 12%, year over year, with book-to-bill of 1.03x. Management said the Q4 growth outlook reflects the strong backlog and that most Q4 equipment deliveries were already secured by orders.
Margins and earnings
- Adjusted profitability: Adjusted EBIT increased 19.9% to $913 million, and adjusted EBIT margin expanded 180 basis points to 16.6%. The drivers were volume, pricing, cost productivity and lower year-over-year tariff expense; inflation, including memory-chip and oil-related costs, was a partial offset.
- GAAP results: Operating income rose to $805 million from $653 million, while net income attributable to GE HealthCare increased to $615 million from $446 million. Net income margin was 11.1%, up 250 basis points from 8.7%.
- Tariff context: The quarter included $55 million of cash tariff refunds. The company recognized $9 million of pre-tax benefit related to prior-year tariffs and $4 million related to 2026 tariffs; the $9 million prior-year refund benefit was excluded from adjusted EBIT.
Segment performance
- Advanced Imaging Solutions: Revenue of $3.87 billion grew 4.5% organically, led by CT, cardiovascular and interventional solutions, and surgical innovations. Segment EBIT rose 15.8% to $593 million, and margin expanded 130 basis points to 15.3%, with volume, pricing and lower tariff expense partly offset by inflation.
- Pharmaceutical Diagnostics: Revenue of $846 million grew 13.8% organically on contrast media and radiopharmaceutical volume and pricing. EBIT increased 14.9% to $253 million, with margin up 50 basis points to 29.9%; planned product and pipeline investment partly offset operating leverage.
- Patient Care Solutions: Revenue of $793 million grew 8.8% organically, reversing the segment’s 4.5% organic decline for the first nine months. Improved product fulfillment, supplier and factory execution, and monitoring and maternal-infant care demand helped lift EBIT to $68 million from $27 million and margin to 8.6% from 3.7%. Management expects Q4 growth to be muted by comparison with a roughly $45 million product-hold release in Q4 2025.
Raised 2026 outlook
- Revenue and margin: The company raised its full-year organic revenue growth outlook to approximately 4% from a 3%–4% range, and adjusted EBIT margin guidance to 15.5%–15.7% from 15.4%–15.7%.
- EPS and cash: Adjusted EPS guidance increased to $4.95–$5.05 from $4.80–$5.00, while free cash flow guidance moved to more than $1.6 billion from approximately $1.6 billion. The adjusted effective tax-rate outlook was reaffirmed at 20%–21%.
- Q4 framing: Management indicated implied Q4 growth of 3%–4%, with the lower rate primarily reflecting the prior-year PCS product-hold release rather than a perceived broad market slowdown. It expects AIS and PDx to drive Q4 growth.
Radiopharma and cash
- SOFIE acquisition: GE HealthCare agreed to buy U.S. PET radiopharmaceutical contract manufacturer SOFIE Biosciences for $945 million in cash, with closing expected in the first half of 2027 subject to customary conditions. Management said SOFIE would add about 1% of company revenue on an annualized basis and expects low-double-digit revenue growth in its first full year of ownership, with adjusted EBIT-margin and adjusted EPS accretion.
- Cash generation: Operating cash flow was $907 million and free cash flow was $793 million, increases of $314 million and $310 million, respectively, year over year. Both measures included a $55 million tariff refund; management also cited operating profitability and collection timing. Capital expenditures were $114 million.
- Capital position: Cash and cash equivalents were $2.9 billion and total debt outstanding was $10.0 billion. The company declared a quarterly dividend of $0.04 per share, 14% higher than the previous quarter.
