GE HealthCare Technologies Inc
Q2 2026 Earnings
Market Reaction
Did GEHC Beat Earnings? Q2 2026 Results
GE HealthCare Technologies delivered a solid second quarter, posting adjusted EPS of $1.13 against a consensus estimate of $1.04, a beat of 9.08%, while revenue of $5.29 billion grew 5.8% year-over-year and edged past Wall Street's $5.26 billion forecast by 0.74%. The headline driver was a record organic orders growth of 11.1%, pushing the company's backlog to $23.90 billion with a book-to-bill ratio of 1.15 times, signaling durable demand momentum even as the newly consolidated Advanced Imaging Solutions segment led topline contribution with $3.77 billion in revenue. Pharmaceutical Diagnostics was the quarter's standout, generating $843 million at a 29.6% segment EBIT margin, while Patient Care Solutions continued to weigh on results, with revenue declining 13.3% to $675 million and posting an EBIT loss, prompting management to announce a strategic review of the unit. Despite an upcoming CFO transition adding some executive uncertainty, GE HealthCare reaffirmed its full-year 2026 guidance, calling for organic revenue growth of 3.0% to 4.0% and adjusted EPS of $4.80 to $5.00.
- Record organic orders growth of 11.1% with book-to-bill of 1.15 times
- Pharmaceutical Diagnostics revenue growth of 15.6% with strong 29.6% segment EBIT margin
- Advanced Imaging Solutions organic revenue growth of 5.0%
- Strength in U.S., EMEA, and Rest of World regions
- IEEPA tariff refunds of $129 million benefiting net income and $23 million benefiting Adjusted EBIT
- Lower effective tax rate contributing to EPS growth
“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.”
GE HealthCare CEO, on the earnings call
Forward Guidance & Outlook
GE HealthCare reaffirmed full-year 2026 guidance: Organic revenue growth of 3.0% to 4.0% YoY; Adjusted EBIT margin of 15.4% to 15.7% (10 to 40 bps expansion YoY), with approximately $250 million of expected inflation from memory chips, oil, freight, and other components; Adjusted effective tax rate of 20.0% to 21.0%; Adjusted EPS of $4.80 to $5.00 (4.6% to 9.0% growth YoY); Free cash flow of approximately $1.6 billion. Tariff refunds related to 2025 are excluded from Adjusted EBIT margin ($106 million to date) and Adjusted EPS ($0.18 to date) guidance. Tariff refunds for 2026 of $23 million and $0.04 EPS are included. The company does not expect a material benefit from additional 2026 tariff refunds. The company is also reviewing strategic options for Patient Care Solutions to maximize its long-term value.
GEHC YoY Financials
GEHC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.