GE HealthCare Technologies Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.60%.
Did GEHC Beat Earnings? Q1 2026 Results
GE HealthCare Technologies delivered a mixed first quarter for 2026, posting adjusted EPS of $0.99 against a consensus estimate of $1.05, a miss of 5.71% that snapped a four-consecutive-quarter streak of beating EPS expectations, even as revenue of $5.13 billion topped the $5.03 billion estimate by 2.06% and rose 7.4% year-over-year. The primary culprits behind the profit shortfall were a discrete supplier disruption in Pharmaceutical Diagnostics, mounting tariff costs, and a steep 6.5% revenue decline in Patient Care Solutions, where segment EBIT collapsed 79.8% to just $10.00 million. Net income fell sharply to $389.00 million from $564.00 million a year ago, while adjusted EBIT margin contracted 150 basis points to 13.5%. The company also closed its $2.30 billion acquisition of Intelerad during the quarter, adding cloud-enabled enterprise imaging capabilities. Looking ahead, management reaffirmed organic revenue growth guidance of 3.0% to 4.0% but trimmed its adjusted EPS outlook to $4.80 to $5.00, down from a prior range of $4.95 to $5.15, reflecting persistent cost pressures from tariffs, memory chips, and freight.
- Strong commercial execution in Pharmaceutical Diagnostics including Flyrcado
- Growth in Advanced Visualization Solutions and Imaging segments
- Services revenue strength
- Strength in U.S., EMEA, and Rest of World regions
- Profitability negatively impacted by discrete PDx supplier issue (since resolved)
- Significant increases in memory chips, oil, and freight costs
- Tariff impacts on margins
- Patient Care Solutions revenue and profitability decline
“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.”
GE HealthCare CEO, on the earnings call
Forward Guidance & Outlook
For full-year 2026, GE HealthCare reaffirms Organic revenue growth of 3.0% to 4.0% year-over-year. Adjusted EBIT margin guidance was reduced to 15.4% to 15.7% (from 15.8% to 16.1%), reflecting 10 to 40 bps expansion YoY. Adjusted EPS guidance was lowered to $4.80 to $5.00 (from $4.95 to $5.15), representing 4.6% to 9.0% growth YoY. Free cash flow guidance was reduced to approximately $1.6 billion (from $1.7 billion). Adjusted ETR is expected at 20.0% to 21.0%. The company expects tariff impact in 2026 to be lower than 2025 and assumes no IEEPA tariff refund in guidance. Guidance includes contribution from Intelerad as of March 18, 2026. The company expects to offset more than half of the inflation impact with price and cost actions.
GEHC YoY Financials
GEHC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.