GE HealthCare Technologies (GEHC) Citi’s 2026 Unplugged MedTech and Life Sciences Access Day summary

Market environment and strategic focus

• Executing in a dynamic market by driving commercial excellence, margin enhancement, and productivity initiatives.

• Innovation remains a core focus, with significant progress highlighted at RSNA and a robust pipeline for 2026 and beyond.

• Orders grew 5% and organic revenue grew 3.5% in 2025, setting up for further growth in 2026.

• New product launches, such as Photonova Spectra and whole body PET, are expected to impact revenue starting in 2027.

• Collaboration with UCSF announced, focusing on remote imaging, workforce education, and MR enhancements.

Product innovation and commercialization

• Multiple new products launched, including Vivid Pioneer, Allia Moveo, and LOGIQ R5, with strong early performance.

• AI-driven solutions are reducing procedure times and improving workflow, with over 100 FDA-approved AI-enabled devices.

• Product sales cycles vary: capital-intensive products have longer lead times, while AVS and ultrasound products see faster revenue realization.

• New imaging products are entering untapped markets, minimizing cannibalization and enhancing competitive positioning.

• Software as a service and digital revenues are projected to grow from $1.2B to $1.8B in coming years.

Financial outlook and growth drivers

• Guidance for 2026 is 3%-4% organic growth, with new product introductions expected to drive 1%-2% of growth in the medium term (2027-2028).

• Backlog and sales funnel are key inputs for revenue forecasting, with growth expected to ramp in the second half of the year.

• Long-range plan targets mid-single-digit growth and 17%-20%+ margins over the medium term, with innovation as a key unlock.

• R&D and innovation investments remain a priority, with costs shifting between R&D and cost of goods as products near launch.

• M&A activity remains focused on strategic, accretive deals that fill portfolio gaps and enhance digital and AI capabilities.