GE HealthCare Technologies (GEHC) Q2 2026 earnings summary

Executive summary

• Achieved record orders growth of 11.1% year-over-year, with a book-to-bill ratio of 1.15x and record backlog of $23.9 billion, reflecting robust demand across all segments and geographies.

• Revenue reached $5.3 billion, up 5.7% year-over-year (3.5% organic), led by Advanced Imaging Solutions (AIS) and Pharmaceutical Diagnostics (PDx); Patient Care Solutions (PCS) faced operational challenges but saw strong orders growth and is under strategic review.

• Net income attributable to shareholders was $561 million, up 15.5% year-over-year; diluted EPS was $1.24, up 16.5%; adjusted EPS was $1.13, up 6.6%, benefiting from tariff refunds and a lower tax rate.

• Strategic acquisitions, including Intelerad and icometrix, expanded AIS and contributed to revenue and service growth.

• Full-year 2026 guidance reaffirmed, reflecting confidence in ongoing performance and business fundamentals.

Financial highlights

• Revenues reached $5.3 billion, up 5.7% year-over-year; organic revenue grew 3.5%; product revenue up 4.7%, service revenue up 7.7%.

• Adjusted EBIT was $750 million (14.2% margin, down 40 bps year-over-year); net income margin improved by 90 bps to 10.6%.

• Adjusted EPS was $1.13, up 6.6% year-over-year; diluted EPS was $1.24, up $0.18.

• Free cash flow was $68 million for the quarter, up significantly year-over-year, with $180 million for the first half of 2026.

• Cash and cash equivalents stood at $2.1 billion; total debt was $10.1 billion as of June 30, 2026.

Outlook and guidance

• Full-year 2026 organic revenue growth expected at 3.0%–4.0%; adjusted EBIT margin guidance at 15.4%–15.7%.

• Adjusted EPS guidance of $4.80–$5.00, representing 4.6%–9.0% growth year-over-year.

• Free cash flow projected at approximately $1.6 billion in 2026.

• Third quarter outlook: 3%–4% organic revenue growth and low double-digit adjusted EPS growth year-over-year.

• Guidance assumes healthy capital equipment environment, continued China revenue decline, and no material impact from global memory chip shortage.