GE HealthCare reports second quarter 2026 financial results

Segment

($ in millions)

Advanced Imaging

Solutions

Pharmaceutical

Diagnostics

Patient Care

Solutions

Segment Revenues

$3,771

$843

$675

YoY % change

7.9%

15.6%

(13.3)%

YoY % Organic* change

5.0%

14.6%

(13.5)%

Segment EBIT

$525

$250

$(26)

YoY % change

15.4%

16.9%

(143.0)%

Segment EBIT Margin

13.9%

29.6%

(3.8)%

YoY change

90 bps

30 bps

(1,150) bps

YoY refers to year-over-year comparison 

(1) All comparisons to prior year period unless otherwise noted.

Condensed Consolidated Statements of Income (Unaudited)

For the three months ended June 30

For the six months ended June 30

(In millions, except per share amounts)

2026

2025

2026

2025

Sales of products

$

3,416

$

3,263

$

6,762

$

6,380

Sales of services

1,878

1,743

3,664

3,404

Total revenues

5,295

5,007

10,425

9,784

Cost of products

2,217

2,160

4,500

4,122

Cost of services

898

863

1,769

1,665

Gross profit

2,180

1,985

4,157

3,997

Selling, general, and administrative

1,118

1,029

2,235

2,069

Research and development

323

302

668

646

Total operating expenses

1,441

1,331

2,903

2,714

Operating income

739

654

1,254

1,283

Interest and other financial charges – net

114

113

210

224

Non-operating benefit (income) costs

(45

)

(73

)

(96

)

(148

)

Other (income) expense – net

(22

)

1

(58

)

(98

)

Income before income taxes

693

613

1,198

1,304

Benefit (provision) for income taxes

(119

)

(113

)

(213

)

(216

)

Net income

573

500

985

1,088

Net (income) loss attributable to noncontrolling interests

(13

)

(14

)

(35

)

(39

)

Net income attributable to GE HealthCare

$

561

$

486

$

950

$

1,049

Earnings per share attributable to GE HealthCare:

Basic

$

1.24

$

1.06

$

2.09

$

2.30

Diluted

1.24

1.06

2.08

2.29

Weighted-average number of shares outstanding:

Basic

453

457

454

457

Diluted

454

458

456

459

Condensed Consolidated Statements of Financial Position (Unaudited)

As of

(In millions, except share and per share amounts)

June 30, 2026

December 31, 2025

Cash, cash equivalents, and restricted cash

$

2,105

$

4,512

Receivables – net of allowances of $102 and $103

3,881

3,955

Inventories

2,483

2,234

Contract and other deferred assets

1,235

1,073

All other current assets

793

726

Current assets

10,497

12,501

Property, plant, and equipment – net

3,146

3,092

Goodwill

15,095

13,489

Other intangible assets – net

1,894

1,130

Deferred income taxes

4,359

4,491

All other non-current assets

2,254

2,205

Total assets

$

37,246

$

36,906

Short-term borrowings

$

2

$

508

Accounts payable

3,231

3,250

Contract liabilities

2,200

2,095

Current compensation and benefits

1,439

1,666

All other current liabilities

1,429

1,587

Current liabilities

8,302

9,105

Long-term borrowings

10,091

9,495

Non-current compensation and benefits

5,186

5,453

Deferred income taxes

315

193

All other non-current liabilities

2,133

2,061

Total liabilities

26,027

26,307

Commitments and contingencies

Redeemable noncontrolling interests

229

209

Common stock, par value $0.01 per share, 1,000,000,000 shares authorized, 459,470,464 shares issued as of June 30, 2026; 458,844,209 shares issued as of December 31, 2025

5

5

Treasury stock, at cost, 7,785,199 shares as of June 30, 2026 and 3,107,626 shares as of December 31, 2025

(525

)

(225

)

Additional paid-in capital

6,776

6,707

Retained earnings

6,199

5,281

Accumulated other comprehensive income (loss) – net

(1,480

)

(1,388

)

Total equity attributable to GE HealthCare

10,975

10,379

Noncontrolling interests

14

11

Total equity

10,989

10,390

Total liabilities, redeemable noncontrolling interests, and equity

$

37,246

$

36,906

Condensed Consolidated Statements of Cash Flows (Unaudited)

For the six months ended June 30

(In millions)

2026

2025

Net income

$

985

$

1,088

Adjustments to reconcile Net income to Cash from (used for) operating activities:

Depreciation of property, plant, and equipment

154

138

Amortization of intangible assets

159

146

Gain on remeasurement of Nihon Medi-Physics equity method investment

—

(97

)

Net periodic postretirement benefit plan (income) expense

(93

)

(138

)

Postretirement plan contributions

(171

)

(182

)

Share-based compensation

80

56

Provision for income taxes

213

216

Cash paid during the year for income taxes

(231

)

(270

)

Changes in operating assets and liabilities, excluding the effects of acquisitions:

Receivables

62

185

Inventories

(310

)

(188

)

Contract and other deferred assets

(132

)

(48

)

Accounts payable

21

(113

)

Contract liabilities

83

(23

)

Current compensation and benefits

(231

)

(207

)

All other operating activities – net

(130

)

(218

)

Cash from (used for) operating activities

458

344

Cash flows – investing activities

Additions to property, plant and equipment and internal-use software

(278

)

(238

)

Purchases of businesses, net of cash acquired

(2,293

)

(279

)

Purchases of investments

(19

)

(28

)

All other investing activities – net

(24

)

(84

)

Cash from (used for) investing activities

(2,615

)

(630

)

Cash flows – financing activities

Net increase (decrease) in borrowings (maturities of 90 days or less)

(1

)

1

Newly issued debt, net of debt issuance costs (maturities longer than 90 days)

1,152

1,493

Repayments and other reductions (maturities longer than 90 days)

(1,012

)

(261

)

Dividends paid to stockholders

(32

)

(32

)

Repurchase of common stock

(300

)

(100

)

Proceeds from stock issued under employee benefit plans

10

21

Taxes paid related to net share settlement of equity awards

(21

)

(33

)

All other financing activities – net

(12

)

(15

)

Cash from (used for) financing activities

(215

)

1,075

Effect of foreign currency rate changes on cash, cash equivalents, and restricted cash

(35

)

84

Increase (decrease) in cash, cash equivalents, and restricted cash

(2,407

)

873

Cash, cash equivalents, and restricted cash at beginning of year

4,515

2,893

Cash, cash equivalents, and restricted cash at end of period

$

2,108

$

3,766

Supplemental disclosure of cash flows information

Cash paid during the year for interest

$

(280

)

$

(260

)

Non-cash investing activities

Acquired but unpaid property, plant, and equipment

$

102

$

90

Organic Revenue*

Unaudited

For the three months ended June 30

For the six months ended June 30

($ in millions)

2026

2025

% change

2026

2025

% change

AIS revenues

$

3,771

$

3,493

7.9

%

$

7,410

$

6,872

7.8

%

Less: Acquisitions⁽¹⁾

62

—

72

—

Less: Dispositions⁽²⁾

—

—

—

—

Less: Foreign currency exchange

41

—

156

—

AIS Organic revenue*

$

3,668

$

3,493

5.0

%

$

7,182

$

6,872

4.5

%

PDx revenues

$

843

$

729

15.6

%

$

1,612

$

1,362

18.4

%

Less: Acquisitions⁽¹⁾

—

—

50

1

Less: Dispositions⁽²⁾

—

—

—

—

Less: Foreign currency exchange

8

—

35

—

PDx Organic revenue*

$

835

$

729

14.6

%

$

1,527

$

1,360

12.3

%

PCS revenues

$

675

$

778

(13.3

)%

$

1,379

$

1,531

(10.0

)%

Less: Acquisitions⁽¹⁾

—

—

—

—

Less: Dispositions⁽²⁾

—

—

—

—

Less: Foreign currency exchange

2

—

14

—

PCS Organic revenue*

$

673

$

778

(13.5

)%

$

1,365

$

1,531

(10.9

)%

Other revenues

$

6

$

6

3.8

%

$

24

$

19

27.1

%

Less: Acquisitions⁽¹⁾

—

—

—

—

Less: Dispositions⁽²⁾

—

—

—

—

Less: Foreign currency exchange

—

—

—

—

Other Organic revenue*

$

6

$

6

3.8

%

$

24

$

19

27.1

%

Total revenues

$

5,295

$

5,007

5.7

%

$

10,425

$

9,784

6.6

%

Less: Acquisitions⁽¹⁾

62

—

122

1

Less: Dispositions⁽²⁾

—

—

—

—

Less: Foreign currency exchange

51

—

205

—

Organic revenue*

$

5,182

$

5,007

3.5

%

$

10,098

$

9,783

3.2

%

(1) Represents revenues attributable to acquisitions from the date the Company completed the transaction through the end of four quarters following the transaction, excluding the impact of Foreign currency exchange already captured in lines elsewhere. 

(2) Represents revenues attributable to dispositions for the four quarters preceding the disposition date. 

Unaudited

For the three months ended June 30

For the six months ended June 30

($ in millions)

2026

2025

% change

2026

2025

% change

Net income attributable to GE HealthCare

$

561

$

486

15.5

%

$

950

$

1,049

(9.5

)%

Add: Interest and other financial charges – net

114

113

210

224

Add: Non-operating benefit (income) costs

(45

)

(73

)

(96

)

(148

)

Less: Benefit (provision) for income taxes

(119

)

(113

)

(213

)

(216

)

Less: Net (income) loss attributable to noncontrolling interests

(13

)

(14

)

(35

)

(39

)

EBIT*

761

653

16.7

%

1,312

1,380

(5.0

)%

Add: Restructuring costs⁽¹⁾

27

18

76

40

Add: Acquisition and disposition-related charges (benefits)⁽²⁾

11

7

46

15

Add: Spin-Off and separation costs and other adjustments⁽³⁾

(5

)

5

(2

)

29

Add: (Gain) loss on business and asset dispositions⁽⁴⁾

—

5

—

(5

)

Add: Amortization of acquisition-related intangible assets

61

40

108

75

Add: Investment revaluation (gain) loss⁽⁵⁾

—

1

8

(92

)

Less: Tariff refunds⁽⁶⁾

106

—

106

—

Adjusted EBIT*

$

750

$

729

2.9

%

$

1,440

$

1,443

(0.2

)%

Net income margin

10.6

%

9.7

%

90 bps

9.1

%

10.7

%

(160) bps

Adjusted EBIT margin*

14.2

%

14.6

%

(40) bps

13.8

%

14.8

%

(90) bps

(1) Consists of severance, facility closures, and other charges associated with restructuring programs.

(2) Consists of legal, consulting, and other transaction and integration fees, and adjustments to contingent consideration, as well as other purchase accounting related charges and other costs directly related to the transactions.

(3) Costs and other adjustments related to the Spin-Off and separation from GE, including system implementations, audit and advisory fees, legal entity separation, Founders Grant equity awards, separation agreements with GE, and other one-time costs.

(4) Consists of gains and losses resulting from the sale of assets and investments.

(5) Primarily relates to valuation adjustments for equity investments and for the six months ended June 30, 2025, includes the impact from the revaluation of our existing 50% interest in NMP as part of the acquisition transaction.

(6) Consists of the pre-tax impact of refunds pertaining to IEEPA tariffs incurred in the year ended December 31, 2025.

Unaudited

For the three months ended June 30

For the six months ended June 30

($ in millions)

2026

2025

% change

2026

2025

% change

Net income attributable to GE HealthCare

$

561

$

486

15.5

%

$

950

$

1,049

(9.5

)%

Add: Non-operating benefit (income) costs

(45

)

(73

)

(96

)

(148

)

Add: Restructuring costs⁽¹⁾

27

18

76

40

Add: Acquisition and disposition-related charges (benefits)⁽²⁾

11

7

46

15

Add: Spin-Off and separation costs and other adjustments⁽³⁾

(5

)

5

(2

)

34

Add: (Gain) loss on business and asset dispositions⁽⁴⁾

—

5

—

(5

)

Add: Amortization of acquisition-related intangible assets

61

40

108

75

Add: Investment revaluation (gain) loss⁽⁵⁾

—

1

8

(92

)

Less: Tariff refunds⁽⁶⁾

106

—

106

—

Add: Tax effect of reconciling items⁽⁷⁾

11

(1

)

(8

)

(1

)

Add: Spin-Off and other tax adjustments⁽⁸⁾

—

—

(7

)

(18

)

Adjusted net income*

$

515

$

487

5.6

%

$

967

$

951

1.7

%

(1) Consists of severance, facility closures, and other charges associated with restructuring programs.

(2) Consists of legal, consulting, and other transaction and integration fees, and adjustments to contingent consideration, as well as other purchase accounting related charges and other costs directly related to the transactions.

(3) Costs and other adjustments related to the Spin-Off and separation from GE, including system implementations, audit and advisory fees, legal entity separation, Founders Grant equity awards, separation agreements with GE, and other one-time costs. For the six months ended June 30, 2025, an adjustment is included to eliminate the associated impact on Net (income) loss attributable to noncontrolling interests for applicable costs that impact earnings attributable to noncontrolling interests.

(4) Consists of gains and losses resulting from the sale of assets and investments.

(5) Primarily relates to valuation adjustments for equity investments and for the six months ended June 30, 2025, includes the impact from the revaluation of our existing 50% interest in NMP as part of the acquisition transaction.

(6) Consists of the pre-tax impact of refunds pertaining to IEEPA tariffs incurred in the year ended December 31, 2025. The associated tax effect is presented on the Tax effect of reconciling items line. The net of tax impact of tariff refunds is $81 million for the three and six months ended June 30, 2026. 

(7) The tax effect of reconciling items is calculated using the statutory tax rate, taking into consideration the nature of the items and the relevant taxing jurisdiction.

(8) Consists of certain income tax adjustments, including foreign income tax reserve releases and discrete tax impacts resulting from the Spin-Off and separation from GE and for the six months ended June 30, 2025, includes tax impacts of the NMP acquisition.