10-Q · April 29, 2026
GE HealthCare's Q1 2026 results reflected a revenue increase to $5.1 billion, a 7.4% rise compared to the prior year, driven by growth in the Imaging and Pharmaceutical Diagnostics segments. However, the company's…
Earnings analysis · 10-Q
GEHC earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
GE HealthCare posted a solid Q2 revenue and GAAP earnings improvement: revenue rose 5.7% to $5.295B, operating margin expanded 90 bps to 14.0%, and diluted EPS increased to $1.24. AIS and PDx more than offset a sharp…
Read full summary
GE HealthCare posted a solid Q2 revenue and GAAP earnings improvement: revenue rose 5.7% to $5.295B, operating margin expanded 90 bps to 14.0%, and diluted EPS increased to $1.24. AIS and PDx more than offset a sharp PCS decline, but adjusted EBIT margin fell 40 bps to 14.2% amid inflation and planned investment. Cash flow improved, while tariff refunds materially benefited reported results and PCS execution, tariff exposure, and working-capital consumption remain key watch items.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.24
What stood out
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Revenue growth accelerates sequentially
Q2 revenue was $5.295B, up $288M or 5.7% YoY from $5.007B, and up from $5.130B in Q1 2026. Organic revenue grew 3.5%, led by AIS and PDx.
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GAAP profitability and EPS improved
GAAP operating income increased $86M to $739M, lifting operating margin 90 bps to 14.0% from 13.1% a year ago; gross profit rose $195M to $2.180B. Diluted EPS increased $0.18 to $1.24 from $1.06 and rose from $0.85 in Q1 2026.
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AIS drives growth and margin expansion
AIS revenue grew $277M to $3.771B, with 5.0% organic growth in cardiovascular/interventional, CT and molecular imaging. AIS segment EBIT grew $70M to $525M and margin expanded to 13.9% from 13.0%.
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PDx delivered strongest organic growth
PDx revenue grew $114M to $843M, or 15.6% reported and 14.6% organic, on contrast-media and radiopharmaceutical volume and price. Segment EBIT increased $36M to $250M, with a 29.6% margin.
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Cash generation improved despite investment
Six-month operating cash flow increased $114M to $458M from $344M. After $278M of PP&E and internal-use-software additions, free cash flow was $180M, up 70.0% from $106M; capex represented 2.7% of six-month revenue of $10.425B.
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Liquidity supports investment and buybacks
Liquidity remained substantial, with $2.105B of cash, cash equivalents and restricted cash plus $3.500B of aggregate revolving credit facilities at June 30, 2026. The company repurchased $200M of shares in May at $61.05 per share.
What to watch
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PCS operational issues produced a segment loss
PCS revenue fell $104M, or 13.3%, to $675M due primarily to operational and fulfillment challenges. Its segment EBIT deteriorated $85M to a $26M loss, versus $59M of profit a year earlier.
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Tariff cost and refund timing remain material
Tariffs reduced Q2 operating income by $68M and six-month operating cash flow by $175M before refunds. Q2 GAAP results included $106M of pre-tax refunds related to 2025 tariffs and $23M related to 2026 tariffs, while a further $38M refund receivable remains subject to administrative validation.
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Working-capital outflow and leverage increased
Six-month working-capital and other asset/liability changes consumed $840M of cash, driven mainly by inventory increases, compensation/benefit payments and company-funded postretirement payments. Total debt increased $90M to $10.093B from $10.003B at December 31, 2025 following a $650M delayed-draw loan drawdown.
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China demand and competition remain headwinds
Management states China volume-based procurement and stronger local competition have affected orders and revenue; China-region revenue was only $582M in Q2, up $19M or 3.4%, with favorable FX partly offsetting PCS declines.
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Russia/Ukraine operations retain disruption exposure
There were no material changes to risk factors from the 2025 10-K. Nonetheless, management cites $190M of assets tied to Russia and Ukraine and $106M of six-month revenue from those countries, where licensing restrictions continue to affect supply capability.
Management's outlook
The 10-Q does not provide explicit quantitative full-year guidance; quantitative outlook was deferred to the earnings release/call.
Earlier filings 4
10-Q · October 29, 2025
GE HealthCare reported Q3 revenues of $5,143 million, up $280 million (+5.8%) versus the year-ago quarter, but experienced margin compression (gross margin 38.7%, operating margin 12.7%) and EPS softness (diluted EPS…
10-K · February 13, 2025
GE HealthCare positions itself as a global leader in 'precision care' with an integrated portfolio of imaging, ultrasound/IGT (now AVS), patient monitoring/therapy and pharmaceutical diagnostics, plus a push into…
10-Q · April 30, 2024
GE HealthCare reported Q1 revenues of $4,650 million, down $57 million versus Q1 2023, while gross profit rose slightly to $1,902 million and diluted EPS increased to $0.81 from $0.41 a year earlier. Segment-level…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.