third quarter 2026
Filed Oct 28, 2026GE HealthCare reports third quarter 2026 financial results
Third-quarter revenue grew 7.2%, all three operating segments reported revenue growth, net income attributable to GE HealthCare rose to $615 million from $446 million, Adjusted EBIT margin expanded to 16.6% from 14.8%, and the Company raised full-year 2026 guidance.
Actuals vs. the company’s prior outlook
from its previous release| Metric | Guided | Reported | Verdict |
|---|---|---|---|
| Organic Revenue Growth* | 3.0% - 4.0% | 6.2% Organic revenue growth* for the three months ended September 30, 2026 | n/a |
| Adjusted EBIT Margin* | 15.4% - 15.7%; 10 - 40 bps | 16.6 % for the three months ended September 30, 2026 | n/a |
| Adjusted ETR* | 20.0% - 21.0% | 22.0% for the three months ended September 30, 2026 | n/a |
| Adjusted EPS* | $4.80 - $5.00; 4.6% - 9.0% | $1.34 for the three months ended September 30, 2026 | n/a |
| Free Cash Flow* | ~$1.6B | $793 million for the three months ended September 30, 2026 | n/a |
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30GAAP | $5.51B | – | 7.2% |
| Sales of products, three months ended September 30GAAP | $3.60B | – | – |
| Sales of services, three months ended September 30GAAP | $1.91B | – | – |
| Gross profit, three months ended September 30GAAP | $2.22B | – | – |
| Total operating expenses, three months ended September 30GAAP | $1.42B | – | – |
| Operating income, three months ended September 30GAAP | $805M | – | – |
| Net income, three months ended September 30GAAP | $623M | – | – |
| Net income attributable to GE HealthCare, three months ended September 30GAAP | $615M | – | 37.9 % |
| Net income margin, three months ended September 30GAAP | 11.1 % | – | 250 bps |
| Diluted earnings per share, three months ended September 30GAAP | $1.36 | – | 39.1% |
| Basic earnings per share, three months ended September 30GAAP | $1.36 | – | – |
| Organic revenue, three months ended September 30non-GAAP | $5.46B | – | 6.2% |
| Adjusted EBIT, three months ended September 30non-GAAP | $913M | – | 19.9 % |
| Adjusted EBIT margin, three months ended September 30non-GAAP | 16.6 % | – | 180 bps |
| Adjusted net income, three months ended September 30non-GAAP | $608M | – | 24.0 % |
| Adjusted earnings per share, three months ended September 30non-GAAP | $1.34 | – | 25.1% |
| Effective tax rate, three months ended September 30GAAP | 17.1% | – | – |
| Adjusted effective tax rate, three months ended September 30non-GAAP | 22.0% | – | – |
| Cash from operating activities, three months ended September 30GAAP | $907M | – | 52.9% |
| Free cash flow, three months ended September 30non-GAAP | $793M | – | 64.2% |
| Capital expenditures, three months ended September 30GAAP | $114M | – | – |
| Total revenues, nine months ended September 30GAAP | $15.94B | – | 6.8% |
| Gross profit, nine months ended September 30GAAP | $6.38B | – | – |
| Operating income, nine months ended September 30GAAP | $2.06B | – | – |
| Net income attributable to GE HealthCare, nine months ended September 30GAAP | $1.56B | – | 4.6 % |
| Diluted earnings per share, nine months ended September 30GAAP | $3.44 | – | – |
| Organic revenue, nine months ended September 30non-GAAP | $15.56B | – | 4.2% |
| Adjusted EBIT, nine months ended September 30non-GAAP | $2.35B | – | 6.7 % |
| Adjusted EBIT margin, nine months ended September 30non-GAAP | 14.8 % | – | — bps |
| Adjusted earnings per share, nine months ended September 30non-GAAP | $3.46 | – | – |
| Cash from operating activities, nine months ended September 30GAAP | $1.36B | – | 45.6% |
| Free cash flow, nine months ended September 30non-GAAP | $973M | – | 65.2% |
| Organic orders growth, third quarter 2026non-GAAP | 4.0% | – | – |
| Book-to-bill, third quarter 2026other | 1.03 times | – | – |
| Backlog, third quarter 2026other | $23.7B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Advanced Imaging Solutions (AIS)Organic revenue growth was 4.5%; Segment EBIT was $593 million, up 15.8%, and Segment EBIT Margin was 15.3%, up 130 bps. | $3.87B | – | 6.1% |
| Pharmaceutical Diagnostics (PDx)Organic revenue growth was 13.8%; Segment EBIT was $253 million, up 14.9%, and Segment EBIT Margin was 29.9%, up 50 bps. | $846M | – | 13.0% |
| Patient Care Solutions (PCS)Organic revenue growth was 8.8%; Segment EBIT was $68 million, up 148.8%, and Segment EBIT Margin was 8.6%, up 480 bps. | $793M | – | 8.5% |
| OtherOther Organic revenue was $2 million, compared with $15 million, a change of (89.4)%. | $2M | – | (89.4)% |
full-year 2026 outlook
- RevenueOrganic Revenue Growth* ~4.0%
- Tax rateAdjusted ETR* 20.0% - 21.0%, reaffirmed
- NoteAdjusted EBIT Margin* 15.5% - 15.7%; 20 - 40 bps
- NoteAdjusted EPS* $4.95 - $5.05; 7.9% - 10.1%
- NoteFree Cash Flow* $1.6B+
Capital returns
- Declared quarterly dividend of $0.04 per share to stockholders of record as of October 23, 2026, an increase of 14% from the previous quarter.
- Dividends paid to stockholders were $48 million for the nine months ended September 30, 2026, compared with $48 million for the nine months ended September 30, 2025.
- Repurchase of common stock was $300 million for the nine months ended September 30, 2026, compared with $200 million for the nine months ended September 30, 2025.
- In October 2026, the Company announced plans to acquire SOFIE Biosciences from Trilantic North America for a purchase price of $945 million paid in cash. The transaction is expected to close in the first half of 2027, subject to customary closing conditions, including regulatory approvals.
What drove it
- Revenue growth occurred across all segments.
- The Company cited healthy demand as the driver of 4.0% organic orders growth, a book-to-bill of 1.03 times, and backlog of $23.7 billion.
- The Company attributed net income margin and Adjusted EBIT margin expansion to volume, price and cost productivity, and favorable year-over-year net tariff impact, partially offset by inflation.
- Third-quarter cash flow from operating activities and Free cash flow both included a tariff refund of $55 million.
- The Company cited commercial execution, disciplined operational focus enabled by Heartbeat, and continued customer adoption of its innovations.
Concerns
- Inflation partially offset the drivers of net income margin and Adjusted EBIT margin expansion.
- PCS President and CEO Jeannette Bankes will leave for a CEO role at a publicly traded company; Neal Sandy will assume the role of President and CEO of PCS on November 16, 2026.
- The planned SOFIE Biosciences acquisition is expected to close in the first half of 2027 and remains subject to customary closing conditions, including regulatory approvals.
- Cash, cash equivalents, and restricted cash declined to $2,854 million as of September 30, 2026 from $4,512 million as of December 31, 2025.
What to watch
- Progress toward full-year Organic Revenue Growth* of ~4.0%.
- Delivery against full-year Adjusted EBIT Margin* guidance of 15.5% - 15.7%.
- Full-year Adjusted EPS* guidance of $4.95 - $5.05 and Free Cash Flow* guidance of $1.6B+.
- Organic orders growth, book-to-bill, and backlog following third-quarter results of 4.0%, 1.03 times, and $23.7 billion, respectively.
- The PCS leadership transition effective November 16, 2026 and the anticipated first-half 2027 closing of the SOFIE Biosciences transaction.
Balance sheet and cash flow
- Cash, cash equivalents, and restricted cash were $2,854 million as of September 30, 2026, compared with $4,512 million as of December 31, 2025.
- Total debt outstanding was $10.0 billion; the balance sheet reported short-term borrowings of $3 million and long-term borrowings of $9,970 million as of September 30, 2026.
- The Company reported access to $3.5 billion of revolving credit facilities.
- Cash from operating activities was $907 million and Free cash flow was $793 million in the third quarter; both measures include a tariff refund of $55 million.
- For the nine months ended September 30, 2026, cash from operating activities was $1,365 million, additions to property, plant and equipment and internal-use software were $(392) million, and Free cash flow was $973 million.
- Purchases of businesses, net of cash acquired, were $(2,293) million for the nine months ended September 30, 2026, compared with $(279) million for the nine months ended September 30, 2025.
Analysis
GE HealthCare reported broad third-quarter growth. Total revenues were $5,513 million, up 7.2%, while Organic revenue was $5,462 million and increased 6.2%. Each operating segment grew reported revenue: AIS increased 6.1%, PDx increased 13.0%, and PCS increased 8.5%. Organic orders growth was 4.0%, book-to-bill was 1.03 times, and backlog was $23.7 billion. The Company characterized the order environment as healthy demand.
Profitability expanded materially. Net income attributable to GE HealthCare was $615 million versus $446 million, and diluted earnings per share were $1.36 versus $0.98. Net income margin rose to 11.1% from 8.7%, an increase of 250 bps. Adjusted EBIT increased to $913 million from $761 million, while Adjusted EBIT margin rose to 16.6% from 14.8%, an increase of 180 bps. Management attributed margin performance to volume, price and cost productivity, and favorable year-over-year net tariff impact, partially offset by inflation.
Segment profitability improved across the portfolio. AIS generated Segment EBIT of $593 million, up 15.8%, with margin up 130 bps to 15.3%. PDx generated Segment EBIT of $253 million, up 14.9%, with a 29.9% margin that increased 50 bps. PCS delivered the largest reported margin improvement, with Segment EBIT up 148.8% to $68 million and margin up 480 bps to 8.6%. The Company also announced a PCS leadership transition, with Neal Sandy set to assume the role of President and CEO of PCS on November 16, 2026.
Cash generation strengthened in the quarter, with cash from operating activities of $907 million and Free cash flow of $793 million, compared with $593 million and $483 million, respectively. Both measures included a tariff refund of $55 million. For the nine months, operating cash flow was $1,365 million and Free cash flow was $973 million, while purchases of businesses, net of cash acquired, were $(2,293) million. Cash, cash equivalents, and restricted cash were $2,854 million as of September 30, 2026, and total debt outstanding was $10.0 billion.
The Company raised its full-year outlook. Organic Revenue Growth* is now expected to be ~4.0%, Adjusted EBIT Margin* is guided to 15.5% - 15.7%, and Adjusted EPS* is guided to $4.95 - $5.05. Free Cash Flow* guidance is $1.6B+. Capital allocation also included a declared quarterly dividend of $0.04 per share, a 14% increase from the previous quarter, $300 million of common-stock repurchases during the first nine months, and a planned $945 million cash acquisition of SOFIE Biosciences expected to close in the first half of 2027, subject to customary closing conditions including regulatory approvals.
Management, verbatim
We delivered strong top-line growth and margin expansion across all segments, and robust EPS growth in the third quarter. This reflects our teams’ commercial execution, disciplined operational focus enabled by Heartbeat, and continued customer adoption of our innovations. With our improved performance year-to-date and momentum in the business, we are raising guidance for the year.
Peter Arduini, GE HealthCare President and CEO
Not in the filing
stated, not guessed- GAAP gross margin for the three months ended September 30, 2026 and 2025 was not reported.
- GAAP gross margin for the nine months ended September 30, 2026 and 2025 was not reported.
- Prior-quarter values and sequential changes for the reported financial metrics were not reported.
- Full-year 2026 actual results are not reported; therefore, quarterly actual results cannot be assessed as above, in line with, or below full-year guidance.
- Segment revenue drivers by segment were not quantified in the filing.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.