- Revenue growth of 5.7%, and Organic revenue growth* of 3.5%
- Record organic orders growth of 11.1%, book-to-bill of 1.15 times and backlog of $23.9 billion
- Net income margin of 10.6% and Adjusted earnings before interest and taxes (EBIT) margin* of 14.2%; diluted earnings per share (EPS) of $1.24 grew 16.5% and Adjusted EPS* of $1.13 grew 6.6%
- Cash flow from operating activities of $168 million and Free cash flow* of $68 million
- Reaffirms full-year 2026 guidance
CHICAGO--(BUSINESS WIRE)--GE HealthCare (Nasdaq: GEHC) today reported financial results for the second quarter ended June 30, 2026.
GE HealthCare President and CEO Peter Arduini said, “We delivered record orders and backlog in the second quarter, with orders growth across every segment, demonstrating strong commercial execution, including the adoption of new products. In Patient Care Solutions, while we are focused on returning the business to growth and profitability, we are reviewing strategic options to maximize its long-term value. Our continued investment in precision innovation is expanding our addressable markets, strengthening our competitive position and supporting durable short- and long-term growth.”
Second quarter 2026 total company financial performance(1)
- Revenues of $5.3 billion, up 5.7%, including Organic revenue growth* of 3.5%, driven by Pharmaceutical Diagnostics (PDx) and Advanced Imaging Solutions (AIS), with overall strength in the U.S., Europe, the Middle East, and Africa (EMEA), and Rest of World. Patient Care Solutions (PCS) financial performance continued to be challenged.
- Total orders up 11.1% organically versus 3.4% growth in the year-ago period, book-to-bill of 1.15 times and backlog of $23.9 billion.
- Net income attributable to GE HealthCare of $561 million versus $486 million, and Adjusted EBIT* of $750 million versus $729 million, with current period measures benefiting from International Emergency Economic Powers Act (IEEPA) tariff refunds recognized of $129 million for net income and $23 million for Adjusted EBIT*. Tariff refunds of $106 million related to 2025 were excluded from Adjusted EBIT* results.
- Net income margin of 10.6% versus 9.7%, up 90 basis points (bps). Adjusted EBIT margin* of 14.2% versus 14.6%, down 40 bps, with both measures negatively impacted by a decline in PCS and inflation related to memory chips, oil and freight costs.
- Diluted EPS of $1.24 versus $1.06, up $0.18; Adjusted EPS* of $1.13 versus $1.06, up $0.07, with both measures benefiting from tariff refunds as well as a lower tax rate.
Second quarter 2026 segment financial performance (Unaudited)
In the second quarter of 2026, GE HealthCare combined its Imaging and Advanced Visualization Solutions businesses into a new operating and reportable segment, Advanced Imaging Solutions. Following this organizational change, the Company has three reportable segments: Advanced Imaging Solutions, Pharmaceutical Diagnostics and Patient Care Solutions. Historical segment financial information presented herein has been recast to conform to the new reportable segments structure.
Segment ($ 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 | |||
Second quarter capital deployment(1)
- Cash flow from operating activities of $168 million, up $74 million. Free cash flow* of $68 million, up $61 million. Cash flow from operating activities includes a tariff refund of $107 million.
- Capital expenditures of $100 million compared to $87 million in the prior year. The Company continues to prioritize investment in capacity expansion and innovation.
- Cash and cash equivalents of $2.1 billion and access to $3.5 billion of revolving credit facilities. Total debt outstanding of $10.1 billion.
- The Company repurchased 3.3 million shares for total consideration of $200 million; $500 million remaining in the share repurchase program authorized by the Board of Directors in April 2025.
- Declared quarterly dividend of $0.035 per share to stockholders of record as of July 24, 2026.
(1) All comparisons to prior year period unless otherwise noted. |
Recent innovation and commercial highlights
- Catholic Health and GE HealthCare partner to expand patient access across Long Island
- GE HealthCare and Mayo Clinic aim to advance personalized cancer care through new theranostics research collaboration
- GE HealthCare and University Hospital Essen collaborate to advance theranostics and personalized cancer care with new Nuclear Medicine Center
- GE HealthCare advancing enterprise imaging with cloud-enabled solutions
- GE HealthCare receives FDA 510(k) clearance for MIM Contour ProtégéAI+ 2.0, advancing AI-enabled radiation therapy planning with expanded clinical capabilities
- GE HealthCare focuses on expanding access to nuclear medicine through AI, radiopharmaceutical and imaging innovations
- GE HealthCare advances 4D dynamic PET imaging with U.S. FDA 510(k) submission of MIM KineticID, designed to bring quantitative insight to disease assessment
2026 guidance
For the full-year 2026, the Company reaffirms guidance as follows:
- Organic revenue growth* of 3.0% to 4.0% year-over-year
- Adjusted EBIT margin* of 15.4% to 15.7%, reflecting an expansion of 10 bps to 40 bps year-over-year. Continue to expect approximately $250 million of inflation associated with memory chips, oil and freight and other components.
- Adjusted effective tax rate (ETR)* in the range of 20.0% to 21.0%
- Adjusted EPS* in the range of $4.80 to $5.00, representing 4.6% to 9.0% growth year-over-year
- Free cash flow* of approximately $1.6 billion
The benefits of refunds for tariffs incurred in 2025 are not included in guidance for 2026 Adjusted EBIT margin* ($106 million to date) and Adjusted EPS* ($0.18 to date). The benefits of refunds for tariffs incurred in 2026 are included in guidance for 2026 Adjusted EBIT margin* ($23 million) and Adjusted EPS* ($0.04). We do not expect a material benefit to Adjusted EBIT margin* and Adjusted EPS* from additional refunds for tariffs incurred in 2026.
The Company provides its outlook on a non-GAAP basis. Refer to the Non-GAAP financial measures in outlook section below for more details.
Financial rounding
Certain columns and rows in this document may not sum due to the use of rounded numbers. Percentages presented are calculated from the underlying whole-dollar amounts.
Financial statements
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 |
|
Non-GAAP financial measures
The non-GAAP financial measures presented in this press release are supplemental measures of GE HealthCare’s performance and its liquidity that the Company believes will help investors understand its financial condition, cash flows, and operating results, and assess its future prospects. When read in conjunction with the Company’s U.S. GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in GE HealthCare’s underlying businesses and can be used by management as one basis for making financial, operational, and planning decisions. Descriptions of the reported non-GAAP measures are included below.
The Company reports Organic revenue and Organic revenue growth rate to provide management and investors with additional understanding and visibility into the underlying revenue trends of the Company’s established, ongoing operations, as well as provide insights into overall demand for its products and services. To calculate these measures, the Company excludes the effect of acquisitions, dispositions, and foreign currency rate fluctuations.
The Company reports EBIT, Adjusted EBIT, Adjusted EBIT margin, Adjusted net income, and Adjusted earnings per share to provide management and investors with an additional understanding of its business by highlighting the results from ongoing operations and the underlying profitability factors, on a normalized basis. To calculate these measures the Company excludes, and reflects in the detailed reconciliations below, the following adjustments as applicable: Interest and other financial charges – net, Net (income) loss attributable to noncontrolling interests, Non-operating benefit (income) costs, Benefit (provision) for income taxes and certain tax related adjustments, and certain non-recurring and/or non-cash items. GE HealthCare may from time to time consider excluding other non-recurring items to enhance comparability between periods. Adjusted EBIT margin is calculated by taking Adjusted EBIT divided by Total revenues for the same period.
The Company reports Adjusted tax expense and Adjusted ETR to provide management and investors with a better understanding of the normalized tax rate applicable to the business and provide more consistent comparability across periods. Adjusted tax expense excludes the income tax related to the pre-tax income adjustments included as part of Adjusted net income and certain income tax adjustments, such as adjustments to deferred tax assets or liabilities. The Company may from time to time consider excluding other non-recurring tax items to enhance comparability between periods. Adjusted ETR is Adjusted tax expense divided by income before income taxes less the pre-tax income adjustments referenced above.
The Company reports Free cash flow and Free cash flow conversion to provide management and investors with an important measure of the ability to generate cash on a normalized basis and provide insight into the Company’s flexibility to allocate capital. Free cash flow is Cash from (used for) operating activities – continuing operations including cash flows related to the additions and dispositions of property, plant, and equipment (“PP&E”) and additions of internal-use software. Free cash flow does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the capital required for debt repayments. Free cash flow conversion is calculated by taking Free cash flow divided by Adjusted net income.
Management recognizes that these non-GAAP financial measures have limitations, including that they may be calculated differently by other companies or may be used under different circumstances or for different purposes. In order to compensate for the discussed limitations, management does not consider these measures in isolation from or as alternatives to the comparable financial measures determined in accordance with U.S. GAAP. The detailed reconciliations of each non-GAAP financial measure to the most directly comparable U.S. GAAP financial measure are provided below, and no single financial measure should be relied on to evaluate our business.
Non-GAAP financial reconciliations
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. | |||||||||||||
| Adjusted EBIT* |
|
| |||||||||||||||
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. | |||||||||||||||||
| Adjusted Net Income* |
|
| |||||||||||||||
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. | |||||||||||||||||
Contacts
Investor Relations Contact:
Carolynne Borders
+1-631-662-4317
carolynne.borders@gehealthcare.com
Media Contact:
Jennifer Fox
+1-414-530-3027
jennifer.r.fox@gehealthcare.com
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