GE HealthCare Technologies Inc.

What they do

GE HealthCare designs, manufactures, and services medical imaging systems (including molecular imaging, CT, MR, women's health, and X-ray), patient care solutions, and pharmaceutical diagnostics. It also offers AI-enabled cloud and software solutions and comprehensive service capabilities to hospitals, health systems, and researchers in over 160 countries. The company operates through three reportable segments as of Q2 2026: Advanced Imaging Solutions (AIS), Patient Care Solutions (PCS), and Pharmaceutical Diagnostics (PDx).

Revenue drivers

• Advanced Imaging Solutions (AIS) — Combines former Imaging and Advanced Visualization Solutions; Q2 2026 segment revenues of $3,771 million, up 7.9% YoY (5.0% organic), with EBIT margin of 13.9%.
• Pharmaceutical Diagnostics (PDx) — Provides contrast media and molecular imaging agents; Q2 2026 revenues of $843 million, up 15.6% YoY (14.6% organic), with EBIT margin of 29.6%.
• Patient Care Solutions (PCS) — Includes patient monitoring and anesthesia delivery; Q2 2026 revenues of $675 million, down 13.3% YoY (13.5% organic), with negative EBIT margin of (3.8)%.
• Service and consumables — Recurring revenue from service contracts, consumables, and software subscriptions; a significant part of the total revenue base.

Recent performance

Q2 2026 total revenues grew 5.7% to $5.3 billion, with organic growth of 3.5%. Net income attributable to GE HealthCare was $561 million versus $486 million in the prior year, and net income margin improved to 10.6% from 9.7%. Adjusted EBIT was $750 million versus $729 million, with margin down 40 bps to 14.2%. Orders grew 11.1% organically, book-to-bill was 1.15 times, and backlog reached $23.9 billion. Cash flow from operating activities was $168 million and free cash flow was $68 million.

Strategy

Management is prioritizing investment in precision innovation, including AI, cloud, and edge computing, to expand addressable markets and strengthen competitiveness. The company is combining Imaging and AVS into AIS to improve focus, and is reviewing strategic options for PCS to maximize its long-term value. GE HealthCare continues to invest in capacity expansion and innovation, including theranostics research collaboration with Mayo Clinic to advance personalized cancer care. It is also taking actions to mitigate tariff impacts, though not fully offsetting them, and continues to file claims for additional tariff refunds.

Risks

• Tariff exposure — U.S. and foreign tariffs materially impacted operating income by $68 million and $156 million in Q2 and H1 2026, respectively; refunds are uncertain and subject to administrative validation.
• China market competition and VBP — Increased competition from local companies and Volume Based Procurement policies have impacted and may continue to impact orders and revenues in China.
• PCS segment underperformance — Patient Care Solutions revenues declined 13.3% in Q2 2026 and EBIT margin was negative, pressuring overall profitability and cash flows.
• Supply chain and inflation — Inflation related to memory chips, oil, and freight costs negatively impacted margins in Q2 2026, and supply chain disruptions could further restrict manufacturing or increase costs.

Outlook

The company reaffirmed its full-year 2026 guidance. Management expects tariffs to continue materially impacting financial results if they persist at current levels, and does not expect mitigation actions to fully offset the costs. It also continues to monitor potential impacts from China trade tensions and purchasing decisions by global customers.