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GEHC Q1 Earnings Miss Estimates, Revenues Beat, Net Margin Declines
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Key Takeaways
GEHC's Q1 EPS of 99 cents missed estimates and fell year over year, while revenues beat forecasts.
GEHC's growth is driven by Imaging, AVS and PDx, offset by declines in Patient Care Solutions.
GEHC cut its 2026 EPS outlook amid tariffs, supplier issues and cost pressures hitting margins.
GE HealthCare Technologies Inc. (GEHC - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of 99 cents, which missed the Zacks Consensus Estimate of $1.07 by 7.5%. Also, the bottom line declined 1.9% year over year.
GAAP EPS in the quarter was 85 cents, down 30.9% from the year-ago level.
GEHC’s Q1 Revenue Details
Revenues of $5.13 billion were up 7.4% year over year on a reported basis and 2.9% organically. The top line beat the Zacks Consensus Estimate by 1.5%. Total company orders increased 1.1% year over year organically. The book-to-bill was 1.07X, reflecting rising orders compared to shipments.
Revenues were supported by strong performance in the United States, EMEA and Rest of World markets, primarily across three segments — Pharmaceutical Diagnostics (PDx), Imaging and Advanced Visualization Solutions (“AVS”) — partially offset by a decline in the Patient Care Solutions segment.
GEHC shares were down 6.3% in pre-market trading. In the year-to-date period, shares of the company have lost 16.5% compared with the industry’s 18.8% decline. However, the S&P 500 Index has risen 4.6% in the same period.
Image Source: Zacks Investment Research
GE HealthCare’s Segmental Details
Imaging
Revenues from this segment totaled $2.29 billion, up 7.4% year over year on a reported basis and 3.8% organically.
Segment EBIT was $180 million, down 9.4% year over year.
Advanced Visualization Solutions
Revenues totaled $1.34 billion, up 8.2% year over year on a reported basis and 4.4% organically.
Segment EBIT was $299 million, up 14.5% year over year.
Patient Care Solutions
Revenues amounted to $704 million, down 6.5% year over year on a reported basis and down 8.1% organically.
Segment EBIT was $10 million, down 79.8% year over year.
Pharmaceutical Diagnostics
Revenues totaled $770 million, up 21.7% year over year and 9.7% on an organic basis.
Segment EBIT was $197 million, down 3.9% year over year.
GEHC’s Q1 Margin Analysis
Net income margin was 7.6%, down 420 basis points from the prior-year level due to the unfavorable impact of tariffs, a decline in Patient Care Solutions (PCS) and the PDx supplier issue.
Cumulative cash flow from operating activities at the end of the first quarter was $290 million compared with $250 million a year ago.
GE HealthCare’s Financial Position
GEHC exited the first quarter with cash, cash equivalents and investments of $2.28 billion compared with $4.51 billion in the previous quarter.
Total assets increased to $37.12 billion from $36.91 billion on a sequential basis.
GEHC’s 2026 Guidance
GE HealthCare updated its adjusted EPS guidance for 2026.
The company expects organic revenue growth of 3-4% in 2026. It anticipates adjusted EPS to be in the range of $4.80-$5.00, implying 4.6%-9.0% year-over-year growth. However, the guidance range is down from $4.95-$5.15, as expected previously. At current tariff rates, GEHC expects a lower impact in 2026 versus 2025. The Zacks Consensus Estimate for 2026 revenues and EPS is pegged at $21.60 billion and $5.00, respectively.
GE HealthCare Technologies Inc. Price, Consensus and EPS Surprise
GE HealthCare delivered mixed first-quarter 2026 results, wherein earnings missed estimates while revenues surpassed the same. Adjusted earnings per share fell short, reflecting pressure on profitability. However, top-line performance was driven by strong commercial execution in Pharmaceutical Diagnostics, including Flyrcado, Advanced Visualization Solutions and Imaging, as well as services across the United States, EMEA and Rest of World. Performance was adversely impacted by a PDx supplier issue, tariff headwinds and elevated costs related to memory chips, oil and freight, which weighed on margins.
GE HealthCare reported a book-to-bill ratio of 1.07 times and a robust backlog of $21.8 billion, indicating sustained underlying demand. Despite near-term challenges, management maintained its revenue growth outlook, supported by healthy global demand trends. However, given persistent inflationary pressures, the company has lowered its profit guidance while expecting to mitigate more than half of the cost impact through pricing actions and cost controls.
Continued investment in innovation and strategic collaborations underscores GE HealthCare’s long-term growth focus. The company advanced its imaging pipeline with developments such as the LUMINA trial for a manganese-based MRI contrast agent and multiple FDA clearances, including Photonova Spectra photon-counting CT and next-generation SIGNA MRI technology. The completion of the Intelerad acquisition strengthens its cloud-based enterprise imaging capabilities, reinforcing its commitment to precision care and digital transformation.
GEHC’s Zacks Rank & Stocks to Consider
GE HealthCare has a Zacks Rank #3 (Hold) at present.
Globus Medical shares have gained 4% in the year-to-date period. Estimates for the company’s first-quarter 2026 EPS have increased 1 cent to 90 cents in the past 30 days. GMED’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 18.79%. In the last reported quarter, it posted an earnings surprise of 20.75%.
Estimates for Phibro Animal Health’s third-quarter fiscal 2026 EPS have remained constant at 72 cents in the past 30 days. Shares of the company have risen 45.3% in the year-to-date period against the industry’s 18.8% decline. PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 20.15%. In the last reported quarter, it delivered an earnings surprise of 26.09%.
Cardinal Health shares have remained flat in the year-to-date period. Estimates for the company’s third-quarter 2026 EPS have decreased 1 cent to $2.80 in the past 30 days. CAH’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 9.30%. In the last reported quarter, it posted an earnings surprise of 10.04%.
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GEHC Q1 Earnings Miss Estimates, Revenues Beat, Net Margin Declines
Key Takeaways
GE HealthCare Technologies Inc. (GEHC - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of 99 cents, which missed the Zacks Consensus Estimate of $1.07 by 7.5%. Also, the bottom line declined 1.9% year over year.
GAAP EPS in the quarter was 85 cents, down 30.9% from the year-ago level.
GEHC’s Q1 Revenue Details
Revenues of $5.13 billion were up 7.4% year over year on a reported basis and 2.9% organically. The top line beat the Zacks Consensus Estimate by 1.5%. Total company orders increased 1.1% year over year organically. The book-to-bill was 1.07X, reflecting rising orders compared to shipments.
Revenues were supported by strong performance in the United States, EMEA and Rest of World markets, primarily across three segments — Pharmaceutical Diagnostics (PDx), Imaging and Advanced Visualization Solutions (“AVS”) — partially offset by a decline in the Patient Care Solutions segment.
GEHC shares were down 6.3% in pre-market trading. In the year-to-date period, shares of the company have lost 16.5% compared with the industry’s 18.8% decline. However, the S&P 500 Index has risen 4.6% in the same period.
Image Source: Zacks Investment Research
GE HealthCare’s Segmental Details
Imaging
Revenues from this segment totaled $2.29 billion, up 7.4% year over year on a reported basis and 3.8% organically.
Segment EBIT was $180 million, down 9.4% year over year.
Advanced Visualization Solutions
Revenues totaled $1.34 billion, up 8.2% year over year on a reported basis and 4.4% organically.
Segment EBIT was $299 million, up 14.5% year over year.
Patient Care Solutions
Revenues amounted to $704 million, down 6.5% year over year on a reported basis and down 8.1% organically.
Segment EBIT was $10 million, down 79.8% year over year.
Pharmaceutical Diagnostics
Revenues totaled $770 million, up 21.7% year over year and 9.7% on an organic basis.
Segment EBIT was $197 million, down 3.9% year over year.
GEHC’s Q1 Margin Analysis
Net income margin was 7.6%, down 420 basis points from the prior-year level due to the unfavorable impact of tariffs, a decline in Patient Care Solutions (PCS) and the PDx supplier issue.
Cumulative cash flow from operating activities at the end of the first quarter was $290 million compared with $250 million a year ago.
GE HealthCare’s Financial Position
GEHC exited the first quarter with cash, cash equivalents and investments of $2.28 billion compared with $4.51 billion in the previous quarter.
Total assets increased to $37.12 billion from $36.91 billion on a sequential basis.
GEHC’s 2026 Guidance
GE HealthCare updated its adjusted EPS guidance for 2026.
The company expects organic revenue growth of 3-4% in 2026. It anticipates adjusted EPS to be in the range of $4.80-$5.00, implying 4.6%-9.0% year-over-year growth. However, the guidance range is down from $4.95-$5.15, as expected previously. At current tariff rates, GEHC expects a lower impact in 2026 versus 2025. The Zacks Consensus Estimate for 2026 revenues and EPS is pegged at $21.60 billion and $5.00, respectively.
GE HealthCare Technologies Inc. Price, Consensus and EPS Surprise
GE HealthCare Technologies Inc. price-consensus-eps-surprise-chart | GE HealthCare Technologies Inc. Quote
Our Take on GEHC Stock
GE HealthCare delivered mixed first-quarter 2026 results, wherein earnings missed estimates while revenues surpassed the same. Adjusted earnings per share fell short, reflecting pressure on profitability. However, top-line performance was driven by strong commercial execution in Pharmaceutical Diagnostics, including Flyrcado, Advanced Visualization Solutions and Imaging, as well as services across the United States, EMEA and Rest of World. Performance was adversely impacted by a PDx supplier issue, tariff headwinds and elevated costs related to memory chips, oil and freight, which weighed on margins.
GE HealthCare reported a book-to-bill ratio of 1.07 times and a robust backlog of $21.8 billion, indicating sustained underlying demand. Despite near-term challenges, management maintained its revenue growth outlook, supported by healthy global demand trends. However, given persistent inflationary pressures, the company has lowered its profit guidance while expecting to mitigate more than half of the cost impact through pricing actions and cost controls.
Continued investment in innovation and strategic collaborations underscores GE HealthCare’s long-term growth focus. The company advanced its imaging pipeline with developments such as the LUMINA trial for a manganese-based MRI contrast agent and multiple FDA clearances, including Photonova Spectra photon-counting CT and next-generation SIGNA MRI technology. The completion of the Intelerad acquisition strengthens its cloud-based enterprise imaging capabilities, reinforcing its commitment to precision care and digital transformation.
GEHC’s Zacks Rank & Stocks to Consider
GE HealthCare has a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , Phibro Animal Health (PAHC - Free Report) and Cardinal Health (CAH - Free Report) . While GMED sports a Zacks Rank #1 (Strong Buy) at present, PAHC and CAH carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Globus Medical shares have gained 4% in the year-to-date period. Estimates for the company’s first-quarter 2026 EPS have increased 1 cent to 90 cents in the past 30 days. GMED’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 18.79%. In the last reported quarter, it posted an earnings surprise of 20.75%.
Estimates for Phibro Animal Health’s third-quarter fiscal 2026 EPS have remained constant at 72 cents in the past 30 days. Shares of the company have risen 45.3% in the year-to-date period against the industry’s 18.8% decline. PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 20.15%. In the last reported quarter, it delivered an earnings surprise of 26.09%.
Cardinal Health shares have remained flat in the year-to-date period. Estimates for the company’s third-quarter 2026 EPS have decreased 1 cent to $2.80 in the past 30 days. CAH’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 9.30%. In the last reported quarter, it posted an earnings surprise of 10.04%.