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GEHC's Q3 adjusted EPS jumped 25.1% y/y to $1.34, while revenues rose 7.2% to $5.51B, beating estimates.
Strong segment growth, favorable pricing and cost productivity drove GEHC's earnings and margin gains.
GEHC raised its 2026 adjusted EPS outlook to $4.95-$5.05 and expects organic revenue growth of about 4%.
GE HealthCare Technologies Inc.(GEHC - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of $1.34, which beat the Zacks Consensus Estimate of $1.21 by 10.7%. The bottom line increased 25.1% year over year, driven by higher volumes, favorable pricing, cost productivity and lower net tariff impacts.
GAAP EPS in the quarter was $1.36, up 39.1% from the year-ago level.
GEHC’s shares were up 8.3% in pre-market trading today. Year to date, shares of the company have lost 13.3% compared with the industry’s 19.1% decline. However, the S&P 500 Index has risen 12% in the same period.
Image Source: Zacks Investment Research
GEHC's Revenue Growth Gains Momentum
Revenues increased 7.2% year over year to $5.51 billion, surpassing the Zacks Consensus Estimate of $5.36 billion by 2.9%. Organic revenues grew 6.2%, while order backlog reached $23.7 billion.
Total company orders increased 4% year over year organically, reflecting healthy customer demand. The book-to-bill ratio was 1.03X, indicating orders exceeded revenues during the quarter. Growth across all segments supported the company's top-line performance.
Management attributed the improvement to commercial execution, customer adoption of new products and operational initiatives under its Heartbeat operating model. Strong demand in cardiology and oncology, alongside growth in contrast media and radiopharmaceuticals, supported performance.
GE HealthCare's Q3 Segmental Details
Advanced Imaging Solutions (AIS) revenues increased 6.1% year over year to $3.87 billion, with organic growth of 4.5%. Growth was supported by strength in computed tomography, CardioVascular and Interventional Solutions and Surgical Innovations. Segment EBIT rose 15.8% to $593 million, while EBIT margin expanded 130 basis points to 15.3%, benefiting from higher volumes, favorable tariff impacts and pricing, partially offset by inflation.
Pharmaceutical Diagnostics (PDx) revenues increased 13% year over year to $846 million, with organic growth of 13.8%. Strong contrast-media demand, radiopharmaceutical portfolio growth and pricing supported performance. Segment EBIT increased 14.9% to $253 million, while EBIT margin expanded 50 basis points to 29.9%, despite planned investments in product launches and pipeline development.
Patient Care Solutions (PCS) revenues rose 8.5% year over year to $793 million, with organic growth of 8.8%. Improved product fulfillment in Monitoring and Maternal Infant Care drove growth. Segment EBIT surged 148.8% to $68 million, while EBIT margin expanded 480 basis points to 8.6%, supported by higher volumes and cost productivity.
Management highlighted continued progress in the PCS recovery, supported by customer demand and improved operational execution. The strategic review of the business remains ongoing.
GEHC's Margin and Cash Flow Improve
Net income margin expanded 250 basis points year over year to 11.1%. Adjusted EBIT increased 19.9% to $913 million, while adjusted EBIT margin expanded 180 basis points to 16.6%. Higher volumes, pricing, cost productivity and favorable year-over-year net tariff impacts supported profitability, partially offset by inflation.
Cumulative cash flow from operating activities at the end of the third quarter was $1.37 billion compared with $937 million a year ago.
Cumulative free cash flow at the end of the third quarter totaled $973 million compared with $589 million a year ago, supported by improved operational profitability, lower net tariff impacts and collections timing.
GE HealthCare's Financial Position
GEHC exited the third quarter with cash, cash equivalents and restricted cash of $2.85 billion compared with $2.11 billion in the previous quarter. Total assets increased to $38.37 billion from $37.25 billion on a sequential basis.
Total debt outstanding declined to $9.97 billion from $10.1 billion on a sequential basis. Capital expenditures totaled $114 million compared with $110 million a year ago.
GEHC Raises 2026 Guidance
GE HealthCare raised its full-year 2026 organic revenue growth outlook to approximately 4%, compared with the previous expectation of 3-4%. The company now anticipates adjusted EPS between $4.95 and $5.05, up from its earlier guidance of $4.80-$5, implying year-over-year growth of 7.9-10.1%.
Management also raised the lower end of its adjusted EBIT margin guidance to 15.5-15.7%, compared with 15.4-15.7% previously. Free cash flow is now expected to exceed or equal $1.6 billion, compared with the earlier expectation of approximately $1.6 billion.
GE HealthCare Technologies Inc. Price, Consensus and EPS Surprise
GEHC continues to advance its precision-care strategy through innovations in imaging, ultrasound and radiopharmaceuticals. The company achieved regulatory milestones for Photonova Spectra photon-counting CT and StarGuide GX SPECT/CT, while expanding its ultrasound portfolio with new systems and AI-enabled features.
In October, GEHC announced plans to acquire SOFIE Biosciences for $945 million in cash. The transaction, expected to close in the first half of 2027, would expand its U.S. PET radiopharmaceutical supply and manufacturing footprint and add pipeline opportunities. Strategic pricing, productivity initiatives and supply-chain improvements under Heartbeat remain central to the company's operational priorities.
GEHC’s Zacks Rank & Stocks to Consider
GE HealthCare has a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks from the broader medical space are OPKO Health (OPK - Free Report) , Intuitive Surgical (ISRG - Free Report) and Globus Medical (GMED - Free Report) .
OPKO Health, currently flaunting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted loss of 1 cent per share, which surpassed the Zacks Consensus Estimate by 87.5%. Revenues of $163.6 million beat the Zacks Consensus Estimate by 24.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
OPK has an estimated earnings growth rate of 23.3% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 95.1%.
Intuitive Surgical, currently carrying a Zacks Rank #2 (Buy), reported third-quarter 2026 adjusted EPS of $3.00, which beat the Zacks Consensus Estimate by 13.6%. Revenues of $3.05 billion surpassed the Zacks Consensus Estimate by 4.9%.
Intuitive Surgical has a long-term estimated growth rate of 14.9%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.1%.
Globus Medical, currently carrying a Zacks Rank #2, reported a second-quarter 2026 adjusted EPS of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
View the Zacks #1 Rank List
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GEHC Q3 Earnings Beat Estimates on Strong Growth, '26 View Raised
Key Takeaways
GE HealthCare Technologies Inc.(GEHC - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of $1.34, which beat the Zacks Consensus Estimate of $1.21 by 10.7%. The bottom line increased 25.1% year over year, driven by higher volumes, favorable pricing, cost productivity and lower net tariff impacts.
GAAP EPS in the quarter was $1.36, up 39.1% from the year-ago level.
GEHC’s shares were up 8.3% in pre-market trading today. Year to date, shares of the company have lost 13.3% compared with the industry’s 19.1% decline. However, the S&P 500 Index has risen 12% in the same period.
Image Source: Zacks Investment Research
GEHC's Revenue Growth Gains Momentum
Revenues increased 7.2% year over year to $5.51 billion, surpassing the Zacks Consensus Estimate of $5.36 billion by 2.9%. Organic revenues grew 6.2%, while order backlog reached $23.7 billion.
Total company orders increased 4% year over year organically, reflecting healthy customer demand. The book-to-bill ratio was 1.03X, indicating orders exceeded revenues during the quarter. Growth across all segments supported the company's top-line performance.
Management attributed the improvement to commercial execution, customer adoption of new products and operational initiatives under its Heartbeat operating model. Strong demand in cardiology and oncology, alongside growth in contrast media and radiopharmaceuticals, supported performance.
GE HealthCare's Q3 Segmental Details
Advanced Imaging Solutions (AIS) revenues increased 6.1% year over year to $3.87 billion, with organic growth of 4.5%. Growth was supported by strength in computed tomography, CardioVascular and Interventional Solutions and Surgical Innovations. Segment EBIT rose 15.8% to $593 million, while EBIT margin expanded 130 basis points to 15.3%, benefiting from higher volumes, favorable tariff impacts and pricing, partially offset by inflation.
Pharmaceutical Diagnostics (PDx) revenues increased 13% year over year to $846 million, with organic growth of 13.8%. Strong contrast-media demand, radiopharmaceutical portfolio growth and pricing supported performance. Segment EBIT increased 14.9% to $253 million, while EBIT margin expanded 50 basis points to 29.9%, despite planned investments in product launches and pipeline development.
Patient Care Solutions (PCS) revenues rose 8.5% year over year to $793 million, with organic growth of 8.8%. Improved product fulfillment in Monitoring and Maternal Infant Care drove growth. Segment EBIT surged 148.8% to $68 million, while EBIT margin expanded 480 basis points to 8.6%, supported by higher volumes and cost productivity.
Management highlighted continued progress in the PCS recovery, supported by customer demand and improved operational execution. The strategic review of the business remains ongoing.
GEHC's Margin and Cash Flow Improve
Net income margin expanded 250 basis points year over year to 11.1%. Adjusted EBIT increased 19.9% to $913 million, while adjusted EBIT margin expanded 180 basis points to 16.6%. Higher volumes, pricing, cost productivity and favorable year-over-year net tariff impacts supported profitability, partially offset by inflation.
Cumulative cash flow from operating activities at the end of the third quarter was $1.37 billion compared with $937 million a year ago.
Cumulative free cash flow at the end of the third quarter totaled $973 million compared with $589 million a year ago, supported by improved operational profitability, lower net tariff impacts and collections timing.
GE HealthCare's Financial Position
GEHC exited the third quarter with cash, cash equivalents and restricted cash of $2.85 billion compared with $2.11 billion in the previous quarter. Total assets increased to $38.37 billion from $37.25 billion on a sequential basis.
Total debt outstanding declined to $9.97 billion from $10.1 billion on a sequential basis. Capital expenditures totaled $114 million compared with $110 million a year ago.
GEHC Raises 2026 Guidance
GE HealthCare raised its full-year 2026 organic revenue growth outlook to approximately 4%, compared with the previous expectation of 3-4%. The company now anticipates adjusted EPS between $4.95 and $5.05, up from its earlier guidance of $4.80-$5, implying year-over-year growth of 7.9-10.1%.
Management also raised the lower end of its adjusted EBIT margin guidance to 15.5-15.7%, compared with 15.4-15.7% previously. Free cash flow is now expected to exceed or equal $1.6 billion, compared with the earlier expectation of approximately $1.6 billion.
GE HealthCare Technologies Inc. Price, Consensus and EPS Surprise
GE HealthCare Technologies Inc. price-consensus-eps-surprise-chart | GE HealthCare Technologies Inc. Quote
GE HealthCare's Innovation and Growth Outlook
GEHC continues to advance its precision-care strategy through innovations in imaging, ultrasound and radiopharmaceuticals. The company achieved regulatory milestones for Photonova Spectra photon-counting CT and StarGuide GX SPECT/CT, while expanding its ultrasound portfolio with new systems and AI-enabled features.
In October, GEHC announced plans to acquire SOFIE Biosciences for $945 million in cash. The transaction, expected to close in the first half of 2027, would expand its U.S. PET radiopharmaceutical supply and manufacturing footprint and add pipeline opportunities. Strategic pricing, productivity initiatives and supply-chain improvements under Heartbeat remain central to the company's operational priorities.
GEHC’s Zacks Rank & Stocks to Consider
GE HealthCare has a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks from the broader medical space are OPKO Health (OPK - Free Report) , Intuitive Surgical (ISRG - Free Report) and Globus Medical (GMED - Free Report) .
OPKO Health, currently flaunting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted loss of 1 cent per share, which surpassed the Zacks Consensus Estimate by 87.5%. Revenues of $163.6 million beat the Zacks Consensus Estimate by 24.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
OPK has an estimated earnings growth rate of 23.3% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 95.1%.
Intuitive Surgical, currently carrying a Zacks Rank #2 (Buy), reported third-quarter 2026 adjusted EPS of $3.00, which beat the Zacks Consensus Estimate by 13.6%. Revenues of $3.05 billion surpassed the Zacks Consensus Estimate by 4.9%.
Intuitive Surgical has a long-term estimated growth rate of 14.9%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.1%.
Globus Medical, currently carrying a Zacks Rank #2, reported a second-quarter 2026 adjusted EPS of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.