Quarterly ResultApr 29, 2026, 06:31 AM
GEHC Q1 Revenue +7.4% to $5.1B; Adjusted EPS $0.99; Cuts FY26 Profit Outlook
AI Summary
GE HealthCare reported Q1 2026 revenue of $5.1 billion, up 7.4% (2.9% organic), meeting the high end of expectations, driven by strong performance in Pharmaceutical Diagnostics and Imaging. However, profitability was impacted by a discrete PDx supplier issue and significant increases in memory chip, oil, and freight costs, leading to a 31.0% decrease in net income and a 2.0% decrease in Adjusted EPS. The company reaffirmed its full-year topline growth guidance but reduced its profit and Free cash flow outlook due to these inflationary pressures, while also completing the acquisition of Intelerad for $2.3 billion.
Key Highlights
- GEHC Q1 2026 Revenue $5.1B, up 7.4% (Organic +2.9%)
- Net income attributable to GE HealthCare $389M, down 31.0% YoY
- Diluted EPS $0.85, down $0.38 YoY; Adjusted EPS $0.99, down $0.02 YoY
- Pharmaceutical Diagnostics (PDx) revenue +21.7% (Organic +9.7%); Patient Care Solutions (PCS) revenue -6.5% (Organic -8.1%)
- Cash flow from operating activities $290M, up $40M; Free cash flow $112M, up $13M
- Completed acquisition of Intelerad for $2.3B to advance cloud-enabled enterprise imaging
- Repurchased 1.4M shares for $100M; declared quarterly dividend of $0.035 per share
- Reaffirmed full-year 2026 Organic revenue growth guidance of 3.0% to 4.0%
- Reduced full-year 2026 Adjusted EBIT margin outlook to 15.4%-15.7% (from 15.8%-16.1%) and Adjusted EPS to $4.80-$5.00 (from $4.95-$5.15)