GE HealthCare reported higher third-quarter revenue and earnings, with growth across all three business segments and wider profit margins. The company also raised its full-year 2026 guidance, citing improved year-to-date performance and momentum, but did not include revised guidance figures in the announcement provided.
The company separately announced a leadership transition in Patient Care Solutions: Jeannette Bankes will leave the business in November, and Neal Sandy, who leads its product strategy and management, will take over as president and CEO.
Third-quarter results
- Revenue reached $5.5 billion, up 7.2% year over year. Organic revenue growth was 6.2%, with increases in all three segments.
- Orders grew 4.0% organically. The book-to-bill ratio was 1.03, meaning orders exceeded revenue during the quarter, and the company ended the period with a $23.7 billion backlog.
- Net income attributable to GE HealthCare rose to $615 million from $446 million. Net income margin increased to 11.1% from 8.7%.
- Adjusted EBIT was $913 million, compared with $761 million a year earlier. Adjusted EBIT margin expanded to 16.6% from 14.8%.
- Diluted earnings per share increased to $1.36 from $0.98. Adjusted EPS rose to $1.34 from $1.07.
- Cash from operating activities totaled $907 million; free cash flow was $793 million.
- The company attributed margin improvement to higher volume, pricing and cost productivity, as well as a favorable year-over-year impact from tariffs. Inflation partly offset those benefits.
Segment performance
- Advanced Imaging Solutions: Revenue was $3.87 billion, up 6.1% reported and 4.5% organically. Segment EBIT rose 15.8% to $593 million, and its margin expanded 130 basis points to 15.3%.
- Pharmaceutical Diagnostics: Revenue was $846 million, up 13.0% reported and 13.8% organically. Segment EBIT increased 14.9% to $253 million, with margin up 50 basis points to 29.9%.
- Patient Care Solutions: Revenue was $793 million, up 8.5% reported and 8.8% organically. Segment EBIT rose to $68 million, and margin increased 480 basis points to 8.6%.
Patient Care Solutions leadership change
Bankes’ last day at GE HealthCare will be November 15. The company said she is leaving for a CEO role at a publicly traded company. Sandy is scheduled to become president and CEO of Patient Care Solutions on November 16; he has more than 30 years of industry experience.
The results show broad-based segment growth, higher earnings and margin expansion, alongside a larger order backlog. The guidance increase signals that management raised its full-year outlook, though the announcement provided here does not specify the new targets.