GE HealthCare Technologies Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 29 July 2026: press release. Guidance figures: 6 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue up 5.7%, organic growth 3.5%: Revenue was $5.3 billion. Organic growth excludes acquisitions and currency; growth was driven by PDx and AIS, while PCS declined. Source
• PCS loss widened sharply: AIS EBIT $525 million, margin 13.9%. PDx EBIT $250 million, margin 29.6%. PCS EBIT loss of $26 million, margin (3.8)%, down 1,150 bps. Source
• Organic orders up 11.1%: Total orders grew 11.1% organically, against 3.4% growth in the year-ago period. Source
• Adjusted EBIT margin down 40 bps: Adjusted EBIT margin was 14.2% versus 14.6%. Management attributes the decline to lower PCS results and inflation in memory chips, oil and freight. Source
• Tariff refunds added $129 million: Tariff refunds recognized in the current period added $129 million to net income, under the IEEPA tariff refund program. Source
• Operating cash and free cash flow rose: Operating cash flow was $168 million, up $74 million. Free cash flow was $68 million versus $7 million in the prior-year quarter. Source
• CFO search under way: The company has begun a search for a permanent successor to the Chief Financial Officer, with George Newcomb serving as interim.

“In Patient Care Solutions, while we are focused on returning the business to growth and profitability, we are reviewing strategic options to maximize its long-term value.”

GE HealthCare President and CEO Peter Arduini

Guidance

What changed from last quarter

• Guidance kept: Full-year 2026 guidance reaffirmed, as provided on April 29, 2026.
• Ended: Jay Saccaro to step down as Chief Financial Officer; remains with the company through August 14, 2026.
• New: George Newcomb, Controller and Chief Accounting Officer, named interim Chief Financial Officer.
• New: Patient Care Solutions placed under review of strategic options. Source
• New: Imaging and Advanced Visualization Solutions combined into one reportable segment, Advanced Imaging Solutions. Source

Results and growth drivers

• Revenue up 5.7%, organic growth 3.5%: Revenue was $5.3 billion. Organic growth excludes acquisitions and currency; growth was driven by PDx and AIS, while PCS declined. Source
• EPS up, helped by refunds and tax rate: Diluted EPS was $1.24 versus $1.06; adjusted EPS was $1.13 versus $1.06. Both measures were helped by tariff refunds and a lower tax rate. Source
• Net income up; margin up 90 bps: Net income attributable to GE HealthCare was $561 million versus $486 million. Net income margin was 10.6% versus 9.7%. Source

Segments and regions

• Segment revenue: AIS, PDx and PCS: AIS revenue $3,771 million, up 7.9% (organic 5.0%). PDx $843 million, up 15.6% (organic 14.6%). PCS $675 million, down 13.3% (organic down 13.5%). Source
• PCS loss widened sharply: AIS EBIT $525 million, margin 13.9%. PDx EBIT $250 million, margin 29.6%. PCS EBIT loss of $26 million, margin (3.8)%, down 1,150 bps. Source
• Regional strength; PCS still challenged: Management cites overall strength in the U.S., EMEA and Rest of World. PCS financial performance continued to be challenged. Source

“Our continued investment in precision innovation is expanding our addressable markets, strengthening our competitive position and supporting durable short- and long-term growth.”

GE HealthCare President and CEO Peter Arduini

Products and customers

• Mayo Clinic theranostics collaboration: Collaboration with Mayo Clinic aims at personalized cancer care through theranostics research. Separate deals: Catholic Health on Long Island and a nuclear medicine center with University Hospital Essen. Source
• AI radiation planning product cleared: FDA 510(k) clearance received for MIM Contour ProtégéAI+ 2.0, an AI-enabled radiation therapy planning product with expanded clinical capabilities. Source
• Cloud-enabled enterprise imaging advancing: The company reported progress in enterprise imaging using cloud-enabled solutions. Source

Demand and the order book

• Organic orders up 11.1%: Total orders grew 11.1% organically, against 3.4% growth in the year-ago period. Source
• Book-to-bill and backlog levels: Book-to-bill was 1.15 times and backlog reached $23.9 billion. Source
• Orders growth in every segment: The CEO said the company delivered record orders and backlog, with orders growth in every segment. Source

“It has been a privilege to serve as GE HealthCare's CFO and lead its outstanding finance organization.”

Jay Saccaro, Vice President and Chief Financial Officer

Costs, margins and pricing

• Adjusted EBIT margin down 40 bps: Adjusted EBIT margin was 14.2% versus 14.6%. Management attributes the decline to lower PCS results and inflation in memory chips, oil and freight. Source
• SG&A and R&D spending rose: Selling, general and administrative expense was $1,118 million versus $1,029 million. Research and development was $323 million versus $302 million. Source
• Adjusted tax rate below prior year: Adjusted effective tax rate was 17.1% versus 18.5% in the quarter. For six months it was 18.6% versus 19.3%. Source

Tariff refunds and cash effects

• Tariff refunds added $129 million: Tariff refunds recognized in the current period added $129 million to net income, under the IEEPA tariff refund program. Source
• Operating cash included a refund: Cash from operating activities included a $107 million tariff refund. Source
• No material further refund benefit expected: Management does not expect a material benefit to Adjusted EBIT margin and Adjusted EPS from additional refunds for 2026-incurred tariffs. Source

Capital, cash and shareholder returns

• Operating cash and free cash flow rose: Operating cash flow was $168 million, up $74 million. Free cash flow was $68 million versus $7 million in the prior-year quarter. Source
• Capital expenditures increased: Capital expenditures were $100 million versus $87 million in the prior-year quarter. Source
• Buybacks and dividend declared: 3.3 million shares repurchased for $200 million, with $500 million remaining under the April 2025 program. Quarterly dividend of $0.035 per share declared. Source
• Cash and debt position: Cash and cash equivalents were $2.1 billion, with $3.5 billion of revolving credit available. Total debt was $10.1 billion. Source

Strategy, investment and leadership

• Investment in capacity and innovation: Management said it continues to prioritize investment in capacity expansion and innovation. Source
• CFO search under way: The company has begun a search for a permanent successor to the Chief Financial Officer, with George Newcomb serving as interim.
• Interim CFO's background: George Newcomb has been Controller since February 2016 and was named Chief Accounting Officer at the 2023 spin-off.

Coming up, as management said on 29 July 2026

• CFO handover runs to August 14: Saccaro remains with the company through August 14, 2026, to work with Newcomb on the transition.
• KineticID awaiting FDA clearance: MIM KineticID, a 4D dynamic PET product, has been submitted to the FDA as a 510(k); clearance is not stated in the release. Source

Figures management reported

Risks management discussed

• Operational: Patient Care Solutions performance remains challenged, and management is reviewing strategic options for the business. Source
• External: Inflation in memory chips, oil and freight costs negatively affected both the net income margin and the Adjusted EBIT margin. Source

Earlier plans management reported on

• Ahead: Preliminary second-quarter Adjusted EPS was reported ahead of the prior expectation in the July 23 release.

Other quarters

• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.