GE HealthCare Raises EPS Outlook to $5.05 After Revenue Growth of 7.2%

Key Facts

GE HealthCare reported third-quarter 2026 results on October 28, with revenue of $5.5 billion, up 7.2% year over year, while organic revenue growth was 6.2%. Diluted EPS rose to $1.36 from $0.98 in the same period last year. Adjusted EPS also increased to $1.34 from $1.07. The company raised its full-year adjusted EPS outlook to a range of $4.95–$5.05, from $4.80–$5.00 previously. CEO Peter Arduini said, "Our year-to-date performance improvement and business momentum are driving us to raise our outlook for the year."

Net income attributable to the company rose to $615 million, compared with $446 million a year earlier, while adjusted earnings before interest and taxes increased to $913 million from $761 million. Adjusted earnings before interest and taxes margin also rose to 16.6% from 14.8%. The company attributed the improvement in both margins to higher volume and pricing, cost productivity, and the favorable net year-over-year impact of tariffs. It said inflation offset some of those tailwinds.

All three segments reported revenue growth, led by Pharmaceutical Diagnostics, up 13.0% to $846 million, or 13.8% on an organic basis. Advanced Imaging Solutions revenue was $3.873 billion, up 6.1%, with organic growth of 4.5%. Patient Care Solutions revenue rose 8.5% to $793 million, with organic growth of 8.8%. The figures reflect differing growth rates across the company’s units, with Pharmaceutical Diagnostics recording the fastest growth in both reported and organic revenue. Arduini said performance included revenue growth and margin expansion across the segments, which he linked to commercial execution, operating discipline and customer adoption of innovations.

Orders rose 4.0% organically during the quarter, and the orders-to-revenue ratio was 1.03 times, while backlog reached $23.7 billion. The company said healthy demand supported these results. For cash flow, the company expects free cash flow of at least $1.6 billion in 2026. It revised its full-year adjusted earnings before interest and taxes margin outlook to a range of 15.5%–15.7%, compared with 15.4%–15.7% previously. The company linked its higher annual guidance to improved year-to-date performance and business momentum.

The company’s results, which exceeded analyst expectations for revenue and earnings, and its higher full-year guidance were reflected in the stock’s trading after the announcement. Shares rose 5.4% in premarket trading on October 28, then gained 6.6% during that day’s session. Management held its third-quarter earnings call on October 28 at 8:30 a.m. Eastern time. As part of its expansion in imaging, the company announced a definitive agreement on October 5 to acquire SOFIE Biosciences for $945 million in cash. It expects to complete the deal in the first half of 2027, subject to closing conditions and regulatory approvals.

The deal gives GE HealthCare a U.S. network comprising 15 contract manufacturing sites and 21 cyclotrons, expanding its presence in the supply chain for radiopharmaceuticals used in positron emission tomography imaging. On the management front, Jeanette Banks is leaving her role as head of Patient Care Solutions to become CEO of a publicly listed company. Neil Sande will lead the unit starting November 16, 2026. These changes come as the company continues to execute its revised full-year guidance and tracks completion of the SOFIE deal in the first half of 2027.