GE HealthCare Raises 2026 Earnings Forecast After Third-Quarter Revenue Growth of 7.2%

Key Facts

GE HealthCare reported on October 28 results for the third quarter ended September 30, 2026, with revenue of $5.513 billion, up 7.2% year over year, while organic revenue rose 6.2%. Adjusted earnings per share were $1.34, compared with $1.07 in the same period a year earlier, while diluted earnings per share were $1.36, compared with $0.98. Adjusted earnings per share topped analysts’ estimate of $1.20, and actual revenue also exceeded the estimate of $5.35 billion, according to Investing.com coverage published via Yahoo Finance. Net income attributable to the company rose to $615 million from $446 million, and net income margin increased to 11.1% from 8.7%. Chief Executive Peter Arduini said, "Year-to-date performance improvement and business momentum are driving us to raise our outlook for the year"; the company has raised its 2026 financial outlook.

Revenue growth coincided with stronger operating profitability, as adjusted EBIT margin rose to 16.6% from 14.8% a year earlier, an increase of 180 basis points. The company attributed the improvement to higher volume and pricing and better cost productivity, along with a favorable net impact from tariffs compared with the previous year. It said inflation offset some of these supportive factors, limiting the full margin improvement. Adjusted EBIT was $913 million, up 20% year over year, according to Investing.com coverage via Yahoo Finance. On liquidity, cash flow from operating activities was $907 million, while free cash flow reached $793 million during the quarter.

All three segments recorded year-over-year revenue growth, though at different rates. Advanced Imaging Solutions revenue rose 6.1%, while Pharmaceutical Diagnostics revenue grew 13.0%, the fastest increase among the segments cited. Patient Care Solutions revenue also increased 8.5%. By revenue source, product revenue grew 6.7% to $3.60 billion, and service revenue rose 8% to $1.91 billion, according to Investing.com via Yahoo Finance. The figures show that quarterly growth spanned products, services and all three segments, with Pharmaceutical Diagnostics leading segment growth.

Orders supported the demand picture during the quarter: total orders grew organically by 4.0%, and the book-to-bill ratio was 1.03 times. The backlog reached $23.7 billion at quarter-end, which the company said reflected healthy demand. The increase in backlog indicates the volume of booked business that has not yet converted to revenue. In the second quarter, revenue growth was 5.7% and organic growth was 3.5%, while orders posted record organic growth of 11.1%. The company left its annual outlook unchanged at the time, before raising it with the third-quarter results.

GE HealthCare raised its 2026 adjusted earnings-per-share outlook range to $4.95–5.05, from $4.80–5.00 previously. It also revised its organic revenue growth guidance to about 4.0%, from a range of 3.0% to 4.0%. The adjusted EBIT margin outlook range was raised to 15.5–15.7%, compared with previous guidance of 15.4–15.7%. The free cash flow outlook is now $1.6 billion or more, up from about $1.6 billion previously. The company kept its 2026 adjusted tax rate range unchanged at 20.0–21.0%.

The announcement came after GEHC shares closed at $71.11 on October 27, before the third-quarter results were published the following day; that closing price therefore does not reflect the market’s response to the reported figures. After the results were released, the shares rose more than 4% in premarket trading on Wednesday, according to Investing.com via Yahoo Finance. Management was scheduled to discuss the results on a live call on October 28, 2026, at 8:30 a.m. U.S. Eastern Time. The company also announced that Jeanette Banks would leave her role as president of Patient Care Solutions to take an executive position at a public company. Neil Sandy will become president of Patient Care Solutions on November 16, 2026. He currently serves as head of product strategy and management in the unit and has more than 30 years of industry experience.