GE HealthCare Technologies Inc. GEHC reported second-quarter 2026 adjusted earnings per share (EPS) of $1.13, which beat the Zacks Consensus Estimate of $1.04 by 8.7%. The bottom line increased 6.6% year over year, aided by commercial execution, pricing and productivity gains.
GAAP EPS in the quarter was $1.24, up 16.5% from the year-ago level.
GEHC shares were up 8.3% in pre-market trading. Year to date, shares of the company have lost 21.9% compared with the industry’s 17.1% decline. However, the S&P 500 Index has risen 8.1% in the same period.
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GEHC's Revenue Growth Gains Momentum
Revenues of $5.29 billion increased 5.7% year over year on a reported basis and 3.5% organically. The top line surpassed the Zacks Consensus Estimate by 0.7%. Revenue growth was led by Pharmaceutical Diagnostics (PDx) and Advanced Imaging Solutions (AIS), along with strength in the United States, EMEA and Rest of World markets. However, growth was partially offset by a decline in the Patient Care Solutions (PCS) segment.
Total company orders increased 11.1% year over year organically. The book-to-bill ratio was 1.15X, indicating rising orders compared to shipments, with backlog reaching a record $23.9 billion. Management cited order growth across every segment, supported by strong commercial execution and adoption of new products.
GE HealthCare’s Q2 Segmental Details
Pharmaceutical Diagnostics revenues increased 15.6% year over year to $843 million. Growth was supported by higher contrast-media volumes, pricing and U.S. radiopharmaceutical demand. Segment EBIT was $250 million, up 16.9% year over year.
Advanced Imaging Solutions revenues increased 7.9% year over year to $3.77 billion. Growth was supported by CardioVascular and Interventional Solutions, computed tomography and Molecular Imaging. Segment EBIT was $525 million, up 15.4% year over year.
Patient Care Solutions revenues declined 13.3% year over year to $675 million. Management attributed the decline primarily to operational and fulfillment challenges, despite strong first-half orders that indicated healthy customer demand.
GEHC's Margin and Cash Flow Improve
Net income margin expanded 90 basis points to 10.6%. However, net income margin was negatively impacted due to PCS weakness and inflation in memory chips, oil and freight costs.
Cumulative cash flow from operating activities at the end of the second quarter was $458 million compared with $344 million a year ago.
GE HealthCare’s Financial Position
GEHC exited the second quarter with cash, cash equivalents and restricted cash of $2.11 billion compared with $2.28 billion in the previous quarter.
Total assets increased to $37.25 billion from $37.12 billion on a sequential basis.
GE HealthCare Reaffirms 2026 Guidance
GE HealthCare reaffirmed its guidance for 2026.
The company still expects organic revenue growth of 3-4% in 2026. It anticipates adjusted EPS to be in the range of $4.80-$5.00, implying 4.6%-9.0% year-over-year growth, as expected previously.
Management anticipates approximately $250 million of inflation associated with memory chips, oil and freight and other components, but expects pricing and cost actions to offset more than half of that impact.
The Zacks Consensus Estimate for 2026 revenues and EPS is pegged at $21.71 billion and $4.89, respectively.
GE HealthCare Technologies Inc. Price, Consensus and EPS Surprise
GE HealthCare Technologies Inc. price-consensus-eps-surprise-chart | GE HealthCare Technologies Inc. Quote
GE HealthCare’s Growth Strategy and Innovation Outlook
GE HealthCare delivered solid second-quarter 2026 results, with both earnings and revenues surpassing the Zacks Consensus Estimate. Growth was driven by strong execution in Pharmaceutical Diagnostics and Advanced Imaging Solutions, supported by healthy demand across the United States, EMEA and Rest of World. However, weakness in Patient Care Solutions, along with inflation in memory chips, oil and freight, weighed on margins. The company is taking focused actions to improve PCS execution and supply performance while reviewing strategic options to maximize its long-term value.
Management expects pricing, productivity and cost-control initiatives under its Heartbeat operating model to offset anticipated inflationary impact. The company consolidated Imaging and Advanced Visualization Solutions into the new Advanced Imaging Solutions segment and is integrating its Global Markets organization to create a more connected imaging ecosystem and strengthen commercial capabilities. Its growth strategy remains centered on precision care, innovation-led revenue expansion and business optimization.
GEHC formed a $500 million Care Alliance with Catholic Health, expanded theranostics collaborations and installed the first StarGuide GX system at Essen’s Nuclear Medicine Center of Excellence. The company is advancing cloud-enabled enterprise imaging, AI-assisted radiation therapy planning through MIM Contour ProtégéAI+ 2.0 and quantitative PET imaging with MIM KineticID. Robust U.S. radiopharmaceutical demand remains another growth avenue, with Flyrcado positioned to generate more than $500 million annually and Vizamyl targeted to exceed $200 million by 2028. GEHC’s gadolinium-free MRI contrast-agent trial is also progressing, strengthening its focus on precision care and next-generation diagnostic solutions.
GEHC’s Zacks Rank & Stocks to Consider
GE HealthCare has a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks from the broader medical space are West Pharmaceutical WST, McKesson MCK and Cardinal Health CAH, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
West Pharmaceutical reported second-quarter 2026 adjusted earnings per share (EPS) of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.
West Pharmaceutical has an estimated long-term earnings growth rate of 14.4%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.4%.
McKesson reported a fourth-quarter fiscal 2026 adjusted EPS of $11.69, which beat the Zacks Consensus Estimate by 1.1%. Revenues of $96.3 billion missed the Zacks Consensus Estimate by 5.5%.
McKesson has an estimated long-term earnings growth rate of 13.7%. MCK’s earnings surpassed estimates in the trailing four quarters, the average surprise being 3.1%.
Cardinal Health reported a third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%.
Cardinal Health has an estimated long-term earnings growth rate of 17%. CAH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 10.3%.
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