Summary
GE HealthCare Technologies Inc. reported a decrease in net income attributable to GE HealthCare for the first quarter of 2026, down to $389 million from $564 million in the prior year period, primarily impacted by a significant increase in cost of products and services, alongside increased operating expenses. Total revenues saw a 7.4% increase to $5.13 billion, driven by growth in the PDx, Imaging, and AVS segments, with organic revenue growing 2.9%. The company completed a significant acquisition of Intelerad for approximately $2.3 billion, which contributed to a substantial increase in cash used for investing activities and a rise in goodwill. The company's operating income declined by 18.2% to $515 million, and the operating margin compressed by 310 basis points. This compression was largely attributed to higher cost of goods sold, impacted by cost inflation and incremental tariffs, as well as increased selling, general, and administrative expenses related to acquisitions. Despite these pressures, the company generated $290 million in cash from operating activities and $112 million in free cash flow, though this was impacted by the significant acquisition spend. The company also announced a strategic reorganization of its segments, combining Imaging and AVS into a new Advanced Imaging Solutions (AIS) segment starting in the second quarter of 2026.
Financial Highlights
48 data points| Revenue | $5.13B |
| Gross Profit | $1.98B |
| R&D Expenses | $345.00M |
| SG&A Expenses | $1.12B |
| Operating Expenses | $1.46B |
| Operating Income | $515.00M |
| Net Income | $389.00M |
| EPS (Basic) | $0.85 |
| EPS (Diluted) | $0.85 |
| Shares Outstanding (Basic) | 456.00M |
| Shares Outstanding (Diluted) | 457.00M |
Key Highlights
- 1Total revenues increased by 7.4% to $5.13 billion, with organic revenue growth of 2.9%.
- 2Net income attributable to GE HealthCare decreased by 31.0% to $389 million, impacted by rising costs and operating expenses.
- 3Acquisition of Intelerad for approximately $2.3 billion was completed, significantly increasing goodwill and investing activities.
- 4Operating income decreased by 18.2% to $515 million, and operating margin compressed by 310 basis points due to cost inflation and tariffs.
- 5PDx segment showed strong growth of 21.7%, driven by organic growth and the NMP acquisition, while PCS segment declined by 6.5%.
- 6Cash from operating activities increased by 15.8% to $290 million, and free cash flow grew by 13.3% to $112 million, despite significant acquisition outflows.
- 7Company announced a strategic reorganization combining Imaging and AVS segments into a new Advanced Imaging Solutions (AIS) segment, effective Q2 2026.