GE HealthCare raises 2026 forecast after Q3 profit tops estimates

GE HealthCare Technologies Inc. (GEHC) raised its full-year 2026 adjusted earnings forecast on Oct. 28, when it reported third-quarter results, a regulatory filing showed.

Adjusted earnings per share of $1.34 beat the $1.23 consensus estimate compiled by Finnhub. Revenue of $5.51 billion was in line with the $5.46 billion estimate from the same source.

Here's how the company did:

• Adjusted EPS: $1.34 vs. $1.07 a year earlier, against $1.23 expected, according to Finnhub
• Diluted EPS: $1.36 vs. 98 cents a year earlier
• Revenue: $5.51 billion vs. $5.14 billion a year earlier, against $5.46 billion expected, according to Finnhub
• Net income attributable to GE HealthCare: $615 million vs. $446 million
• Adjusted EBIT margin: 16.6% vs. 14.8%

The company said organic revenue rose 6.2% and that growth came across all three segments. Total orders grew 4.0% organically, and backlog reached $23.7 billion.

CEO Peter Arduini said, "We delivered strong top-line growth and margin expansion across all segments, and robust EPS growth in the third quarter."

Segment results

Advanced Imaging Solutions, the largest segment, had revenue of $3.87 billion, up 6.1% from a year earlier. Its segment EBIT was $593 million, up 15.8%.

Pharmaceutical Diagnostics revenue was $846 million, up 13.0%. Segment EBIT rose 14.9% to $253 million, and the segment margin was 29.9%.

Patient Care Solutions revenue was $793 million, up 8.5%. Segment EBIT was $68 million, up 148.8%, and the segment margin was 8.6%, up 480 basis points.

2026 guidance

The company raised its organic revenue growth forecast to about 4.0%, from a range of 3.0% to 4.0%. It raised its adjusted EBIT margin forecast to 15.5% to 15.7%, from 15.4% to 15.7%.

Adjusted EPS is now expected at $4.95 to $5.05, up from the previous $4.80 to $5.00 range. The company said it had reaffirmed its adjusted effective tax rate forecast of 20.0% to 21.0%.

Free cash flow is now forecast at $1.6 billion or more, from about $1.6 billion previously.

Cash and capital returns

Cash from operating activities was $907 million in the quarter, up $314 million. Free cash flow was $793 million, up $310 million. Both measures include a $55 million tariff refund.

The company ended the quarter with $2.9 billion in cash and access to $3.5 billion of revolving credit facilities. Total debt outstanding was $10.0 billion.

The board declared a quarterly dividend of 4 cents per share, payable to holders of record as of Oct. 23, 2026. The company said the dividend was up 14% from the previous quarter.

In October, the company announced plans to acquire SOFIE Biosciences from Trilantic North America for $945 million in cash. The company expects the deal to close in the first half of 2027, subject to customary conditions, including regulatory approvals.

Leadership change

In a separate item, Jeannette Bankes, President and CEO, Patient Care Solutions, notified the company on Oct. 22 that she will resign. Her last day will be Nov. 15, 2026.

Neal Sandy, currently head of PCS Product Strategy and Management, will become President and CEO of Patient Care Solutions on Nov. 16. The company said he brings more than 30 years of industry experience.