GE HealthCare Technologies Inc.

GE Healthcare reported second-quarter revenue of $5.3 billion, up 3.5% organic year over year. Adjusted EPS was $1.13, up 6.6%, and adjusted EBIT was $750 million with a 14.2% margin, down 40 basis points year over year. Organic orders grew 11.1%, book-to-bill was 1.15x, and backlog reached a record $23.9 billion, up $2.6 billion year over year and $2.1 billion sequentially. By segment, Advanced Imaging Solutions revenue grew 5% organically and Pharmaceutical Diagnostics grew 14.6% organically, while Patient Care Solutions declined 13.5%. Free cash flow was $68 million, including $107 million of tariff refunds. Full-year guidance was maintained at 3% to 4% organic sales growth, 10 to 40 basis points of adjusted EBIT margin expansion to 15.4% to 15.7%, and adjusted EPS of $4.80 to $5, with low double-digit EPS growth implied year over year.

Peter Arduini sounded upbeat and framed the quarter as validation of GE Healthcare’s product pipeline, commercial execution, and customer relationships. He emphasized broad-based order strength, record backlog, AI-enabled innovation, and service traction, saying these give the company confidence in the rest of the year and the medium-term outlook. He also highlighted that new products are scaling with higher gross margins, and said the company remains confident in its medium-term targets.

Jay Saccaro said the quarter came in with $5.3 billion of revenue, $750 million of adjusted EBIT, 14.2% margin, and $1.13 adjusted EPS, with tariff refunds contributing $0.04 to EPS and $107 million to free cash flow. He noted margin pressure from PCS, memory chips, oil, freight and other inflationary inputs, partially offset by volume growth and price/cost actions that started to take hold in Q2. He also said the company repurchased about $200 million of stock, continued its dividend, and expects pricing and cost actions to help margins more meaningfully in the second half and into 2027.

Analysts asked about the sustainability of the 11% order growth, with management saying it was broad-based, not driven by one-time items, and helped by better execution, enterprise accounts, and stronger visibility/win rates. Questions on the second-half outlook were answered with references to strong backlog, an equipment secured rate of roughly over 80% and nearly 85%, PCS stabilization, Flyrcado growth, and radiopharmaceutical growth. On PCS, management said supply/fulfillment issues hurt the quarter but improvement efforts are underway, while the strategic review is still in process and includes continued ownership, a sale, or other transactions. Analysts also pressed on inflation, China, generic Omnipaque competition, and the CFO transition; management said inflation was in line with expectations, China remained broadly as expected with a planned year-over-year decline in 2026, no impact from generic Omnipaque had been seen yet, and the CFO departure was tied to a new opportunity rather than business weakness.