10-Q · July 29, 2026
GE HealthCare posted a solid Q2 revenue and GAAP earnings improvement: revenue rose 5.7% to $5.295B, operating margin expanded 90 bps to 14.0%, and diluted EPS increased to $1.24. AIS and PDx more than offset a sharp…
Earnings analysis · 10-Q
GEHC earnings analysis
Filed October 28, 2026 · Our reading of the company's report
The latest report
GE HealthCare delivered a strong third quarter, with $5.513 billion of revenue and $1.36 of diluted EPS beating consensus estimates of $5.354 billion and $1.21, respectively. Revenue and EPS increased versus both 2026…
Read full summary
GE HealthCare delivered a strong third quarter, with $5.513 billion of revenue and $1.36 of diluted EPS beating consensus estimates of $5.354 billion and $1.21, respectively. Revenue and EPS increased versus both 2026 Q2 and 2025 Q3, while adjusted EBIT margin reached 16.6% and free cash flow rose to $793 million. Management raised full-year 2026 revenue-growth, adjusted EBIT margin, adjusted EPS, and free-cash-flow expectations. The principal concerns are the planned $945 million SOFIE acquisition and leverage of $10.0 billion of debt versus $2.9 billion of cash.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.36
What stood out
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Revenue beat and accelerated sequentially
Revenue was $5.513 billion, up approximately 4.2% from $5.29 billion in 2026 Q2 and 7.3% from $5.14 billion in 2025 Q3. It exceeded consensus of $5.354 billion by approximately $159 million.
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EPS materially beat consensus
Diluted EPS was $1.36, up from $1.24 in 2026 Q2 and $0.98 in 2025 Q3, representing increases of approximately 9.7% sequentially and 38.8% year over year. EPS exceeded the $1.21 consensus by $0.15.
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Adjusted margin exceeded full-year outlook
Adjusted EBIT margin increased to 16.6%, above the full-year 2026 guided range of 15.5%-15.7%, indicating strong profitability relative to the company’s outlook.
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Free cash flow surged
Free cash flow reached $793 million, versus $72 million in 2026 Q2 and $483 million in 2025 Q3. The $721 million sequential increase and $310 million year-over-year increase substantially improved cash generation.
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Full-year outlook raised
Management raised full-year 2026 adjusted EPS guidance to $4.95-$5.05 from $4.80-$5.00 and increased the organic revenue-growth outlook from 3.0%-4.0% to approximately 4.0%.
What to watch
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SOFIE acquisition execution risk
The company plans a $945 million SOFIE acquisition, creating execution and integration risk despite the quarter’s $793 million of free cash flow.
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Debt materially exceeds cash
GE HealthCare carried $10.0 billion of debt against $2.9 billion of cash, leaving debt approximately $7.1 billion above cash and limiting balance-sheet flexibility.
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No material risk-factor updates
The filing states there were no material changes to the risk factors disclosed in the December 31, 2025 Form 10-K. Accordingly, no new or quantitatively changed risk-factor item was identified in this 10-Q.
Management's outlook
Full-year 2026 adjusted EPS guidance was raised from $4.80-$5.00 to $4.95-$5.05. Organic revenue growth was raised from 3.0%-4.0% to approximately 4.0%; adjusted EBIT margin was raised from 15.4%-15.7% to 15.5%-15.7%; and free cash flow guidance was raised from approximately $1.6 billion to $1.6 billion-plus.
Earlier filings 4
10-Q · April 29, 2026
GE HealthCare's Q1 2026 results reflected a revenue increase to $5.1 billion, a 7.4% rise compared to the prior year, driven by growth in the Imaging and Pharmaceutical Diagnostics segments. However, the company's…
10-Q · October 29, 2025
GE HealthCare reported Q3 revenues of $5,143 million, up $280 million (+5.8%) versus the year-ago quarter, but experienced margin compression (gross margin 38.7%, operating margin 12.7%) and EPS softness (diluted EPS…
10-K · February 13, 2025
GE HealthCare positions itself as a global leader in 'precision care' with an integrated portfolio of imaging, ultrasound/IGT (now AVS), patient monitoring/therapy and pharmaceutical diagnostics, plus a push into…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.