The medical technology company reported record 11.1% organic orders growth and a $23.9 billion backlog, while saying it is reviewing strategic options for Patient Care Solutions.
GE HealthCare reported second-quarter 2026 revenue of $5.3 billion, up 5.7%, with organic revenue growth of 3.5%, as strength in Pharmaceutical Diagnostics and Advanced Imaging Solutions offset continued pressure in Patient Care Solutions. The company also posted record organic orders growth of 11.1%, a book-to-bill ratio of 1.15 times, and backlog of $23.9 billion, pointing to solid demand and future revenue visibility. Net income attributable to GE HealthCare rose to $561 million from $486 million, while adjusted EBIT (earnings before interest and taxes) reached $750 million versus $729 million. Net income margin improved to 10.6% from 9.7%, though adjusted EBIT margin slipped to 14.2% from 14.6% as weakness in Patient Care Solutions and inflation tied to memory chips, oil, and freight weighed on profitability. Diluted EPS increased to $1.24 from $1.06, and adjusted EPS rose to $1.13 from $1.06, helped by tariff refunds and a lower tax rate. GE HealthCare said results benefited from International Emergency Economic Powers Act tariffs refunds, including $129 million for net income and $23 million for adjusted EBIT in the quarter, while $106 million of refunds related to 2025 were excluded from adjusted EBIT. Cash flow from operating activities was $168 million and free cash flow was $68 million. The company repurchased 3.3 million shares for $200 million, declared a quarterly dividend of $0.035 per share, and said it still has $500 million remaining under its share repurchase authorization. Management reaffirmed full-year 2026 guidance, including organic revenue growth of 3.0% to 4.0%, adjusted EBIT margin of 15.4% to 15.7%, adjusted effective tax rate of 20.0% to 21.0%, adjusted EPS of $4.80 to $5.00, and free cash flow of about $1.6 billion. President and CEO Peter Arduini said the company delivered record orders and backlog, and added that GE HealthCare is reviewing strategic options for Patient Care Solutions to maximize its long-term value.