The lowered profit and cash flow guidance for 2026, driven by persistent inflation and a supplier issue, is a material negative. Monitor upcoming quarters for margin recovery and the impact of price/cost actions. The maintained topline guidance provides some support, but the earnings miss and guidance cut are likely to weigh on the stock near-term.
Price Chart
Executive Summary
GE HealthCare reported Q1 2026 revenue of $5.13B (+7.4% YoY) and GAAP diluted EPS of $0.85, down from $1.23 YoY. Adjusted EPS was $0.99 vs $1.01 YoY, missing the $1.07 consensus. The company lowered full-year 2026 Adjusted EBIT margin guidance to 15.4%-15.7% (from 15.8%-16.1%), Adjusted EPS guidance to $4.80-$5.00 (from $4.95-$5.15), and Free Cash Flow guidance to ~$1.6B (from ~$1.7B), citing inflation in memory chips, oil, and freight costs plus a PDx supplier issue. The lowered guidance and earnings miss are the primary negative signals.
Key Financial Metrics
Key Facts
- Q1 2026 revenue $5.13B, up 7.4% YoY; organic revenue growth 2.9%
- GAAP diluted EPS $0.85 vs $1.23 YoY; Adjusted EPS $0.99 vs $1.01 YoY
- Net income $389M vs $564M YoY; net income margin 7.6% vs 11.8%
- Adjusted EBIT margin 13.5% vs 15.0% YoY, down 150 bps
- Full-year 2026 guidance lowered: Adjusted EBIT margin 15.4%-15.7% (from 15.8%-16.1%), Adjusted EPS $4.80-$5.00 (from $4.95-$5.15), Free Cash Flow ~$1.6B (from ~$1.7B)
- Organic revenue growth guidance maintained at 3.0%-4.0%
- Cash from operations $290M; Free Cash Flow $112M
- Closed Intelerad acquisition for $2.3B; repurchased 1.4M shares for $100M
- Patient Care Solutions segment revenue declined 6.5% YoY; segment EBIT down 79.8%
Financial Impact
Full-year Adjusted EPS guidance cut by ~$0.15 at midpoint ($4.90 vs prior $5.05), Free Cash Flow guidance cut by $100M to ~$1.6B
Risk Factors
- Inflation in memory chips, oil, and freight costs may persist, further pressuring margins
- PDx supplier issue, though resolved, may have lingering effects on profitability
- Integration risk from the $2.3B Intelerad acquisition
- Tariff impact in 2026, though expected to be lower than 2025, remains uncertain
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001932393-26-000030 |
| Document: 0001932393-26-000030-index-headers.html | 0001932393-26-000030 |
| Document: 0001932393-26-000030-index.html | 0001932393-26-000030 |
| Document: 0001932393-26-000030.txt | 0001932393-26-000030 |
| 8-K Data (Synthetic) | 0001932393-26-000030 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 29, 2026 9w ago | 8-K | $71.90 $73.31 | ▲ +1.96% | ▼ −3.06% | $63.98 (−11.02%) |
May 13, 2026 20w ago | Insider Cluster | $64.26 $61.59 | ▼ −4.16% | ▼ −4.90% | $63.98 (−0.44%) |
May 11, 2026 20w ago | 8-K | $62.29 $63.76 | ▲ +2.36% | ▲ +4.09% | $63.98 (+2.71%) |
Apr 30, 2026 22w ago | Insider Cluster | $60.84 $62.86 | ▲ +3.32% | ▼ −1.65% | $63.98 (+5.16%) |
Apr 30, 2026 22w ago | Insider Cluster | $60.84 $62.86 | ▲ +3.32% | ▼ −1.65% | $63.98 (+5.16%) |
Apr 29, 2026 22w ago | 8-K | $59.49 $63.88 | ▼ −7.39% | ▼ −1.93% | $63.98 (−7.56%) |
Mar 19, 2026 28w ago | DEFA14A | $70.35 $74.66 | ▲ +6.13% | ▼ −1.49% | $63.98 (−9.05%) |
US Market Status
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