GE HealthCare Q3 Revenue Rises 7.2% to $5.51B as EPS Surges 25%, Company Raises Full-Year Guidance

GE HealthCare Technologies reported third-quarter 2026 revenue of $5.51 billion, up 7.2% year over year and roughly $160 million ahead of Wall Street estimates, while adjusted EPS of $1.34 beat the consensus of $1.20 by $0.14 and grew 25.1% from the prior-year period. Adjusted EBIT came in at $913 million against an estimate of $835.9 million, with the adjusted EBIT margin expanding 180 basis points to 16.6%. Net income rose to $615 million from $446 million a year earlier, lifting the net income margin 250 basis points to 11.1%.

All three business segments posted growth. The Advanced Imaging Solutions unit, the largest segment, generated $3.87 billion in revenue, up 6.1% year over year. Pharmaceutical Diagnostics led growth with a 13.0% year-over-year gain to $846 million, while Patient Care Solutions added 8.5% to reach $793 million. Organic revenue growth for the quarter was 6.2%, organic orders grew 4.0%, and the book-to-bill ratio stood at 1.03 times. The backlog reached $23.7 billion, underscoring demand visibility. Cash flow from operations was $907 million, with free cash flow of $793 million for the quarter.

Management raised full-year 2026 guidance, citing improved year-to-date performance and business momentum. The company now expects adjusted EPS of $4.95 to $5.05, up from the prior range of $4.80 to $5.00 and slightly above the consensus estimate of $4.92. The full-year adjusted EBIT margin outlook was tightened to 15.5% to 15.7% from a prior floor of 15.4%, organic revenue growth is targeted at approximately 4.0%, and free cash flow is guided at $1.6 billion or more. GEHC shares rose Wednesday and outperformed the broader market following the results. The earnings release also noted a leadership transition, though details were not specified in the available disclosures.