GE HealthCare Technologies Inc 10-Q for FY2026 Q2
GE HealthCare Technologies Inc. (GEHC)
10-Q
2026-07-29
For: 2026-06-30
View Original
Added on
July 29, 2026
About this 10-Q
GE HealthCare Technologies Inc filed this 10-Q on July 29, 2026, covering the quarter ended June 30, 2026 (FY2026 Q2).
Headline figures
Quarter ended June 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Revenue
- $5.3B
- up 5.8% from $5.01B a year earlier
- Net income
- $561M
- up 15.4% from net income of $486M a year earlier
- Diluted EPS
- $1.24
- up 17.0% from $1.06 a year earlier
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
For the quarterly period ended June 30, 2026
or
For the transition period from ____ to ____
Commission file number 001-41528
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices) | (Zip Code) | |||||||
(Registrant’s telephone number, including area code) (833 ) 735-1139
Securities Registered Pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
☑ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company | |||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑
There were 451,686,252 shares of common stock with a par value of $0.01 per share outstanding as of July 22, 2026.
Table of Contents | ||||||||
Page | ||||||||
Part I. | Financial Information | |||||||
Part II. | Other Information | |||||||
2
FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements. These forward-looking statements might be identified by words, and variations of words, such as “will,” “expect,” “may,” “would,” “could,” “plan,” “believe,” “anticipate,” “intend,” “estimate,” “potential,” “position,” “forecast,” “target,” “guidance,” “outlook,” and similar expressions. These forward-looking statements may include, but are not limited to, statements about our business, financial performance, financial condition, and results of operations, including revenue, revenue growth, profit, taxes, earnings per share, and cash flows; changes to our business, operating, and leadership structure and related impacts; the impacts of macroeconomic and market conditions, including the impact of tariffs and other trade restrictions, and volatility on our business, operations, financial results, and financial position and on supply chains and the world economy; our receipt of future tariff refunds and the timing and amount thereof; our cost structure; our funding and liquidity; the impacts on our business of manufacturing, sourcing, and supply chain management; the impacts on our business of international conflicts, including the Russia and Ukraine conflict and conflicts in the Middle East; share repurchases; risks related to foreign currency exchange, interest rates, and commodity and key material price volatility and availability; demand in the global markets in which we operate; and our strategy, innovation, and acquisitions and investments. These forward-looking statements involve risks and uncertainties, many of which are beyond our control. Factors that could cause our actual results to differ materially from those described in our forward-looking statements include, but are not limited to, operating in highly competitive markets; global geopolitical and economic instability, including as a result of changes in trade and tariff policy, and international conflicts and tensions, including between Ukraine and Russia, in the Middle East, and in other regions; public health crises, epidemics, and pandemics, and their effects on our business; changes in or elimination of government subsidies, and changes in third-party and government reimbursement processes, rates, and contractual relationships, including related to government shutdowns, and changes in the mix of public and private payers; demand for our products, services, or solutions and factors that affect that demand; developments in the market in China; our ability to control increases in healthcare costs and any subsequent effect on demand for our products, services, or solutions; our ability to successfully complete strategic transactions; the actions or inactions of third parties with whom we partner and the various collaboration, licensing, and other partnerships and alliances we have with third parties; the impacts related to our increasing focus on and investment in cloud, edge computing, artificial intelligence (“AI”), and software offerings; management of our supply chain and our ability to cost-effectively secure the materials we need to operate our business; disruptions in our operations; the impact of potential information technology, cybersecurity, or data security breaches; maintenance and protection of our intellectual property rights, as well as maintenance of successful research and development efforts with respect to commercially successful products and technologies; our ability to attract and/or retain key talent and qualified employees; increasing attention to sustainability matters; compliance with the various legal, regulatory, tax, privacy, and other laws to which we are subject, such as the Foreign Corrupt Practices Act and similar anti-corruption and anti-bribery laws globally, and related changes, claims, inquiries, investigations, or actions; the impact of potential product liability claims or potential litigation, arbitration, or similar proceedings; and our level of indebtedness and the impact of complying with the covenants and other terms of our debt instruments on our business. Please also see Item 1A., “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the United States (“U.S.”) Securities and Exchange Commission (“SEC”) and any updates or amendments we make in future filings. There may be other factors not presently known to us or which we currently consider to be immaterial that could cause our actual results to differ materially from those projected in any forward-looking statements we make. We do not undertake any obligation to update or revise our forward-looking statements except as required by applicable law or regulation.
3
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
| Condensed Consolidated Statements of Income (Unaudited) | ||||||||||||||||||||
For the three months ended June 30 | For the six months ended June 30 | |||||||||||||||||||
(In millions, except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||
Sales of products | $ | $ | $ | $ | ||||||||||||||||
Sales of services | ||||||||||||||||||||
Total revenues | ||||||||||||||||||||
Cost of products | ||||||||||||||||||||
Cost of services | ||||||||||||||||||||
Gross profit | ||||||||||||||||||||
Selling, general, and administrative | ||||||||||||||||||||
Research and development | ||||||||||||||||||||
Total operating expenses | ||||||||||||||||||||
Operating income | ||||||||||||||||||||
Interest and other financial charges – net | ||||||||||||||||||||
Non-operating benefit (income) costs | ( | ( | ( | ( | ||||||||||||||||
Other (income) expense – net | ( | ( | ( | |||||||||||||||||
Income before income taxes | ||||||||||||||||||||
Benefit (provision) for income taxes | ( | ( | ( | ( | ||||||||||||||||
Net income | ||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | ( | ( | ( | ( | ||||||||||||||||
Net income attributable to GE HealthCare | $ | $ | $ | $ | ||||||||||||||||
Earnings per share attributable to GE HealthCare: | ||||||||||||||||||||
Basic | $ | $ | $ | $ | ||||||||||||||||
Diluted | ||||||||||||||||||||
Weighted-average number of shares outstanding: | ||||||||||||||||||||
Basic | ||||||||||||||||||||
Diluted | ||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
4
| Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) | ||||||||||||||||||||
For the three months ended June 30 | For the six months ended June 30 | |||||||||||||||||||
(In millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||
Net income attributable to GE HealthCare | $ | $ | $ | $ | ||||||||||||||||
Net income (loss) attributable to noncontrolling interests | ||||||||||||||||||||
Net income | ||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Currency translation adjustments – net of taxes | ( | ( | ||||||||||||||||||
Pension and Other Postretirement Plans – net of taxes | ( | ( | ( | ( | ||||||||||||||||
Cash flow hedges – net of taxes | ( | ( | ||||||||||||||||||
Other comprehensive income (loss) | ( | ( | ||||||||||||||||||
Comprehensive income (loss) | ||||||||||||||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | ||||||||||||||||||||
Comprehensive income attributable to GE HealthCare | $ | $ | $ | $ | ||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
5
| Condensed Consolidated Statements of Financial Position (Unaudited) | ||||||||
As of | ||||||||
(In millions, except share and per share amounts) | June 30, 2026 | December 31, 2025 | ||||||
Cash, cash equivalents, and restricted cash | $ | $ | ||||||
Receivables – net of allowances of $ | ||||||||
Inventories | ||||||||
Contract and other deferred assets | ||||||||
All other current assets | ||||||||
Current assets | ||||||||
Property, plant, and equipment – net | ||||||||
Goodwill | ||||||||
Other intangible assets – net | ||||||||
Deferred income taxes | ||||||||
All other non-current assets | ||||||||
Total assets | $ | $ | ||||||
Short-term borrowings | $ | $ | ||||||
Accounts payable | ||||||||
Contract liabilities | ||||||||
Current compensation and benefits | ||||||||
All other current liabilities | ||||||||
Current liabilities | ||||||||
Long-term borrowings | ||||||||
Non-current compensation and benefits | ||||||||
Deferred income taxes | ||||||||
All other non-current liabilities | ||||||||
Total liabilities | ||||||||
Commitments and contingencies | ||||||||
Redeemable noncontrolling interests | ||||||||
Common stock, par value $ | ||||||||
Treasury stock, at cost, | ( | ( | ||||||
Additional paid-in capital | ||||||||
Retained earnings | ||||||||
Accumulated other comprehensive income (loss) – net | ( | ( | ||||||
Total equity attributable to GE HealthCare | ||||||||
Noncontrolling interests | ||||||||
Total equity | ||||||||
Total liabilities, redeemable noncontrolling interests, and equity | $ | $ | ||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
6
| Condensed Consolidated Statements of Changes in Equity (Unaudited) | ||||||||||||||||||||||||||||||||
Common stock | Treasury stock | |||||||||||||||||||||||||||||||
(In millions, except per share amounts) | Shares | Amount | Shares | Amount | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) – net | Equity attributable to noncontrolling interests | Total equity | |||||||||||||||||||||||
Balances as of March 31, 2026 | $ | $ | ( | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
Issuance of shares under equity awards, net of shares withheld for taxes and other | — | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||
Repurchase of common stock | — | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||
Net income attributable to GE HealthCare | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Dividends declared ($ | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||
Other comprehensive income (loss) attributable to GE HealthCare | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||
Changes in equity attributable to noncontrolling interests | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Balances as of June 30, 2026 | $ | $ | ( | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
Common stock | Treasury stock | |||||||||||||||||||||||||||||||
(In millions, except per share amounts) | Shares | Amount | Shares | Amount | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) – net | Equity attributable to noncontrolling interests | Total equity | |||||||||||||||||||||||
Balances as of March 31, 2025 | $ | $ | ( | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
Issuance of shares under equity awards, net of shares withheld for taxes and other | — | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||
Repurchase of common stock | — | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||
Net income attributable to GE HealthCare | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Other comprehensive income (loss) attributable to GE HealthCare | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Changes in equity attributable to noncontrolling interests | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Balances as of June 30, 2025 | $ | $ | ( | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
7
| Condensed Consolidated Statements of Changes in Equity (Unaudited) | ||||||||||||||||||||||||||||||||
Common stock | Treasury stock | |||||||||||||||||||||||||||||||
(In millions, except per share amounts) | Shares | Amount | Shares | Amount | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) – net | Equity attributable to noncontrolling interests | Total equity | |||||||||||||||||||||||
Balances as of December 31, 2025 | $ | $ | ( | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
Issuance of shares under equity awards, net of shares withheld for taxes and other | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||
Repurchase of common stock | — | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||
Net income attributable to GE HealthCare | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Dividends declared ($ | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||
Other comprehensive income (loss) attributable to GE HealthCare | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||
Changes in equity attributable to noncontrolling interests | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Balances as of June 30, 2026 | $ | $ | ( | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
Common stock | Treasury stock | |||||||||||||||||||||||||||||||
(In millions, except per share amounts) | Shares | Amount | Shares | Amount | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) – net | Equity attributable to noncontrolling interests | Total equity | |||||||||||||||||||||||
Balances as of December 31, 2024 | $ | $ | ( | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
Issuance of shares under equity awards, net of shares withheld for taxes and other | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||
Repurchase of common stock | — | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||
Net income attributable to GE HealthCare | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Dividends declared ($ | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||
Other comprehensive income (loss) attributable to GE HealthCare | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Changes in equity attributable to noncontrolling interests | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Balances as of June 30, 2025 | $ | $ | ( | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
8
| Condensed Consolidated Statements of Cash Flows (Unaudited) | |||||||||||
For the six months ended June 30 | |||||||||||
(In millions) | 2026 | 2025 | |||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile Net income to Cash from (used for) operating activities: | |||||||||||
Depreciation of property, plant, and equipment | |||||||||||
Amortization of intangible assets | |||||||||||
Gain on remeasurement of Nihon Medi-Physics equity method investment | ( | ||||||||||
Net periodic postretirement benefit plan (income) expense | ( | ( | |||||||||
Postretirement plan contributions | ( | ( | |||||||||
Share-based compensation | |||||||||||
Provision for income taxes | |||||||||||
Cash paid during the year for income taxes | ( | ( | |||||||||
Changes in operating assets and liabilities, excluding the effects of acquisitions: | |||||||||||
Receivables | |||||||||||
Inventories | ( | ( | |||||||||
Contract and other deferred assets | ( | ( | |||||||||
Accounts payable | ( | ||||||||||
Contract liabilities | ( | ||||||||||
Current compensation and benefits | ( | ( | |||||||||
All other operating activities – net | ( | ( | |||||||||
Cash from (used for) operating activities | |||||||||||
Cash flows – investing activities | |||||||||||
Additions to property, plant and equipment and internal-use software | ( | ( | |||||||||
Purchases of businesses, net of cash acquired | ( | ( | |||||||||
Purchases of investments | ( | ( | |||||||||
All other investing activities – net | ( | ( | |||||||||
Cash from (used for) investing activities | ( | ( | |||||||||
Cash flows – financing activities | |||||||||||
Net increase (decrease) in borrowings (maturities of 90 days or less) | ( | ||||||||||
Newly issued debt, net of debt issuance costs (maturities longer than 90 days) | |||||||||||
Repayments and other reductions (maturities longer than 90 days) | ( | ( | |||||||||
Dividends paid to stockholders | ( | ( | |||||||||
Repurchase of common stock | ( | ( | |||||||||
Proceeds from stock issued under employee benefit plans | |||||||||||
Taxes paid related to net share settlement of equity awards | ( | ( | |||||||||
All other financing activities – net | ( | ( | |||||||||
Cash from (used for) financing activities | ( | ||||||||||
Effect of foreign currency rate changes on cash, cash equivalents, and restricted cash | ( | ||||||||||
Increase (decrease) in cash, cash equivalents, and restricted cash | ( | ||||||||||
Cash, cash equivalents, and restricted cash at beginning of year | |||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | $ | |||||||||
Supplemental disclosure of cash flows information | |||||||||||
Cash paid during the year for interest | $ | ( | $ | ( | |||||||
Non-cash investing activities | |||||||||||
Acquired but unpaid property, plant, and equipment | $ | $ | |||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
9
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION
GE HealthCare Technologies Inc. is a leading global healthcare solutions provider of advanced medical technology, pharmaceutical diagnostics, and AI, cloud and software solutions.
The condensed consolidated financial statements (the “financial statements”) of GE HealthCare Technologies Inc. and its subsidiaries (“GE HealthCare,” the “Company,” “our,” “us,” or “we”) have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the financial statements do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, including normal recurring adjustments, considered necessary for a fair presentation of the Company’s financial position and operating results have been included. All intercompany balances and transactions within the Company have been eliminated in the financial statements. Operating results for the three and six months ended June 30, 2026 and 2025 are not necessarily indicative of the results that may be expected for the fiscal year as a whole. The December 31, 2025 period presented on the Condensed Consolidated Statement of Financial Position was derived from audited financial statements but does not include all disclosures required by U.S. GAAP.
The financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Tables throughout this document are presented in millions of U.S. dollars unless otherwise stated and certain columns and rows may not sum due to the use of rounded numbers. Percentages presented are calculated from the underlying whole-dollar amounts. References to the “Spin-Off” are related to the spin-off of GE HealthCare Technologies Inc. from General Electric Company, which now operates as GE Aerospace (“GE”).
ESTIMATES AND ASSUMPTIONS.
The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates based on assumptions about current, and for some estimates, future, economic and market conditions, which affect the reported amounts and related disclosures in the financial statements. We base our estimates and judgments on historical experience and on various other assumptions and information that we believe to be reasonable under the circumstances. Although our estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from our expectations, which could materially affect our results of operations, financial position, and cash flows.
RECENT ACCOUNTING PRONOUNCEMENTS.
We evaluate Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not included in our disclosures were assessed and determined to either be not applicable or are not expected to have a significant impact on our financial statements or disclosures.
In November 2024, the FASB issued ASU No. 2024-03 (“ASU 2024-03”), Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. ASU 2024-03 addresses investor requests for more transparency about expense information through the disaggregation of relevant expense captions in the notes to the financial statements. The provisions of ASU 2024-03 are effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. We expect the adoption to increase disclosures in our notes to the financial statements.
In September 2025, the FASB issued ASU No. 2025-06 (“ASU 2025-06”), Intangibles - Goodwill and Other - Internal-Use Software (subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. ASU 2025-06 updates the accounting for internal-use software by eliminating the concept of development stages. Under the updated guidance, software costs are capitalized once management has authorized and committed to funding the project, and it is probable the project will be completed and the software will be used to perform the function intended. The provisions of ASU 2025-06 are effective for annual reporting periods beginning after December 15, 2027, and interim periods within those annual periods. We are currently evaluating the effect that ASU 2025-06 will have on our financial statements.
10
NOTE 2. REVENUE RECOGNITION
Our revenues primarily consist of sales of products and services to customers. Products include equipment, imaging agents, software-related offerings, and upgrades. Services include contractual and stand-by preventative maintenance and corrective services, as well as related parts and labor, extended warranties, training, and other service-type offerings. The Company recognizes revenue from contracts with customers when the customer obtains control of the underlying products or services.
CONTRACT AND OTHER DEFERRED ASSETS.
Contract assets reflect revenue recognized on contracts with customers in excess of billings based on contractual terms. Contract assets are classified as current or non-current based on the amount of time expected to lapse until the Company’s right to consideration becomes unconditional. Other deferred assets consist of costs to obtain contracts, primarily commissions, other cost deferrals for shipped products, and deferred service, labor, and direct overhead costs.
As of | ||||||||
June 30, 2026 | December 31, 2025 | |||||||
Contract assets | $ | $ | ||||||
Other deferred assets | ||||||||
Contract and other deferred assets | ||||||||
Non-current contract assets(1) | ||||||||
Non-current other deferred assets(1) | ||||||||
Total contract and other deferred assets | $ | $ | ||||||
(1)Non-current contract and other deferred assets are recognized within All other non-current assets in the Condensed Consolidated Statements of Financial Position.
CONTRACT LIABILITIES.
Contract liabilities include customer advances and deposits received when orders are placed and billed in advance of completion of performance obligations. Contract liabilities are classified as current or non-current based on the periods over which these remaining performance obligations are expected to be satisfied with our customers.
As of | ||||||||
June 30, 2026 | December 31, 2025 | |||||||
Contract liabilities | $ | $ | ||||||
Non-current contract liabilities(1) | ||||||||
Total contract liabilities | $ | $ | ||||||
(1)Non-current contract liabilities are recognized within All other non-current liabilities in the Condensed Consolidated Statements of Financial Position.
Revenue recognized related to the contract liabilities balance at the beginning of the year was approximately $1,189 million and $1,134 million for the six months ended June 30, 2026 and 2025, respectively.
REMAINING PERFORMANCE OBLIGATIONS.
Remaining performance obligations (“RPO”) represents the estimated revenue expected from customer contracts that are partially or fully unperformed inclusive of amounts deferred in contract liabilities, excluding contracts, or portions thereof, that provide the customer with the right to cancel or terminate without incurring a substantive penalty. RPO also excludes estimated revenue from arrangements where we lease equipment manufactured by the Company to customers.
As of | ||||||||
June 30, 2026 | December 31, 2025 | |||||||
Products | $ | $ | ||||||
Services | ||||||||
Total RPO | $ | $ | ||||||
We expect to recognize substantially all of the revenue for our product-related RPO within two years and services-related RPO within five years .
11
NOTE 3. SEGMENT INFORMATION
In the second quarter of 2026, we made a strategic change to our executive leadership and to our segments, combining our Imaging and AVS businesses into a new operating and reportable segment, Advanced Imaging Solutions. The AIS segment has a product portfolio that serves customers across three core areas: Radiology, Specialized Ultrasound, and Procedural Guidance. Radiology was formerly reported as our Imaging business, while Specialized Ultrasound and Procedural Guidance were previously reported in our AVS business. Historical segment financial information presented within this report has been recast to conform to the new reportable segment structure.
Following this organizational change, the Company has three
The Company’s organizational structure is based upon the availability of separate financial information that is evaluated regularly by the Company’s CODM for the purpose of assessing performance and allocating resources. The Company’s CODM is our Chief Executive Officer. The CODM assesses segment performance using Total revenues and an earnings metric defined as “Segment EBIT.” Segment EBIT is calculated as Income before income taxes in our Condensed Consolidated Statements of Income excluding the impact of the following: Interest and other financial charges – net, Non-operating benefit (income) costs, restructuring costs, acquisition and disposition-related benefits (charges), gain (loss) on business and asset dispositions, Spin-Off and separation costs and other adjustments, amortization of acquisition-related intangible assets, investment revaluation gain (loss), and other non-recurring items such as refunds for tariffs incurred in prior years. Segment EBIT is also used in the annual budget and periodic forecasting processes and informs the CODM in decision making regarding the allocation of resources to the segments.
Total Revenues by Segment | For the three months ended June 30 | For the six months ended June 30 | ||||||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||||||
AIS: | ||||||||||||||||||||
Radiology | $ | $ | $ | $ | ||||||||||||||||
Procedural Guidance | ||||||||||||||||||||
Specialized Ultrasound | ||||||||||||||||||||
Total AIS | ||||||||||||||||||||
Total PDx | ||||||||||||||||||||
PCS: | ||||||||||||||||||||
Monitoring Solutions | ||||||||||||||||||||
Life Support Solutions | ||||||||||||||||||||
Total PCS | ||||||||||||||||||||
Other(1) | ||||||||||||||||||||
Total revenues | $ | $ | $ | $ | ||||||||||||||||
(1) Financial information not presented within the reportable segments, shown within the Other category, represents HealthCare Financial Services (“HFS”), which does not meet the definition of an operating segment.
Significant Expenses by Segment | For the three months ended June 30 | For the six months ended June 30 | ||||||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||||||
AIS: | ||||||||||||||||||||
Cost of sales | $ | $ | $ | $ | ||||||||||||||||
Other segment items(1) | ||||||||||||||||||||
Total AIS | $ | $ | $ | $ | ||||||||||||||||
PDx: | ||||||||||||||||||||
Cost of sales | $ | $ | $ | $ | ||||||||||||||||
Other segment items(1) | ||||||||||||||||||||
Total PDx | $ | $ | $ | $ | ||||||||||||||||
PCS: | ||||||||||||||||||||
Cost of sales | $ | $ | $ | $ | ||||||||||||||||
Other segment items(1) | ||||||||||||||||||||
Total PCS | $ | $ | $ | $ | ||||||||||||||||
(1) Other segment items for each segment includes selling, general, administrative, research, and development related expenses, as well as other segment income and expenses.
12
Segment EBIT | For the three months ended June 30 | For the six months ended June 30 | ||||||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||||||
Segment EBIT | ||||||||||||||||||||
AIS | $ | $ | $ | $ | ||||||||||||||||
PDx | ||||||||||||||||||||
PCS | ( | ( | ||||||||||||||||||
Other(1) | ||||||||||||||||||||
Restructuring costs | ( | ( | ( | ( | ||||||||||||||||
Acquisition and disposition-related benefits (charges) | ( | ( | ( | ( | ||||||||||||||||
Gain (loss) on business and asset dispositions | ( | |||||||||||||||||||
Spin-Off and separation costs and other adjustments | ( | ( | ||||||||||||||||||
Amortization of acquisition-related intangible assets | ( | ( | ( | ( | ||||||||||||||||
Investment revaluation gain (loss) | ( | ( | ||||||||||||||||||
Interest and other financial charges – net | ( | ( | ( | ( | ||||||||||||||||
Non-operating benefit income (costs) | ||||||||||||||||||||
Tariff refunds | ||||||||||||||||||||
Income before income taxes | $ | $ | $ | $ | ||||||||||||||||
(1) Financial information not presented within the reportable segments, shown within the Other category, primarily represents HFS, which does not meet the definition of an operating segment.
The following table represents the depreciation and amortization amounts reported within the Segment EBIT metric for our reportable segments. Depreciation and amortization expense related to shared property, plant, and equipment and intangibles, exclusive of acquisition-related intangible assets, has been fully allocated to our segments and those allocations are reflected in the amounts presented in the table below. These amounts are included within Cost of sales and Other segment items disclosed in the Significant Expenses by Segment table above.
Depreciation and Amortization by Segment | For the three months ended June 30 | For the six months ended June 30 | ||||||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||||||
AIS | $ | $ | $ | $ | ||||||||||||||||
PDx | ||||||||||||||||||||
PCS | ||||||||||||||||||||
The Company does not report total assets by segment as the Company’s CODM does not assess performance, make strategic decisions, or allocate resources based on assets.
NOTE 4. RECEIVABLES
Current Receivables | As of | ||||||||||
June 30, 2026 | December 31, 2025 | ||||||||||
Current customer receivables(1) | $ | $ | |||||||||
Non-income based tax receivables | |||||||||||
Other sundry receivables | |||||||||||
Current sundry receivables | |||||||||||
Allowance for credit losses | ( | ( | |||||||||
Total current receivables – net | $ | $ | |||||||||
(1) Chargebacks, which are primarily related to our PDx business, are generally settled through issuance of credits, typically within one month of initial recognition, and are recorded as a reduction to Current customer receivables. Balances related to chargebacks were $103 million and $148 million as of June 30, 2026 and December 31, 2025, respectively. The decrease in chargebacks is primarily due to lower wholesaler product levels.
13
Long-Term Receivables | As of | |||||||
June 30, 2026 | December 31, 2025 | |||||||
Long-term customer receivables | $ | $ | ||||||
Non-income based tax receivables | ||||||||
Other sundry receivables | ||||||||
Long-term sundry receivables | ||||||||
Allowance for credit losses | ( | ( | ||||||
Total long-term receivables – net | $ | $ | ||||||
Long-term receivables are recognized within All other non-current assets in the Condensed Consolidated Statements of Financial Position.
NOTE 5. FINANCING RECEIVABLES
Current financing receivables and non-current financing receivables are recognized within All other current assets and All other non-current assets, respectively, in the Condensed Consolidated Statements of Financial Position.
As of | ||||||||
June 30, 2026 | December 31, 2025 | |||||||
Loans receivable, at amortized cost | $ | $ | ||||||
Investment in finance leases, net of deferred income | ||||||||
Allowance for credit losses | ( | ( | ||||||
Current financing receivables – net | $ | $ | ||||||
Loans receivable, at amortized cost | $ | $ | ||||||
Investment in finance leases, net of deferred income | ||||||||
Allowance for credit losses | ( | ( | ||||||
Non-current financing receivables – net | $ | $ | ||||||
As of June 30, 2026, 2 %, 1 %, and 2 % of financing receivables were over 30 days past due, over 90 days past due, and on nonaccrual, respectively, with the majority of nonaccrual financing receivables secured by collateral. As of December 31, 2025, 1 %, 1 %, and 1 % of financing receivables were over 30 days past due, over 90 days past due, and on nonaccrual, respectively, with the majority of nonaccrual financing receivables secured by collateral.
NOTE 6. OPERATING LEASES
As a lessee, the Company leases certain logistics, office, and manufacturing facilities, as well as vehicles and other equipment. Certain of the Company’s leases may include options to extend. Our operating lease right-of-use (“ROU”) assets are recognized within Property, plant, and equipment – net and our operating lease liabilities are recognized within All other current liabilities and All other non-current liabilities in the Condensed Consolidated Statements of Financial Position, as detailed below.
Operating Lease Assets and Liabilities | As of | |||||||
June 30, 2026 | December 31, 2025 | |||||||
Operating lease ROU assets, net of amortization | $ | $ | ||||||
Current operating lease liabilities | ||||||||
Non-current operating lease liabilities | ||||||||
Total operating lease liabilities | $ | $ | ||||||
The total lease expense related to our operating lease portfolio was $60 123 million and $122 million for the six months ended June 30, 2026 and 2025, respectively.
14
NOTE 7. ACQUISITIONS, GOODWILL, AND OTHER INTANGIBLE ASSETS
ACQUISITIONS.
Intelerad
On March 18, 2026, the Company acquired 100 % of the stock of Intelerad for approximately $2,293 million in cash, net of cash acquired. The purchase was funded by the proceeds of senior unsecured notes issued in the fourth quarter of 2025, together with new borrowings under a delayed draw term loan facility and cash on hand. See Note 8, “Borrowings” for additional information on the borrowings. Intelerad is included in the Company’s AIS segment.
Intelerad is a leading medical imaging software and digital enterprise workflow solutions company with a significant presence in outpatient ambulatory care settings, which the Company believes complements our strength in hospital-based imaging.
The preliminary fair values of the assets and liabilities assumed in connection with the acquisition of Intelerad are as follows.
Preliminary allocation | |||||
Receivables | $ | ||||
Contract assets | |||||
Property, plant, and equipment | |||||
Goodwill | |||||
Other intangible assets | |||||
All other current and non-current assets | |||||
Accounts payable | ( | ||||
Contract liabilities | ( | ||||
Other current liabilities | ( | ||||
Deferred income taxes | ( | ||||
All other non-current liabilities(1) | ( | ||||
Total net assets post acquisition | $ | ||||
(1) All other non-current liabilities primarily includes tax reserves.
The purchase price allocation required estimates and assumptions, including, but not limited to, estimates of future cash flows, direct costs, and appropriate discount rates. During the three months ended June 30, 2026, the Company reassessed its estimates and inputs as new information about facts and circumstances that existed as of the acquisition date became known. As a result, the Company recorded a net increase of $45 million to goodwill. These adjustments primarily relate to Contract assets, Deferred income taxes, and Other intangible assets. While all amounts remain subject to adjustments, the areas subject to the most significant potential adjustments are Other intangible assets and Deferred income taxes. The Company’s management believes the amounts recognized for the assets acquired and liabilities assumed are based on reasonable estimates and assumptions.
Other intangibles relate to $845 million of definite-lived intangible assets, primarily consisting of developed technology, customer relationships, and trade names. The acquired definite-lived intangibles are being amortized over a weighted-average estimated useful life of approximately 12 years. The estimated fair value of intangibles was determined using the income approach, which is a valuation technique that provides an estimate of the fair value of an asset based on market participant expectations of cash flows an asset would generate over its useful life.
Goodwill recognized in connection with the Intelerad acquisition, recorded within the AIS segment, is not deductible for income tax purposes. The goodwill primarily reflects expected synergies and other strategic benefits associated with the integration of Intelerad’s technology into the Company’s market offerings and imaging technologies.
Deferred income tax liabilities include the expected U.S. federal, state, and foreign tax consequences associated with temporary differences between the preliminary fair values of the assets acquired and liabilities assumed and the respective tax basis.
Our unaudited supplemental pro forma consolidated financial information for the three and six months ended June 30, 2026 and 2025, including the results of operations for Intelerad as if the Intelerad acquisition had been completed on January 1, 2025, is as follows.
For the three months ended June 30 | For the six months ended June 30 | |||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||
Total revenues | $ | $ | $ | $ | ||||||||||
Net income attributable to GE HealthCare | ||||||||||||||
15
The unaudited supplemental pro forma consolidated financial information was prepared using the acquisition method of accounting and was based on the historical financial information of Intelerad. In order to reflect the occurrence of the acquisition on January 1, 2025, the unaudited supplemental pro forma financial information includes adjustments to reflect the following: (i) incremental amortization expense based on the current preliminary fair values of the identifiable intangible assets; (ii) the additional interest expense associated with the issuance of debt to finance the acquisition; and (iii) the reclassification of transaction and other acquisition-related costs incurred during the three and six months ended June 30, 2026, to the three and six months ended June 30, 2025. The unaudited supplemental pro forma financial information is not necessarily indicative of what the consolidated results of operations would have been had the acquisition been completed on January 1, 2025. In addition, the unaudited pro forma financial information is not a projection of future results of operations of the combined company, nor does it reflect the expected realization of any synergies or cost savings associated with the acquisition.
icometrix
On November 7, 2025, the Company acquired 100 % of the stock of icometrix NV (“icometrix”) for approximately $98 million of upfront payment, net of cash acquired and potential earn-out payments up to $35 million based on sales targets over two years . icometrix is focused on providing AI-powered brain imaging analysis for neurological disorders such as Alzheimer’s disease. We are in the process of integrating the icometrix platform with our MRI systems. icometrix is included in the Company’s AIS segment.
The preliminary purchase price allocation resulted in goodwill of $74 million, intangible assets of $34 million, and deferred tax liabilities of $9 million. Purchase price allocations are based on preliminary valuations. Our estimates and assumptions are subject to change within the measurement period. The goodwill associated with the acquired business is non-deductible for tax purposes.
Nihon Medi-Physics
On March 31, 2025, the Company acquired the remaining 50 % interest in Nihon Medi-Physics Co., Ltd. (“NMP”) from joint venture partner Sumitomo Chemical for net cash consideration of $271 million. NMP is a leading pharmaceutical manufacturer in Japan, focused on radiopharmaceuticals, which are used to enable clinical images across neurology, cardiology, and oncology procedures, as well as nonclinical and clinical development of radiotracers and theranostics research. Their product portfolio includes several GE HealthCare radiopharmaceuticals. NMP is included in the Company’s PDx segment.
On March 31, 2025, the fair value of the Company’s existing 50 % interest in NMP was determined to be $301 million based on the cash consideration exchanged for acquiring the remaining 50 % equity interest. The carrying value of our 50 % interest was $204 million. The Company recognized a net gain of $97 million resulting from this remeasurement to fair value. This gain included the reclassification of certain amounts related to the Company’s 50 % interest out of Accumulated other comprehensive income (loss) – net (“AOCI”) including foreign currency translation gains of $63 million and losses related to a defined benefit pension plan of $8 million. The net gain from this remeasurement was recorded in Other (income) expense – net in the Company’s Condensed Consolidated Statements of Income for the six months ended June 30, 2025.
The following table provides a summary of the purchase price consideration transferred for the acquisition of NMP.
Purchase consideration | |||||
Cash consideration, net of cash acquired | $ | ||||
Fair value of previously held interest in NMP | |||||
Fair value of contingent consideration | |||||
Total allocable purchase price | $ | ||||
The fair values of the assets and liabilities assumed in connection with the acquisition of NMP, which were finalized in the first quarter of 2026 without material adjustment, are as follows.
Purchase price allocation | |||||
Receivables | $ | ||||
Inventories | |||||
All other current assets(1) | |||||
Property, plant, and equipment | |||||
Goodwill | |||||
Other intangible assets | |||||
All other non-current assets | |||||
Deferred income taxes | ( | ||||
All other non-current liabilities | ( | ||||
Other(2) | ( | ||||
Total net assets post acquisition | $ | ||||
(1) All other current assets includes $35 million of indemnification assets, with the underlying indemnified liabilities recorded in All other non-current liabilities.
(2) Other includes Accounts payable, All other current liabilities, and Current compensation and benefits.
16
Property, plant, and equipment is mostly comprised of land, buildings, equipment (including machinery, furniture, and fixtures) and construction in process. The fair value of property, plant, and equipment was determined using a market participant approach.
Other intangibles relate to $235 million of definite-lived intangible assets, primarily consisting of developed product market authorization rights and customer relationships. The acquired definite-lived intangibles are being amortized over a weighted-average estimated useful life of approximately 13 years. The estimated fair value of intangibles was determined using the income approach.
The goodwill associated with NMP, recorded within the PDx segment, is non-deductible for tax purposes and is attributed to expected synergies with NMP’s existing assets and workforce that are expected to allow the Company greater access and growth in the Japan market.
Included in All other non-current liabilities are asset retirement obligations and decommissioning liabilities of $124 million, which were assumed in the transaction.
NMP has a defined benefit pension plan which has pension assets of $71 million and pension liabilities of $33 million, a net asset of $38 million, which we acquired in the transaction and is included in All other non-current assets.
Deferred income tax liabilities include the expected U.S. federal, state, and foreign tax consequences associated with temporary differences between the fair values of the assets acquired and liabilities assumed and the respective tax basis.
If the acquisition of NMP had taken place as of the beginning of 2024, consolidated revenues and earnings would not have been significantly different than reported amounts.
GOODWILL.
As discussed in Note 3, “Segment Information,” in the second quarter of 2026, the Company combined its Imaging and AVS businesses into a new operating and reportable segment, AIS. Accordingly, we combined the historical Imaging and AVS goodwill balances into the newly formed AIS segment.
We assess the possibility that a reporting unit’s fair value has been reduced below its carrying amount due to the occurrence of events or circumstances between annual impairment testing dates. In connection with the change in reportable segments in the second quarter of 2026, the Company evaluated the goodwill of our reporting units within the AIS segment for impairment before and after the segment realignment and we did not identify any events or circumstances that would require an interim impairment test. In addition, with respect to goodwill within the PDx and PCS segments, we did not identify any events or circumstances that required an interim impairment test since the last annual impairment testing date. Future changes in operating results, market conditions, or other relevant assumptions could affect this assessment. Should the Company identify future indicators of goodwill impairment, it may be required to conduct an interim impairment test that could result in a goodwill impairment charge.
AIS | PDx | PCS | Total | |||||||||||
Balance at December 31, 2025 | $ | $ | $ | $ | ||||||||||
Acquisitions(1) | ||||||||||||||
Foreign currency exchange and other | ( | ( | ( | ( | ||||||||||
Balance at June 30, 2026 | $ | $ | $ | $ | ||||||||||
(1) Includes the purchase of Intelerad recorded within our AIS segment, as described above.
OTHER INTANGIBLE ASSETS.
As of June 30, 2026 | As of December 31, 2025 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||
Definite-lived assets | |||||||||||||||||||||||
Customer-related | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||
Patents and technology | ( | ( | |||||||||||||||||||||
Capitalized software | ( | ( | |||||||||||||||||||||
Trademarks and other | ( | ( | |||||||||||||||||||||
Total definite-lived assets | ( | ( | |||||||||||||||||||||
Indefinite-lived assets(1) | — | — | |||||||||||||||||||||
Total other intangible assets | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||
(1) Indefinite-lived intangible assets relate to acquired in-process research and development prior to project completion and are not amortized.
17
NOTE 8. BORROWINGS
The Company’s borrowings include the senior unsecured notes and credit agreements detailed below.
Senior Unsecured Notes
As of June 30, 2026, the Company’s borrowings include $9,500 million aggregate principal amount of senior unsecured notes in nine series with maturity dates ranging from 2027 through 2052.
Credit Facilities
In the first quarter of 2026, the Company terminated its existing $500 million 364-day senior unsecured revolving credit facility and replaced it with a new $500 million 364-day senior unsecured revolving credit facility with terms that are substantially similar to those of the terminated facility.
The Company has credit agreements providing for:
•a five-year senior unsecured revolving credit facility in an aggregate committed amount of $3,000 million, maturing on March 27, 2030;
•a 364-day senior unsecured revolving credit facility in an aggregate committed amount of $500 million, maturing on February 25, 2027; and
•a three-year senior unsecured delayed draw term loan credit facility in an aggregate principal amount of $650 million, maturing on March 16, 2029 (the “Delayed Draw Term Loan Facility” and, together with the five-year senior unsecured revolving credit facility and the 364-day senior unsecured revolving credit facility, the “Credit Facilities”).
In the first quarter of 2026, in connection with the acquisition of Intelerad, the Company borrowed $500 million under the 364-day senior unsecured revolving credit facility and subsequently completed a $650 million drawdown of the Delayed Draw Term Loan Facility, which had aggregate lender commitments of $750 million. The $100 million of unused lender commitments for the Delayed Draw Term Loan Facility automatically terminated upon completion of the drawdown. Immediately following the acquisition, the Company repaid $500 million under the 364-day senior unsecured revolving credit facility. Refer to Note 7, “Acquisitions, Goodwill, and Other Intangible Assets” for more information on our Intelerad acquisition.
There were no five-year senior unsecured revolving credit facility or the 364-day senior unsecured revolving credit facility as of June 30, 2026 and December 31, 2025, respectively.
Borrowings Composition | As of | |||||||
June 30, 2026 | December 31, 2025 | |||||||
$ | $ | |||||||
Floating rate Delayed Draw Term Loan Facility due March 16, 2029 | ||||||||
Floating rate Term Loan Facility due January 2, 2026(1) | ||||||||
Other | ||||||||
Total principal debt issued | ||||||||
Less: Unamortized debt issuance costs and discounts | ||||||||
Add: Cumulative basis adjustment for fair value hedges | ( | |||||||
Total borrowings | ||||||||
Less: Short-term borrowings(2) | ||||||||
Long-term borrowings | $ | $ | ||||||
(1) In the first quarter of 2026, the Company repaid $500 million of the remaining Term Loan Facility upon maturity.
(2) Short-term borrowings as of June 30, 2026 and December 31, 2025 includes $2 million and $502 million, respectively, related to the current portion of our long-term borrowings, net of unamortized debt issuance costs and discounts.
18
See Note 12, “Financial Instruments and Fair Value Measurements” for further information about borrowings and associated derivatives contracts.
LETTERS OF CREDIT, GUARANTEES, AND OTHER COMMITMENTS.
As of June 30, 2026 and December 31, 2025, the Company had bank guarantees and surety bonds of approximately $1,189 million and $1,149 million, respectively, related to certain commercial contracts. Additionally, we have issued approximately $20 million and $22 million of guarantees as of June 30, 2026 and December 31, 2025, respectively, primarily related to residual value and credit guarantees on equipment sold to third-party finance companies. Our Condensed Consolidated Statements of Financial Position reflect a liability of $3
NOTE 9. POSTRETIREMENT BENEFIT PLANS
We sponsor a number of pension and retiree health and life insurance benefit plans that we present in three categories: U.S. Plans, International Plans, and Other Postretirement Plans (“OPEB Plans”). Refer to Note 10, “Postretirement Benefit Plans” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 for further information. Pension plans with pension assets or obligations less than $50 million are not included in the results below.
Components of Expense (Income) | ||||||||||||||||||||||||||
U.S. Plans | International Plans | OPEB Plans | ||||||||||||||||||||||||
For the three months ended June 30, | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Service cost – Operating | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Interest cost | ||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | ||||||||||||||||||||||
Amortization of net loss (gain) | ( | ( | ( | |||||||||||||||||||||||
Amortization of prior service cost (credit) | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||
Special termination cost | ||||||||||||||||||||||||||
Non-operating | $ | ( | $ | ( | $ | $ | $ | ( | $ | ( | ||||||||||||||||
Net periodic expense (income) | $ | ( | $ | ( | $ | $ | $ | ( | $ | ( | ||||||||||||||||
U.S. Plans | International Plans | OPEB Plans | ||||||||||||||||||||||||||||||
For the six months ended June 30, | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||
Service cost – Operating | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||
Interest cost | ||||||||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | ||||||||||||||||||||||||||||
Amortization of net loss (gain) | ( | ( | ( | |||||||||||||||||||||||||||||
Amortization of prior service cost (credit) | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||
Special termination cost | ||||||||||||||||||||||||||||||||
Non-operating | $ | ( | $ | ( | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||||
Net periodic expense (income) | $ | ( | $ | ( | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||||
In the six months ended June 30, 2026, the Company made cash payments totaling $90 million to its U.S. Plans, $19 million to its International Plans, and $62 million to its OPEB Plans. As of June 30, 2026, the Company expects to make total cash contributions of approximately $350 million to these plans in 2026. The Company funds annually, at a minimum, the statutorily required minimum amount for our qualified plans. Non-qualified plans are unfunded and we pay benefits from our cash on hand.
Defined Contribution Plan
GE HealthCare sponsors a defined contribution plan for its eligible U.S. employees. Expenses associated with our employees’ participation in GE HealthCare’s defined contribution plan were $39 87 million and $83 million for the six months ended June 30, 2026 and 2025, respectively.
NOTE 10. INCOME TAXES
Our effective income tax rate was 17.2 % and 18.4 % for the three months ended June 30, 2026 and 2025, respectively, and 17.8 % and 16.6 % for the six months ended June 30, 2026 and 2025, respectively.
19
The tax rate for the three and six months ended June 30, 2026 is lower than the U.S. statutory rate primarily due to the use of tax attributes and foreign-derived deduction eligible income benefits, reconciling adjustments to recorded tax account balances, and research and development (“R&D”) benefits, partially offset by withholding taxes, geographic earnings mix, and state taxes.
The tax rate for the three months ended June 30, 2025 is lower than the U.S. statutory rate primarily due to the use of tax attributes and R&D benefits, partially offset by withholding taxes, geographic earnings mix, and state taxes. The tax rate for the six months ended June 30, 2025 is lower than the U.S. statutory rate primarily due to foreign income tax reserve releases, the use of tax attributes, the nontaxable remeasurement gain that was recorded in connection with the NMP acquisition, and R&D benefits, partially offset by withholding taxes, geographic earnings mix, and state taxes.
The Company is currently being audited, or remains subject to audit, in a number of jurisdictions for the tax years 2004-2024, including China, France, Germany, India, Japan, Norway, the United Kingdom, and the United States.
NOTE 11. SHAREHOLDERS' EQUITY
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) – NET.
Changes in AOCI by component were as follows.
For the three months ended June 30, 2026 | ||||||||||||||
Currency translation adjustments(1) | Pension and Other Postretirement Plans | Cash flow hedges | Total AOCI | |||||||||||
March 31, 2026 | $ | ( | $ | $ | $ | ( | ||||||||
Other comprehensive income (loss) before reclassifications – net of taxes of $ | ( | ( | ||||||||||||
Reclassifications from AOCI – net of taxes(2) of $ | ( | ( | ( | |||||||||||
Other comprehensive income (loss) | ( | ( | ( | |||||||||||
Less: Other comprehensive income (loss) attributable to noncontrolling interests | ||||||||||||||
June 30, 2026 | $ | ( | $ | $ | $ | ( | ||||||||
For the three months ended June 30, 2025 | ||||||||||||||
Currency translation adjustments(1) | Pension and Other Postretirement Plans | Cash flow hedges | Total AOCI | |||||||||||
March 31, 2025 | $ | ( | $ | $ | $ | ( | ||||||||
Other comprehensive income (loss) before reclassifications – net of taxes of $ | ( | ( | ||||||||||||
Reclassifications from AOCI – net of taxes(2) of $ | ( | ( | ||||||||||||
Other comprehensive income (loss) | ( | ( | ||||||||||||
Less: Other comprehensive income (loss) attributable to noncontrolling interests | ||||||||||||||
June 30, 2025 | $ | ( | $ | $ | ( | $ | ( | |||||||
For the six months ended June 30, 2026 | ||||||||||||||
Currency translation adjustments(1) | Pension and Other Postretirement Plans | Cash flow hedges | Total AOCI | |||||||||||
December 31, 2025 | $ | ( | $ | $ | $ | ( | ||||||||
Other comprehensive income (loss) before reclassifications – net of taxes of $( | ( | ( | ||||||||||||
Reclassifications from AOCI – net of taxes(2) of $ | ( | ( | ( | |||||||||||
Other comprehensive income (loss) | ( | ( | ( | |||||||||||
Less: Other comprehensive income (loss) attributable to noncontrolling interests | ( | ( | ||||||||||||
June 30, 2026 | $ | ( | $ | $ | $ | ( | ||||||||
20
For the six months ended June 30, 2025 | ||||||||||||||
Currency translation adjustments(1) | Pension and Other Postretirement Plans | Cash flow hedges | Total AOCI | |||||||||||
December 31, 2024 | $ | ( | $ | $ | $ | ( | ||||||||
Other comprehensive income (loss) before reclassifications – net of taxes of $ | ( | ( | ||||||||||||
Reclassifications from AOCI – net of taxes(2)(3) of $ | ( | ( | ||||||||||||
Other comprehensive income (loss) | ( | ( | ||||||||||||
Less: Other comprehensive income (loss) attributable to noncontrolling interests | ||||||||||||||
June 30, 2025 | $ | ( | $ | $ | ( | $ | ( | |||||||
(1) The amount of Currency translation adjustments recognized in Other comprehensive income (loss) (“OCI”) included net gains (losses) relating to net investment hedges, as further discussed in Note 12, “Financial Instruments and Fair Value Measurements.”
(2) Reclassifications from AOCI into earnings for Pension and Other Postretirement Plans are recognized within Non-operating benefit (income) costs, while Cash flow hedges are recognized within Cost of products and Cost of services in our Condensed Consolidated Statements of Income.
(3) Includes net of tax impact of $63 million of gains to Currency translation adjustments and $8 million of losses to Pension and Other Postretirement Plans related to the derecognition of the prior NMP equity method investment. Refer to Note 7, “Acquisitions, Goodwill, and Other Intangible Assets” for additional information on the NMP acquisition.
SHARE REPURCHASES.
On April 30, 2025, our Board of Directors authorized a share repurchase program (the “repurchase program”) for up to $1,000 million of our common stock. The repurchase program does not have an expiration date, does not obligate the Company to acquire any particular amount of common stock, and may be suspended or terminated at any time at the Company's discretion. During the three and six months ended June 30, 2026, we repurchased 3.3 million shares and 4.7 million shares, respectively, for total consideration of approximately $200 million and $300 million, respectively. During the three months ended June 30, 2025, we repurchased 1.4 million shares for total consideration of approximately $100 million. As of June 30, 2026, we had $500 million available under the repurchase program authorization.
NOTE 12. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS
DERIVATIVES AND HEDGING.
Our primary objective in executing and holding derivative contracts is to reduce the volatility of earnings and cash flows associated with risks related to foreign currency exchange rates, interest rates, and equity prices. These derivative contracts reduce, but do not entirely eliminate, the aforementioned risks. Our policy is to use derivative contracts solely for managing risks and not for speculative purposes.
Cash Flow Hedges
For derivative instruments designated as cash flow hedges, changes in the fair value of designated hedging instruments are initially recorded as a component of AOCI and subsequently reclassified to earnings in the period in which the hedged transaction affects earnings and to the same financial statement line item impacted by the hedged transaction. As of June 30, 2026, we expect to reclassify $42 million of pre-tax net deferred gains associated with designated cash flow hedges to earnings in the next 12 months, contemporaneously with the impact on earnings of the related hedged transactions.
Within the Condensed Consolidated Statements of Cash Flows, cash flows associated with derivatives designated as cash flow hedges are recorded in All other operating activities – net.
Net Investment Hedges
We use cross-currency interest rate swaps and foreign currency forward contracts in combination with foreign currency option contracts to hedge the foreign currency risk associated with our net investment in foreign operations. As of June 30, 2026, these contracts were designated as hedges of our net investment in foreign operations, primarily in Euro and Chinese Renminbi currencies.
Within the Condensed Consolidated Statements of Cash Flows, cash flows associated with derivatives designated as net investment hedges are recorded in All other investing activities – net and cash flows from the periodic interest settlements on the cross-currency swaps are recorded in All other operating activities – net.
21
Fair Value Hedges
We use interest rate swaps to hedge the interest rate risk on our fixed rate borrowings. These derivatives are designated as fair value hedges to hedge the changes in fair value due to benchmark interest rate risk of specific designated cash flows of our senior unsecured notes.
We record the changes in fair value on these swap contracts in Interest and other financial charges – net in our Condensed Consolidated Statements of Income, the same line item where the offsetting change in the fair value of the designated cash flows of the senior unsecured note is recorded as a basis adjustment.
Within the Condensed Consolidated Statements of Cash Flows, cash flows for the periodic interest settlements on the interest rate swaps are recorded in All other operating activities – net.
Derivatives Not Designated as Hedging Instruments
We also execute derivative instruments, such as foreign currency forward contracts and equity-linked total return swaps, which are not designated as qualifying hedges. These derivatives serve as economic hedges of foreign currency exchange rate and equity price risks. We also identify and record foreign currency-related features in our purchase or sales contracts where the currency is not the local or functional currency of any substantive party to the contract as embedded derivatives.
The changes in fair value of derivatives not designated as qualifying hedge transactions are recorded in Cost of products, Cost of services, Selling, general, and administrative (“SG&A”), and Other (income) expense – net in the Condensed Consolidated Statements of Income based on the nature of the underlying hedged transaction. Changes in fair value of embedded derivatives are recognized in Other (income) expense – net in the Condensed Consolidated Statements of Income.
Within the Condensed Consolidated Statements of Cash Flows, cash flows associated with derivatives not designated but used as economic hedges are recorded, based on the nature of the underlying hedged transaction, in All other operating activities – net and All other investing activities – net, and cash flows related to embedded derivatives are recorded in All other operating activities – net.
The following table presents the gross fair values of our outstanding derivative instruments.
Fair Value of Derivatives | June 30, 2026 | December 31, 2025 | |||||||||||||||||||||
Gross Notional | Fair Value – Assets | Fair Value – Liabilities | Gross Notional | Fair Value – Assets | Fair Value – Liabilities | ||||||||||||||||||
Foreign currency forward contracts | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Derivatives accounted for as cash flow hedges | |||||||||||||||||||||||
Cross-currency swaps | |||||||||||||||||||||||
Foreign currency forward and options contracts | |||||||||||||||||||||||
Derivatives accounted for as net investment hedges | |||||||||||||||||||||||
Interest rate swaps | |||||||||||||||||||||||
Derivatives accounted for as fair value hedges | |||||||||||||||||||||||
Foreign currency forward contracts | |||||||||||||||||||||||
Other derivatives(1) | |||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||
Total derivatives | $ | $ | $ | $ | $ | $ | |||||||||||||||||
(1) Other derivatives are comprised of embedded derivatives and derivatives related to equity contracts.
The following table presents amounts recorded in Long-term borrowings in the Condensed Consolidated Statements of Financial Position related to cumulative basis adjustment for fair value hedges.
June 30, 2026 | December 31, 2025 | |||||||||||||||||||||||||
Carrying amount | Cumulative basis adjustment included in the carrying amount | Carrying amount | Cumulative basis adjustment included in the carrying amount | |||||||||||||||||||||||
$ | $ | ( | $ | $ | ||||||||||||||||||||||
Under the master arrangements with the respective counterparties to our derivative contracts, in certain circumstances and subject to applicable requirements, we are allowed to net settle transactions with a single net amount payable by one party to the other. However, we have elected to present the derivative assets and derivative liabilities on a gross basis in our Condensed Consolidated Statements of Financial Position and in the table above.
22
As of June 30, 2026 and December 31, 2025, the potential effect of rights of offset associated with the derivative contracts would be an offset to both assets and liabilities by $98 million and $107 million, respectively.
The table below presents the pre-tax gains (losses) recognized in OCI associated with the Company’s cash flow and net investment hedges.
Pre-tax Gains (Losses) Recognized in OCI Related to Cash Flow and Net Investment Hedges | ||||||||||||||||||||
For the three months ended June 30 | For the six months ended June 30 | |||||||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||||||
Cash flow hedges | $ | $ | ( | $ | $ | ( | ||||||||||||||
Net investment hedges(1) | ( | ( | ( | |||||||||||||||||
(1) Amounts recognized in OCI for excluded components for the periods presented were immaterial.
The tables below present the gains (losses) on our derivative financial instruments and hedging activity in the Condensed Consolidated Statements of Income.
Derivative Financial Instruments and Hedging Activity | For the three months ended June 30, 2026 | |||||||||||||||||||||||||||||||
Cost of products | Cost of services | SG&A | Interest and other financial charges – net | Other(4) | ||||||||||||||||||||||||||||
Foreign currency forward contracts | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Effects of cash flow hedges | ||||||||||||||||||||||||||||||||
Cross-currency swaps | ||||||||||||||||||||||||||||||||
Foreign currency forward and options contracts | ||||||||||||||||||||||||||||||||
Effects of net investment hedges(1) | ||||||||||||||||||||||||||||||||
Interest rate swaps(2) | ( | |||||||||||||||||||||||||||||||
Debt basis adjustment on Long-term borrowings | ||||||||||||||||||||||||||||||||
Effects of fair value hedges | ||||||||||||||||||||||||||||||||
Foreign currency forward contracts | ||||||||||||||||||||||||||||||||
Other derivatives(3) | ||||||||||||||||||||||||||||||||
Effects of derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||||||
For the three months ended June 30, 2025 | ||||||||||||||||||||||||||||||||
Cost of products | Cost of services | SG&A | Interest and other financial charges – net | Other(4) | ||||||||||||||||||||||||||||
Foreign currency forward contracts | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||
Effects of cash flow hedges | ( | ( | ||||||||||||||||||||||||||||||
Cross-currency swaps | ||||||||||||||||||||||||||||||||
Foreign currency forward and option contracts | ||||||||||||||||||||||||||||||||
Effects of net investment hedges(1) | ||||||||||||||||||||||||||||||||
Interest rate swaps(2) | ||||||||||||||||||||||||||||||||
Debt basis adjustment on Long-term borrowings | ( | |||||||||||||||||||||||||||||||
Effects of fair value hedges | ( | |||||||||||||||||||||||||||||||
Foreign currency forward contracts | ( | |||||||||||||||||||||||||||||||
Other derivatives(3) | ||||||||||||||||||||||||||||||||
Effects of derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||||||
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Derivative Financial Instruments and Hedging Activity | For the six months ended June 30, 2026 | |||||||||||||||||||||||||||||||
Cost of products | Cost of services | SG&A | Interest and other financial charges – net | Other(4) | ||||||||||||||||||||||||||||
Foreign currency forward contracts | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Effects of cash flow hedges | ||||||||||||||||||||||||||||||||
Cross-currency swaps | ||||||||||||||||||||||||||||||||
Foreign currency forward and options contracts | ||||||||||||||||||||||||||||||||
Effects of net investment hedges(1) | ||||||||||||||||||||||||||||||||
Interest rate swaps(2) | ( | |||||||||||||||||||||||||||||||
Debt basis adjustment on Long-term borrowings | ||||||||||||||||||||||||||||||||
Effects of fair value hedges | ||||||||||||||||||||||||||||||||
Foreign currency forward contracts | ||||||||||||||||||||||||||||||||
Other derivatives(3) | ||||||||||||||||||||||||||||||||
Effects of derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||||||
For the six months ended June 30, 2025 | ||||||||||||||||||||||||||||||||
Cost of products | Cost of services | SG&A | Interest and other financial charges – net | Other(4) | ||||||||||||||||||||||||||||
Foreign currency forward contracts | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||
Effects of cash flow hedges | ( | ( | ||||||||||||||||||||||||||||||
Cross-currency swaps | ||||||||||||||||||||||||||||||||
Foreign currency forward and option contracts | ||||||||||||||||||||||||||||||||
Effects of net investment hedges(1) | ||||||||||||||||||||||||||||||||
Interest rate swaps(2) | ||||||||||||||||||||||||||||||||
Debt basis adjustment on Long-term borrowings | ( | |||||||||||||||||||||||||||||||
Effects of fair value hedges | ( | |||||||||||||||||||||||||||||||
Foreign currency forward contracts | ( | |||||||||||||||||||||||||||||||
Other derivatives(3) | ( | |||||||||||||||||||||||||||||||
Effects of derivatives not designated as hedging instruments | ( | |||||||||||||||||||||||||||||||
(1) Changes in fair value related to components other than the spot rate are excluded from effectiveness testing for the three and six months ended June 30, 2026 and 2025.
(2) Amount includes interest income (expense) on interest rate derivatives of $1 million and $(4 ) million for the three months ended June 30, 2026 and 2025, respectively, and $2 million and $(8 ) million for the six months ended June 30, 2026 and 2025, respectively.
(3) Other derivatives are comprised of embedded derivatives and derivatives related to equity contracts.
(4) Amounts are inclusive of gains (losses) in Other (income) expense – net in the Condensed Consolidated Statements of Income.
24
FAIR VALUE MEASUREMENTS.
The following table represents assets and liabilities that are recorded and measured at fair value on a recurring basis.
Fair Value of Assets and Liabilities Measured on a Recurring Basis | |||||||||||||||||||||||||||||
As of June 30, 2026 | As of December 31, 2025 | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Investment securities | |||||||||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||
Contingent consideration | |||||||||||||||||||||||||||||
Cash equivalents
As of June 30, 2026 and December 31, 2025, Cash, cash equivalents, and restricted cash of $2,105 million and $4,512 million, respectively, included money market funds of $309 million and $399 million, and other cash equivalents of $950 million and $3,046 million, respectively. The carrying values of the other cash equivalents approximates the fair value due to their short maturities and are valued using Level 1 or Level 2 inputs. Refer to Note 16, “Supplemental Financial Information” for further information.
Derivatives
Derivatives are measured at fair value using a discounted cash flow method or option models using interest rates, foreign exchange spot and forward rates and yield curves observable at commonly quoted intervals, implied volatilities, and credit spreads as key inputs. Unobservable inputs relate to our own credit risk which is not significant to the overall measurement of fair value.
Contingent consideration
Contingent consideration is recorded at fair value based on estimates of future cash flows in connection with business acquisitions. As the valuation of these liabilities is based on inputs that are less observable or not observable in the market, the determination of fair value is classified within Level 3 of the fair value hierarchy.
Non-recurring fair value measurements
Changes in fair value measurements of assets and liabilities measured at fair value on a non-recurring basis, such as equity method investments, equity investments without readily determinable fair value, financing receivables, and long-lived assets, were not material for the six months ended June 30, 2026 and 2025, with the exception of the gain on fair value measurement of the NMP equity method investment as described in Note 7, “Acquisitions, Goodwill, and Other Intangible Assets.”
Fair value of other financial instruments
The estimated fair value of borrowings as of June 30, 2026 and December 31, 2025 was $10,495 million and $10,545 million, respectively, compared to a carrying value (which only includes a reduction for unamortized debt issuance costs and discounts and cumulative basis adjustment) of $10,093 million and $10,003 million, respectively. The fair value of our borrowings includes accrued interest and is determined based on observable and quoted prices and spreads of comparable debt and benchmark securities and is considered Level 2 in the fair value hierarchy. See Note 8, “Borrowings” and Note 16, “Supplemental Financial Information” for further information.
NOTE 13. COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES, AND OTHER LOSS CONTINGENCIES
GUARANTEES.
The Company has off-balance sheet credit exposure through standby letters of credit, bank guarantees, bid bonds, and surety bonds. See Note 8, “Borrowings” for further information.
PRODUCT WARRANTIES.
We provide warranty coverage to our customers as part of customary practices in the market to provide assurance that the products we sell comply with agreed-upon specifications. We provide estimated product warranty expenses when we sell the related products. Warranty accruals are estimates that are based on the best available information, mostly historical claims experience, therefore claims costs may differ from amounts provided. An analysis of changes in the liability for product warranties follows.
25
For the six months ended June 30 | |||||||||||
2026 | 2025 | ||||||||||
Balance at beginning of period | $ | $ | |||||||||
Current-year provisions | |||||||||||
Expenditures | ( | ( | |||||||||
Foreign currency exchange and other | ( | ||||||||||
Balance at end of period | $ | $ | |||||||||
Product warranties are recognized within All other current liabilities in the Condensed Consolidated Statements of Financial Position.
LEGAL MATTERS.
In the normal course of our business, we are involved from time to time in various arbitrations; class actions; commercial, intellectual property, and product liability litigation; government investigations; investigations by competition/antitrust authorities; and other legal, regulatory, or governmental actions, including the significant matter described below that could have a material impact on our results of operations and cash flows. In many proceedings, including the specific matter described below, it is inherently difficult to determine whether any loss is probable or even reasonably possible or to estimate the size or range of the possible loss, and accruals for legal matters are not recorded until a loss for a particular matter is considered probable and reasonably estimable. Given the nature of legal matters and the complexities involved, it is often difficult to predict and determine a meaningful estimate of loss or range of loss until we know, among other factors, the particular claims involved, the likelihood of success of our defenses to those claims, the damages or other relief sought, how discovery or other procedural considerations will affect the outcome, the settlement posture of other parties, and other factors that may have a material effect on the outcome. For such matters, unless otherwise specified, we do not believe it is possible to provide a meaningful estimate of loss at this time. Moreover, it is not uncommon for legal matters to be resolved over many years, during which time relevant developments and new information must be continuously evaluated.
Contracts with Iraqi Ministry of Health
In 2017, a number of U.S. Service members, civilians, and their families brought a complaint in the U.S. District Court for the District of Columbia (the “District Court”) against a number of pharmaceutical and medical device companies, including GE HealthCare and certain affiliates, alleging that the defendants violated the U.S. Anti-Terrorism Act. The complaint seeks monetary relief and alleges that the defendants provided funding for an Iraqi terrorist organization through their sales practices pursuant to pharmaceutical and medical device contracts with the Iraqi Ministry of Health. In July 2020, the District Court granted defendants’ motions to dismiss and dismissed all of the plaintiffs’ claims. In January 2022, a panel of the U.S. Court of Appeals for the District of Columbia Circuit (the “Court of Appeals”) reversed the District Court’s decision. In February 2022, the defendants requested review of the decision by all the judges on the Court of Appeals (an “en banc” review). In February 2023, the Court of Appeals denied this request. In June 2023, defendants petitioned the Supreme Court to review the Court of Appeals’ decision. In June 2024, the Supreme Court vacated the Court of Appeals’ decision and remanded the case to the Court of Appeals for further consideration. In January 2026, the Court of Appeals reversed the District Court’s decision to dismiss the complaint and remanded the case for further proceedings. In April 2026, the Court of Appeals denied defendants’ request for an en banc review of the Court of Appeals’ decision. The parties are now in the discovery process.
INDEMNITIES.
In connection with the Tax Matters Agreement with GE as described in Note 19, “Related Parties and Transition Services Agreement” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, we have been informed that the Internal Revenue Service (“IRS”) may assert a material amount of additional taxes related to an ongoing IRS audit of the GE consolidated U.S. income tax returns, in which we are included, for the years 2016-2020. Any tax obligations would be allocated among the Company and GE, in accordance with the Tax Matters Agreement. A final resolution of this matter could be time-consuming and is not likely within the next 12 months. An unfavorable resolution of this matter and related allocation of additional tax liability, which is not reasonably estimable at this time, could result in additional material indemnification obligations due to GE for which we have not accrued a liability.
TARIFF REFUND CLAIMS.
In February 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (“IEEPA”) does not authorize the President to impose tariffs thereunder. In April 2026, U.S. Customs and Border Protection announced a new administrative process for importers to obtain refunds of certain tariffs imposed under IEEPA.
26
The Company has submitted eligible refund claims through the established refund process and recognizes a receivable for anticipated IEEPA tariff refunds when management concludes that recovery of previously recognized tariff costs is probable and the amount of the recovery can be reasonably estimated. As of June 30, 2026, the Company received $107 million of refunds and recorded a $38 million receivable for submitted claims not yet reimbursed. The receivable is included within Receivables - net of allowances in the Condensed Consolidated Statements of Financial Position. In the second quarter of 2026, we recognized pre-tax benefits from tariff refunds of $106 million related to tariffs incurred in 2025 and $23 million related to tariffs incurred in 2026, all of which are recorded within Cost of products sold and Cost of services sold in the Condensed Consolidated Statements of Income.
While the Company believes recovery of the submitted claims is probable and estimable, the ultimate amount and timing of recovery remain subject to validation and administrative processing procedures, as well as potential legal, regulatory, and administrative developments. Accordingly, actual recoveries could differ from recorded amounts.
NOTE 14. RESTRUCTURING ACTIVITIES
Restructuring activities are essential to optimize the business operating model for GE HealthCare and mostly involve workforce reductions, organizational realignments, and revisions to our real estate footprint. Specifically, restructuring charges (gains) primarily include employee-related termination benefits associated with workforce reductions, facility exit costs, asset write-downs, and cease-use costs. Net expenses for restructuring are excluded from Segment EBIT.
Net expenses for restructuring initiatives committed to by management through June 30, 2026 are included in the table below.
For the three months ended June 30 | For the six months ended June 30 | |||||||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||||||
Employee termination costs | $ | $ | $ | $ | ||||||||||||||||
Facility and other exit costs | ||||||||||||||||||||
Asset write-downs | ||||||||||||||||||||
Total restructuring activities – net | $ | $ | $ | $ | ||||||||||||||||
These restructuring initiatives are expected to result in additional expenses of approximately $38 million, to be incurred primarily over the next 12 months, substantially related to employee-related termination benefits and asset write-downs. Restructuring expenses (gains) are recognized within , as appropriate, in the Condensed Consolidated Statements of Income.
Liabilities related to restructuring are recognized within Current compensation and benefits, All other current liabilities, Non-current compensation and benefits, and All other non-current liabilities in the Condensed Consolidated Statements of Financial Position. The activity related to our restructuring liabilities follows.
Employee termination costs | Facility and other exit costs | Total | |||||||||
Balance at December 31, 2025 | $ | $ | $ | ||||||||
Charges and reserve adjustments | ( | ||||||||||
Payments and other adjustments | ( | ( | ( | ||||||||
Balance at June 30, 2026 | $ | $ | $ | ||||||||
NOTE 15. EARNINGS PER SHARE
The numerator for both basic and diluted earnings per share (“EPS”) is Net income attributable to GE HealthCare. The denominator of basic EPS is the weighted-average number of shares outstanding during the period. The dilutive effect of outstanding stock options, restricted stock units, and performance share units is reflected in the denominator for diluted EPS using the treasury stock method.
27
Earnings Per Share | For the three months ended June 30 | For the six months ended June 30 | ||||||||||||||||||
(In millions, except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||
Numerator: | ||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||
Net (income) loss attributable to noncontrolling interests | ( | ( | ( | ( | ||||||||||||||||
Net income attributable to GE HealthCare | $ | $ | $ | $ | ||||||||||||||||
Denominator: | ||||||||||||||||||||
Basic weighted-average shares outstanding | ||||||||||||||||||||
Dilutive effect of common stock equivalents | ||||||||||||||||||||
Diluted weighted-average shares outstanding | ||||||||||||||||||||
Basic earnings per share | $ | $ | $ | $ | ||||||||||||||||
Diluted earnings per share | ||||||||||||||||||||
Antidilutive securities(1) | ||||||||||||||||||||
(1) Diluted earnings per share excludes certain shares issuable under share-based compensation plans because the effect would have been antidilutive.
NOTE 16. SUPPLEMENTAL FINANCIAL INFORMATION
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH.
As of | ||||||||
June 30, 2026 | December 31, 2025 | |||||||
Cash and cash equivalents(1) | $ | $ | ||||||
Short-term restricted cash | ||||||||
Total Cash, cash equivalents, and restricted cash as presented in the Condensed Consolidated Statements of Financial Position | ||||||||
Long-term restricted cash(2) | ||||||||
Total Cash, cash equivalents, and restricted cash as presented in the Condensed Consolidated Statements of Cash Flows | $ | $ | ||||||
(1) The decrease in Cash and cash equivalents was primarily due to the Intelerad acquisition. Refer to Note 7, “Acquisitions, Goodwill, and Other Intangible Assets” for further information.
(2) Long-term restricted cash is recognized within All other non-current assets in the Condensed Consolidated Statements of Financial Position.
INVENTORIES.
As of | ||||||||
June 30, 2026 | December 31, 2025 | |||||||
Raw materials | $ | $ | ||||||
Work in process | ||||||||
Finished goods | ||||||||
Inventories | $ | $ | ||||||
Certain inventory items are long-term in nature and therefore have been recognized within All other non-current assets in the Condensed Consolidated Statements of Financial Position and are not reflected in the table above. See the supplemental table “All Other Non-Current Assets” for further information.
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PROPERTY, PLANT, AND EQUIPMENT – NET.
As of | ||||||||
June 30, 2026 | December 31, 2025 | |||||||
Land and improvements | $ | $ | ||||||
Buildings, structures, and related equipment | ||||||||
Machinery and equipment | ||||||||
Leasehold improvements and manufacturing plants under construction | ||||||||
Total property, plant, and equipment, at original cost | ||||||||
Accumulated depreciation | ( | ( | ||||||
Operating lease ROU assets, net of amortization | ||||||||
Property, plant, and equipment – net | $ | $ | ||||||
Depreciation expense related to Property, plant, and equipment – net, exclusive of operating lease ROU assets, was $76 million and $73 million for the three months ended June 30, 2026 and 2025, and $154 million and $138 million for the six months ended June 30, 2026 and 2025, respectively.
ALL OTHER ASSETS AND ALL OTHER LIABILITIES.
All Other Current Assets | As of | |||||||
June 30, 2026 | December 31, 2025 | |||||||
Prepaid expenses and deferred costs | $ | $ | ||||||
Financing receivables – net | ||||||||
Derivative instruments | ||||||||
Income tax receivables | ||||||||
Other(1) | ||||||||
All other current assets | $ | $ | ||||||
All Other Non-Current Assets | As of | |||||||
June 30, 2026 | December 31, 2025 | |||||||
Prepaid pension asset | $ | $ | ||||||
Equity method and other investments | ||||||||
Financing receivables – net | ||||||||
Derivative instruments | ||||||||
Long-term receivables – net | ||||||||
Inventories | ||||||||
Contract and other deferred assets | ||||||||
Capitalized cloud computing arrangement implementation costs(1) | ||||||||
Other(2) | ||||||||
All other non-current assets | $ | $ | ||||||
(1) See the supplemental table “Capitalized Cloud Computing Arrangement Implementation Costs” for further information.
(2) Other primarily consists of indemnity assets associated with separation agreements with GE and income tax receivables.
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All Other Current Liabilities | As of | |||||||
June 30, 2026 | December 31, 2025 | |||||||
Sales allowances and related liabilities | $ | $ | ||||||
Income and indirect tax liabilities including uncertain tax positions | ||||||||
Product warranties | ||||||||
Accrued logistics and utilities | ||||||||
Operating lease liabilities | ||||||||
Derivative instruments | ||||||||
Interest payable on borrowings | ||||||||
Environmental and asset retirement obligations | ||||||||
Other(1) | ||||||||
All other current liabilities | $ | $ | ||||||
(1) Other primarily consists of miscellaneous accrued costs, dividends payable, and contingent consideration liabilities.
All Other Non-Current Liabilities | As of | |||||||
June 30, 2026 | December 31, 2025 | |||||||
Contract liabilities | $ | $ | ||||||
Operating lease liabilities | ||||||||
Environmental and asset retirement obligations | ||||||||
Income and indirect tax liabilities including uncertain tax positions | ||||||||
Derivative instruments | ||||||||
Sales allowances and related liabilities | ||||||||
Other(1) | ||||||||
All other non-current liabilities | $ | $ | ||||||
(1) Other primarily consists of miscellaneous accrued costs, indemnity liabilities associated with separation agreements with GE, and contingent consideration liabilities.
CAPITALIZED CLOUD COMPUTING ARRANGEMENT IMPLEMENTATION COSTS.
As of | ||||||||
June 30, 2026 | December 31, 2025 | |||||||
Capitalized implementation costs | $ | $ | ||||||
Accumulated amortization | ( | ( | ||||||
Total Capitalized cloud computing arrangement implementation costs, net | $ | $ | ||||||
Capitalized cloud computing arrangement implementation costs are recognized within All other current assets and All other non-current assets in the Condensed Consolidated Statements of Financial Position. Amortization expense related to capitalized cloud computing arrangement implementation costs was $11 million and $4 million for the three months ended June 30, 2026 and 2025, respectively, and $19 million and $8 million for the six months ended June 30, 2026 and 2025, respectively.
SUPPLY CHAIN FINANCE PROGRAMS.
The Company participates in voluntary supply chain finance programs which provide participating suppliers the opportunity to sell their GE HealthCare receivables to third parties at the sole discretion of both the suppliers and the third parties. We evaluate supply chain finance programs to ensure the use of a third-party intermediary to settle our trade payables does not change the nature, existence, amount, or timing of our trade payables and does not provide the Company with any direct economic benefit. If any characteristics of the trade payables change or we receive a direct economic benefit, we reclassify the trade payables to borrowings. In connection with the supply chain finance programs, payment terms normally range from 30 to 180 days, depending on the underlying supplier agreements.
Included within Accounts payable in the Condensed Consolidated Statements of Financial Position as of June 30, 2026 and December 31, 2025 were $334 million and $360 million, respectively, of confirmed supplier invoices that are outstanding and subject to third-party programs.
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REDEEMABLE NONCONTROLLING INTERESTS.
The Company has noncontrolling interests with redemption features. These redemption features, such as put options, could require the Company to purchase the noncontrolling interests upon the occurrence of certain events. All noncontrolling interests with redemption features that are not solely within our control are recognized within the Condensed Consolidated Statements of Financial Position between liabilities and equity. Redeemable noncontrolling interests are initially recorded at the issuance date fair value. Those that are currently redeemable, or probable of becoming redeemable, are subsequently adjusted to the greater of current redemption value or initial carrying value.
Activity attributable to redeemable noncontrolling interests is presented below.
For the six months ended June 30 | |||||||||||
2026 | 2025 | ||||||||||
Balance at beginning of period | $ | $ | |||||||||
Net income attributable to redeemable noncontrolling interests | |||||||||||
Distributions to redeemable noncontrolling interests and other | ( | ( | |||||||||
Balance at end of period | $ | $ | |||||||||
OTHER INCOME (EXPENSE) – NET.
For the three months ended June 30 | For the six months ended June 30 | |||||||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||||||
Net financing income and investment income (loss) | $ | $ | $ | $ | ||||||||||||||||
Equity method income (loss) | ( | |||||||||||||||||||
Change in fair value of assumed obligations | ( | ( | ( | ( | ||||||||||||||||
Gain on remeasurement of NMP equity method investment(1) | ||||||||||||||||||||
Other items, net(2) | ||||||||||||||||||||
Total other income (expense) – net | $ | $ | ( | $ | $ | |||||||||||||||
(1) Refer to Note 7, “Acquisitions, Goodwill, and Other Intangible Assets” for additional information on the NMP acquisition.
(2) Other items, net primarily consists of a mix of licensing and royalty income, lease income, gains and losses related to derivatives, and change in tax indemnities. Additionally, for the six months ended June 30, 2026, it includes income from contract settlements, and for the six months ended June 30, 2025, it includes a realization of a gain contingency.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of our financial results should be read in conjunction with the condensed consolidated financial statements and corresponding notes (the “financial statements”) included elsewhere in this Quarterly Report on Form 10-Q. The following discussion and analysis provide information management believes to be relevant to understanding the financial results of GE HealthCare Technologies Inc. and its subsidiaries (“GE HealthCare,” the “Company,” “our,” “us,” or “we”) for the three and six months ended June 30, 2026 and 2025. For a full understanding of our financial condition and results of operations, the below discussion should be read alongside the Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. This discussion contains forward-looking statements that are based upon current expectations and are subject to uncertainty and changes in circumstances; see “Forward-Looking Statements.” Our actual results could differ materially from the results contemplated by these forward-looking statements due to a number of factors, including those discussed below and elsewhere in this Quarterly Report on Form 10-Q, and particularly in Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
The following tables are presented in millions of United States (“U.S.”) dollars unless otherwise stated, except for per-share amounts which are presented in U.S. dollars. Certain columns and rows may not sum due to the use of rounded numbers. Percentages presented are calculated from the underlying whole-dollar amounts and, unless otherwise stated, represent changes year-over-year. References to the “Spin-Off” are related to the spin-off of GE HealthCare Technologies Inc. from General Electric Company, which now operates as GE Aerospace (“GE”).
In the second quarter of 2026, we made a strategic change to our executive leadership and to our segments, combining our Imaging and Advanced Visualization Solutions (“AVS”) businesses into a new operating and reportable segment, Advanced Imaging Solutions (“AIS”). Following this organizational change, GE HealthCare’s operations has three reportable segments: AIS, Pharmaceutical Diagnostics (“PDx”), and Patient Care Solutions (“PCS”), and we assessed their performance using Segment revenues and Segment EBIT. These segments have been identified based on the nature of the products sold and how the Company manages its operations. Historical segment financial information presented within this report has been recast to conform to the new reportable segment structure. For additional information on our segments, refer to Note 3, “Segment Information.”
TRENDS AND FACTORS IMPACTING OUR PERFORMANCE
We believe that our performance and future success depend on a number of factors that present significant opportunities for us but also pose risks and challenges, including those discussed below and particularly in Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
KEY TRENDS AFFECTING RESULTS OF OPERATIONS.
Global Trade and Macroeconomic Environment
Starting in February 2025, the U.S. imposed a variety of new tariffs on most imports from nearly all countries in the world. Tariffs by the U.S. and several other countries have materially impacted our financial results and should the tariffs continue at current levels, we expect to continue to see a material impact. Additional tariffs or other trade restrictions by the U.S. or by other countries where we do significant business could further materially impact our results in the future. While we are taking actions to mitigate the impact of tariffs, we do not expect that our mitigation actions will fully offset the additional costs or other negative impacts resulting from the tariffs. Tariffs negatively impacted our Operating income by $68 million and $156 million for the three and six months ended June 30, 2026, respectively, and $43 million and $52 million for the three and six months ended June 30, 2025, respectively. Our cash flows were negatively impacted by $63 million and $175 million for the three and six months ended June 30, 2026, respectively, and $87 million and $95 million for the three and six months ended June 30, 2025, respectively. These impacts are exclusive of any benefits from tariff refunds as disclosed below.
In February 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (“IEEPA”) does not authorize the President to impose tariffs thereunder and in April 2026, U.S. Customs and Border Protection announced a new administrative process for importers to obtain refunds of certain tariffs imposed under IEEPA. In the second quarter of 2026, the Company submitted refund claims, received $107 million of refunds, and recorded a $38 million receivable for submitted claims not yet reimbursed within Receivables - net of allowances in the Condensed Consolidated Statements of Financial Position. In the second quarter of 2026, we recognized pre-tax benefits from tariff refunds of $106 million related to tariffs incurred in 2025 and $23 million related to tariffs incurred in 2026, all of which are recorded within Cost of products sold and Cost of services sold in the Condensed Consolidated Statements of Income. While the Company believes recovery of the submitted claims is probable, the ultimate amount and timing of recovery remain subject to validation and administrative processing procedures, as well as potential legal, regulatory, and administrative developments. Accordingly, actual recoveries could differ from recorded amounts. The Company intends to continue to file claims for additional tariff refunds, predominantly related to tariffs incurred in 2025. The timing and amount of any additional refunds remain uncertain and are subject to eligibility requirements, administrative processing, and other limitations.
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We continue to monitor the global markets in which we operate for changes in customer behavior, changes in government procurement and reimbursement, and indirect impacts from the tariffs. Should these or other factors dampen economic growth, slow global trade, or impact inflation, we could see adverse impacts to our business as our customers adapt to the change in economic environment. We also continue to monitor potential impacts on purchasing decisions by both public and private customers in China and other markets as a result of the current trade environment, as well as other actions related to tariffs and trade frictions, investigations, or activities that could similarly increase our costs or otherwise impact our business. In addition, if negative sentiment towards U.S. companies influences the purchasing decisions of global customers, our business could be impacted materially.
Other Geopolitical and Macroeconomic Uncertainties
Global geopolitical instability, including the conflict in the Middle East, adversely impacted our costs, supply chains, and logistics during the second quarter of 2026. These conditions resulted in increased costs and challenges in maintaining service levels in affected areas.
We continue to monitor impacts related to key raw materials directly and indirectly related to our products or delivery of our products, including memory chips, logistics (inclusive of freight), and other costs linked to the price of oil and other critical components. Sustained cost inflation or constrained availability of critical components could negatively impact our ability to both produce and deliver products to our customers in a timely manner. We continue to take action to mitigate the exposures under the current environment by securing supply and identifying opportunities to partially offset cost increases; however, if the current environment continues or deteriorates further we will continue to see adverse impacts to our results.
China Market
We believe the focus of government policy in China is on expanding access to healthcare. In addition, our investments to address clinical needs, localization, and commercial infrastructure should benefit our business in China in the long term. However, we continue to monitor developments in the China market, including increased competition from local companies and the prevalence of volume based procurement policies, both of which have impacted our orders and revenues and may continue to do so.
Russia and Ukraine Conflict
We had $190 million and $214 million of assets in, or directly related to, Russia and Ukraine as of June 30, 2026 and December 31, 2025, respectively, none of which are subject to sanctions that impact the carrying value of the assets. We generated revenues of $106 million and $123 million from customers in these two countries for the six months ended June 30, 2026 and 2025, respectively. The potential inability to repatriate earnings from these two countries will not have a material impact on our ability to operate.
We continue to monitor the effects of Russia’s invasion of Ukraine, including the consideration of financial impact, cybersecurity risks, the applicability and effect of sanctions, and the employee base in Ukraine and Russia. Under the current U.S. Department of Commerce regulations, we are permitted to export, re-export, or transfer medical equipment and spare parts that meet stated criteria under a License Exception, which has eliminated the need for us to obtain individual U.S. licenses in most cases; however, licenses still may be needed for some transactions. The European Union and other countries have also expanded licensing requirements for certain spare parts, services, software, and other items. We will continue to apply for licenses to supply to these customers and to support our business in Russia, as required. The implementation of these measures affected our ability to supply customers in Russia during the six months ended June 30, 2026 and 2025 and is expected to continue to do so. There is no guarantee we will obtain all of the licenses for which we apply, that any approvals we obtain will be on a timely basis, will remain in effect, or that our business in Russia will not be further disrupted due to evolving legal or operational considerations. We will continue to assess whether developments related to the conflict have had, or are reasonably likely to have, a material impact on the Company.
SUMMARY OF KEY PERFORMANCE MEASURES
Management reviews and analyzes several key performance measures including Total revenues, Operating income, Net income attributable to GE HealthCare, Earnings per share, and Cash from (used for) operating activities. Management also reviews and analyzes Organic revenue*, Adjusted earnings before interest and taxes* (“Adjusted EBIT*”), Adjusted net income*, Adjusted tax expense*, Adjusted effective tax rate* (“Adjusted ETR*”), Adjusted earnings per share*, and Free cash flow*, which are non-GAAP financial measures. These measures are reviewed and analyzed in order to evaluate our business performance, identify trends affecting our business, allocate capital, and make strategic decisions, including those discussed below. See “Results of Operations” and “Liquidity and Capital Resources” below for further discussion on our key performance measures.
The non-GAAP financial measures should be considered along with the most directly comparable U.S. GAAP financial measures. Definitions of these non-GAAP financial measures, a discussion of why we believe they are useful to management and investors as well as certain of their limitations, and reconciliations to their most directly comparable U.S. GAAP financial measures are provided below under “Non-GAAP Financial Measures.”
___________________
*Non-GAAP Financial Measure
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RESULTS OF OPERATIONS
The following tables set forth our results of operations for each of the periods presented.
Condensed Consolidated Statements of Income (Unaudited) | For the three months ended June 30 | For the six months ended June 30 | ||||||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||||||
Sales of products | $ | 3,416 | $ | 3,263 | $ | 6,762 | $ | 6,380 | ||||||||||||
Sales of services | 1,878 | 1,743 | 3,664 | 3,404 | ||||||||||||||||
Total revenues | 5,295 | 5,007 | 10,425 | 9,784 | ||||||||||||||||
Cost of products | 2,217 | 2,160 | 4,500 | 4,122 | ||||||||||||||||
Cost of services | 898 | 863 | 1,769 | 1,665 | ||||||||||||||||
Gross profit | 2,180 | 1,985 | 4,157 | 3,997 | ||||||||||||||||
Selling, general, and administrative | 1,118 | 1,029 | 2,235 | 2,069 | ||||||||||||||||
Research and development | 323 | 302 | 668 | 646 | ||||||||||||||||
Total operating expenses | 1,441 | 1,331 | 2,903 | 2,714 | ||||||||||||||||
Operating income | 739 | 654 | 1,254 | 1,283 | ||||||||||||||||
Interest and other financial charges – net | 114 | 113 | 210 | 224 | ||||||||||||||||
Non-operating benefit (income) costs | (45) | (73) | (96) | (148) | ||||||||||||||||
Other (income) expense – net | (22) | 1 | (58) | (98) | ||||||||||||||||
Income before income taxes | 693 | 613 | 1,198 | 1,304 | ||||||||||||||||
Benefit (provision) for income taxes | (119) | (113) | (213) | (216) | ||||||||||||||||
Net income | 573 | 500 | 985 | 1,088 | ||||||||||||||||
Net (income) loss attributable to noncontrolling interests | (13) | (14) | (35) | (39) | ||||||||||||||||
Net income attributable to GE HealthCare | $ | 561 | $ | 486 | $ | 950 | $ | 1,049 | ||||||||||||
TOTAL REVENUES.
Revenues by Segment | For the three months ended June 30 | For the six months ended June 30 | ||||||||||||||||||||||||||||||||||||
2026 | 2025 | % change | % organic* change | 2026 | 2025 | % change | % organic* change | |||||||||||||||||||||||||||||||
Segment revenues | ||||||||||||||||||||||||||||||||||||||
AIS | $ | 3,771 | $ | 3,493 | 7.9% | 5.0% | $ | 7,410 | $ | 6,872 | 7.8% | 4.5% | ||||||||||||||||||||||||||
PDx | 843 | 729 | 15.6% | 14.6% | 1,612 | 1,362 | 18.4% | 12.3% | ||||||||||||||||||||||||||||||
PCS | 675 | 778 | (13.3)% | (13.5)% | 1,379 | 1,531 | (10.0)% | (10.9)% | ||||||||||||||||||||||||||||||
Other(1) | 6 | 6 | 24 | 19 | ||||||||||||||||||||||||||||||||||
Total revenues | $ | 5,295 | $ | 5,007 | 5.7% | 3.5% | $ | 10,425 | $ | 9,784 | 6.6% | 3.2% | ||||||||||||||||||||||||||
(1) Financial information not presented within the reportable segments, shown within the Other category, represents HealthCare Financial Services, which does not meet the definition of an operating segment.
Revenues by Region | For the three months ended June 30 | For the six months ended June 30 | |||||||||||||||||||||||||||
2026 | 2025 | % change | 2026 | 2025 | % change | ||||||||||||||||||||||||
United States and Canada (“USCAN”) | $ | 2,476 | $ | 2,340 | 5.8% | $ | 4,838 | $ | 4,577 | 5.7% | |||||||||||||||||||
Europe, the Middle East, and Africa (“EMEA”) | 1,348 | 1,268 | 6.3% | 2,688 | 2,442 | 10.1% | |||||||||||||||||||||||
China region | 582 | 563 | 3.4% | 1,149 | 1,156 | (0.6)% | |||||||||||||||||||||||
Rest of World | 888 | 836 | 6.3% | 1,751 | 1,609 | 8.8% | |||||||||||||||||||||||
Total revenues | $ | 5,295 | $ | 5,007 | 5.7% | $ | 10,425 | $ | 9,784 | 6.6% | |||||||||||||||||||
For the three months ended June 30, 2026
Total revenues were $5,295 million, growing 5.7% as reported and 3.5% organically*. Sales of products increased 4.7% or $153 million primarily driven by strong growth in PDx and AIS revenues, partially offset by declines in PCS revenues. Sales of services increased 7.7% or $135 million primarily driven by the acquisition of Intelerad and growth in new and existing customer contractual agreements.
____________________
*Non-GAAP Financial Measure
34
The segment revenues were as follows:
•AIS segment revenues were $3,771 million, growing 7.9% or $277 million as reported due to an increase in Organic revenue* and the acquisition of Intelerad. Organic revenue* grew 5.0% driven by strong growth in CardioVascular & Interventional Solutions, Computed Tomography (“CT”), and Molecular Imaging (“MI”) product lines;
•PDx segment revenues were $843 million, growing 15.6% or $114 million as reported, driven by growth in volume and price in contrast media and radiopharmaceutical products; and
•PCS segment revenues were $675 million, decreasing 13.3% or $104 million, primarily driven by operational and fulfillment challenges.
The regional revenues were as follows:
•USCAN revenues were $2,476 million, growing 5.8% or $136 million, with growth across PDx and AIS, inclusive of Intelerad revenues, partially offset by a decline in PCS revenues;
•EMEA revenues were $1,348 million, growing 6.3% or $80 million, primarily driven by growth in AIS revenues as well as favorable foreign currency impacts;
•China region revenues were $582 million, growing 3.4% or $19 million, primarily driven by favorable foreign currency impacts, partially offset by a decline in PCS revenues; and
•Rest of World revenues were $888 million, growing 6.3% or $52 million, primarily due to growth in AIS and PDx revenues.
For the six months ended June 30, 2026
Total revenues were $10,425 million, growing 6.6% as reported and 3.2% organically*. Sales of products increased 6.0% or $381 million primarily driven by growth in PDx and AIS revenues, as well as favorable foreign currency impacts, partially offset by declines in PCS revenues. Sales of services increased 7.6% or $260 million primarily driven by growth in new and existing customer contractual agreements and the acquisition of Intelerad, as well as favorable foreign currency impacts.
The segment revenues were as follows:
•AIS segment revenues were $7,410 million, growing 7.8% or $538 million as reported due to an increase in Organic revenue*, favorable foreign currency impacts, and the acquisition of Intelerad. Organic revenue grew 4.5% driven by strong growth in CT and CardioVascular & Interventional Solutions product lines;
•PDx segment revenues were $1,612 million, growing 18.4% or $251 million as reported, largely driven by an increase in Organic revenue* and the acquisition of Nihon Medi-Physics Co., Ltd. (“NMP”). Organic revenue* grew 12.3% driven by growth in volume and price in contrast media and radiopharmaceutical products; and
•PCS segment revenues were $1,379 million, decreasing 10.0% or $153 million, primarily driven by operational and fulfillment challenges.
The regional revenues were as follows:
•USCAN revenues were $4,838 million, growing 5.7% or $261 million, largely driven by growth across AIS, inclusive of Intelerad revenues, and PDx revenues, partially offset by a decline in PCS revenues;
•EMEA revenues were $2,688 million, growing 10.1% or $246 million with favorable foreign currency impacts as well as growth in AIS revenues;
•China region revenues were $1,149 million, decreasing 0.6% or $7 million with declines in AIS and PCS revenues largely offset by favorable foreign currency impacts as well as growth in PDx revenues; and
•Rest of World revenues were $1,751 million, growing 8.8% or $142 million with growth in AIS and PDx, inclusive of NMP revenues, as well as favorable foreign currency impacts.
____________________
*Non-GAAP Financial Measure
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OPERATING INCOME, NET INCOME ATTRIBUTABLE TO GE HEALTHCARE, ADJUSTED EBIT*, AND ADJUSTED NET INCOME*.
For the three months ended June 30 | For the six months ended June 30 | |||||||||||||||||||||||||||||||||||||||||||
2026 | % of Total revenues | 2025 | % of Total revenues | % change | 2026 | % of Total revenues | 2025 | % of Total revenues | % change | |||||||||||||||||||||||||||||||||||
Operating income | $ | 739 | 14.0% | $ | 654 | 13.1% | 13.1% | $ | 1,254 | 12.0% | $ | 1,283 | 13.1% | (2.3)% | ||||||||||||||||||||||||||||||
Net income attributable to GE HealthCare | 561 | 10.6% | 486 | 9.7% | 15.5% | 950 | 9.1% | 1,049 | 10.7% | (9.5)% | ||||||||||||||||||||||||||||||||||
Adjusted EBIT* | 750 | 14.2% | 729 | 14.6% | 2.9% | 1,440 | 13.8% | 1,443 | 14.8% | (0.2)% | ||||||||||||||||||||||||||||||||||
Adjusted net income* | 515 | 9.7% | 487 | 9.7% | 5.6% | 967 | 9.3% | 951 | 9.7% | 1.7% | ||||||||||||||||||||||||||||||||||
For the three months ended June 30, 2026
Operating income was $739 million, an increase of $86 million and 90 basis points as a percent of Total revenues. The increase was due to the following factors:
•Gross profit increased $195 million or 150 basis points as a percent of Total revenues primarily due to tariff refunds, a growth in sales volume, and an increase in price, partially offset by cost inflation. Cost of products sold increased $57 million, but decreased 130 basis points as a percent of Sales of products. The decrease as a percent of sales was driven primarily by tariff refunds and a growth in volume, partially offset by cost inflation and investment in design follow-through. Cost of services sold increased $35 million but decreased 170 basis points as a percent of Sales of services. The decrease as a percent of sales was driven by an increase in the pricing of our service offerings and tariff refunds, partially offset by cost inflation. Included in our total cost of revenues as part of our product investment was $139 million in engineering costs for design follow-through on new product introductions and product lifecycle maintenance subsequent to the initial product launch, compared to $128 million for the prior year comparable period; and
•Total operating expenses increased $110 million primarily due to an increase in Selling, general, and administrative (“SG&A”) expense of $89 million, primarily driven by expenses related to our recent acquisitions and increased employee benefit costs, and an increase in Research and development (“R&D”) of $21 million, due to investments including those related to recent acquisitions, partially offset by certain programs achieving development milestones resulting in costs to be reported under cost of revenues. SG&A as a percentage of Total revenues increased by 60 basis points and R&D as a percentage of Total revenues increased by 10 basis points.
Net income attributable to GE HealthCare and Net income margin were $561 million and 10.6%, an increase of $75 million and 90 basis points, respectively, primarily due to the following factors:
•Operating income increased $86 million, as discussed above;
•Non-operating benefit income decreased $28 million primarily due to lower current year amortization of postretirement benefit plan other comprehensive income;
•Other income – net increased $23 million primarily driven by an increase in Other items, net, and lower Change in fair value of assumed obligations, as disclosed in Note 16, “Supplemental Financial Information”; and
•Provision for income taxes increased $7 million primarily due to higher earnings in 2026 offset by reconciling adjustments to recorded tax account balances. For additional detail regarding our income taxes, see Note 10, “Income Taxes.”
Adjusted EBIT* and Adjusted EBIT margin* were $750 million and 14.2%, an increase of $21 million, but a decrease of 40 basis points as a percent of Total revenues. The decrease as a percent of Total revenues was primarily due to cost inflation and planned investments, partially offset by a growth in sales volume. The impact of incremental year-over-year tariff expense was offset by tariff refunds relating to 2026.
Adjusted net income* was $515 million, an increase of $27 million primarily due to an increase in Adjusted EBIT*, as discussed above.
For the six months ended June 30, 2026
Operating income was $1,254 million, a decrease of $29 million and 110 basis points as a percent of Total revenues. The decrease was due to the following factors:
____________________
*Non-GAAP Financial Measure
36
•Gross profit increased $160 million but decreased 100 basis points as a percent of Total revenues. The decrease as a percent of Total revenues was primarily due to an increase in Cost of products. Cost of products sold increased $378 million or 190 basis points as a percent of Sales of products. The increase as a percent of sales was largely driven by cost inflation, investment in design follow-through, and a now resolved PDx supplier issue, partially offset by tariff refunds. Cost of services sold increased $104 million but decreased 60 basis points as a percent of Sales of services. The decrease as a percent of sales was largely driven by an increase in pricing of our service offerings, partially offset by cost inflation, with tariff refunds offsetting the incremental year-over-year tariff expense. Included in our total cost of revenues as part of our product investment was $267 million in engineering costs for design follow-through on new product introductions and product lifecycle maintenance subsequent to the initial product launch, compared to $224 million for the prior year comparable period; and
•Total operating expenses increased $189 million, with an increase in SG&A expense of $166 million primarily driven by expenses related to recent acquisitions and foreign currency movements, and an increase in R&D investments of $23 million, primarily driven by foreign currency movements and investments including those related to recent acquisitions, partially offset by certain programs achieving development milestones resulting in costs to be reported under cost of revenues. SG&A as a percentage of Total revenues increased by 30 basis points and R&D as a percentage of Total revenues decreased by 20 basis points.
Net income attributable to GE HealthCare and Net income margin were $950 million and 9.1%, a decrease of $100 million and 160 basis points respectively, primarily due to the following factors:
•Operating income decreased $29 million, as discussed above;
•Interest and other financial charges – net decreased $14 million primarily driven by efficient management of the debt profile;
•Non-operating benefit income decreased $52 million primarily related to lower current year amortization of postretirement benefit plan other comprehensive income;
•Other income – net decreased $39 million primarily driven by the non-repeat of the prior year remeasurement of the Company’s 50% interest in NMP based on the cash consideration exchanged for acquiring the remaining 50% equity interest, partially offset by income from contract settlements in the first quarter. For additional detail refer to Note 16, “Supplemental Financial Information”; and
•Provision for income taxes decreased $3 million primarily due to reconciling adjustments to recorded tax account balances booked in the current year, and non-recurring prior year benefits from the release of foreign income tax reserves and a nontaxable remeasurement gain in connection with the NMP acquisition. For additional detail regarding our income taxes, see Note 10, “Income Taxes.”
Adjusted EBIT* and Adjusted EBIT margin* were $1,440 million and 13.8%, a decrease of $3 million and 90 basis points, respectively, primarily due to a decrease in operating income, as discussed above.
Adjusted net income* was $967 million, an increase of $16 million primarily due to lower Interest and other financial charges – net.
RESULTS OF OPERATIONS – SEGMENTS
We exclude from Segment EBIT certain corporate-related expenses and certain transactions or adjustments that our Chief Operating Decision Maker considers to be non-operational, such as Interest and other financial charges – net, Benefit (provision) for income taxes, restructuring costs, acquisition and disposition-related benefits (charges), Spin-Off and separation costs and other adjustments, Non-operating benefit (income) costs, gain (loss) on business and asset dispositions, amortization of acquisition-related intangible assets, Net (income) loss attributable to noncontrolling interests, Income (loss) from discontinued operations, net of taxes, investment revaluation gain (loss), and other non-recurring items such as refunds for tariffs incurred in prior years. See Note 3, “Segment Information” for additional information on our reportable segments, and “Results of Operations” above for discussion on segment revenue performance.
Segment EBIT | For the three months ended June 30 | For the six months ended June 30 | ||||||||||||||||||||||||||||||||||||||||||
2026 | % of segment revenues | 2025 | % of segment revenues | % change | 2026 | % of segment revenues | 2025 | % of segment revenues | % change | |||||||||||||||||||||||||||||||||||
AIS | $ | 525 | 13.9 | % | $ | 455 | 13.0 | % | 15.4 | % | $ | 1,004 | 13.5 | % | $ | 914 | 13.3 | % | 9.8 | % | ||||||||||||||||||||||||
PDx | 250 | 29.6 | % | 213 | 29.3 | % | 16.9 | % | 446 | 27.7 | % | 418 | 30.7 | % | 6.7 | % | ||||||||||||||||||||||||||||
PCS | (26) | (3.8) | % | 60 | 7.7 | % | (143.0) | % | (16) | (1.2) | % | 108 | 7.0 | % | (114.8) | % | ||||||||||||||||||||||||||||
____________________
*Non-GAAP Financial Measure
37
For the three months ended June 30, 2026
•AIS Segment EBIT was $525 million, an increase of $70 million due to a growth in sales volume and an increase in price, partially offset by cost inflation. The impact of incremental year-over-year tariff expense was offset by tariff refunds relating to 2026;
•PDx Segment EBIT was $250 million, an increase of $36 million due to a growth in sales volume and an increase in price, partially offset by planned investments; and
•PCS Segment EBIT was $(26) million, a decrease of $85 million due to a decline in sales volume and cost inflation.
For the six months ended June 30, 2026
•AIS Segment EBIT was $1,004 million, an increase of $89 million due to a growth in sales volume and contract settlements, partially offset by cost inflation, including the impact of incremental tariffs;
•PDx Segment EBIT was $446 million, an increase of $28 million due to a growth in sales volume and an increase in price, partially offset by a now resolved supplier issue and planned investments; and
•PCS Segment EBIT was $(16) million, a decrease of $124 million due to a decline in sales volume and cost inflation.
NON-GAAP FINANCIAL MEASURES
The non-GAAP financial measures presented in this Quarterly Report on Form 10-Q are supplemental measures of our performance and our liquidity that we believe will help investors understand our financial condition, cash flows, and operating results, and assess our future prospects. When read in conjunction with our U.S. GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying businesses and can be used by management as one basis for making financial, operational, and planning decisions. Descriptions of the reported non-GAAP measures are included below.
We report Organic revenue and Organic revenue growth rate to provide management and investors with additional understanding and visibility into the underlying revenue trends of our established, ongoing operations, as well as provide insights into overall demand for our products and services. To calculate these measures, we exclude the effect of acquisitions, dispositions, and foreign currency rate fluctuations.
We report EBIT, Adjusted EBIT, Adjusted EBIT margin, Adjusted net income, and Adjusted earnings per share to provide management and investors with an additional understanding of our business by highlighting the results from ongoing operations and the underlying profitability factors, on a normalized basis. To calculate these measures we exclude, and reflect in the detailed reconciliations below, the following adjustments as applicable: Interest and other financial charges – net, Net (income) loss attributable to noncontrolling interests, Non-operating benefit (income) costs, Benefit (provision) for income taxes and certain tax related adjustments, and certain non-recurring and/or non-cash items. We may from time to time consider excluding other non-recurring items to enhance comparability between periods. Adjusted EBIT margin is calculated by taking Adjusted EBIT divided by Total revenues for the same period.
We report Adjusted tax expense and Adjusted ETR to provide management and investors with a better understanding of the normalized tax rate applicable to our business and provide more consistent comparability across periods. Adjusted tax expense excludes the income tax related to the pre-tax income adjustments included as part of Adjusted net income and certain income tax adjustments, such as adjustments to deferred tax assets or liabilities. We may from time to time consider excluding other non-recurring tax items to enhance comparability between periods. Adjusted ETR is Adjusted tax expense divided by income before income taxes less the pre-tax income adjustments referenced above.
We report Free cash flow to provide management and investors with an important measure of our ability to generate cash on a normalized basis and provide insight into our flexibility to allocate capital. Free cash flow is Cash from (used for) operating activities – continuing operations including cash flows related to the additions and dispositions of property, plant, and equipment (“PP&E”) and additions of internal-use software. Free cash flow does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the capital required for debt repayments.
Management recognizes that these non-GAAP financial measures have limitations, including that they may be calculated differently by other companies or may be used under different circumstances or for different purposes. In order to compensate for the discussed limitations, management does not consider these measures in isolation from or as alternatives to the comparable financial measures determined in accordance with U.S. GAAP. The detailed reconciliations of each non-GAAP financial measure to the most directly comparable U.S. GAAP financial measure are provided below, and no single financial measure should be relied on to evaluate our business.
____________________
*Non-GAAP Financial Measure
38
Organic Revenue* | For the three months ended June 30 | For the six months ended June 30 | |||||||||||||||||||||
2026 | 2025 | % change | 2026 | 2025 | % change | ||||||||||||||||||
AIS revenues | $ | 3,771 | $ | 3,493 | 7.9% | $ | 7,410 | $ | 6,872 | 7.8% | |||||||||||||
Less: Acquisitions(1) | 62 | — | 72 | — | |||||||||||||||||||
Less: Dispositions(2) | — | — | — | — | |||||||||||||||||||
Less: Foreign currency exchange | 41 | — | 156 | — | |||||||||||||||||||
AIS Organic revenue* | $ | 3,668 | $ | 3,493 | 5.0% | $ | 7,182 | $ | 6,872 | 4.5% | |||||||||||||
PDx revenues | $ | 843 | $ | 729 | 15.6% | $ | 1,612 | $ | 1,362 | 18.4% | |||||||||||||
Less: Acquisitions(1) | — | — | 50 | 1 | |||||||||||||||||||
Less: Dispositions(2) | — | — | — | — | |||||||||||||||||||
Less: Foreign currency exchange | 8 | — | 35 | — | |||||||||||||||||||
PDx Organic revenue* | $ | 835 | $ | 729 | 14.6% | $ | 1,527 | $ | 1,360 | 12.3% | |||||||||||||
PCS revenues | $ | 675 | $ | 778 | (13.3)% | $ | 1,379 | $ | 1,531 | (10.0)% | |||||||||||||
Less: Acquisitions(1) | — | — | — | — | |||||||||||||||||||
Less: Dispositions(2) | — | — | — | — | |||||||||||||||||||
Less: Foreign currency exchange | 2 | — | 14 | — | |||||||||||||||||||
PCS Organic revenue* | $ | 673 | $ | 778 | (13.5)% | $ | 1,365 | $ | 1,531 | (10.9)% | |||||||||||||
Other revenues | $ | 6 | $ | 6 | 3.8% | $ | 24 | $ | 19 | 27.1% | |||||||||||||
Less: Acquisitions(1) | — | — | — | — | |||||||||||||||||||
Less: Dispositions(2) | — | — | — | — | |||||||||||||||||||
Less: Foreign currency exchange | — | — | — | — | |||||||||||||||||||
Other Organic revenue* | $ | 6 | $ | 6 | 3.8% | $ | 24 | $ | 19 | 27.1% | |||||||||||||
Total revenues | $ | 5,295 | $ | 5,007 | 5.7% | $ | 10,425 | $ | 9,784 | 6.6% | |||||||||||||
Less: Acquisitions(1) | 62 | — | 122 | 1 | |||||||||||||||||||
Less: Dispositions(2) | — | — | — | — | |||||||||||||||||||
Less: Foreign currency exchange | 51 | — | 205 | — | |||||||||||||||||||
Organic revenue* | $ | 5,182 | $ | 5,007 | 3.5% | $ | 10,098 | $ | 9,783 | 3.2% | |||||||||||||
(1) | Represents revenues attributable to acquisitions from the date the Company completed the transaction through the end of four quarters following the transaction, excluding the impact of Foreign currency exchange already captured in lines elsewhere. | ||||
(2) | Represents revenues attributable to dispositions for the four quarters preceding the disposition date. | ||||
__________________
*Non-GAAP Financial Measure
39
Adjusted EBIT* | For the three months ended June 30 | For the six months ended June 30 | |||||||||||||||||||||||||||
2026 | 2025 | % change | 2026 | 2025 | % change | ||||||||||||||||||||||||
Net income attributable to GE HealthCare | $ | 561 | $ | 486 | 15.5% | $ | 950 | $ | 1,049 | (9.5)% | |||||||||||||||||||
Add: Interest and other financial charges – net | 114 | 113 | 210 | 224 | |||||||||||||||||||||||||
Add: Non-operating benefit (income) costs | (45) | (73) | (96) | (148) | |||||||||||||||||||||||||
Less: Benefit (provision) for income taxes | (119) | (113) | (213) | (216) | |||||||||||||||||||||||||
Less: Net (income) loss attributable to noncontrolling interests | (13) | (14) | (35) | (39) | |||||||||||||||||||||||||
EBIT* | 761 | 653 | 16.7% | 1,312 | 1,380 | (5.0)% | |||||||||||||||||||||||
Add: Restructuring costs(1) | 27 | 18 | 76 | 40 | |||||||||||||||||||||||||
Add: Acquisition and disposition-related charges (benefits)(2) | 11 | 7 | 46 | 15 | |||||||||||||||||||||||||
Add: Spin-Off and separation costs and other adjustments(3) | (5) | 5 | (2) | 29 | |||||||||||||||||||||||||
Add: (Gain) loss on business and asset dispositions(4) | — | 5 | — | (5) | |||||||||||||||||||||||||
Add: Amortization of acquisition-related intangible assets | 61 | 40 | 108 | 75 | |||||||||||||||||||||||||
Add: Investment revaluation (gain) loss(5) | — | 1 | 8 | (92) | |||||||||||||||||||||||||
Less: Tariff refunds(6) | 106 | — | 106 | — | |||||||||||||||||||||||||
Adjusted EBIT* | $ | 750 | $ | 729 | 2.9% | $ | 1,440 | $ | 1,443 | (0.2)% | |||||||||||||||||||
Net income margin | 10.6% | 9.7% | 90 bps | 9.1% | 10.7% | (160) bps | |||||||||||||||||||||||
Adjusted EBIT margin* | 14.2% | 14.6% | (40) bps | 13.8% | 14.8% | (90) bps | |||||||||||||||||||||||
(1) | Consists of severance, facility closures, and other charges associated with restructuring programs. | ||||
(2) | Consists of legal, consulting, and other transaction and integration fees, and adjustments to contingent consideration, as well as other purchase accounting related charges and other costs directly related to the transactions. | ||||
(3) | Costs and other adjustments related to the Spin-Off and separation from GE, including system implementations, audit and advisory fees, legal entity separation, Founders Grant equity awards, separation agreements with GE, and other one-time costs. | ||||
(4) | Consists of gains and losses resulting from the sale of assets and investments. | ||||
(5) | Primarily relates to valuation adjustments for equity investments and for the six months ended June 30, 2025, includes the impact from the revaluation of our existing 50% interest in NMP as part of the acquisition transaction. | ||||
(6) | Consists of the pre-tax impact of refunds pertaining to IEEPA tariffs incurred in the year ended December 31, 2025. | ||||
__________________
*Non-GAAP Financial Measure
40
Adjusted Net Income* | For the three months ended June 30 | For the six months ended June 30 | |||||||||||||||||||||||||||
2026 | 2025 | % change | 2026 | 2025 | % change | ||||||||||||||||||||||||
Net income attributable to GE HealthCare | $ | 561 | $ | 486 | 15.5% | $ | 950 | $ | 1,049 | (9.5)% | |||||||||||||||||||
Add: Non-operating benefit (income) costs | (45) | (73) | (96) | (148) | |||||||||||||||||||||||||
Add: Restructuring costs(1) | 27 | 18 | 76 | 40 | |||||||||||||||||||||||||
Add: Acquisition and disposition-related charges (benefits)(2) | 11 | 7 | 46 | 15 | |||||||||||||||||||||||||
Add: Spin-Off and separation costs and other adjustments(3) | (5) | 5 | (2) | 34 | |||||||||||||||||||||||||
Add: (Gain) loss on business and asset dispositions(4) | — | 5 | — | (5) | |||||||||||||||||||||||||
Add: Amortization of acquisition-related intangible assets | 61 | 40 | 108 | 75 | |||||||||||||||||||||||||
Add: Investment revaluation (gain) loss(5) | — | 1 | 8 | (92) | |||||||||||||||||||||||||
Less: Tariff refunds(6) | 106 | — | 106 | — | |||||||||||||||||||||||||
Add: Tax effect of reconciling items(7) | 11 | (1) | (8) | (1) | |||||||||||||||||||||||||
Add: Spin-Off and other tax adjustments(8) | — | — | (7) | (18) | |||||||||||||||||||||||||
Adjusted net income* | $ | 515 | $ | 487 | 5.6% | $ | 967 | $ | 951 | 1.7% | |||||||||||||||||||
(1) | Consists of severance, facility closures, and other charges associated with restructuring programs. | ||||
(2) | Consists of legal, consulting, and other transaction and integration fees, and adjustments to contingent consideration, as well as other purchase accounting related charges and other costs directly related to the transactions. | ||||
(3) | Costs and other adjustments related to the Spin-Off and separation from GE, including system implementations, audit and advisory fees, legal entity separation, Founders Grant equity awards, separation agreements with GE, and other one-time costs. For the six months ended June 30, 2025, an adjustment is included to eliminate the associated impact on Net (income) loss attributable to noncontrolling interests for applicable costs that impact earnings attributable to noncontrolling interests. | ||||
(4) | Consists of gains and losses resulting from the sale of assets and investments. | ||||
(5) | Primarily relates to valuation adjustments for equity investments and for the six months ended June 30, 2025, includes the impact from the revaluation of our existing 50% interest in NMP as part of the acquisition transaction. | ||||
(6) | Consists of the pre-tax impact of refunds pertaining to IEEPA tariffs incurred in the year ended December 31, 2025. The associated tax effect is presented on the Tax effect of reconciling items line. The net of tax impact of tariff refunds is $81 million for the three and six months ended June 30, 2026. | ||||
(7) | The tax effect of reconciling items is calculated using the statutory tax rate, taking into consideration the nature of the items and the relevant taxing jurisdiction. | ||||
(8) | Consists of certain income tax adjustments, including foreign income tax reserve releases and discrete tax impacts resulting from the Spin-Off and separation from GE and for the six months ended June 30, 2025, includes tax impacts of the NMP acquisition. | ||||
___________________
*Non-GAAP Financial Measure
41
Adjusted Earnings Per Share* | For the three months ended June 30 | For the six months ended June 30 | |||||||||||||||||||||||||||
(In dollars, except shares outstanding presented in millions) | 2026 | 2025 | $ change | 2026 | 2025 | $ change | |||||||||||||||||||||||
Diluted earnings per share | $ | 1.24 | $ | 1.06 | $ | 0.18 | $ | 2.08 | $ | 2.29 | $ | (0.20) | |||||||||||||||||
Add: Non-operating benefit (income) costs | (0.10) | (0.16) | (0.21) | (0.32) | |||||||||||||||||||||||||
Add: Restructuring costs(1) | 0.06 | 0.04 | 0.17 | 0.09 | |||||||||||||||||||||||||
Add: Acquisition and disposition-related charges (benefits)(2) | 0.02 | 0.02 | 0.10 | 0.03 | |||||||||||||||||||||||||
Add: Spin-Off and separation costs and other adjustments(3) | (0.01) | 0.01 | (0.01) | 0.07 | |||||||||||||||||||||||||
Add: (Gain) loss on business and asset dispositions(4) | — | 0.01 | — | (0.01) | |||||||||||||||||||||||||
Add: Amortization of acquisition-related intangible assets | 0.13 | 0.09 | 0.24 | 0.16 | |||||||||||||||||||||||||
Add: Investment revaluation (gain) loss(5) | — | 0.00 | 0.02 | (0.20) | |||||||||||||||||||||||||
Less: Tariff refunds(6) | 0.23 | — | 0.23 | — | |||||||||||||||||||||||||
Add: Tax effect of reconciling items(7) | 0.02 | (0.00) | (0.02) | (0.00) | |||||||||||||||||||||||||
Add: Spin-Off and other tax adjustments(8) | — | — | (0.02) | (0.04) | |||||||||||||||||||||||||
Adjusted earnings per share* | $ | 1.13 | $ | 1.06 | $ | 0.07 | $ | 2.12 | $ | 2.07 | $ | 0.05 | |||||||||||||||||
Diluted weighted-average shares outstanding | 454 | 458 | 456 | 459 | |||||||||||||||||||||||||
(1) | Consists of severance, facility closures, and other charges associated with restructuring programs. | ||||
(2) | Consists of legal, consulting, and other transaction and integration fees, and adjustments to contingent consideration, as well as other purchase accounting related charges and other costs directly related to the transactions. | ||||
(3) | Costs and other adjustments related to the Spin-Off and separation from GE, including system implementations, audit and advisory fees, legal entity separation, Founders Grant equity awards, separation agreements with GE, and other one-time costs. For the six months ended June 30, 2025, an adjustment is included to eliminate the associated impact on Net (income) loss attributable to noncontrolling interests for applicable costs that impact earnings attributable to noncontrolling interests. | ||||
(4) | Consists of gains and losses resulting from the sale of assets and investments. | ||||
(5) | Primarily relates to valuation adjustments for equity investments and for the six months ended June 30, 2025, includes the impact from the revaluation of our existing 50% interest in NMP as part of the acquisition transaction. | ||||
(6) | Consists of the pre-tax impact of refunds pertaining to IEEPA tariffs incurred in the year ended December 31, 2025. The associated tax effect is presented on the Tax effect of reconciling items line. The net of tax impact of tariff refunds is $0.18 for the three and six months ended June 30, 2026. | ||||
(7) | The tax effect of reconciling items is calculated using the statutory tax rate, taking into consideration the nature of the items and the relevant taxing jurisdiction. | ||||
(8) | Consists of certain income tax adjustments, including foreign income tax reserve releases and discrete tax impacts resulting from the Spin-Off and separation from GE and for the six months ended June 30, 2025, includes tax impacts of the NMP acquisition. | ||||
Adjusted Tax Expense* and Adjusted ETR* | For the three months ended June 30 | For the six months ended June 30 | ||||||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||||||
Benefit (provision) for income taxes | $ | (119) | $ | (113) | $ | (213) | $ | (216) | ||||||||||||
Add: Tax effect of reconciling items(1) | 11 | (1) | (8) | (1) | ||||||||||||||||
Add: Spin-Off and other tax adjustments(2) | — | — | (7) | (18) | ||||||||||||||||
Adjusted tax expense* | $ | (108) | $ | (114) | $ | (229) | $ | (235) | ||||||||||||
Effective tax rate | 17.2% | 18.4% | 17.8% | 16.6% | ||||||||||||||||
Adjusted effective tax rate* | 17.1% | 18.5% | 18.6% | 19.3% | ||||||||||||||||
(1) | The tax effect of reconciling items is calculated using the statutory tax rate, taking into consideration the nature of the items and the relevant taxing jurisdiction. | ||||
(2) | Consists of certain income tax adjustments, including foreign income tax reserve releases and discrete tax impacts resulting from the Spin-Off and separation from GE and for the six months ended June 30, 2025, includes tax impacts of the NMP acquisition. | ||||
Free Cash Flow* | For the six months ended June 30 | ||||||||||||||||
2026 | 2025 | % change | |||||||||||||||
Cash from (used for) operating activities | $ | 458 | $ | 344 | 33.0% | ||||||||||||
Add: Additions to PP&E and internal-use software | (278) | (238) | |||||||||||||||
Add: Dispositions of PP&E | — | — | |||||||||||||||
Free cash flow* | $ | 180 | $ | 106 | 70.0% | ||||||||||||
___________________
*Non-GAAP Financial Measure
42
LIQUIDITY AND CAPITAL RESOURCES
As of June 30, 2026, our Cash, cash equivalents, and restricted cash balance in the Condensed Consolidated Statements of Financial Position was $2,105 million. We have historically generated positive cash flows from operating activities. Additionally, we have access to revolving credit facilities of $3,500 million in aggregate, described in detail in Note 8, “Borrowings.”
We believe that our existing balance of Cash, cash equivalents, and restricted cash, future cash generated from operating activities, access to capital markets, and existing credit facilities will be sufficient to meet the needs of our current and ongoing operations, pay taxes due, service our existing debt, and fund investments in our business for at least the next 12 months.
The following table summarizes our cash flows for the periods presented:
Cash Flow | For the six months ended June 30 | ||||||||||
2026 | 2025 | ||||||||||
Cash from (used for) operating activities | $ | 458 | $ | 344 | |||||||
Cash from (used for) investing activities | (2,615) | (630) | |||||||||
Cash from (used for) financing activities | (215) | 1,075 | |||||||||
Free cash flow* | 180 | 106 | |||||||||
Operating Activities
Cash generated from operating activities in the six months ended June 30, 2026 was $458 million and included Net income of $985 million, non-cash charges for depreciation and amortization expense of $313 million, and $840 million in net outflows from changes in assets and liabilities. The changes in assets and liabilities are primarily driven by an increase in inventories to meet business demand, compensation and benefit payments, and company-funded payments for postretirement benefit plans. Cash generated from operating activities includes a negative impact, net of refunds received, of $68 million from incremental tariffs.
Cash generated from operating activities in the six months ended June 30, 2025 was $344 million and included Net income of $1,088 million, adjusted for non-cash items including depreciation and amortization expense of $284 million, the gain on remeasurement of NMP equity method investment of $97 million, and $930 million in net outflows from changes in assets and liabilities. The changes in assets and liabilities are primarily driven by compensation and benefit payments, company-funded benefit payments for postretirement benefit plans, an increase in inventories to meet business demand, and a decrease in accounts payable, partially offset off by a decrease in current receivables primarily from collections.
Investing Activities
Cash used for investing activities in the six months ended June 30, 2026 was $2,615 million and primarily included purchases of businesses, net of cash acquired, of $2,293 million related to the acquisition of Intelerad and Additions to PP&E and internal-use software of $278 million related mostly to investments in facilities, including manufacturing capacity expansion, and new product introductions. Refer to Note 7, “Acquisitions, Goodwill, and Other Intangible Assets” for additional information on the Intelerad acquisition.
Cash used for investing activities in the six months ended June 30, 2025 was $630 million and primarily included purchases of businesses, net of cash acquired, of $279 million largely related to the acquisition of the remaining 50% interest in NMP, additions to PP&E and internal-use software of $238 million related mostly to new product introductions and manufacturing capacity expansion, and a payment of $178 million for settlement of cross-currency swaps that were designated in net investment hedges. Refer to Note 7, “Acquisitions, Goodwill, and Other Intangible Assets” for additional information on the NMP acquisition.
Financing Activities
Cash used for financing activities in the six months ended June 30, 2026 was $215 million and primarily included $300 million for repurchases of common stock, partially offset by a net increase in borrowings of $150 million. The net increase in borrowings was primarily driven by $1,150 million of net proceeds from borrowings of $650 million under our Delayed Draw Term Loan and $500 million under our 364-day senior unsecured revolving credit facility, partially offset by $1,000 million from repayments of $500 million of our Term Loan Facility upon maturity and $500 million under our 364-day senior unsecured revolving credit facility. Refer to Note 8, “Borrowings” and Note 11, “Shareholders' Equity” for further information.
Cash generated from financing activities in the six months ended June 30, 2025 was $1,075 million and primarily included $1,487 million of net proceeds from the issuance of $650 million aggregate principal amount of senior unsecured notes due in 2031 and $850 million aggregate principal amount of senior unsecured notes due in 2035, partially offset by repayment of $250 million of our outstanding Term Loan Facility, and repurchase of common stock for total consideration of $100 million.
___________________
*Non-GAAP Financial Measure
43
Material Cash Requirements
In the normal course of business, we enter into contracts and commitments that obligate us to make payments in the future. Information regarding our obligations under lease and other commitments is provided in Note 7, “Leases” and Note 14, “Commitments, Guarantees, Product Warranties, and Other Loss Contingencies” to the consolidated financial statements contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. We also have material cash requirements related to our debt commitments as described in Note 8, “Borrowings” and our pension obligations as described in Note 9, “Postretirement Benefit Plans.”
Debt and Credit Facilities
As part of our capital structure, we have incurred debt. The servicing of this debt is supported by cash flows from our operations. As of June 30, 2026, we had $10,093 million of total debt compared to $10,003 million as of December 31, 2025. The net increase in debt was due primarily to the $650 million drawdown of the Delayed Draw Term Loan Facility, partially offset by the $500 million repayment of the Term Loan Facility upon maturity.
Our Credit Facilities include a five-year senior unsecured revolving facility that provides borrowings of up to $3,000 million expiring in March 2030, a 364-day senior unsecured revolving facility that provides borrowings of up to $500 million expiring in February 2027, and a Delayed Draw Term Loan Facility with an aggregate committed amount of $650 million maturing in March 2029. As of June 30, 2026, there were no outstanding borrowings on either of the senior unsecured revolving credit facilities and $650 million outstanding on the Delayed Draw Term Loan Facility. Additional information on our debt and Credit Facilities, including definitions of the terms used above, is included in Note 8, “Borrowings.”
The Credit Facilities include various customary covenants that limit, among other things, the incurrence of liens securing debt, the entry into certain fundamental change transactions by GE HealthCare, and the maximum permitted consolidated net leverage ratio. As of June 30, 2026, we were in compliance with the covenant requirements, including the maximum permitted consolidated net leverage ratio.
Access to Capital and Credit Ratings
We plan to continue to rely on capital markets, and we expect to have access to credit facilities to fund our operations. The cost and availability of debt financing will be influenced by our credit ratings and market conditions.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
For a discussion of recently issued accounting standards, see Note 1, “Organization and Basis of Presentation.”
CRITICAL ACCOUNTING ESTIMATES
There have been no material changes to the critical accounting estimates disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to market risk primarily from changes in foreign currency exchange rates, interest rates, commodity prices, and equity prices, which may impact future income, cash flows, and fair value of our business. There have been no material changes in our exposure to market risk from those disclosed in Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
ITEM 4. CONTROLS AND PROCEDURES
EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES.
Under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and Chief Financial Officer, the Company evaluated its disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on this evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of June 30, 2026, and that the information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING.
During the quarter ended June 30, 2026, there were no changes in the Company’s internal control over financial reporting that materially affected or are reasonably likely to materially affect the Company’s internal control over financial reporting.
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INHERENT LIMITATIONS ON EFFECTIVENESS OF CONTROLS.
All internal control systems have inherent limitations; as such, they may not prevent or detect all misstatements or all fraud. Therefore, even those internal control systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and reporting. Additionally, projections of any evaluation of effectiveness to future periods are subject to the risk that the current control structure may become inadequate for changes in conditions or the degree of compliance with the policies may deteriorate.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Information on material pending legal proceedings is incorporated herein by reference to the information set forth in Note 13, “Commitments, Guarantees, Product Warranties, and Other Loss Contingencies” to the financial statements included elsewhere in this Quarterly Report on Form 10-Q.
ITEM 1A. RISK FACTORS
There have been no material changes to the risk factors disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
ISSUER PURCHASES OF EQUITY SECURITIES.
Total number of shares purchased | Average price paid per share(1) (in dollars) | Total number of shares purchased as part of publicly announced programs(2) | Approximate dollar value of shares that may yet be purchased under the programs(1)(2) (in millions) | |||||||||||
April 1, 2026 - April 30, 2026 | — | $ | — | — | $ | 700 | ||||||||
May 1, 2026 - May 31, 2026 | 3,276,004 | 61.05 | 3,276,004 | 500 | ||||||||||
June 1, 2026 - June 30, 2026 | — | — | — | 500 | ||||||||||
Total | 3,276,004 | $ | 61.05 | 3,276,004 | $ | 500 | ||||||||
(1) Amounts exclude transaction costs.
(2) On April 30, 2025, our Board of Directors authorized a share repurchase program (the “repurchase program”) pursuant to which GE HealthCare may repurchase up to $1,000 million of its common stock. The repurchase program does not have an expiration date.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
DIRECTOR AND OFFICER TRADING ARRANGEMENTS.
None of our directors or executive officers adopted terminated
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ITEM 6. EXHIBITS
Number | Description | ||||
3.1 | |||||
3.2 | |||||
10.1 | |||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
101 | The following materials from GE HealthCare Technologies Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, formatted in inline XBRL (eXtensible Business Reporting Language); (1) Condensed Consolidated Statements of Income for the three and six months ended June 30, 2026 and 2025; (2) Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2026 and 2025; (3) Condensed Consolidated Statements of Financial Position as of June 30, 2026 and December 31, 2025; (4) Condensed Consolidated Statements of Changes in Equity for the three and six months ended June 30, 2026 and 2025; (5) Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2026 and 2025; and (6) Notes to the Condensed Consolidated Financial Statements. | ||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | ||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
GE HealthCare Technologies Inc. | ||||||||
(Registrant) | ||||||||
July 29, 2026 | /s/ George A. Newcomb | |||||||
Date | George A. Newcomb, Controller & Chief Accounting Officer (authorized signatory) | |||||||
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Exhibit 10.1
One GE HealthCare Annual Bonus Plan
(effective July 1, 2026)
I. Purpose
The Plan is an annual performance-based bonus plan that incentivizes and rewards eligible employees of the Company for delivering on the Company’s financial, operating and strategic goals during a Plan Year. The Plan is a restatement of and supersedes the terms of the One GE HealthCare Annual Bonus Plan originally effective January 1, 2023.
II. Eligibility
The Company has the sole discretion to determine who is eligible to participate in the
Plan. It is expected, however, that the following principles shall apply.
Eligibility shall be limited to employees who (i) are assigned to an eligible role and/or level in a participating country, (ii) are compensated through the Company’s payroll; (iii) do not participate in any other bonus program offered by the Company, including but not limited to profit-sharing and sales incentive compensation programs or plans, unless required by local law; and (iv) receive, and acknowledge receipt of, an annual written notification of their eligibility from the Company. In order to be paid a bonus under the Plan, employees must continue to meet the Active Employment Requirement.
The Active Employment Requirement is waived in the following situations for otherwise eligible employees who:
(1)are newly hired or promoted into an eligible position before October 1 of the Plan Year; or
(2)terminate employment prior to the date awards are paid for the Plan Year due to death, Retirement or layoff/redundancy, so long as the employee was actively employed in an eligible position for a minimum of 90 days during the Plan Year;
In its sole discretion, the Company may waive the Active Employment Requirement in any case it deems appropriate, for an eligible employee who remained employed as an eligible employee for a minimum of 90 days during the Plan Year. For example, the Active Employment Requirement could be waived for otherwise eligible employees who:
(1) are on an approved leave of absence during the Plan Year;
(2) become ineligible to participate in the Plan during the Plan Year as the result of a transfer to a nonparticipating affiliate or to an ineligible position.
Any awards made in connection with a waiver of the Active Employment Requirement shall be prorated for the applicable Plan Year based on service by dividing the number of days worked in the applicable Plan Year by 365.
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Any payment made to a former or exiting employee due to a waiver of the Active Employment Requirement (other than due to death) is contingent on the employee signing and not revoking a general release of claims in a form provided by the Company, unless otherwise required by local law.
Except as noted below, payments made to individuals below the Executive Band who have left the Company during the Plan Year (up to and including a last day of employment of December 31) due to death, Retirement or layoff/redundancy will be calculated as a percentage, to be determined annually by the Company, of the individual’s pro-rated target and will not be changed, once paid, either up or down, based on actual total year results. Such payments will be made as soon as practicable following the individual’s last day of employment with the Company or, when a release is required, following the effective date of the release. As with its general reservation of rights and discretion, the Company reserves the right to change this percentage on a prospective basis by communicating a change where this document is posted.
Payments to individuals in the Executive Band and above will be calculated based on actual Company, Business and Individual Performance Factors, and will be made at the normal time bonus payments are made to active employees, unless otherwise required by local law.
Receipt of an award for one Plan Year does not create a right to an award for any other Plan Year. All awards (including the amounts thereof) are made at the sole discretion of the Company, regardless of Individual, Company or Business performance.
III. Awards
Each year, the Company shall determine and communicate that year’s bonus plan specifics, which shall be described to eligible employees in writing. The Company reserves the sole discretion to change the formula, metrics, Company, Business and Individual Performance Targets from Plan Year to Plan Year and within a Plan Year.
Company and Business Performance Targets
At the beginning of each Plan Year, the Board will set the Company’s financial, operating, and strategic goals. Based on the Company’s goals, the Committee will select the Company’s Performance Targets and, if applicable, any Business Performance Targets and/or Individual Performance Targets for the Plan Year.
Transfers In/From and Within Plan
If an employee moves from one job level to a higher or lower job level with different Individual Targets under this Plan, their Individual Target for the Plan Year will be pro-rated based on the number of days in the Plan Year at each level/Individual Target.
If an employee moves from an ineligible role to an eligible role or from an eligible role to an ineligible role, their bonus will be pro-rated for the number of days in the Plan Year in an
2
eligible role, as long as the employee has been in the eligible role for at least 90 days in the Plan Year.
If an employee moves from one Business to another during the Plan Year, their Bonus Performance Group will be as follows:
| Effective Date of Change | Bonus Performance Group | ||||
| In Q1 or Q2 | Bonus Performance Group For New Business | ||||
| In Q3 or Q4 | Bonus Performance Group For Original Business | ||||
Company and Business Performance Factors
After the end of the Plan Year, the Committee will assess the Company’s performance against the Company Performance Targets, qualitative performance in risk management, compliance and other areas and consider other relevant impacts on performance, including without limitation, the impact of external market conditions and Company transaction activity. This assessment is used by the Committee to determine the Company Performance Factor. The Committee will make the same assessment for any Business that was assigned Business Performance Targets to set a Business Performance Factor for each such Business.
Bonus Pool
The maximum bonus pool for any Plan Year will be set based on the sum of Individual Targets for eligible employees, as adjusted for the Company and Business Performance Factors attributable to each eligible employees’ Bonus Performance Group.
Individual Performance Factor
The Committee in its discretion may establish for any Plan Year design Individual Performance Targets for some or all eligible employees. The Committee or its authorized delegate will assess an eligible employees’ individual performance against his or her Individual Performance Targets and consider other relevant impacts on performance to set the employee’s Individual Performance Factor. No bonus payable for any Plan Year based on Individual Performance Factors will increase the maximum bonus pool for the Plan Year, unless approved by the Committee.
Other Adjustments
The Company retains complete discretion to further adjust the award amount for any individual for any reason (except that, for the avoidance of doubt, the Committee shall retain any discretion that is not delegated as described in Section V). For example, the Company may modify award levels to address internal and external factors related to individual, Business and Company performance and current and future projected business conditions, including without limitation factors such as internal parity, industry trends and market competitiveness, retention, dispute resolution and discipline.
3
IV. Payment of Awards
Awards under the Plan will be reviewed and approved by the Company following the end of the Plan Year. All individual awards are subject to review by successively higher levels of senior management, and review and approval by the Committee for Executive Officers.
All approved awards will be paid as soon as practicable after such review, but in any event not later than March 15 of the year following the Plan Year (or such other dates for participating countries outside of the United States as the Company may determine). Any approved awards in the United States paid during the year following the Plan Year but after March 15 of that year are subject to Section 409A of the Code. In the event an award is subject to Section 409A of the Code, the specified payment date for such award shall be March 15 of the year following the Plan Year. Any payment made to a former or exiting employee due to a waiver of the Active Employment Requirement in the U.S. will be paid in cash on the later of the 90th day following (i) for employees below the Executive Band, the employee’s termination, provided that a release as provided in Section II has been executed and the applicable revocation period has expired by such date, and (ii) for employees in the Executive Band and above, the date bonus payments are made to active employees.
Subject to Sections VIII and X, under no circumstances will an individual’s award under the Plan be considered final unless and until after it is calculated, determined, and paid to the individual, and all other conditions are satisfied. The Committee may determine, at its discretion, that in lieu of cash payments, payment of any bonus be made in the form of restricted stock or restricted stock units or in any combination of cash or stock awards under the Company’s 2023 Long-Term Incentive Plan to the extent permitted under Section 409A of the Code. Awards paid in cash will be issued via Company payroll (in the employee’s local currency) and are subject to all applicable payroll deductions and tax withholdings. If an employee changes currency after the Plan Year and before payment, payment will be made in the current local currency using the Company Treasury rate for the fourth quarter of the Plan Year.
When local law requires participation in a profit-sharing plan, any payment under this Plan will be reduced by the amount of payment under the local profit-sharing plan and if the payout under a profit-sharing plan is greater than the payment would be under this Plan, there will be no payment under this Plan, subject to local law.
To the extent permitted under applicable law, in the event that an individual receives an overpayment or otherwise owes the Company money which has not been repaid during the course of or at the conclusion of employment with the Company, the Company reserves the right to adjust any award under the Plan by the amount of the overpayment or to otherwise recover the overpayment by any lawful means. If such deductions are insufficient, the employee will be required to reimburse the Company for the balance, unless expressly waived in writing by the Company.
V. Administration and Interpretation
4
The Plan shall be administered by the Committee and any authorized delegate, who shall have the full power to construe and interpret the Plan in its sole discretion, including exercising any and all authority and responsibility given to the Company in this document. The place of administration of the Plan shall be deemed within the State of Delaware. The Plan shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to conflicts of law provisions therein, to the extent permissible under applicable local law.
Awards are intended to be exempt from Section 409A of the Code. The Plan shall be administered and interpreted in a manner consistent with such intent, including in a manner that avoids the imposition of penalties under Section 409A. To the extent Section 409A applies, the Plan shall be construed and administered consistently with the requirements thereof to avoid taxes thereunder. If, upon separation from service, an employee is a “specified employee” within the meaning of Section 409A of the Code, any payment under this Plan that is subject to Section 409A and would otherwise be paid within six months after the individual’s separation from service will instead be paid in the seventh month following the employee’s separation from service to the extent required by Section 409A of the Code. Each recipient of awards under the Plan (and not the Company) shall be solely responsible for the recipient’s own tax liability with respect to such benefits (including imputed income), without regard to the amount withheld or reported to the Internal Revenue Service. The amount withheld shall be determined by the Company. Nothing in this Plan shall be interpreted or construed to transfer any liability for any tax (including a tax or penalty due as a result of a failure to comply with Section 409A of the Code) from any employee, employee’s spouse, beneficiary, or estate to any other individual or entity.
Without limiting the foregoing, the Committee shall have the power to:
(1) determine who is eligible to participate in the Plan;
(2) determine whether to waive the Active Employment Requirement for any individual;
(3) determine Individual Targets;
(4) establish the Company Performance Target;
(5) determine the Company Performance Factor;
(6) adjust the Company Performance Target and/or Company Performance Factor to reflect extraordinary or unusual events;
(7) Take the steps in (4) – (6) above for any Business Performance Targets, Business Performance Factors and Individual Performance Targets and, for Executive Officers, Individual Performance Factors;
(8) otherwise determine the amount of awards consistent with the terms of the
Plan, including establishing, as it deems appropriate, a minimum bonus pool for a Plan Year; and
5
(9) establish or amend any rules or administrative procedures necessary or appropriate for Plan administration.
The Committee may delegate its authority and responsibility under the Plan, except with respect to the determination of (i) awards for Executive Officers and/or (ii) steps (4) – (9) above. Accordingly, the Chief Executive Officer or the Chief People Officer, or the delegate of either, may exercise the Committee authority and responsibility under the Plan with respect to items 1 – 3 above, and to determine Individual Performance Factors, both for individuals who are not Executive Officers.
Nothing contained in the Plan shall be interpreted or construed as a promise of employment by the Company for the Plan Year, or any other time period, or a guarantee of payment of an award.
VI. Severability
The Plan (including any rules or administrative procedures established hereunder) represents the full and complete understanding between the Company and eligible employees with regard to terms of the Plan and any awards hereunder. The terms of the Plan (including any rules or administrative procedures) shall control in the event of inconsistencies with any other Company documents or any statements made by Company employees concerning the Plan.
If a final determination is made by a court of competent jurisdiction (or duly assigned arbitrator) that any provision contained in the Plan is unlawful, the Plan shall be considered amended in that instance to apply to such extent as the court/arbitrator may determine to be enforceable, but only to the extent consistent with the original intent of the drafter. Alternatively, if such a court/arbitrator finds that any provision contained in this Plan is unlawful -- and that provision cannot be amended, consistent with the original intent of the drafter, so as to make it lawful -- such finding shall not affect the effectiveness of any other provision of this Plan.
VII. Non-Assignability and Accounting
The right to any awards or any other rights under the Plan, are not assignable in any manner whatsoever (except to the extent of beneficiary designations made pursuant to established administrative procedures). No employee may create a lien or any other encumbrance on any present or future interest he or she may have under the Plan.
VIII. Additional Limitations (Clawbacks)
The Company reserves the right to claw back amounts paid under this Plan or to reduce an employee’s ability to earn additional amounts under this Plan if it determines the Employee has engaged in misconduct (in the current or any prior plan year), including but not limited to misconduct that violates any of the Company’s policies, including without limitation sales policies and relevant laws.
6
The Plan will be administered in compliance with Section 10D of the Securities Exchange Act of 1934, as amended, any applicable rules or regulations promulgated by the Securities and Exchange Commission or any national securities exchange or national securities association on which shares of the Company may be traded, and any Company policy adopted with respect to compensation recoupment, including, without limitation, the GE HealthCare Technologies Inc. Clawback Policy, to the extent the application of such rules, regulations and/or policies is permissible under applicable local law and Section 409A of the Code. This Section VIII will not be the Company’s exclusive remedy with respect to such matters.
IX. Amendment & Termination
The Plan is offered at the sole discretion of the Company, which reserves the right to modify, adjust, change, or terminate the Plan at any time and for any reason. Any amounts that have been paid under the Plan are subject to modification, adjustment, change or termination only as described in Section VIII.
X. Dispute Resolution
Questions or concerns related to the Plan or any Plan awards should be addressed to the employee’s Human Resources Manager or the Company’s Total Rewards leader. Any formal employee-initiated dispute relative to the Plan or awards will be addressed pursuant to the Company’s then current applicable internal grievance or alternative dispute resolution program, including any final and binding arbitration procedure, consistent with applicable laws and regulations.
XI. Definitions
Active Employment Requirement:
The “Active Employment Requirement” will be satisfied if an eligible employee is actively employed for the entire Plan Year and through the date in the following year that awards are paid under the Plan.
Board:
“Board” means the Board of Directors of the Company.
Bonus Performance Group:
A “Bonus Performance Group” will be determined by the Company for each eligible employee based on a combination of the Company Performance Targets and any relevant Business Performance Targets and their relative weighting.
Business:
“Business” means a business segment, function, region or lower-tier organization within a segment, function or region.
7
Business Performance Targets:
“Business Performance Targets” means any Business performance targets established by the Committee for a Plan Year for relevant Businesses, including a threshold, target and maximum level of performance for, associated payout ranges for, and the appropriate weight for each Business Performance Target.
Code:
“Code” means the Internal Revenue Code of 1986, as amended.
Committee:
“Committee” means the Talent, Culture, and Compensation Committee of the Board.
Company:
“Company” means GE HealthCare Technologies Inc. and any affiliates (companies or business entities in which GE HealthCare Technologies Inc. has a 50% or more interest) designated by the Committee or its delegate to participate in the Plan.
Company Performance Targets:
“Company Performance Targets” for a Plan Year means the company performance targets established by the Committee, including a threshold, target and maximum level of performance for, associated payout ranges for, and the appropriate weight for each Company performance target.
Effective Date:
The “Effective Date” of the Plan is July 1, 2026.
Executive Officer:
“Executive Officer” includes the chief executive officer of the Company and any other persons who report solely to the chief executive officer of the Company, other than those with primarily administrative functions.
Individual Performance Targets:
The Committee or its delegate may establish an “Individual performance target” in any Plan Year for some or all of the eligible employees, based on criteria such as individual and/or team performance, leadership, risk management, compliance, integrity and other factors.
Individual Target:
8
Each eligible employee shall be assigned an “Individual Target” for the Plan Year based on the eligible employee’s role and/or job level and country assignment which shall be equal to a percentage of the eligible employee’s base salary as of December 31 of the Plan Year.
Performance Factors:
“Performance Factor” means the Company Performance Factor, the Business Performance Factor or an Individual Performance Factor, as applicable, as determined by the Committee or its delegate after assessing Company or Business performance for individual performance, against Company Performance Targets, Business Performance and Individual Performance Targets, as applicable.
Plan:
“Plan” means the One GE HealthCare Annual Bonus Plan.
Plan Year:
“Plan Year” means the calendar year.
Retirement:
“Retirement” under this Plan shall mean separating from service with the Company on or after attainment of (i) age 60 and completion of five years of continuous employment, or (ii) age 55 and completion of ten years of continuous employment. Continuous employment under this Plan means continuous employment with the Company. If retirement at an earlier age than (i) or (ii) above is mandatory under applicable law, retirement shall mean the mandatory retirement date and completion of five years of continuous employment.
9
Exhibit 31.1
Certification Pursuant to
Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as Amended
Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as Amended
I, Peter J. Arduini, certify that:
1.I have reviewed this Quarterly Report on Form 10-Q of GE HealthCare Technologies Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: July 29, 2026
| /s/ Peter J. Arduini | ||
| Peter J. Arduini | ||
| President & Chief Executive Officer | ||
Exhibit 31.2
Certification Pursuant to
Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as Amended
Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as Amended
I, James K. Saccaro, certify that:
1.I have reviewed this Quarterly Report on Form 10-Q of GE HealthCare Technologies Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: July 29, 2026
| /s/ James K. Saccaro | ||
| James K. Saccaro | ||
| Vice President & Chief Financial Officer | ||
Exhibit 32.1
Certification Pursuant to
18 U.S.C. Section 1350
18 U.S.C. Section 1350
In connection with the Quarterly Report of GE HealthCare Technologies Inc. (the “registrant”) on Form 10-Q for the period ended June 30, 2026, as filed with the Securities and Exchange Commission on the date hereof (the “report”), we, Peter J. Arduini and James K. Saccaro, President & Chief Executive Officer and Vice President & Chief Financial Officer, respectively, of the registrant, certify, pursuant to 18 U.S.C. § 1350, that to our knowledge:
(1)The report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
(2)The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the registrant.
July 29, 2026
| /s/ Peter J. Arduini | ||
| Peter J. Arduini | ||
| President & Chief Executive Officer | ||
| /s/ James K. Saccaro | ||
| James K. Saccaro | ||
| Vice President & Chief Financial Officer | ||