$GEHC · GE HealthCare Technologies Inc.
GE HealthCare filed its Q3 FY2026 10-Q, reporting total revenues of $5.513B (+7.2% YoY, +6.2% organic), GAAP EPS of $1.36 (vs $0.98 a year ago), and net income attributable to GE HealthCare of $615M. Operating income rose 23.3% to $805M with operating margin expanding 190 bps to 14.6%. The PDx and AIS segments drove growth while PCS lagged due to fulfillment challenges.
- Total revenues of $5.513B grew 7.2% YoY (6.2% organic), driven by strength across all three segments.
- GAAP EPS of $1.36 surged 38.8% YoY from $0.98; net income attributable to GE HealthCare rose to $615M from $446M.
- Operating margin expanded 190 bps to 14.6%, with operating income up 23.3% to $805M.
- PDx segment led with 13.0% reported revenue growth; PCS segment declined 4.0% due to operational and fulfillment challenges.
- Cash and equivalents fell to $2.854B from $4.512B at year-end 2025, reflecting acquisitions and $300M in share repurchases.
Extended-hours trading shows GEHC at $74.98, up 5.44% vs the regular-session close of $71.11, indicating a strong positive reaction to the Q3 beat. The $32.12B market-cap company delivered broad-based revenue growth and significant margin expansion.
GE HealthCare delivered broad-based revenue growth with significant margin expansion, but the PCS segment's persistent operational issues and declining cash reserves from M&A spending warrant scrutiny.
GE HealthCare's 7.2% organic-adjacent growth and 190bps margin expansion outpaces the broader medtech sector, where peers face tariff headwinds and China softness. The PDx segment's 13.8% organic growth in contrast media and radiopharmaceuticals signals strong diagnostic imaging demand.
PCS segment faces ongoing operational and fulfillment challenges, with revenues down 4.0% YoY. Tariff and trade policy risks are explicitly flagged, along with China region exposure where AIS and PCS revenues declined.