WS Investor
28 Oct 2026, 14:58
GE HealthCare Jumps 7.8% as Q3 Growth, Margin Expansion and Raised Guidance Impress Investors
GE HealthCare (NASDAQ: GEHC) shares rose about 7.8% after the company reported stronger-than-expected third-quarter 2026 results and raised its full-year outlook.
Revenue increased 7.2% year over year to $5.5 billion, with organic growth of 6.2% across all segments. Organic orders rose 4%, book-to-bill was 1.03x and backlog reached $23.7 billion.
Profitability improved sharply. Adjusted EBIT rose to $913 million from $761 million, while adjusted EBIT margin expanded 180 basis points to 16.6%. Adjusted EPS increased 25% to $1.34, and GAAP EPS rose 39% to $1.36.
Segment performance was broad-based. Advanced Imaging Solutions revenue grew 6.1%, Pharmaceutical Diagnostics rose 13%, and Patient Care Solutions increased 8.5%. Patient Care Solutions EBIT jumped nearly 149%, with margin expanding 480 basis points.
Cash generation was also strong, with operating cash flow of $907 million and free cash flow of $793 million. The company raised its quarterly dividend by 14% and separately announced plans to acquire SOFIE Biosciences for $945 million.
GE HealthCare raised 2026 adjusted EPS guidance to $4.95-$5.05 from $4.80-$5.00 and now expects organic revenue growth of about 4%. The 7.8% gain appears to reflect the combination of stronger-than-expected growth, meaningful margin expansion, robust cash flow and higher full-year guidance.
GE HealthCare (NASDAQ: GEHC) shares rose about 7.8% after the company reported stronger-than-expected third-quarter 2026 results and raised its full-year outlook.
Revenue increased 7.2% year over year to $5.5 billion, with organic growth of 6.2% across all segments. Organic orders rose 4%, book-to-bill was 1.03x and backlog reached $23.7 billion.
Profitability improved sharply. Adjusted EBIT rose to $913 million from $761 million, while adjusted EBIT margin expanded 180 basis points to 16.6%. Adjusted EPS increased 25% to $1.34, and GAAP EPS rose 39% to $1.36.
Segment performance was broad-based. Advanced Imaging Solutions revenue grew 6.1%, Pharmaceutical Diagnostics rose 13%, and Patient Care Solutions increased 8.5%. Patient Care Solutions EBIT jumped nearly 149%, with margin expanding 480 basis points.
Cash generation was also strong, with operating cash flow of $907 million and free cash flow of $793 million. The company raised its quarterly dividend by 14% and separately announced plans to acquire SOFIE Biosciences for $945 million.
GE HealthCare raised 2026 adjusted EPS guidance to $4.95-$5.05 from $4.80-$5.00 and now expects organic revenue growth of about 4%. The 7.8% gain appears to reflect the combination of stronger-than-expected growth, meaningful margin expansion, robust cash flow and higher full-year guidance.
