GE HealthCare Raises Profit Outlook, Lifts Dividend 14% as Revenue Grows 7.2%

GE HealthCare raised its full-year 2026 profit outlook on Wednesday after third-quarter revenue and earnings came in ahead of its own expectations, with adjusted EPS climbing 25.1% to $1.34.

The Chicago-based medical imaging and diagnostics company now expects 2026 adjusted EPS of $4.95 to $5.05, up from a prior range of $4.80 to $5.00, according to the earnings release it filed with an 8-K on Wednesday.

Growth across every segment

Third-quarter revenue rose 7.2% to $5.513 billion, with organic revenue growth of 6.2%. Organic orders grew 4.0%, the book-to-bill ratio was 1.03 times, and backlog stood at $23.7 billion.

Net income attributable to GE HealthCare rose to $615 million from $446 million, and diluted EPS rose 39.1% to $1.36 from $0.98. Adjusted EBIT margin widened 180 basis points to 16.6%, which the company attributed to volume, price, cost productivity and a favorable year-over-year net tariff impact, partly offset by inflation.

"We delivered strong top-line growth and margin expansion across all segments, and robust EPS growth in the third quarter," President and CEO Peter Arduini said in the release.

Pharmaceutical Diagnostics outpaces imaging

The biggest unit, Advanced Imaging Solutions, posted revenue of $3.873 billion, up 6.1%, or 4.5% organically, with segment EBIT up 15.8% to $593 million.

Pharmaceutical Diagnostics grew fastest, with revenue up 13.0% to $846 million, or 13.8% organically, and segment EBIT margin of 29.9%.

Patient Care Solutions revenue rose 8.5% to $793 million, and segment EBIT jumped 148.8% to $68 million as its margin widened 480 basis points to 8.6%.

Leadership change at Patient Care Solutions

The company said Jeannette Bankes, President and CEO of Patient Care Solutions, is leaving for a CEO role at a publicly traded company. In the same 8-K, GE HealthCare disclosed that Bankes notified it on Oct. 22 that she will resign, with her last day set for Nov. 15, 2026.

Neal Sandy, currently head of PCS product strategy and management, will become President and CEO of the unit on Nov. 16, 2026. The company said he brings more than 30 years of industry experience.

Cash, dividend and the outlook

Cash flow from operating activities was $907 million, up $314 million, and free cash flow was $793 million, up $310 million. Both figures include a $55 million tariff refund.

The company declared a quarterly dividend of $0.04 per share, a 14% increase from the previous quarter. It also reiterated its October agreement to acquire SOFIE Biosciences for $945 million in cash, a deal it expects to close in the first half of 2027, subject to regulatory approvals.

Beyond EPS, GE HealthCare now expects organic revenue growth of about 4.0% for 2026, versus 3.0% to 4.0% previously, and adjusted EBIT margin of 15.5% to 15.7%, narrowed from 15.4% to 15.7%. It raised its free cash flow outlook to $1.6 billion-plus from about $1.6 billion and reaffirmed its adjusted effective tax rate range of 20.0% to 21.0%.

Sources

1. GE HealthCare Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1) and Item 5.02 leadership change, filed Oct. 28, 2026 (accession 0001932393-26-000058)
2. GE HealthCare Form 10-Q for the quarter ended Sept. 30, 2026, filed Oct. 28, 2026 (accession 0001932393-26-000059)

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