GEHC Filings — GE Healthcare Technologies Inc. - FilingSpy
GEHC
GE Healthcare Technologies Inc.
A maker of medical imaging machines and hospital equipment, GE HealthCare produces CT, MR, X-ray and ultrasound scanners along with monitoring and anesthesia gear, plus the contrast media and radiopharmaceuticals used during scans. It became its own company in January 2023, when General Electric—born of the 1892 merger of Thomas Edison's and Thomson-Houston's electric firms—spun it off. Its imaging roots date to 1920, when GE bought the Victor Electric Company, an X-ray apparatus maker.
Tariff refunds lifted Q2 2026 operating income 13%, but underlying margins remain under pressure.
A $129 million tariff refund masked the toll of trade policy on GE HealthCare's second quarter. rose 5.7% to $5.3 billion and climbed 13.1% to $739 million, but , excluding the refund, continued to feel the weight of cost inflation and tariffs. The company's core profitability story remains tethered to the trajectory of trade costs.
Key takeaways
rose 13.1% to $739 million, a result driven entirely by a $129 million pre-tax benefit from tariff refunds that offset cost inflation and higher acquisition-related SG&A.
grew 5.7% to $5,295 million, with of 3.5%, as the Advanced Imaging Solutions (AIS) and Pharmaceutical Diagnostics (PDx) segments drove the top line.
The Patient Care Solutions (PCS) swung to a loss of $26 million from a $60 million profit a year ago, driven by lower sales volume and cost inflation.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue grew 5.7% to $5.3B, driven by AIS and PDx, while PCS declined; tariff refunds boosted operating income.
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Total revenues rose 5.7% (3.5% organic) to $5,295 million, with AIS up 7.9% and PDx up 15.6%, while PCS fell 13.3% due to operational challenges.
increased 13.1% to $739 million, aided by $129 million in pre-tax tariff refund benefits, which offset cost inflation and higher SG&A from acquisitions.
expanded 150 to 41.2%, a figure that includes the tariff refunds; without them, volume growth and pricing were partly offset by cost inflation and design follow-through investments.
for the first six months was $180 million, up 70% , despite a $175 million net negative impact from tariffs after refunds and higher .
The company completed the $2.3 billion acquisition of Intelerad, which contributed to AIS growth and increased expense.
What changed
The Q1 2026 watch item on trajectory is partially resolved: reported gross margin rebounded to 41.2% from 38.5% in Q1, but the improvement is entirely attributable to a one-time tariff refund, not an easing of underlying cost pressures.
The FY 2025 warning that tariffs would materially impact profitability continues to hold true; the $129 million refund in Q2 2026 is a reversal of past costs, while management states current tariffs still reduced and cash flows.
improved from $112 million in Q1 2026 to $180 million for the first half, but remains well below the $1.5 billion FY2025 level, with tariff impacts net of refunds still a $175 million drag.
rose to $10.1 billion from $9.5 billion at FY2025 end, reflecting financing for the Intelerad acquisition, while cash and equivalents fell to $2.3 billion.
What to watch
Underlying in Q3 2026, excluding any further one-time refunds, to see if cost inflation and tariffs continue to pressure profitability below the reported 41.2%.
PCS and in Q3 2026 to determine if the operational challenges and volume declines are a single-quarter event or a sustained trend.
generation in the second half of 2026 to track whether it can recover toward the $1.5 billion FY2025 level as and tariff impacts normalize.
China region disclosure, which the company stopped reporting in Q3 2025, to see if it resumes or if the prior-declined trend is confirmed by other means.
margin expanded 150 to 41.2%, driven by tariff refunds, volume growth, and pricing, partially offset by cost inflation and investments.
PCS swung to a loss of $(26) million from a $60 million profit a year ago, driven by lower sales volume and cost inflation.
was $180 million for the six months, up 70% , despite a $175 million negative tariff impact net of refunds and higher .
The company completed the acquisition of Intelerad for $2,293 million, contributing to AIS growth and increased expense.
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…
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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.
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 F…
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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.