Q2 2026 GE Healthcare Technologies Inc Earnings Call Transcript
Key Points
- GE HealthCare Technologies Inc (GEHC) reported a strong performance in Q2 2026 with an 11% increase in orders and a record backlog growth of $2.6 billion year-over-year.
- The company launched several new AI-enabled products, strengthening its competitive position and contributing to revenue growth.
- GEHC's pharmaceutical diagnostics and advanced imaging solutions segments led revenue growth, with strong performance in contrast media and US radiopharmaceuticals.
- The company is seeing strong interest in its Photon Counting CT platform, Photonova Spectra, and expects to expand its opportunity in Europe with CE marking in the second half of 2026.
- GEHC maintained its full-year guidance, reflecting confidence in achieving 3% to 4% organic sales growth and 10 to 40 basis points adjusted EBIT margin expansion.
- Patient Care Solutions (PCS) performance remained challenged, with a 13.5% decline in organic revenue due to operational fulfillment challenges.
- The company faced inflationary pressures, particularly from memory chips, oil, and freight, impacting margins.
- Despite strong orders growth, the PCS segment's EBIT was negative, highlighting ongoing supply chain and manufacturing issues.
- GEHC's adjusted EBIT margin of 14.2% was down 40 basis points year-over-year, partly due to inflation and challenges in the PCS segment.
- The CFO transition was noted as abrupt, raising concerns about continuity in financial leadership during a critical growth phase.
Good day, and thank you for standing by. Welcome to the GE Healthcare second quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Carolynne Borders, Chief Investor Relations Officer. Ma'am, please go ahead.
Thanks, operator. Good morning, and welcome to GE Healthcare's second quarter 2026 earnings call. I'm joined by our President and CEO, Peter Arduini, and Vice President and CFO, Jay Saccaro; and our Controller and Chief Accounting Officer, [George Nukem]. Our conference call remarks will include both GAAP and non-GAAP financial results. Reconciliations between GAAP and non-GAAP measures can be found in today's press release and in the presentation slides available on our website.
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