NEW YORK, July 29, 2026, 09:00 EDT – GE HealthCare stock climbed after the company reported better-than-expected second-quarter earnings and a new record for orders.
Shares of GE HealthCare Technologies Inc. NASDAQ:GEHC gained 9.9% to $70.43 ahead of Wednesday’s opening bell. U.S. cash trading was yet to start.
The decision came after a quarterly earnings outperformance, with orders providing the key indication.
Organic orders rose 11.1%, accelerating from a 1.1% increase in the prior quarter. The backlog hit an all-time high of $23.9 billion, advancing from $21.8 billion in the previous three months.
The book-to-bill ratio, which compares orders to revenue, increased to 1.15 from 1.07. Organic sales, which exclude both acquisitions and currency effects, grew by just 3.5%. GE HealthCare now enjoys greater forward revenue coverage.
Revenue for the second quarter climbed 5.7% to $5.295 billion, surpassing the analyst projection of $5.26 billion. Adjusted earnings per share reached $1.13, compared to the anticipated $1.04. Net income rose to $561 million from $486 million.
Earnings quality showed a mixed picture. Tariff refunds increased net income by $129 million. Adjusted earnings before interest and tax, or EBIT, totaled just $23 million. The company left out an additional $106 million associated with 2025.
The adjusted EBIT margin reported dropped by 40 basis points to 14.2%. Without factoring in the $23 million refund received this year, the calculated margin stood near 13.7%. This indicates an approximate annual decrease of 90 basis points.
GE HealthCare merged Imaging and Advanced Visualization into a single segment during the quarter. This move has created a clear division in the portfolio.
| Q2 2026 | Advanced Imaging Solutions + Pharmaceutical Diagnostics | Patient Care Solutions |
|---|---|---|
| Revenue | $4.61 billion | $675 million |
| Year-on-year revenue change | +9.3% | -13.3% |
| Segment EBIT | $775 million | -$26 million |
| Segment EBIT margin | 16.8% | -3.8% |
| Share of company revenue | 87.1% | 12.7% |
The combined column uses company data for its calculation. Segment numbers are not audited.
The two expanding divisions were responsible for generating 87% of the company’s total revenue. Patient Care Solutions shifted from an EBIT of about $60 million to a loss of $26 million. Based on these figures, nearly 80% of the EBIT increase from the other divisions was offset by this reversal.
CEO Peter Arduini reported that GE HealthCare achieved “record orders and backlog.” He added that the company was “reviewing strategic options” for Patient Care Solutions. SEC
Royal Philips AMS:PHIA posted a 4% rise in comparable sales this week, while its comparable order intake slipped by 1%. The adjusted EBITA margin, as defined by the company, stood at 16.4%, boosted by a 4.2 percentage point benefit from a tariff refund. GE HealthCare recorded firmer order growth.
GE HealthCare maintained its projection for organic growth at 3% to 4% and its adjusted EBIT margin forecast at 15.4% to 15.7%. The company reiterated its adjusted EPS outlook of $4.80 to $5.00. Guidance for free cash flow stayed at approximately $1.6 billion.
Cash conversion continues to be an area of concern. Free cash flow for the quarter reached $68 million, benefiting from a $107 million cash refund. Excluding this refund, free cash flow would have shown an outflow of about $39 million.
Risks: Resolving or divesting Patient Care Solutions could be a lengthy process. GE HealthCare maintains its forecast for approximately $250 million in chip, oil, and freight cost inflation this year. The company’s backlog needs to translate into revenue without additional margin decline.
The stock’s rise continues to leave a substantial price gap. Shares at $70.43 are still around 22% under their January 8 peak. Investors now look to see if the record backlog will convert to higher-margin revenue.
