Chicago, April 29, 2026, 11:04 CDT
GE HealthCare Technologies Inc. slashed its 2026 profit guidance Wednesday, triggering about a 13% drop in the stock. The medical equipment maker is contending with tighter margins as chip, oil, and freight prices climb, tariffs bite, and a supplier snag adds more pressure.
This shift is significant because demand wasn’t the sticking point here. GE HealthCare posted revenue gains, logged positive orders, and ended with a $21.8 billion backlog. Still, investors zeroed in on whether that demand will convert to actual profit as input costs remain elevated.
The company now sees full-year adjusted earnings at $4.80 to $5.00 per share, cutting its prior $4.95 to $5.15 range. Organic revenue growth guidance stays put at 3% to 4%. However, management dialed back its adjusted EBIT margin target, guiding for 15.4% to 15.7%, down from 15.8% to 16.1%. Adjusted EBIT, as defined, excludes certain items and strips out interest and taxes.
The stock slid roughly 12.8% to $59.75, not far from its session low of $58.75. That drop wiped out billions in market capitalization, tightening the screws on a company still under scrutiny as an independent player following its 2023 split from General Electric.
GE HealthCare posted first-quarter revenue of $5.13 billion, up 7.4% compared with $4.78 billion a year ago. Net income attributable to the company dropped to $389 million, or 85 cents per share, down from $564 million, or $1.23 per share. Adjusted earnings came in at 99 cents per share, missing the $1.05 average forecast from analysts surveyed by LSEG.
CEO Peter Arduini flagged “significant increases in memory chips, oil and freight costs” in the first quarter, prompting the company to lower its profit outlook as a precaution. Arduini said GE HealthCare plans to counter over half of the inflation hit with pricing moves and cost-cutting. GE HealthCare
According to CFO Jay Saccaro, some of the inflation impact was pushed back due to the way inventory is accounted for, so heavier pressure is likely further down the line this year. In the first quarter, earnings took a tariff-related hit of around 16 cents per share—Saccaro called that the company’s “largest quarterly hit this year.” Reuters
GE HealthCare is shaking up its operations, folding Imaging and Advanced Visualization Solutions into a single $14.6 billion division now branded Advanced Imaging Solutions. Phil Rackliffe steps in to head the segment. Catherine Estrampes takes on the role of chief commercial and growth officer. Imaging CEO Roland Rott, meanwhile, is departing the company.
GE HealthCare is steering its reorganization toward its main market, where it squares off against heavyweight competitors like Siemens Healthineers, Philips Healthcare, and United Imaging. According to its 2025 annual report, the battle in medical technology hinges on factors such as value, quality, performance, delivery times, service, software, and brand reputation.
Still, the recovery story has its snags. GE HealthCare points to risks like tariffs, trade rules, and squeezed prices, all of which threaten margins. The company’s 2026 outlook? It doesn’t count on any money back from pending tariff claims. If input costs don’t ease soon, or if hospitals push back big-ticket purchases, that margin rebound could drag out longer than execs hope.
Arduini linked the restructuring directly to ambitions past today’s cost drag, saying GE HealthCare is “simplifying how we operate” and setting up for “margin acceleration in 2026 and beyond.” Still, investors want to see results first. GE HealthCare
