GE HealthCare (Nasdaq:GEHC) today posted first-quarter results that came in mixed compared to the consensus forecast.
The company reported that a discrete Pharmaceutical Diagnostics (PDx) supplier issue — now resolved — affected profitability in the quarter, leading to adjusted EPS below expectations and a lowered guidance for the full year.
GE HealthCare now expects adjusted EPS to range between $4.80 and $5 for the full year. That marks a decrease at both ends from the previous guidance for between $4.95 and $5.15. The company’s revenue growth outlook remains unchanged, with expectations for an increase between 3% and 4%.
Shares of GEHC fell 5.6% to $64.70 apiece before the market opened today.
The Chicago-based medtech company reported profits of $389 million. That equals 85¢ per share on sales of $5.13 billion for the three months ended March 31, 2026.
GE HealthCare recorded a 31% bottom-line slide on a sales increase of 7.4%.
Adjusted to exclude one-time items, earnings per share came in at 99¢. That fell 6¢ shy of expectations on Wall Street. Sales, however, topped estimates as experts projected $5.03 billion in revenue.
The company said that PDx drove its revenue growth, along with Advanced Visualization Solutions (AVS) and Imaging.
Highlights in the quarter included the completion of its $2.3 billion Intelerad acquisition and the expansion of a collaboration with Medtronic.
GE HealthCare President and CEO Peter Arduini said:
“As we start the year, we’re pleased with topline performance, which came in at the high end of our expectations. Growth was driven by strong commercial execution in Pharmaceutical Diagnostics, including Flyrcado, Advanced Visualization Solutions, and Imaging, as well as services. We are maintaining our topline growth guidance driven by healthy customer demand globally.
“Profitability in the first quarter was impacted by a PDx supplier issue that has since been resolved. We saw significant increases in memory chips, oil and freight costs during the first quarter that we assume will impact the rest of 2026. Given these dynamics, we are taking a prudent approach and reducing our profit outlook but expect to offset more than half of the inflation impact with price and cost actions. Importantly, we are making meaningful progress executing on our new wave of innovation to accelerate future revenue and margin growth.”
Executive changes at GE HealthCare
In addition to its earnings results, GE HealthCare announced a series of changes within its executive team.
First, the company appointed Phil Rackliffe as president and CEO of Advanced Imaging Solutions. This new segment combines its Imaging and AVS businesses into one $14.6 billion segment. It brings together the company’s two largest businesses to create a more focused, end-to-end imaging ecosystem.
GE HealthCare also named Catherine Estrampes as its chief commercial and growth officer, leading global markets. This new region encompasses every market except for China to help commercial teams build and scale expertise.
Both leaders bring decades of experience advancing medical technology innovation and leading high-performing teams at global scale. GE HealthCare expects its changes to streamline the organization while expanding the reach of its strategy.
“Building on the progress we’ve made since our spinoff, we are simplifying how we operate and positioning ourselves to serve customers in a more integrated and differentiated way to enable growth and margin acceleration in 2026 and beyond,” said Arduini. “Phil and Catherine are proven leaders with strong track records of execution and the growth mindset needed to advance our precision care strategy globally, help improve patient outcomes, and unlock value for patients, customers and shareholders.”
With the changes, the company said Roland Rott, its president and CEO of Imaging, will leave to pursue other opportunities.
“I want to thank Roland for his significant contributions over the past 15 years,” said Arduini. “His expertise played a key role in evolving GE HealthCare into a broader healthcare solutions provider. He helped build a strong culture of innovation, collaboration, and customer focus that will continue to shape the organization for years to come.”
Additionally, the company tapped Elie Chaillot, previously president and CEO of EMEA and Rest of World, to take on a strategic role focused on high-priority initiatives and special projects for the company, reporting to Arduini.
