GE HealthCare Cuts 2026 EPS Guidance to $4.80-$5.00, Shares Plunge 13%
GE HealthCare's stock plunged 13% to a 52-week low after the company cut its full-year 2026 adjusted EPS guidance to $4.80-$5.00, citing supply chain pressures and rising costs. Q1 revenue of $5.13 billion beat forecasts but adjusted EPS of $0.99 fell short, as CFO Saccaro James bought 3,310 shares at $60.60.
1. Q1 Performance
In the first quarter of 2026, GE HealthCare generated revenue of $5.13 billion, a 7.4% increase that surpassed analyst estimates. However, adjusted earnings per share came in at $0.99, falling short of the $1.07 consensus and highlighting margin pressures despite top-line growth.
2. Guidance Revision
The company lowered its full-year 2026 adjusted EPS guidance to a range of $4.80 to $5.00 and trimmed its adjusted EBIT margin forecast. This revision prompted a 13% share price decline to a 52-week low, reflecting investor concerns over profitability outlook.
3. Supply Chain and Cost Pressures
Management attributed the reduced outlook to persistent supply chain disruptions and escalating operational costs, which have eroded margin expectations. Ongoing sourcing challenges and higher input prices are expected to weigh on earnings through the remainder of the year.
4. CFO Share Purchase
Chief Financial Officer Saccaro James purchased 3,310 shares at $60.60 on May 1, increasing his stake to 87,471 shares. This insider buying move signals executive confidence in the company's long-term fundamentals despite the near-term stock weakness.