GE HealthCare Shares Fall 6% After Q1 EPS Miss, Full-Year EPS Cut to $4.80–$5.00
GE HealthCare posted first-quarter adjusted EPS of $0.99, missing estimates by $0.06, while revenue rose 7.4% year-over-year to $5.1 billion. The company cut full-year 2026 adjusted EPS guidance to $4.80–$5.00, lowered EBIT margin outlook to 15.4%–15.7% and trimmed free cash flow to $1.6 billion.
1. First-Quarter Results
GE HealthCare reported adjusted EPS of $0.99, missing consensus by $0.06, with revenue up 7.4% to $5.1 billion supported by 2.9% organic growth in Pharmaceutical Diagnostics, Advanced Visualization and Imaging segments.
2. Margin Pressures
Net income margin cooled to 7.6% from 11.8%, and adjusted EBIT margin fell 150 basis points to 13.5%, weighed by tariffs, a resolved PDx supplier issue and higher memory chip, oil and freight costs.
3. Outlook Revisions
Full-year adjusted EPS guidance was trimmed to $4.80–$5.00 from $4.95–$5.15, adjusted EBIT margin target reduced to 15.4%–15.7% from 15.8%–16.1%, and free cash flow forecast cut to about $1.6 billion, while organic revenue growth of 3.0%–4.0% was retained.
4. Cash Generation
The company generated $290 million of operating cash flow and $112 million of free cash flow in the quarter, underscoring ongoing capital efficiency despite lower profitability.