Revenue growth has been muted but recently accelerated to 5.8% in 2026Q2, yet gross margin volatility is stark, swinging from 54.3% in 2025Q4 to 38.5% in 2026Q1, with operating margin at 14.0% in 2026Q2.
GE HealthCare Technologies Inc. (GEHC) annual income statement — 6-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 |
|---|
| Sales/Revenue | 20.24B | 20.63B | 19.67B | 19.55B | 18.34B | 17.59B | 17.16B |
| Revenue Growth % | 1.39% | 4.84% | 0.61% | 6.6% | 4.3% | 2.45% | - |
| Cost of Goods Sold | 11.56B | 12.38B | 11.47B | 11.63B | 11.16B | 10.41B | 10.4B |
| COGS % of Revenue | - | 60.01% | 58.29% | 59.48% | 60.86% | 59.2% | 60.57% |
| Gross Profit | 8.69B | 8.25B | 8.21B | 7.92B | 7.18B | 7.17B | 6.77B |
| Gross Margin % | 42.9% | 39.99% | 41.71% | 40.52% | 39.14% | 40.8% | 39.43% |
| Gross Profit Growth % | - | 0.51% | 3.57% | 10.35% | 0.07% | 6.01% | - |
| Operating Expenses | 6.12B | 5.49B | 5.58B | 5.49B | 4.66B | 4.38B | 4.05B |
| OpEx % of Revenue | - | 26.59% | 28.37% | 28.06% | 25.39% | 24.9% | 23.58% |
| Selling, General & Admin | 4.32B | 4.22B | 4.27B | 4.28B | 3.63B | 3.56B | 3.24B |
| SG&A % of Revenue | - | 20.48% | 21.7% | 21.9% | 19.8% | 20.26% | 18.86% |
| Research & Development | 1.32B | 1.26B | 1.31B | 1.21B | 1.03B | 816M | 810M |
| R&D % of Revenue | - | 6.11% | 6.66% | 6.16% | 5.59% | 4.64% | 4.72% |
| Other Operating Expenses | 1000K | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 2.57B | 2.76B | 2.63B | 2.44B | 2.52B | 2.79B | 2.72B |
| Operating Margin % | 12.7% | 13.39% | 13.34% | 12.45% | 13.75% | 15.89% | 15.85% |
| Operating Income Growth % | - | 5.22% | 7.8% | -3.45% | -9.77% | 2.76% | - |
| EBITDA | 3.49B | 3.34B | 3.21B | 3.04B | 3.15B | 3.42B | 3.35B |
| EBITDA Margin % | 17.23% | 16.19% | 16.29% | 15.57% | 17.2% | 19.45% | 19.52% |
| EBITDA Growth % | 4.84% | 4.21% | 5.25% | -3.49% | -7.75% | 2.09% | - |
| D&A (Non-Cash Add-back) | 849M | 578M | 580M | 610M | 633M | 625M | 630M |
| EBIT | 2.48B | 3.21B | 3.09B | 2.9B | 2.53B | 2.92B | 2.78B |
| Net Interest Income | -442M | -450M | -505M | -516M | -86M | -6M | -17M |
| Interest Income | -6M | 0 | 0 | 26M | 0 | 34M | 49M |
| Interest Expense | 436M | 450M | 505M | 542M | 86M | 40M | 66M |
| Other Income/Expense | -528M | 6M | -44M | -74M | -10M | 80M | -10M |
| Pretax Income | 2.04B | 2.77B | 2.58B | 2.36B | 2.51B | 2.88B | 2.71B |
| Pretax Margin % | 10.09% | 13.42% | 13.12% | 12.08% | 13.7% | 16.35% | 15.79% |
| Income Tax | 446M | 614M | 531M | 743M | 563M | 600M | 652M |
| Effective Tax Rate % | 21.83% | 22.18% | 20.57% | 31.47% | 22.41% | 20.87% | 24.06% |
| Net Income | 1.59B | 2.08B | 1.99B | 1.57B | 1.92B | 2.25B | 13.85B |
| Net Margin % | 7.86% | 10.1% | 10.13% | 8.02% | 10.45% | 12.78% | 80.67% |
| Net Income Growth % | -28.96% | 4.57% | 27.1% | -18.16% | -14.73% | -83.77% | - |
| Net Income (Continuing) | 1.6B | 2.15B | 2.05B | 1.62B | 1.95B | 2.27B | 2.06B |
| Discontinued Operations | 0 | 0 | 0 | -4M | 18M | 18M | 11.84B |
| Minority Interest | 14M | 220M | 206M | 177M | 235M | 241M | 247M |
| EPS (Diluted) | 3.51 | 4.55 | 4.34 | 3.02 | 4.22 | 4.90 | 4.41 |
| EPS Growth % | -29.3% | 4.84% | 43.71% | -28.44% | -13.88% | 11.11% | - |
| EPS (Basic) | - | 4.56 | 4.37 | 3.04 | 4.22 | 4.90 | 4.41 |
| Diluted Shares Outstanding | 454M | 460.27M | 459M | 458M | 453.93M | 454.71M | 454.71M |
| Basic Shares Outstanding | 453M | 456.52M | 456M | 455M | 453.93M | 454.71M | 454.71M |
| Dividend Payout Ratio | - | 3.07% | 2.76% | 2.61% | - | - | - |
Quick answers to the most common questions about buying GEHC stock.
For fiscal year 2025, GE HealthCare Technologies Inc. (GEHC) reported total revenue of $20.63B. This represents a 20.2% increase compared to $17.16B in 2020.
GE HealthCare Technologies Inc. (GEHC) is profitable, generating $2.08B in net income for the fiscal year ending 2025 with a net profit margin of 10.1%.
GE HealthCare Technologies Inc. (GEHC) reported an operating income of $2.76B, resulting in an operating profit margin of 13.4%. This margin reflects the operational efficiency of the business before interest and taxes.
GE HealthCare Technologies Inc. (GEHC) generated $8.25B in gross profit for the year, representing a gross profit margin of 40.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Revenue growth remains muted
Metrics are mathematically derived from official filings.
Muted Growth with Recent Uptick
GEHC's revenue growth has been tepid, averaging around 2-3% over the past year, but recent quarters show acceleration to 5.8% in 2026Q2, as per financial statements.
Revenue growth has been inconsistent, with 2024Q1 showing a decline of 1.2% and 2025Q4 a drop of 12.1%, likely due to supply chain or order timing. However, the last two quarters (2026Q1 and Q2) show a rebound to 7.4% and 5.8% respectively, suggesting a possible recovery. This may indicate improving demand for medical imaging and healthcare IT services, but the durability is uncertain given the historical volatility.
Gross Margin Volatility Raises Questions
Gross margin swung from 54.3% in 2025Q4 to 38.5% in 2026Q1, a 15.8 percentage point drop, as reported in quarterly filings, indicating potential one-time items or mix shifts.
The gross margin in 2025Q4 was unusually high at 54.3%, while other quarters hover around 39-42%. This anomaly suggests a favorable product mix or a one-time benefit, possibly from service revenue or lower input costs. The subsequent drop to 38.5% in 2026Q1 may reflect a return to normal levels or cost pressures. Investors should monitor whether the company can sustain margins above 40% given competitive pricing in medical devices.
Operating Leverage Appears Limited
Operating income growth has not consistently outpaced revenue growth; for instance, 2026Q2 revenue grew 5.8% while operating income grew 13.1%, but 2025Q4 saw a decline, per SEC filings.
Operating leverage is mixed. In 2026Q2, operating income grew faster than revenue, indicating some operating leverage. However, in 2025Q4, operating income fell despite a revenue decline, and in 2026Q1, operating income dropped 18% on a revenue increase, suggesting cost stickiness. SG&A and R&D expenses have remained relatively stable, implying that the company may not be scaling efficiently. This could be due to investments in R&D or sales infrastructure.
Earnings Quality Clouded by Tax and One-Time Items
Net income and EPS show high volatility, with 2025Q4 EPS of $0.38 versus 2024Q4's $1.57, likely due to tax adjustments and one-time charges, as per income statement data.
The wide swings in net income, such as a 75.8% EPS decline in 2025Q4, suggest non-operating items or tax effects. For instance, 2025Q1 had a net margin of 11.8% while 2025Q4 was only 3.9%, indicating possible one-time tax benefits or impairments. Stock-based compensation is modest, averaging around $30M per quarter, which is not a major drag. Investors should scrutinize the sustainability of tax rates and any restructuring charges.
COGS and SG&A Drive Cost Structure
COGS consistently represents about 60% of revenue, while SG&A is roughly 20%, and R&D around 6%, as per quarterly data, indicating a cost base typical for medical equipment makers.
The cost structure is dominated by COGS, which fluctuates with revenue and gross margin. SG&A has been stable at around $1.0-1.1B per quarter, suggesting disciplined overhead management. R&D spending has increased slightly from $324M in 2024Q1 to $345M in 2026Q1, reflecting ongoing innovation. However, the gross margin volatility suggests that COGS is not well controlled, possibly due to raw material costs or product mix.
2025Q4 Anomaly Distorts Trend
The most striking inflection is 2025Q4, where gross margin spiked to 54.3% and net income plunged to $184M, a clear outlier in the ten-quarter history, as per financial statements.
2025Q4 stands out with a gross margin of 54.3% versus the typical 40%, and a net margin of only 3.9% despite high gross profit. This suggests a one-time gain in gross profit (possibly from a contract settlement or inventory adjustment) offset by a large expense or tax charge. The lasting impact is that it distorts year-over-year comparisons, making 2026Q4 look weak. Investors should normalize for this quarter when assessing underlying performance.
Growth and Margin Sustainability in Question
Despite recent revenue acceleration, GEHC's growth remains below peers like BSX (19.9%) and SYK (11.2%), and gross margins are far lower, as per peer data.
GEHC's revenue growth of 5.8% in 2026Q2 is modest compared to peers, and its gross margin of ~41% is significantly below Stryker's 64% and Boston Scientific's 69%. This suggests weaker pricing power or a less favorable product mix. The company's operating margin of ~14% is also below peers, indicating potential cost inefficiencies. If growth does not accelerate or margins improve, the stock may face de-rating. Additionally, the volatile quarterly results could signal operational instability.