Revenue growth remains volatile with a 7.4% increase in 2026Q1 following a 12.1% contraction in 2025Q4, while gross margins have compressed from a 42.8% peak to 38.5% over the same period.
| Sales/Revenue | 19.95B | 20.63B | 19.67B | 19.55B | 18.34B | 17.59B | 17.16B |
| Revenue Growth % | 0.79% | 4.84% | 0.61% | 6.6% | 4.3% | 2.45% | - |
| Cost of Goods Sold | 11.46B | 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 | 8.49B | 8.25B | 8.21B | 7.92B | 7.18B | 7.17B | 6.77B |
| Gross Margin % | 42.55% | 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 | 6B | 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 | 4.23B | 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 | 1.3B | 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 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 2.49B | 2.76B | 2.63B | 2.44B | 2.52B | 2.79B | 2.72B |
| Operating Margin % | 12.46% | 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 | 3.35B | 3.34B | 3.21B | 3.04B | 3.15B | 3.42B | 3.35B |
| EBITDA Margin % | 16.76% | 16.19% | 16.29% | 15.57% | 17.2% | 19.45% | 19.52% |
| EBITDA Growth % | 1.92% | 4.21% | 5.25% | -3.49% | -7.75% | 2.09% | - |
| D&A (Non-Cash Add-back) | 844M | 578M | 580M | 610M | 633M | 625M | 630M |
| EBIT | 2.33B | 3.21B | 3.09B | 2.9B | 2.53B | 2.92B | 2.78B |
| Net Interest Income | -435M | -450M | -505M | -516M | -86M | -6M | -17M |
| Interest Income | 0 | 0 | 0 | 26M | 0 | 34M | 49M |
| Interest Expense | 435M | 450M | 505M | 542M | 86M | 40M | 66M |
| Other Income/Expense | -523M | 6M | -44M | -74M | -10M | 80M | -10M |
| Pretax Income | 1.96B | 2.77B | 2.58B | 2.36B | 2.51B | 2.88B | 2.71B |
| Pretax Margin % | 9.84% | 13.42% | 13.12% | 12.08% | 13.7% | 16.35% | 15.79% |
| Income Tax | 440M | 614M | 531M | 743M | 563M | 600M | 652M |
| Effective Tax Rate % | 22.41% | 22.18% | 20.57% | 31.47% | 22.41% | 20.87% | 24.06% |
| Net Income | 1.5B | 2.08B | 1.99B | 1.57B | 1.92B | 2.25B | 13.85B |
| Net Margin % | 7.54% | 10.1% | 10.13% | 8.02% | 10.45% | 12.78% | 80.67% |
| Net Income Growth % | -31.06% | 4.57% | 27.1% | -18.16% | -14.73% | -83.77% | - |
| Net Income (Continuing) | 1.52B | 2.15B | 2.05B | 1.62B | 1.95B | 2.27B | 2.06B |
| Discontinued Operations | 0 | 0 | 0 | -4M | 18M | 18M | 11.84B |
| Minority Interest | 230M | 220M | 206M | 177M | 235M | 241M | 247M |
| EPS (Diluted) | 3.29 | 4.55 | 4.34 | 3.02 | 4.22 | 4.90 | 4.41 |
| EPS Growth % | -31.16% | 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 | 457M | 460.27M | 459M | 458M | 453.93M | 454.71M | 454.71M |
| Basic Shares Outstanding | 456M | 456.52M | 456M | 455M | 453.93M | 454.71M | 454.71M |
| Dividend Payout Ratio | - | 3.07% | 2.76% | 2.61% | - | - | - |
Hospital capital expenditure volatility
As indicated by recent quarterly filings, GEHC's top-line growth has fluctuated significantly, reaching a 7.4% year-over-year increase in 2026Q1 after a sharp 12.1% contraction in 2025Q4, suggesting that the company remains highly susceptible to the timing of large-scale hospital equipment delivery cycles and regional procurement shifts.
The volatility in revenue growth highlights the inherent challenges of a business model reliant on high-value capital equipment sales. Investors should monitor whether the recent uptick in 2026Q1 represents a sustainable recovery or merely the recognition of backlog that was delayed in previous quarters.
Based on the provided financial data, GEHC's gross margin experienced a notable decline to 38.5% in 2026Q1, down from the 42.8% peak observed in 2024Q4, which may suggest mounting pressure from supply chain costs or an unfavorable shift in the product mix toward lower-margin hardware.
The inability to maintain gross margins above the 40% threshold raises questions regarding the company's pricing power in a competitive medical imaging landscape. This trend warrants further investigation into whether rising raw material costs or aggressive discounting in emerging markets is eroding the profitability of the core imaging portfolio.
According to the income statement, operating income fell to $515 million in 2026Q1, representing a 10% operating margin, which is a contraction from the 15.1% margin achieved in 2024Q4, indicating that SG&A and R&D expenses are not scaling efficiently relative to the current revenue base.
The lack of operating leverage suggests that the company's fixed-cost structure remains heavy, potentially limiting the bottom-line impact of revenue gains. Management's ability to control overhead while maintaining R&D investment is critical, as current figures imply that operational efficiency gains have yet to materialize.
As reported in financial statements, EPS has exhibited extreme swings, ranging from a low of $0.38 in 2025Q4 to a high of $1.57 in 2024Q4, a pattern that appears driven by non-operating items and tax fluctuations rather than consistent core operational improvements.
The significant variance in net income suggests that investors should focus on normalized earnings metrics to gauge true performance. The impact of stock-based compensation and post-spin-off adjustments continues to complicate the assessment of the company's actual profitability, necessitating a cautious approach to headline EPS figures.
While management emphasizes 'Lean' initiatives, the data shows that COGS remains stubbornly high at $3.2 billion in 2026Q1, suggesting that the company may struggle to achieve the margin expansion required to justify its valuation compared to higher-margin peers like Stryker or Boston Scientific.
Short-term margin compression may be a symptom of deeper structural issues, such as the high cost of maintaining a global service network and the volatility of iodine supply chains. If the company cannot successfully transition to a higher-margin software-led model, it risks remaining trapped in a low-growth, capital-intensive hardware cycle.
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.