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GE HealthCare Cuts 2026 Outlook After Q1 Miss and Launches Imaging Reorg

Inflation in chips, oil and freight is pressuring margins.

Overview

  • Shares fell about 10% Wednesday after Q1 adjusted EPS of $0.99 missed a $1.05 estimate, though revenue rose 7.4% to $5.13 billion.
  • GE HealthCare lowered its 2026 adjusted EPS guidance to $4.80–$5.00 and cut its adjusted EBIT margin goal to 15.1%–15.4%.
  • CEO Peter Arduini pointed to higher costs for memory chips, oil and freight and said pricing and cost actions should offset more than half of the impact.
  • The company said a supplier problem in its pharmaceutical diagnostics unit hurt the quarter but has been resolved.
  • GE HealthCare will merge imaging and advanced visualization into a $14.6 billion Advanced Imaging Solutions segment led by Phil Rackliffe, and it kept a 3%–4% organic growth target supported by a near $22 billion backlog.