GE HealthCare Technologies Inc. (NASDAQ:GEHC) stock rose Wednesday after the company reported second-quarter results that topped Wall Street estimates, driven by strength in its imaging and pharmaceutical diagnostics businesses.
The medical technology company reported adjusted earnings of $1.13 per share, exceeding the analyst consensus estimate of $1.03. Revenue increased 5.7% year over year to $5.30 billion, beating the consensus estimate of $5.26 billion.
GE HealthCare ended the second quarter with a record backlog of $23.9 billion, up $2.6 billion from a year earlier, as strong demand for its imaging equipment, pharmaceutical diagnostics portfolio and AI-enabled products drove 11.1% organic orders growth.
The company also posted a record book-to-bill ratio of 1.15, signaling orders continued to outpace shipments and providing greater visibility into future revenue.
Imaging, Diagnostics Lead Growth
Organic revenue grew 3.5%, supported by Pharmaceutical Diagnostics and Advanced Imaging Solutions, with strength across the U.S., Europe, the Middle East and Africa, and the Rest of World regions.
Total organic orders increased 11.1%, compared with 3.4% growth a year earlier.
Imaging revenue rose 7.9% to $3.77 billion, while Pharmaceutical Diagnostics revenue increased 15.6% to $843 million. Patient Care Solutions revenue declined 13.3% to $675 million.
The company said new product launches and AI-enabled innovations continued to strengthen its competitive position and customer relationships.
Patient Care Business Under Review
Chief Executive Officer Peter Arduini said GE HealthCare is reviewing strategic options for its Patient Care Solutions business while working to restore growth and profitability.
“Our continued investment in precision innovation is expanding our addressable markets, strengthening our competitive position and supporting durable short- and long-term growth,” Arduini said.
2026 Outlook Reaffirmed
GE HealthCare reaffirmed its 2026 adjusted earnings guidance of $4.80 to $5.00 per share, compared with the analyst consensus estimate of $4.87.
The company also maintained its forecast for organic revenue growth of 3% to 4% and adjusted EBIT margin of 15.4% to 15.7%, representing year-over-year expansion of 10 to 40 basis points.
Management said it continues to expect approximately $250 million in inflation-related costs tied to memory chips, oil, freight and other components.
CFO Transition
Earlier this week, GE HealthCare said Chief Financial Officer Jay Saccaro will step down effective Aug. 14. George Newcomb, the company’s controller and chief accounting officer, will serve as interim CFO while the company searches for a permanent successor.
During the earnings call, management reiterated confidence in its medium-term outlook, targeting revenue and margin expansion through 2028. The company said it expects to launch new anesthesia, monitoring and digital products later this year and in 2027.
GEHC Price Action: GE HealthCare Techs shares were up 11.14% at $71.25 at the time of publication on Wednesday, according to Benzinga Pro data.
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