GE HealthCare 2025-26: $7B Enterprise Deals, $1.7B FCF FY26
FY25 revenue $20.6B (+5%); op income $2.76B (+5%); NI $2.08B (+5%); EPS $4.55. Pharmaceutical Diagnostics +13% organic Q4. Imaging +5%. AVS +4%. Backlog $21.2B (Q3). $7B+ in enterprise deals globally. $1B share repurchase authorized. Tariff drag mitigated 50%. FY26: revenue +3-4%; adj EBIT 15.8-16.1% (+50-80bp); adj EPS $4.95-$5.15 (+8-12%); FCF ~$1.7B (+13%).
Key takeaways
- Pharmaceutical Diagnostics is the standout — +13% organic Q4 (+10% Q3, +8% Q1). US radiopharmaceutical NPI portfolio (Flyrcado), Nihon Medi-Physics acquisition contributing. Growing at 2-3x company rate; leverage continuing.
- Backlog at $21.2B (Q3 disclosed). $7B+ in enterprise deals (UC San Diego 14-year Care Alliance + similar). Book-to-bill 1.06x; orders +6% Q3 YoY. Forward visibility unusual for medtech.
- Tariff was the FY25 swing factor. Q1 cut FY guide $4.61-4.75 → $3.90-4.10 EPS, FCF $1.75B → $1.2B. Mitigation through manufacturing flex + supply chain repositioning recovered ~50% of gross exposure. FY26 lower net tariff impact.
- IntelliRed acquisition + planned Q4 announcement. ~$270M revenue first full year; growing low double-digit; >30% adj EBITDA margin. Cloud-first imaging ecosystem play. Closes 2026.
- FY26 adj EPS $4.95-5.15 (+8-12%) on +3-4% revenue. That's strong operating leverage — 50-80bp adj EBIT margin expansion. FCF $1.7B (+13%). $1B buyback program adds incremental EPS.
Business
GE HealthCare Technologies is the global #1 medical imaging + ultrasound + patient monitoring + radiopharmaceutical OEM. Four reportable segments:
- Imaging (~50% of revenue). MRI + CT + PET + nuclear + X-ray. Q4 organic +5.3% (EMEA + US strong; Russia restored). New launches: Omni Total Body PET, NexGen spec, Forcado, photon counting CT.
- Advanced Visualization Solutions (AVS) (~25%). Ultrasound + interventional. Vivid Pioneer launched. Q4 organic +4.2%; 4 consecutive quarters of YoY rev + margin growth. AI-enabled products driving revenue + margin expansion.
- Patient Care Solutions (PCS) (~15%). Anesthesia + life support + monitors. Q3 product hold (-7% organic) resolved Q4. Q4 organic -1.1% on life support decline; new leadership in place.
- Pharmaceutical Diagnostics (~10%). Contrast media + radiopharmaceuticals (Flyrcado). Q4 +12.7% organic. Growing fastest. Nihon Medi-Physics integrated.
Strategic moves FY25:
- $1B share repurchase program authorized (Q1)
- icometrix acquisition (Alzheimer's care portfolio)
- 14-year UC San Diego Care Alliance
- IntelliRed announced (cloud imaging)
- Heartbeat business system (productivity / customer experience)
- Jeannette Bankes new CEO Patient Care Solutions
FY25 financial performance
| Metric (FY) | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue ($B) | 18.34 | 19.55 | 19.67 | 20.63 |
| Revenue YoY | n/a | +7% | +1% | +5% |
| Gross profit ($B) | 7.18 | 7.92 | 8.21 | 8.25 |
| Gross margin | 39.1% | 40.5% | 41.7% | 40.0% |
| Op income ($B) | 2.52 | 2.44 | 2.63 | 2.76 |
| Op margin | 13.7% | 12.5% | 13.3% | 13.4% |
| Net income ($B) | 1.92 | 1.57 | 1.99 | 2.08 |
| Diluted EPS ($) | 4.22 | 3.02 | 4.34 | 4.55 |
| FCF ($B) | 1.80 | 1.71 | 1.55 | 1.51 |
| Capex ($M) | -310 | -387 | -401 | -482 |
| Total debt ($B) | 8.64 | 9.86 | 9.38 | 10.00 |
| Dividends ($M) | 0 | -41 | -55 | -64 |
| Buyback ($M) | 0 | 0 | 0 | -200 |
Op margin 13.4% (vs 13.3% FY24) — held. Gross margin compressed 170bp due to tariffs. FCF $1.51B (-3%) vs guide of $1.4B+ — beat conservatively re-set guide. Capex stepped up to $-482M (2.3% of revenue). Buyback initiated FY25 at $-200M (vs zero FY24).
Capital allocation
- Capex: $-482M FY25 (+20% YoY) — investments in radiopharma + manufacturing capacity.
- Dividends: $-64M FY25 (+16% YoY) — modest.
- Buybacks: $-200M FY25 (vs $0 FY24). $1B program authorized Q1 — well below pace; expect acceleration FY26 as net debt position improves.
- M&A: icometrix (Alzheimer's), Nihon Medi-Physics radiopharma, IntelliRed announced (~$270M revenue first year, closes 2026).
- Debt: $10.00B (+$0.62B YoY).
- FCF: $1.51B (-3%); FY26 guide $1.7B (+13%).
The capital story is recently inflected — buybacks initiated, M&A pace continuing, debt manageable. Moving from "post-spin off de-leveraging" to "capital deployment" mode.
FY26 outlook (per Q4 2025 call, 2026-02-04)
| FY26 framework | Detail |
|---|---|
| Organic revenue growth | +3% to +4% |
| Adj EBIT margin | 15.8% to 16.1% (+50-80bp) |
| Adj EPS | $4.95 to $5.15 (+8-12%) |
| Free cash flow | ~$1.7B (+13%) |
| Q1 FY26 organic revenue | +2% to +3% |
Implied FY26 revenue $21.2-21.5B. Adj EBIT $3.35-3.46B (+10-12% YoY). The +8-12% adj EPS on +3-4% revenue is strong operating leverage — driven by tariff mitigation + procurement + AVS margin expansion + Pharma Diagnostics mix.
Pharmaceutical Diagnostics + AVS continue as the standout franchises; Imaging lumpy on tariff dynamics; PCS recovering from Q3 product hold.
Key risks
- China market dynamics. Mid-single-digit decline expected in China FY26. Anti-dumping investigation overhang.
- Tariff regime change. Mitigated 50% gross exposure but full mitigation depends on trade policy stability.
- Product hold / FDA. Q3 PCS product hold cost ~$0.16/share. Episodic but recurring risk in medtech.
- GE separation legacy. Spun from GE in 2023; some operating systems / supply chain still being independently established.
- Backlog conversion timing. $21B backlog is great forward visibility but conversion timing depends on hospital capex throughput.
- Tariff tail. EPS guide of $4.95-5.15 assumes "currently enacted tariffs" — incremental tariffs would compress.
Bottom line
GEHC FY25 is the year of "Innovation Renaissance" + tariff turbulence. Revenue +5%, op margin held at 13.4%, EPS +5%, FCF $1.5B. Pharmaceutical Diagnostics +13% Q4 is the underestimated franchise. Backlog $21.2B + $7B enterprise deals = forward visibility. FY26 guide implies +8-12% adj EPS on +3-4% revenue with 50-80bp margin expansion — strong operating leverage. Risks are tariffs + China + episodic FDA holds. Quality medtech compounder mid-cycle in transformation; trades inline with peers.
Citations
- GE HealthCare Technologies Inc. FY25 Form 10-K (filed February 2026, SEC EDGAR).
- GEHC Q4 2025 earnings call, 2026-02-04 — FY25 organic +5%; Pharma Diagnostics +13% Q4; IntelliRed acquisition (~$270M / 30%+ adj EBITDA); FY26 guide ($4.95-5.15 adj EPS, +3-4% rev, $1.7B FCF, 15.8-16.1% adj EBIT).
- GEHC Q3 2025 earnings call, 2025-10-29 — backlog $21.2B; book-to-bill 1.06x; UC San Diego 14-year Care Alliance; icometrix acquired; tariff mitigation 50% of gross.
- GEHC Q2 2025 earnings call, 2025-07-30 — FY guide raised to ~3% organic; AVS 4 consecutive quarters of margin expansion; Nihon Medi-Physics integration.
- GEHC Q1 2025 earnings call, 2025-04-30 — $1B buyback authorized; FY guide cut on tariff ($4.61-4.75 → $3.90-4.10 EPS); Flyrcado launch; Bankes new PCS CEO.
- Internal financial_statements view (consolidated annual + cash flow + capital structure).