GE HealthCare Technologies Inc. Q1 FY2026 earnings call

Strategic accomplishments in precision care with milestones in CT and MR, including regulatory clearances for Photonova Spectra and multiple FDA clearances for MR technologies. PDX growth in contrast media, radiopharmaceuticals, and molecular imaging equipment, with Forcado ramping. Onboarded new customers and saw acceleration in doses. Progress on novel gadolinium-free MRI contrast agent. Completed acquisition of IntelliRad to advance connected imaging ecosystem. Combined imaging and AVS into Advanced Imaging Solutions segment.

Imaging: Organic revenue grew 3.8% year-over-year, strong in U.S. and EMEA, EBIT impacted by tariffs but volume was a tailwind. Advanced Visualization Solutions: Organic revenue growth 4.4% year-over-year, EBIT margin up 120 basis points. Patient Care Solutions: Organic revenue declined 8.1% year-over-year, EBIT margin down 500 basis points. Pharmaceutical Diagnostics: Organic revenue growth 9.7% year-over-year, EBIT margin impacted by supplier issue and pipeline investments.

Maintaining top line guidance of 3%-4% organic sales growth. Reducing adjusted EPS guidance to $4.80 - $5 per share due to inflation impact. Expect adjusted EBIT margins in 15.4%-15.7% range. Second quarter expected organic revenue growth 3%-4% and adjusted EPS decline in low single digits.

Impact of recall associated with PDX supplier, significant increase in material costs including memory chips, oil, freight, and metals, inflationary environment affecting profit and free cash flow.

Q: On organic cadence and back half revenue acceleration.

A: U.S. and EMEA strong, products and structure will support acceleration.

Q: On inflation assumptions around EPS.

A: Input cost changes in first quarter, assumed elevated costs continue, offset measures in place.

Q: On MIS and PCS.

A: PDX supplier issue impacted first quarter, PCS performance in line with expectations with second half drivers.

Q: On Placato progress and China outlook.

A: Placato ramping, China showing green shoots but still challenged.

Q: On guidance cushion and diagnostics generics.

A: Adequate cushion, no impact from generics yet.

Q: On photon counting CT commercial strategy.

A: Dedicated resources, AI breakthroughs, strong funnel.

Q: On Intellirad impact.

A: Neutral in 2026, accretive in 2027.

Q: On PDX gating factors and MRI contrast agent.

A: Gating factors include CMO network and workflow, MRI agent in phase II/III.

Q: On organizational structure impact.

A: Better business capture and R&D streamlining.

Q: On tariff impact and AI-enabled platforms.

A: Tariff impact less than 2025, AI in hardware and SaaS.