Item 1. FINANCIAL STATEMENTS

127K characters. Original on sec.gov · Markdown

Item 1. FINANCIAL STATEMENTS


Condensed Consolidated Statements of Income (Unaudited)
	For the three months ended March 31
(In millions, except per share amounts)		2026		2025
Sales of products		$	3,345	$	3,117
Sales of services		1,786		1,660
Total revenues		5,131		4,777
Cost of products		2,283		1,963
Cost of services		871		802
Gross profit		1,977		2,012
Selling, general, and administrative		1,117		1,040
Research and development		345		344
Total operating expenses		1,462		1,383
Operating income		515		629
Interest and other financial charges – net		96		110
Non-operating benefit (income) costs		(51)		(74)
Other (income) expense – net		(36)		(99)
Income before income taxes		505		692
Benefit (provision) for income taxes		(94)		(104)


Net income		411		588
Net (income) loss attributable to noncontrolling interests		(22)		(24)
Net income attributable to GE HealthCare		$	389	$	564






Earnings per share attributable to GE HealthCare:
Basic		$	0.85	$	1.23
Diluted		0.85		1.23
Weighted-average number of shares outstanding:
Basic		456		457
Diluted		457		459

The accompanying notes are an integral part of these condensed consolidated financial statements.

T able of Contents


Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

	For the three months ended March 31
(In millions)		2026		2025
Net income attributable to GE HealthCare		$	389	$	564
Net income (loss) attributable to noncontrolling interests		22		24
Net income		411		588
Other comprehensive income (loss):

Currency translation adjustments – net of taxes		(26)		257
Pension and Other Postretirement Plans – net of taxes		(10)		(69)
Cash flow hedges – net of taxes		17		(8)
Other comprehensive income (loss)		(19)		180
Comprehensive income (loss)		392		768
Less: Comprehensive income (loss) attributable to noncontrolling interests		13		24
Comprehensive income attributable to GE HealthCare		$	379	$	744

The accompanying notes are an integral part of these condensed consolidated financial statements.

T able of Contents


Condensed Consolidated Statements of Financial Position (Unaudited)
	As of
(In millions, except share and per share amounts)	March 31, 2026		December 31, 2025
Cash, cash equivalents, and restricted cash	$	2,285	$	4,512
Receivables – net of allowances of $100 and $103	3,786		3,955

Inventories	2,353		2,234
Contract and other deferred assets	1,159		1,073
All other current assets	842		726
Current assets	10,426		12,501
Property, plant, and equipment – net	3,095		3,092
Goodwill	15,060		13,489
Other intangible assets – net	1,908		1,130
Deferred income taxes	4,383		4,491
All other non-current assets	2,254		2,205
Total assets	$	37,125	$	36,906
Short-term borrowings	$	7	$	508
Accounts payable	3,410		3,250

Contract liabilities	2,153		2,095
Current compensation and benefits	1,418		1,666
All other current liabilities	1,542		1,587
Current liabilities	8,529		9,105
Long-term borrowings	10,127		9,495
Non-current compensation and benefits	5,300		5,453
Deferred income taxes	256		193
All other non-current liabilities	2,015		2,061
Total liabilities	26,227		26,307
Commitments and contingencies
Redeemable noncontrolling interests	218		209
Common stock, par value $0.01 per share, 1,000,000,000 shares authorized, 459,398,178 shares issued as of March 31, 2026; 458,844,209 shares issued as of December 31, 2025	5		5
Treasury stock, at cost, 4,509,195 shares as of March 31, 2026 and 3,107,626 shares as of December 31, 2025	(325)		(225)
Additional paid-in capital	6,733		6,707
Retained earnings	5,654		5,281

Accumulated other comprehensive income (loss) – net	(1,398)		(1,388)
Total equity attributable to GE HealthCare	10,668		10,379
Noncontrolling interests	12		11
Total equity	10,680		10,390
Total liabilities, redeemable noncontrolling interests, and equity	$	37,125	$	36,906

The accompanying notes are an integral part of these condensed consolidated financial statements.

T able of Contents


Condensed Consolidated Statements of Changes in Equity (Unaudited)
	Common stock			Treasury stock
(In millions, except per share amounts)	Shares	Amount		Shares	Amount		Additional paid-in capital		Retained earnings		Accumulated other comprehensive income (loss) – net		Equity attributable to noncontrolling interests		Total equity
Balances as of December 31, 2025	459	$	5	3	$	(225)	$	6,707	$	5,281	$	(1,388)	$	11	$	10,390
















Issuance of shares under equity awards, net of shares withheld for taxes and other	1	—		—	—		(9)		—		—		—		(9)
Repurchase of common stock	—	—		1	(100)		—		—		—		—		(100)
Net income attributable to GE HealthCare	—	—		—	—		—		389		—		—		389
Dividends declared ($0.035 per common share)	—	—		—	—		—		(16)		—		—		(16)
Other comprehensive income (loss) attributable to GE HealthCare	—	—		—	—		—		—		(10)		—		(10)
Changes in equity attributable to noncontrolling interests	—	—		—	—		—		—		—		2		2
Share-based compensation	—	—		—	—		35		—		—		—		35
Balances as of March 31, 2026	459	$	5	5	$	(325)	$	6,733	$	5,654	$	(1,398)	$	12	$	10,680



	Common stock			Treasury stock
(In millions, except per share amounts)	Shares	Amount		Shares	Amount		Additional paid-in capital		Retained earnings		Accumulated other comprehensive income (loss) – net		Equity attributable to noncontrolling interests		Total equity
Balances as of December 31, 2024	457	$	5	—	$	(25)	$	6,583	$	3,262	$	(1,379)	$	18	$	8,464
Issuance of shares under equity awards, net of shares withheld for taxes and other	1	—		—	—		(9)		—		—		—		(9)
Net income attributable to GE HealthCare	—	—		—	—		—		564		—		—		564
Dividends declared ($0.035 per common share)	—	—		—	—		—		(16)		—		—		(16)
Other comprehensive income (loss) attributable to GE HealthCare	—	—		—	—		—		—		180		—		180
Changes in equity attributable to noncontrolling interests	—	—		—	—		—		—		—		1		1
Share-based compensation	—	—		—	—		22		—		—		—		22
Balances as of March 31, 2025	458	$	5	—	$	(25)	$	6,597	$	3,810	$	(1,199)	$	20	$	9,207

The accompanying notes are an integral part of these condensed consolidated financial statements.

T able of Contents


Condensed Consolidated Statements of Cash Flows (Unaudited)
	For the three months ended March 31
(In millions)	2026		2025
Net income	$	411	$	588


Adjustments to reconcile Net income to Cash from (used for) operating activities:
Depreciation of property, plant, and equipment	78		66
Amortization of intangible assets	75		70
Gain on remeasurement of Nihon Medi-Physics equity method investment	—		(97)
Net periodic postretirement benefit plan (income) expense	(47)		(70)
Postretirement plan contributions	(97)		(98)
Share-based compensation	35		22
Provision for income taxes	94		104
Cash paid during the year for income taxes	(92)		(91)
Changes in operating assets and liabilities, excluding the effects of acquisitions:
Receivables	141		81
Inventories	(171)		(154)
Contract and other deferred assets	(46)		52
Accounts payable	221		146
Contract liabilities	35		(68)
Current compensation and benefits	(250)		(200)
All other operating activities – net	(99)		(101)
Cash from (used for) operating activities	290		250
Cash flows – investing activities
Additions to property, plant and equipment and internal-use software	(178)		(152)

Purchases of businesses, net of cash acquired	(2,297)		(269)
Purchases of investments	(13)		(20)
All other investing activities – net	(13)		34
Cash from (used for) investing activities	(2,500)		(407)
Cash flows – financing activities
Net increase (decrease) in borrowings (maturities of 90 days or less)	(1)		1
Newly issued debt, net of debt issuance costs (maturities longer than 90 days)	1,152		—
Repayments and other reductions (maturities longer than 90 days)	(1,003)		(257)
Dividends paid to stockholders	(16)		(16)
Repurchase of common stock	(100)		—


Proceeds from stock issued under employee benefit plans	10		20
Taxes paid related to net share settlement of equity awards	(19)		(28)
All other financing activities – net	(2)		(6)
Cash from (used for) financing activities	21		(286)



Effect of foreign currency rate changes on cash, cash equivalents, and restricted cash	(37)		27
Increase (decrease) in cash, cash equivalents, and restricted cash	(2,227)		(416)
Cash, cash equivalents, and restricted cash at beginning of year	4,515		2,893

Cash, cash equivalents, and restricted cash at end of period	$	2,288	$	2,476

Supplemental disclosure of cash flows information
Cash paid during the year for interest	$	(87)	$	(78)
Non-cash investing activities
Acquired but unpaid property, plant, and equipment	$	86	$	86

The accompanying notes are an integral part of these condensed consolidated financial statements.

T able of Contents

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION

GE HealthCare Technologies Inc. is a leading global healthcare solutions provider of advanced medical technology, pharmaceutical diagnostics, and AI, cloud and software solutions.

The condensed consolidated financial statements (the “financial statements”) of GE HealthCare Technologies Inc. and its subsidiaries (“GE HealthCare,” the “Company,” “our,” “us,” or “we”) have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the financial statements do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, including normal recurring adjustments, considered necessary for a fair presentation of the Company’s financial position and operating results have been included. All intercompany balances and transactions within the Company have been eliminated in the financial statements. Operating results for the three months ended March 31, 2026 and 2025 are not necessarily indicative of the results that may be expected for the fiscal year as a whole. The December 31, 2025 period presented on the Condensed Consolidated Statement of Financial Position was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. Tables throughout this document are presented in millions of U.S. dollars unless otherwise stated and certain columns and rows may not sum due to the use of rounded numbers. Percentages presented are calculated from the underlying whole-dollar amounts.

The financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

On January 3, 2023, General Electric Company, which now operates as GE Aerospace (“GE”), completed the spin-off of GE HealthCare Technologies Inc. (the “Spin-Off”).

ESTIMATES AND ASSUMPTIONS.

The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates based on assumptions about current, and for some estimates, future, economic and market conditions, which affect the reported amounts and related disclosures in the financial statements. We base our estimates and judgments on historical experience and on various other assumptions and information that we believe to be reasonable under the circumstances. Although our estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from our expectations, which could materially affect our results of operations, financial position, and cash flows.

RECENT ACCOUNTING PRONOUNCEMENTS.

We evaluate Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not included in our disclosures were assessed and determined to either be not applicable or are not expected to have a significant impact on our financial statements.

In November 2024, the FASB issued ASU No. 2024-03 (“ASU 2024-03”), Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. ASU 2024-03 addresses investor requests for more transparency about expense information through the disaggregation of relevant expense captions in the notes to the financial statements. The provisions of ASU 2024-03 are effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. We expect the adoption to increase disclosures in our notes to the financial statements.

In September 2025, the FASB issued ASU No. 2025-06 (“ASU 2025-06”), Intangibles - Goodwill and Other - Internal-Use Software (subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. ASU 2025-06 updates the accounting for internal-use software by eliminating the concept of development stages. Under the updated guidance, software costs are capitalized once management has authorized and committed to funding the project, and it is probable the project will be completed and the software will be used to perform the function intended. The provisions of ASU 2025-06 are effective for annual reporting periods beginning after December 15, 2027, and interim periods within those annual periods. We are currently evaluating the effect that ASU 2025-06 will have on our financial statements.

NOTE 2. REVENUE RECOGNITION

Our revenues primarily consist of sales of products and services to customers. Products include equipment, imaging agents, software-related offerings, and upgrades. Services include contractual and stand-by preventative maintenance and corrective services, as well as related parts and labor, extended warranties, training, and other service-type offerings. The Company recognizes revenue from contracts with customers when the customer obtains control of the underlying products or services.

T able of Contents

CONTRACT AND OTHER DEFERRED ASSETS.

Contract assets reflect revenue recognized on contracts with customers in excess of billings based on contractual terms. Contract assets are classified as current or non-current based on the amount of time expected to lapse until the Company’s right to consideration becomes unconditional. Other deferred assets consist of costs to obtain contracts, primarily commissions, other cost deferrals for shipped products, and deferred service, labor, and direct overhead costs.


	As of
	March 31, 2026		December 31, 2025
Contract assets	$	715	$	645
Other deferred assets	444		428
Contract and other deferred assets	1,159		1,073
Non-current contract assets(1)	84		91
Non-current other deferred assets(1)	122		120
Total contract and other deferred assets	$	1,364	$	1,285

(1)Non-current contract and other deferred assets are recognized within All other non-current assets in the Condensed Consolidated Statements of Financial Position.

CONTRACT LIABILITIES.

Contract liabilities include customer advances and deposits received when orders are placed and billed in advance of completion of performance obligations. Contract liabilities are classified as current or non-current based on the periods over which these remaining performance obligations are expected to be satisfied with our customers.


	As of
	March 31, 2026		December 31, 2025
Contract liabilities	$	2,153	$	2,095
Non-current contract liabilities(1)	819		803
Total contract liabilities	$	2,972	$	2,899

(1)Non-current contract liabilities are recognized within All other non-current liabilities in the Condensed Consolidated Statements of Financial Position.

Revenue recognized related to the contract liabilities balance at the beginning of the year was approximately $783 million and $752 million for the three months ended March 31, 2026 and 2025, respectively.

REMAINING PERFORMANCE OBLIGATIONS.

Remaining performance obligations (“RPO”) represents the estimated revenue expected from customer contracts that are partially or fully unperformed inclusive of amounts deferred in contract liabilities, excluding contracts, or portions thereof, that provide the customer with the right to cancel or terminate without incurring a substantive penalty. RPO also excludes estimated revenue from arrangements where we lease equipment manufactured by the Company to customers.


	As of
	March 31, 2026		December 31, 2025
Products	$	5,140	$	5,001
Services	10,688		10,728
Total RPO	$	15,828	$	15,729

We expect to recognize substantially all of the revenue for our product-related RPO within two years and services-related RPO within five years.

NOTE 3. SEGMENT INFORMATION

As of March 31, 2026, GE HealthCare’s operations are organized and managed through four reportable segments: Imaging, Advanced Visualization Solutions (“AVS”), Patient Care Solutions (“PCS”), and Pharmaceutical Diagnostics (“PDx”). These segments have been identified based on the nature of the products sold and how the Company manages its operations. We have not aggregated any of our operating segments to form reportable segments. A description of our reportable segments has been provided in Item 1, “Business” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

T able of Contents

The Company’s organizational structure is based upon the availability of separate financial information that is evaluated regularly by the Company’s Chief Operating Decision Maker (“CODM”) for the purpose of assessing performance and allocating resources. The Company’s CODM is our Chief Executive Officer. The CODM assesses segment performance using Total revenues and an earnings metric defined as “Segment EBIT.” Segment EBIT is calculated as Income before income taxes in our Condensed Consolidated Statements of Income excluding the impact of the following: Interest and other financial charges – net, Non-operating benefit (income) costs, restructuring costs, acquisition and disposition-related benefits (charges), gain (loss) on business and asset dispositions, Spin-Off and separation costs, amortization of acquisition-related intangible assets, and investment revaluation gain (loss). Segment EBIT is also used in the annual budget and periodic forecasting processes and informs the CODM in decision making regarding the allocation of resources to the segments.


Total Revenues by Segment	For the three months ended March 31
		2026		2025
Total Imaging		$	2,299	$	2,140
AVS:
Procedural Guidance		719		641
Specialized Ultrasound		622		598
Total AVS		1,341		1,239
PCS:
Monitoring Solutions		519		556
Life Support Solutions		185		197
Total PCS		704		753
Total PDx		770		632
Other(1)		18		13
Total revenues		$	5,131	$	4,777

(1) Financial information not presented within the reportable segments, shown within the Other category, represents HealthCare Financial Services (“HFS”) which does not meet the definition of an operating segment.


Significant Expenses by Segment	For the three months ended March 31
		2026		2025
Imaging:
Cost of sales		$	1,542	$	1,353
Other segment items(1)		577		588
Total Imaging		$	2,119	$	1,941
AVS:
Cost of sales		$	662	$	598
Other segment items(1)		380		380
Total AVS		$	1,042	$	978
PCS:
Cost of sales		$	481	$	481
Other segment items(1)		213		224
Total PCS		$	694	$	705
PDx:
Cost of sales		$	406	$	294
Other segment items(1)		167		133
Total PDx		$	573	$	428

(1) Other segment items for each segment includes selling, general, administrative, research, and development related expenses, as well as other segment income and expenses.

T able of Contents


Segment EBIT	For the three months ended March 31
		2026		2025
Segment EBIT
Imaging		$	180	$	199
AVS		299		261
PCS		10		48
PDx		197		205
Other(1)		5		2
		691		715
Restructuring costs		(49)		(22)
Acquisition and disposition-related benefits (charges)		(35)		(8)
Gain (loss) on business and asset dispositions		—		10
Spin-Off and separation costs		(2)		(24)
Amortization of acquisition-related intangible assets		(47)		(35)
Investment revaluation gain (loss)		(8)		92
Interest and other financial charges – net		(96)		(110)
Non-operating benefit income (costs)		51		74
Income before income taxes		$	505	$	692

(1) Financial information not presented within the reportable segments, shown within the Other category, primarily represents HFS which does not meet the definition of an operating segment.

The following table represents the depreciation and amortization amounts reported within the Segment EBIT metric for our reportable segments. Depreciation and amortization expense related to shared property, plant, and equipment and intangibles, exclusive of acquisition-related intangible assets, has been fully allocated to our segments and those allocations are reflected in the amounts presented in the table below. These amounts are included within Cost of sales and Other segment items disclosed in the Significant Expenses by Segment table above.


Depreciation and Amortization by Segment	For the three months ended March 31
		2026		2025

Imaging		$	54	$	57
AVS		18		18
PCS		13		13
PDx		20		12

The Company does not report total assets by segment as the Company’s CODM does not assess performance, make strategic decisions, or allocate resources based on assets.

NOTE 4. RECEIVABLES


Current Receivables	As of
	March 31, 2026		December 31, 2025
Current customer receivables(1)	$	3,465	$	3,719
Non-income based tax receivables	174		159
Other sundry receivables	247		180
Current sundry receivables	421		339
Allowance for credit losses	(100)		(103)
Total current receivables – net	$	3,786	$	3,955

(1) Chargebacks, which are primarily related to our PDx business, are generally settled through issuance of credits, typically within one month of initial recognition, and are recorded as a reduction to Current customer receivables. Balances related to chargebacks were $87 million and $148 million as of March 31, 2026 and December 31, 2025, respectively. The decrease in chargebacks is primarily due to lower wholesaler product levels.

T able of Contents


Long-Term Receivables	As of
	March 31, 2026		December 31, 2025
Long-term customer receivables	$	78	$	73
Non-income based tax receivables	25		24
Other sundry receivables	91		100
Long-term sundry receivables	116		124

Allowance for credit losses	(7)		(7)
Total long-term receivables – net	$	187	$	190

Long-term receivables are recognized within All other non-current assets in the Condensed Consolidated Statements of Financial Position.

NOTE 5. FINANCING RECEIVABLES

Current financing receivables and non-current financing receivables are recognized within All other current assets and All other non-current assets, respectively, in the Condensed Consolidated Statements of Financial Position.



	As of
	March 31, 2026		December 31, 2025
Loans receivable, at amortized cost	$	20	$	21
Investment in finance leases, net of deferred income	74		76
Allowance for credit losses	(2)		(2)
Current financing receivables – net	$	92	$	95

Loans receivable, at amortized cost	$	42	$	44
Investment in finance leases, net of deferred income	148		149
Allowance for credit losses	(3)		(3)
Non-current financing receivables – net	$	187	$	190

As of March 31, 2026 and December 31, 2025, 1%, 1%, and 1% of financing receivables were over 30 days past due, over 90 days past due, and on nonaccrual, respectively, with the majority of nonaccrual financing receivables secured by collateral.

NOTE 6. OPERATING LEASES

As a lessee, the Company leases certain logistics, office, and manufacturing facilities, as well as vehicles and other equipment. Certain of the Company’s leases may include options to extend. Our operating lease right-of-use (“ROU”) assets are recognized within Property, plant, and equipment – net and our operating lease liabilities are recognized within All other current liabilities and All other non-current liabilities, in the Condensed Consolidated Statements of Financial Position, as detailed below.


Operating Lease Assets and Liabilities	As of
	March 31, 2026		December 31, 2025
Operating lease ROU assets, net of amortization	$	396	$	410
Current operating lease liabilities	132		134
Non-current operating lease liabilities	270		284
Total operating lease liabilities	$	402	$	419

The total lease expense related to our operating lease portfolio was $63 million and $62 million for the three months ended March 31, 2026 and 2025, respectively.

T able of Contents

NOTE 7. ACQUISITIONS, GOODWILL, AND OTHER INTANGIBLE ASSETS

ACQUISITIONS.

Intelerad

On March 18, 2026, the Company acquired 100% of the stock of Intelerad for approximately $2,297 million in cash, net of cash acquired. The purchase was funded by the proceeds of senior unsecured notes issued in the fourth quarter of 2025, together with new borrowings under a delayed draw term loan facility and cash on hand. See Note 8, “Borrowings” for additional information on the borrowings. Intelerad is included in the Company’s Imaging segment.

Intelerad is a leading medical imaging software and digital enterprise workflow solutions company with a significant presence in outpatient ambulatory care settings, which the Company believes complements our strength in hospital-based imaging.

The preliminary fair values of the assets and liabilities assumed in connection with the acquisition of Intelerad are as follows.


	Preliminary allocation
Receivables	$	30
Contract assets	33

Property, plant, and equipment	9
Goodwill	1,584
Other intangible assets	833
All other current and non-current assets	13
Accounts payable	(11)
Contract liabilities	(40)
Other current liabilities	(26)
Deferred income taxes	(56)
All other non-current liabilities(1)	(72)

Total net assets post acquisition	$	2,297

(1) All other non-current liabilities primarily includes tax reserves.

The initial allocation of the purchase price for the Intelerad acquisition to the tangible and identifiable intangible assets acquired and liabilities assumed, as presented in the table above, is based on the Company’s preliminary estimates of fair value. As of March 31, 2026, the valuation of the assets acquired and liabilities assumed is not yet finalized. The preliminary purchase price allocation required estimates and assumptions, including, but not limited to, estimates of future cash flows, direct costs, and appropriate discount rates. Accordingly, the preliminary allocation is subject to revision as additional information becomes available and as further analyses are completed. The items subject to adjustment primarily relate to contract assets, intangible assets, and deferred income taxes. The Company’s management believes the preliminary amounts recognized for the assets acquired and liabilities assumed are based on reasonable estimates and assumptions.

Other intangibles relate to $833 million of definite-lived intangible assets, primarily consisting of developed technology, customer relationships, and trade names. The acquired definite-lived intangibles are being amortized over a weighted-average estimated useful life of approximately 12 years. The estimated fair value of intangibles was determined using the income approach, which is a valuation technique that provides an estimate of the fair value of an asset based on market participant expectations of cash flows an asset would generate over its useful life.

Goodwill recognized in connection with the Intelerad acquisition, recorded within the Imaging segment, is not deductible for income tax purposes. The goodwill primarily reflects expected synergies and other strategic benefits associated with the integration of Intelerad’s technology into the Company’s market offerings and imaging technologies.

Deferred income tax liabilities include the expected U.S. federal, state, and foreign tax consequences associated with temporary differences between the preliminary fair values of the assets acquired and liabilities assumed and the respective tax basis.

Our unaudited supplemental pro forma consolidated financial information for the three months ended March 31, 2026 and 2025, including the results of operations for Intelerad as if the Intelerad acquisition had been completed on January 1, 2025, is as follows.


	For the three months ended March 31
	2026		2025
Total revenues	$	5,185	$	4,834
Net income attributable to GE HealthCare	404		521

T able of Contents

The unaudited supplemental pro forma consolidated financial information was prepared using the acquisition method of accounting and was based on the historical financial information of Intelerad. In order to reflect the occurrence of the acquisition on January 1, 2025, the unaudited supplemental pro forma financial information includes adjustments to reflect the following: (i) incremental amortization expense based on the current preliminary fair values of the identifiable intangible assets; (ii) the additional interest expense associated with the issuance of debt to finance the acquisition; and (iii) the reclassification of transaction and other acquisition-related costs incurred during the three months ended March 31, 2026, to the three months ended March 31, 2025. The unaudited supplemental pro forma financial information is not necessarily indicative of what the consolidated results of operations would have been had the acquisition been completed on January 1, 2025. In addition, the unaudited pro forma financial information is not a projection of future results of operations of the combined company, nor does it reflect the expected realization of any synergies or cost savings associated with the acquisition.

icometrix

On November 7, 2025, the Company acquired 100% of the stock of icometrix NV (“icometrix”) for approximately $98 million of upfront payment, net of cash acquired and potential earn-out payments up to $35 million based on sales targets over two years. icometrix is focused on providing AI-powered brain imaging analysis for neurological disorders such as Alzheimer’s disease. Through this acquisition, we expect to integrate the icometrix platform with our MRI systems. icometrix is included in the Company’s Imaging segment.

The preliminary purchase price allocation resulted in goodwill of $74 million, intangible assets of $34 million, and deferred tax liabilities of $9 million. Purchase price allocations are based on preliminary valuations. Our estimates and assumptions are subject to change within the measurement period. The goodwill associated with the acquired business is non-deductible for tax purposes.

Nihon Medi-Physics

On March 31, 2025, the Company acquired the remaining 50% interest in Nihon Medi-Physics Co., Ltd. (“NMP”) from joint venture partner Sumitomo Chemical for net cash consideration of $271 million. NMP is a leading pharmaceutical manufacturer in Japan, focused on radiopharmaceuticals, which are used to enable clinical images across neurology, cardiology, and oncology procedures, as well as nonclinical and clinical development of radiotracers and theranostics research. Their product portfolio includes several GE HealthCare radiopharmaceuticals. NMP is included in the Company’s PDx segment.

On March 31, 2025, the fair value of the Company’s existing 50% interest in NMP was determined to be $301 million based on the cash consideration exchanged for acquiring the remaining 50% equity interest. The carrying value of our 50% interest was $204 million. The Company recognized a net gain of $97 million resulting from this remeasurement to fair value. This gain included the reclassification of certain amounts related to the Company’s 50% interest out of Accumulated other comprehensive income (loss) – net (“AOCI”) including foreign currency translation gains of $63 million and losses related to a defined benefit pension plan of $8 million. The net gain from this remeasurement was recorded in Other (income) expense – net in the Company’s Condensed Consolidated Statements of Income for the three months ended March 31, 2025.

The following table provides a summary of the purchase price consideration transferred for the acquisition of NMP.


	Purchase consideration
Cash consideration, net of cash acquired	$	271
Fair value of previously held interest in NMP	301
Fair value of contingent consideration	5
Total allocable purchase price	$	577

The fair values of the assets and liabilities assumed in connection with the acquisition of NMP, which were finalized in the first quarter of 2026 without material adjustment, are as follows.


	Purchase price allocation
Receivables	$	53
Inventories	9
All other current assets(1)	35
Property, plant, and equipment	239
Goodwill	221
Other intangible assets	235
All other non-current assets	39
Deferred income taxes	(80)
All other non-current liabilities	(145)
Other(2)	(29)
Total net assets post acquisition	$	577

(1) All other current assets includes $35 million of indemnification assets, with the underlying indemnified liabilities recorded in All other non-current liabilities.

(2) Other includes Accounts payable, All other current liabilities, and Current compensation and benefits.

T able of Contents

Property, plant, and equipment is mostly comprised of land, buildings, equipment (including machinery, furniture, and fixtures) and construction in process. The fair value of property, plant, and equipment was determined using a market participant approach.

Other intangibles relate to $235 million of definite-lived intangible assets, primarily consisting of developed product market authorization rights and customer relationships. The acquired definite-lived intangibles are being amortized over a weighted-average estimated useful life of approximately 13 years. The estimated fair value of intangibles was determined using the income approach.

The goodwill associated with NMP, recorded within the PDx segment, is non-deductible for tax purposes and is attributed to expected synergies with NMP’s existing assets and workforce that are expected to allow the Company greater access and growth in the Japan market.

Included in All other non-current liabilities are asset retirement obligations and decommissioning liabilities of $124 million, which were assumed in the transaction.

NMP has a defined benefit pension plan which has pension assets of $71 million and pension liabilities of $33 million, a net asset of $38 million, which we acquired in the transaction and is included in All other non-current assets.

Deferred income tax liabilities include the expected U.S. federal, state, and foreign tax consequences associated with temporary differences between the fair values of the assets acquired and liabilities assumed and the respective tax basis.

If the acquisition of NMP had taken place as of the beginning of 2024, consolidated revenues and earnings would not have been significantly different than reported amounts.

GOODWILL.


	Imaging		AVS		PCS		PDx		Total



Balance at December 31, 2025	$	3,682	$	5,020	$	2,041	$	2,745	$	13,489
Acquisitions(1)	1,584		—		—		—		1,584
Foreign currency exchange and other	(6)		(3)		(1)		(3)		(14)
Balance at March 31, 2026	$	5,261	$	5,017	$	2,040	$	2,742	$	15,060

(1) Includes the purchase of Intelerad recorded within our Imaging segment, as described above.

We assess the possibility that a reporting unit’s fair value has been reduced below its carrying amount due to the occurrence of events or circumstances between annual impairment testing dates. We did not identify any reporting units that required an interim impairment test since the last annual impairment testing date.

OTHER INTANGIBLE ASSETS.



	As of March 31, 2026						As of December 31, 2025
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Definite-lived assets
Customer-related	$	393	$	(48)	$	345	$	279	$	(43)	$	236
Patents and technology	3,355		(2,162)		1,193		2,698		(2,128)		570
Capitalized software	1,726		(1,496)		231		1,703		(1,470)		233
Trademarks and other	97		(32)		65		47		(31)		15
Total definite-lived assets	5,571		(3,738)		1,833		4,727		(3,672)		1,055
Indefinite-lived assets(1)	75		—		75		75		—		75
Total other intangible assets	$	5,646	$	(3,738)	$	1,908	$	4,802	$	(3,672)	$	1,130

(1) Indefinite-lived intangible assets relate to acquired in-process research and development prior to project completion and are not amortized.

Amortization expense was $75 million and $70 million for the three months ended March 31, 2026 and 2025, respectively.

NOTE 8. BORROWINGS

The Company’s borrowings include the senior unsecured notes and credit agreements detailed below.

Senior Unsecured Notes

As of March 31, 2026, the Company’s borrowings include $9,500 million aggregate principal amount of senior unsecured notes in nine series with maturity dates ranging from 2027 through 2052 (collectively, the “Notes”).

T able of Contents

Credit Facilities

In the first quarter of 2026, the Company terminated its existing $500 million 364-day senior unsecured revolving credit facility. It was replaced with a new 364-day senior unsecured revolving credit facility in an aggregate committed amount of $500 million. The terms of the new facility are substantially similar to those of the terminated facility.

The Company has credit agreements providing for:

a five-year senior unsecured revolving credit facility in an aggregate committed amount of $3,000 million, maturing on March 27, 2030;
a 364-day senior unsecured revolving credit facility in an aggregate committed amount of $500 million, maturing on February 25, 2027; and
a three-year senior unsecured delayed draw term loan credit facility in an aggregate principal amount of $650 million, maturing on March 16, 2029 (the “Delayed Draw Term Loan Facility” and, together with the five-year senior unsecured revolving credit facility and the 364-day senior unsecured revolving credit facility, the “Credit Facilities”).

In the first quarter of 2026, in connection with the acquisition of Intelerad, the Company borrowed $500 million under the 364-day senior unsecured revolving credit facility and subsequently completed a $650 million drawdown of the Delayed Draw Term Loan Facility, which had aggregate lender commitments of $750 million. The $100 million of unused lender commitments for the Delayed Draw Term Loan Facility automatically terminated upon completion of the drawdown. Immediately following the acquisition, the Company repaid $500 million under the 364-day senior unsecured revolving credit facility. Refer to Note 7, “Acquisitions, Goodwill, and Other Intangible Assets” for more information on our Intelerad acquisition.

There were no outstanding amounts under the five-year senior unsecured revolving credit facility or the 364-day senior unsecured revolving credit facility as of March 31, 2026 and December 31, 2025, respectively.


Borrowings Composition	As of
	March 31, 2026		December 31, 2025
5.650% senior notes due November 15, 2027	$	1,750	$	1,750
4.150% senior notes due December 15, 2028	600		600
4.800% senior notes due August 14, 2029	1,000		1,000
5.857% senior notes due March 15, 2030	1,250		1,250
4.800% senior notes due January 15, 2031	650		650
5.905% senior notes due November 22, 2032	1,750		1,750
5.500% senior notes due June 15, 2035	850		850
4.950% senior notes due December 15, 2035	650		650
6.377% senior notes due November 22, 2052	1,000		1,000
Floating rate Delayed Draw Term Loan Facility due March 16, 2029	650		—
Floating rate Term Loan Facility due January 2, 2026(1)	—		500
Other	22		24
Total principal debt issued	10,172		10,024
Less: Unamortized debt issuance costs and discounts	47		49
Add: Cumulative basis adjustment for fair value hedges	9		27
Total borrowings	10,134		10,003
Less: Short-term borrowings(2)	7		508
Long-term borrowings	$	10,127	$	9,495

(1) In the first quarter of 2026, the Company repaid $500 million of the remaining Term Loan Facility upon maturity.

(2) Short-term borrowings as of March 31, 2026 and December 31, 2025 includes $2 million and $502 million, respectively, related to the current portion of our long-term borrowings, net of unamortized debt issuance costs and discounts.

See Note 12, “Financial Instruments and Fair Value Measurements” for further information about borrowings and associated derivatives contracts.

LETTERS OF CREDIT, GUARANTEES, AND OTHER COMMITMENTS.

As of March 31, 2026 and December 31, 2025, the Company had bank guarantees and surety bonds of approximately $1,161 million and $1,149 million, respectively, related to certain commercial contracts. Additionally, we have issued approximately $20 million and $22 million of guarantees as of March 31, 2026 and December 31, 2025, respectively, primarily related to residual value and credit guarantees on equipment sold to third-party finance companies. Our Condensed Consolidated Statements of Financial Position reflect a liability of $3 million as of both March 31, 2026 and December 31, 2025, related to these guarantees. For credit-related guarantees, we estimate our expected credit losses related to off-balance sheet credit exposure consistent with the method used to estimate the allowance for credit losses on financial assets held at amortized cost.

T able of Contents

NOTE 9. POSTRETIREMENT BENEFIT PLANS

We sponsor a number of pension and retiree health and life insurance benefit plans that we present in three categories: U.S. Plans, International Plans, and Other Postretirement Plans (“OPEB Plans”). Refer to Note 10, “Postretirement Benefit Plans” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 for further information. Pension plans with pension assets or obligations less than $50 million are not included in the results below.



Components of Expense (Income)	U.S. Plans				International Plans					OPEB Plans
For the three months ended March 31,	2026		2025			2026		2025			2026		2025
Service cost – Operating	$	1	$	1		$	5	$	5		$	1	$	1
Interest cost	241		249			40		36			11		13
Expected return on plan assets	(275)		(287)			(41)		(36)			—		—
Amortization of net loss (gain)	—		(20)			6		5			(14)		(15)
Amortization of prior service cost (credit)	(3)		(3)			(1)		(1)			(18)		(20)


Special termination cost	—		1			—		—			—		—
Non-operating	$	(37)	$	(60)		$	4	$	4		$	(21)	$	(21)
Net periodic expense (income)	$	(36)	$	(59)		$	9	$	9		$	(20)	$	(20)

In the three months ended March 31, 2026, the Company made cash payments totaling $45 million to its U.S. Plans, $10 million to its International Plans, and $42 million to its OPEB Plans. As of March 31, 2026, the Company expects to make total cash contributions of approximately $350 million to these plans in 2026. The Company funds annually, at a minimum, the statutorily required minimum amount for our qualified plans. Non-qualified plans are unfunded and we pay benefits from our cash on hand.

Defined Contribution Plan

GE HealthCare sponsors a defined contribution plan for its eligible U.S. employees. Expenses associated with our employees’ participation in GE HealthCare’s defined contribution plan were $48 million and $45 million for the three months ended March 31, 2026 and 2025, respectively.

NOTE 10. INCOME TAXES

Our effective income tax rate was 18.6% and 15.0% for the three months ended March 31, 2026 and 2025, respectively. The tax rate for the three months ended March 31, 2026 is lower than the U.S. statutory rate primarily due to the use of tax attributes, and foreign-derived deduction eligible income and research and development (“R&D”) benefits, partially offset by geographic earnings mix, withholding taxes, and state taxes.

The tax rate for the three months ended March 31, 2025 is lower than the U.S. statutory rate primarily due to foreign income tax reserve releases for tax years which are no longer subject to an assessment from the local taxing authorities, the remeasurement gain that was recorded due to the NMP acquisition which is not taxable, and R&D benefits, partially offset by withholding taxes, geographic earnings mix, and state taxes.

The Company is currently being audited in a number of jurisdictions for the tax years 2004-2024, including China, France, Germany, India, Japan, Norway, the United Kingdom, and the United States.

NOTE 11. SHAREHOLDERS' EQUITY

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) – NET.

Changes in AOCI by component were as follows.


	For the three months ended March 31, 2026
	Currency translation adjustments(1)		Pension and Other Postretirement Plans		Cash flow hedges		Total AOCI
December 31, 2025	$	(1,548)	$	158	$	3	$	(1,388)
Other comprehensive income (loss) before reclassifications – net of taxes of $(25), $(3), and $(6)	(26)		12		23		10
Reclassifications from AOCI – net of taxes(2) of $—, $7, and $—	—		(22)		(6)		(29)
Other comprehensive income (loss)	(26)		(10)		17		(19)
Less: Other comprehensive income (loss) attributable to noncontrolling interests	(9)		—		—		(9)
March 31, 2026	$	(1,566)	$	147	$	20	$	(1,398)

T able of Contents


	For the three months ended March 31, 2025
	Currency translation adjustments(1)		Pension and Other Postretirement Plans		Cash flow hedges		Total AOCI
December 31, 2024	$	(1,973)	$	576	$	18	$	(1,379)
Other comprehensive income (loss) before reclassifications – net of taxes of $15, $5, and $3	194		(20)		(11)		163
Reclassifications from AOCI – net of taxes(2)(3) of $—, $16, and $—	63		(49)		3		17
Other comprehensive income (loss)	257		(69)		(8)		180
Less: Other comprehensive income (loss) attributable to noncontrolling interests	—		—		—		—
March 31, 2025	$	(1,717)	$	507	$	10	$	(1,199)

(1) The amount of Currency translation adjustments recognized in Other comprehensive income (loss) (“OCI”) included net gains (losses) relating to net investment hedges, as further discussed in Note 12, “Financial Instruments and Fair Value Measurements.”

(2) Reclassifications from AOCI into earnings for Pension and Other Postretirement Plans are recognized within Non-operating benefit (income) costs, while Cash flow hedges are recognized within Cost of products and Cost of services in our Condensed Consolidated Statements of Income.

(3) Includes net of tax impact of $63 million of gains to Currency translation adjustments and $8 million of losses to Pension and Other Postretirement Plans related to the derecognition of the prior NMP equity method investment. Refer to Note 7, “Acquisitions, Goodwill, and Other Intangible Assets” for additional information on the NMP acquisition.

SHARE REPURCHASES.

On April 30, 2025, our Board of Directors authorized a share repurchase program (the “repurchase program”) for up to $1,000 million of our common stock. The repurchase program does not have an expiration date, does not obligate the Company to acquire any particular amount of common stock, and may be suspended or terminated at any time at the Company's discretion. During the quarter ended March 31, 2026, we repurchased 1.4 million shares under the repurchase program for total consideration of approximately $100 million. As of March 31, 2026, we had $700 million available under the repurchase program authorization.

NOTE 12. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

DERIVATIVES AND HEDGING.

Our primary objective in executing and holding derivative contracts is to reduce the volatility of earnings and cash flows associated with risks related to foreign currency exchange rates, interest rates, and equity prices. These derivative contracts reduce, but do not entirely eliminate, the aforementioned risks. Our policy is to use derivative contracts solely for managing risks and not for speculative purposes.

Cash Flow Hedges

For derivative instruments designated as cash flow hedges, changes in the fair value of designated hedging instruments are initially recorded as a component of AOCI and subsequently reclassified to earnings in the period in which the hedged transaction affects earnings and to the same financial statement line item impacted by the hedged transaction. As of March 31, 2026, we expect to reclassify $29 million of pre-tax net deferred gains associated with designated cash flow hedges to earnings in the next 12 months, contemporaneously with the impact on earnings of the related hedged transactions.

Within the Condensed Consolidated Statements of Cash Flows, cash flows associated with derivatives designated as cash flow hedges are recorded in All other operating activities – net.

Net Investment Hedges

We use cross-currency interest rate swaps and foreign currency forward contracts in combination with foreign currency option contracts to hedge the foreign currency risk associated with our net investment in foreign operations. As of March 31, 2026, these contracts were designated as hedges of our net investment in foreign operations, primarily in Euro and Chinese Renminbi currencies.

Within the Condensed Consolidated Statements of Cash Flows, cash flows associated with derivatives designated as net investment hedges are recorded in All other investing activities – net and cash flows from the periodic interest settlements on the cross-currency swaps are recorded in All other operating activities – net.

Fair Value Hedges

We use interest rate swaps to hedge the interest rate risk on our fixed rate borrowings. These derivatives are designated as fair value hedges to hedge the changes in fair value due to benchmark interest rate risk of specific designated cash flows of our senior unsecured notes.

T able of Contents

We record the changes in fair value on these swap contracts in Interest and other financial charges – net in our Condensed Consolidated Statements of Income, the same line item where the offsetting change in the fair value of the designated cash flows of the senior unsecured note is recorded as a basis adjustment.

Within the Condensed Consolidated Statements of Cash Flows, cash flows for the periodic interest settlements on the interest rate swaps are recorded in All other operating activities – net.

Derivatives Not Designated as Hedging Instruments

We also execute derivative instruments, such as foreign currency forward contracts and equity-linked total return swaps, which are not designated as qualifying hedges. These derivatives serve as economic hedges of foreign currency exchange rate and equity price risks. We also identify and record foreign currency-related features in our purchase or sales contracts where the currency is not the local or functional currency of any substantive party to the contract as embedded derivatives.

The changes in fair value of derivatives not designated as qualifying hedge transactions are recorded in Cost of products, Cost of services, Selling, general, and administrative (“SG&A”), and Other (income) expense – net in the Condensed Consolidated Statements of Income based on the nature of the underlying hedged transaction. Changes in fair value of embedded derivatives are recognized in Other (income) expense – net in the Condensed Consolidated Statements of Income.

Within the Condensed Consolidated Statements of Cash Flows, cash flows associated with derivatives not designated but used as economic hedges are recorded, based on the nature of the underlying hedged transaction, in All other operating activities – net and All other investing activities – net, and cash flows related to embedded derivatives are recorded in All other operating activities – net.

The following table presents the gross fair values of our outstanding derivative instruments.


Fair Value of Derivatives	March 31, 2026						December 31, 2025
	Gross Notional		Fair Value – Assets		Fair Value – Liabilities		Gross Notional		Fair Value – Assets		Fair Value – Liabilities
Foreign currency forward contracts	$	1,618	$	68	$	10	$	1,508	$	52	$	23
Derivatives accounted for as cash flow hedges	1,618		68		10		1,508		52		23
Cross-currency swaps	4,026		84		64		4,115		51		135
Foreign currency forward and options contracts	2,570		59		42		2,581		50		37
Derivatives accounted for as net investment hedges	6,596		143		106		6,697		101		172
Interest rate swaps	2,700		11		1		2,700		28		—
Derivatives accounted for as fair value hedges	2,700		11		1		2,700		28		—
Foreign currency forward contracts	5,890		14		23		4,761		20		7
Other derivatives(1)	309		46		2		320		56		5



Derivatives not designated as hedging instruments	6,199		60		26		5,081		76		12
Total derivatives	$	17,114	$	283	$	143	$	15,986	$	256	$	207

(1) Other derivatives are comprised of embedded derivatives and derivatives related to equity contracts.

The following table presents amounts recorded in Long-term borrowings in the Condensed Consolidated Statements of Financial Position related to cumulative basis adjustment for fair value hedges.


	March 31, 2026				December 31, 2025
	Carrying amount		Cumulative basis adjustment included in the carrying amount		Carrying amount		Cumulative basis adjustment included in the carrying amount
Long-term borrowings designated as fair value hedges	$	2,704	$	9	$	2,722	$	27

Under the master arrangements with the respective counterparties to our derivative contracts, in certain circumstances and subject to applicable requirements, we are allowed to net settle transactions with a single net amount payable by one party to the other. However, we have elected to present the derivative assets and derivative liabilities on a gross basis in our Condensed Consolidated Statements of Financial Position and in the table above.

As of March 31, 2026 and December 31, 2025, the potential effect of rights of offset associated with the derivative contracts would be an offset to both assets and liabilities by $120 million and $107 million, respectively.

The table below presents the pre-tax gains (losses) recognized in OCI associated with the Company’s cash flow and net investment hedges.

T able of Contents


Pre-tax Gains (Losses) Recognized in OCI Related to Cash Flow and Net Investment Hedges
	For the three months ended March 31
		2026		2025
Cash flow hedges		$	29	$	(14)
Net investment hedges(1)		107		(65)

(1) Amounts recognized in OCI for excluded components for the periods presented were immaterial.

The tables below present the gains (losses) on our derivative financial instruments and hedging activity in the Condensed Consolidated Statements of Income.


Derivative Financial Instruments and Hedging Activity
	For the three months ended March 31, 2026
	Cost of products		Cost of services		SG&A		Interest and other financial charges – net		Other(4)

Foreign currency forward contracts	$	5	$	1	$	—	$	—	$	—
Effects of cash flow hedges	5		1		—		—		—
Cross-currency swaps	—		—		—		12		—
Foreign currency forward and options contracts	—		—		—		6		—
Effects of net investment hedges(1)	—		—		—		18		—

Interest rate swaps(2)	—		—		—		(17)		—
Debt basis adjustment on Long-term borrowings	—		—		—		18		—

Effects of fair value hedges	—		—		—		1		—
Foreign currency forward contracts	12		3		—		—		—



Other derivatives(3)	—		—		(3)		—		(7)
Effects of derivatives not designated as hedging instruments	12		3		(3)		—		(7)























	For the three months ended March 31, 2025
	Cost of products		Cost of services		SG&A		Interest and other financial charges – net		Other(4)

Foreign currency forward contracts	$	(2)	$	(1)	$	—	$	—	$	—
Effects of cash flow hedges	(2)		(1)		—		—		—
Cross-currency swaps	—		—		—		8		—
Foreign currency forward and option contracts	—		—		—		3		—
Effects of net investment hedges(1)	—		—		—		11		—

Interest rate swaps(2)	—		—		—		57		—
Debt basis adjustment on Long-term borrowings	—		—		—		(61)		—

Effects of fair value hedges	—		—		—		(4)		—
Foreign currency forward contracts	15		4		—		—		(1)
Other derivatives(3)	—		—		(3)		—		(15)
Effects of derivatives not designated as hedging instruments	15		4		(3)		—		(15)

(1) Changes in fair value related to components other than the spot rate are excluded from effectiveness testing for the three months ended March 31, 2026 and 2025.

(2) Amount includes interest income (expense) on interest rate derivatives of $1 million and $(4) million for the three months ended March 31, 2026 and 2025, respectively.

(3) Other derivatives are comprised of embedded derivatives and derivatives related to equity contracts.

(4) Amounts are inclusive of gains (losses) in Other (income) expense – net in the Condensed Consolidated Statements of Income.

FAIR VALUE MEASUREMENTS.

The following table represents assets and liabilities that are recorded and measured at fair value on a recurring basis.

T able of Contents


Fair Value of Assets and Liabilities Measured on a Recurring Basis
	As of March 31, 2026								As of December 31, 2025
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	—	$	293	$	—	$	293	$	—	$	399	$	—	$	399
Investment securities	52		—		30		82		47		—		30		77
Derivatives	—		283		—		283		—		256		—		256
Liabilities:
Derivatives	—		143		—		143		—		207		—		207
Contingent consideration	—		—		26		26		—		—		30		30

Cash equivalents

As of March 31, 2026 and December 31, 2025, Cash, cash equivalents, and restricted cash of $2,285 million and $4,512 million, respectively, included money market funds of $293 million and $399 million, and other cash equivalents of $1,163 million and $3,046 million, respectively. The carrying values of the other cash equivalents approximates the fair value due to their short maturities and are valued using Level 1 or Level 2 inputs. Refer to Note 16, “Supplemental Financial Information” for further information.

Derivatives

Derivatives are measured at fair value using a discounted cash flow method or option models using interest rates, foreign exchange spot and forward rates and yield curves observable at commonly quoted intervals, implied volatilities, and credit spreads as key inputs. Unobservable inputs relate to our own credit risk which is not significant to the overall measurement of fair value.

Contingent consideration

Contingent consideration is recorded at fair value based on estimates of future cash flows in connection with business acquisitions. As the valuation of these liabilities is based on inputs that are less observable or not observable in the market, the determination of fair value is classified within Level 3 of the fair value hierarchy.

Non-recurring fair value measurements

Changes in fair value measurements of assets and liabilities measured at fair value on a non-recurring basis, such as equity method investments, equity investments without readily determinable fair value, financing receivables, and long-lived assets, were not material for the three months ended March 31, 2026 and 2025, with the exception of the gain on fair value measurement of the NMP equity method investment as described in Note 7, “Acquisitions, Goodwill, and Other Intangible Assets.”

Fair value of other financial instruments

The estimated fair value of borrowings as of March 31, 2026 and December 31, 2025 was $10,605 million and $10,545 million, respectively, compared to a carrying value (which only includes a reduction for unamortized debt issuance costs and discounts and cumulative basis adjustment) of $10,134 million and $10,003 million, respectively. The fair value of our borrowings includes accrued interest and is determined based on observable and quoted prices and spreads of comparable debt and benchmark securities and is considered Level 2 in the fair value hierarchy. See Note 8, “Borrowings” and Note 16, “Supplemental Financial Information” for further information.

NOTE 13. COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES, AND OTHER LOSS CONTINGENCIES

GUARANTEES.

The Company has off-balance sheet credit exposure through standby letters of credit, bank guarantees, bid bonds, and surety bonds. See Note 8, “Borrowings” for further information.

PRODUCT WARRANTIES.

We provide warranty coverage to our customers as part of customary practices in the market to provide assurance that the products we sell comply with agreed-upon specifications. We provide estimated product warranty expenses when we sell the related products. Warranty accruals are estimates that are based on the best available information, mostly historical claims experience, therefore claims costs may differ from amounts provided. An analysis of changes in the liability for product warranties follows.

T able of Contents



	For the three months ended March 31
	2026		2025
Balance at beginning of period	$	169	$	168
Current-year provisions	43		59
Expenditures	(50)		(58)
Foreign currency exchange and other	(1)		2
Balance at end of period	$	161	$	171

Product warranties are recognized within All other current liabilities in the Condensed Consolidated Statements of Financial Position.

LEGAL MATTERS.

In the normal course of our business, we are involved from time to time in various arbitrations; class actions; commercial, intellectual property, and product liability litigation; government investigations; investigations by competition/antitrust authorities; and other legal, regulatory, or governmental actions, including the significant matter described below that could have a material impact on our results of operations and cash flows. In many proceedings, including the specific matter described below, it is inherently difficult to determine whether any loss is probable or even reasonably possible or to estimate the size or range of the possible loss, and accruals for legal matters are not recorded until a loss for a particular matter is considered probable and reasonably estimable. Given the nature of legal matters and the complexities involved, it is often difficult to predict and determine a meaningful estimate of loss or range of loss until we know, among other factors, the particular claims involved, the likelihood of success of our defenses to those claims, the damages or other relief sought, how discovery or other procedural considerations will affect the outcome, the settlement posture of other parties, and other factors that may have a material effect on the outcome. For such matters, unless otherwise specified, we do not believe it is possible to provide a meaningful estimate of loss at this time. Moreover, it is not uncommon for legal matters to be resolved over many years, during which time relevant developments and new information must be continuously evaluated.

Contracts with Iraqi Ministry of Health

In 2017, a number of U.S. Service members, civilians, and their families brought a complaint in the U.S. District Court for the District of Columbia (the “District Court”) against a number of pharmaceutical and medical device companies, including GE HealthCare and certain affiliates, alleging that the defendants violated the U.S. Anti-Terrorism Act. The complaint seeks monetary relief and alleges that the defendants provided funding for an Iraqi terrorist organization through their sales practices pursuant to pharmaceutical and medical device contracts with the Iraqi Ministry of Health. In July 2020, the District Court granted defendants’ motions to dismiss and dismissed all of the plaintiffs’ claims. In January 2022, a panel of the U.S. Court of Appeals for the District of Columbia Circuit (the “Court of Appeals”) reversed the District Court’s decision. In February 2022, the defendants requested review of the decision by all the judges on the Court of Appeals (an “en banc” review). In February 2023, the Court of Appeals denied this request. In June 2023, defendants petitioned the Supreme Court to review the Court of Appeals’ decision. In June 2024, the Supreme Court vacated the Court of Appeals’ decision and remanded the case to the Court of Appeals for further consideration. In January 2026, the Court of Appeals reversed the District Court’s decision to dismiss the complaint and remanded the case for further proceedings. In April 2026, the Court of Appeals denied defendants’ request for an en banc review of the Court of Appeals’ decision.

INDEMNITIES.

In connection with the Tax Matters Agreement with GE as described in Note 19, “Related Parties and Transition Services Agreement” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, we have been informed that the Internal Revenue Service (“IRS”) may assert a material amount of additional taxes related to an ongoing IRS audit of the GE consolidated U.S. income tax returns, in which we are included, for the years 2016-2020. Any tax obligations would be allocated among the Company and GE, in accordance with the Tax Matters Agreement. A final resolution of this matter could be time-consuming and is not likely within the next 12 months. An unfavorable resolution of this matter and related allocation of additional tax liability, which is not reasonably estimable at this time, could result in additional material indemnification obligations due to GE for which we have not accrued a liability.

NOTE 14. RESTRUCTURING ACTIVITIES

Restructuring activities are essential to optimize the business operating model for GE HealthCare and mostly involve workforce reductions, organizational realignments, and revisions to our real estate footprint. Specifically, restructuring charges (gains) primarily include employee-related termination benefits associated with workforce reductions, facility exit costs, asset write-downs, and cease-use costs. For segment reporting, restructuring activities are not allocated.

Net expenses for restructuring initiatives committed to by management through March 31, 2026 are included in the table below.

T able of Contents


	For the three months ended March 31
		2026		2025
Employee termination costs		$	44	$	21
Facility and other exit costs		3		—
Asset write-downs		2		1
Total restructuring activities – net		$	49	$	22

These restructuring initiatives are expected to result in additional expenses of approximately $25 million, to be incurred primarily over the next 12 months, substantially related to employee-related termination benefits and asset write-downs. Restructuring expenses (gains) are recognized within Cost of products, Cost of services, or SG&A, as appropriate, in the Condensed Consolidated Statements of Income.

Liabilities related to restructuring are recognized within Current compensation and benefits, All other current liabilities, Non-current compensation and benefits, and All other non-current liabilities in the Condensed Consolidated Statements of Financial Position. The activity related to our restructuring liabilities follows.


	Employee termination costs		Facility and other exit costs		Total




Balance at December 31, 2025	$	82	$	11	$	92
Charges	43		1		44
Payments and other adjustments	(21)		(3)		(25)
Balance at March 31, 2026	$	103	$	8	$	111

NOTE 15. EARNINGS PER SHARE

The numerator for both basic and diluted earnings per share (“EPS”) is Net income attributable to GE HealthCare. The denominator of basic EPS is the weighted-average number of shares outstanding during the period. The dilutive effect of outstanding stock options, restricted stock units, and performance share units is reflected in the denominator for diluted EPS using the treasury stock method.


Earnings Per Share	For the three months ended March 31
(In millions, except per share amounts)		2026		2025
Numerator:
Net income		$	411	$	588
Net (income) loss attributable to noncontrolling interests		(22)		(24)
Net income attributable to GE HealthCare		389		564




Denominator:
Basic weighted-average shares outstanding		456		457
Dilutive effect of common stock equivalents		1		2
Diluted weighted-average shares outstanding		457		459

Basic earnings per share		$	0.85	$	1.23



Diluted earnings per share		0.85		1.23


Antidilutive securities(1)		3		2

(1) Diluted earnings per share excludes certain shares issuable under share-based compensation plans because the effect would have been antidilutive.

T able of Contents

NOTE 16. SUPPLEMENTAL FINANCIAL INFORMATION

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH.


	As of
	March 31, 2026		December 31, 2025
Cash and cash equivalents(1)	$	2,261	$	4,492
Short-term restricted cash	24		20
Total Cash, cash equivalents, and restricted cash as presented in the Condensed Consolidated Statements of Financial Position	2,285		4,512
Long-term restricted cash(2)	3		3
Total Cash, cash equivalents, and restricted cash as presented in the Condensed Consolidated Statements of Cash Flows	$	2,288	$	4,515

(1) The decrease in Cash and cash equivalents was primarily due to the Intelerad acquisition. Refer to Note 7, “Acquisitions, Goodwill, and Other Intangible Assets” for further information.

(2) Long-term restricted cash is recognized within All other non-current assets in the Condensed Consolidated Statements of Financial Position.

INVENTORIES.


	As of
	March 31, 2026		December 31, 2025
Raw materials	$	1,080	$	1,002
Work in process	104		95
Finished goods	1,170		1,137
Inventories	$	2,353	$	2,234

Certain inventory items are long-term in nature and therefore have been recognized within All other non-current assets in the Condensed Consolidated Statements of Financial Position and are not reflected in the table above. See the supplemental table “All Other Non-Current Assets” for further information.

PROPERTY, PLANT, AND EQUIPMENT – NET.


	As of
	March 31, 2026		December 31, 2025
Land and improvements	$	142	$	144
Buildings, structures, and related equipment	2,155		2,140
Machinery and equipment	2,814		2,872
Leasehold improvements and manufacturing plants under construction	582		574
Total property, plant, and equipment, at original cost	5,693		5,731
Accumulated depreciation	(2,994)		(3,049)
Operating lease ROU assets, net of amortization	396		410
Property, plant, and equipment – net	$	3,095	$	3,092

Depreciation expense related to Property, plant, and equipment – net, exclusive of operating lease ROU assets, was $78 million and $66 million for the three months ended March 31, 2026 and 2025, respectively.

ALL OTHER ASSETS AND ALL OTHER LIABILITIES.


All Other Current Assets	As of
	March 31, 2026		December 31, 2025
Prepaid expenses and deferred costs	$	320	$	228
Financing receivables – net	92		95
Derivative instruments	164		169
Income tax receivables	146		154
Other(1)	120		81
All other current assets	$	842	$	726

(1) Other primarily consists of indemnity assets associated with the NMP acquisition and separation agreements with GE.

T able of Contents


All Other Non-Current Assets	As of
	March 31, 2026		December 31, 2025
Prepaid pension asset	$	735	$	742
Equity method and other investments	352		351
Financing receivables – net	187		190
Derivative instruments	119		88
Long-term receivables – net	187		190
Inventories	122		121
Contract and other deferred assets	206		211
Capitalized cloud computing arrangement implementation costs(1)	231		200
Other(2)	116		112
All other non-current assets	$	2,254	$	2,205

(1) See the supplemental table “Capitalized Cloud Computing Arrangement Implementation Costs” for further information.

(2) Other primarily consists of indemnity assets associated with separation agreements with GE and income tax receivables.


All Other Current Liabilities	As of
	March 31, 2026		December 31, 2025
Sales allowances and related liabilities	$	225	$	256
Income and indirect tax liabilities including uncertain tax positions	251		324
Product warranties	161		169
Accrued logistics and utilities	183		197
Operating lease liabilities	132		134
Derivative instruments	54		47
Interest payable on borrowings	146		100
Environmental and asset retirement obligations	10		11
Other(1)	379		348
All other current liabilities	$	1,542	$	1,587

(1) Other primarily consists of miscellaneous accrued costs, dividends payable, and contingent consideration liabilities.


All Other Non-Current Liabilities	As of
	March 31, 2026		December 31, 2025
Contract liabilities	$	819	$	803
Operating lease liabilities	270		284
Environmental and asset retirement obligations	409		413
Income and indirect tax liabilities including uncertain tax positions	213		156
Derivative instruments	89		160
Finance lease obligations	41		42
Sales allowances and related liabilities	25		23
Other(1)	150		178
All other non-current liabilities	$	2,015	$	2,061

(1) Other primarily consists of miscellaneous accrued costs, indemnity liabilities associated with separation agreements with GE, and contingent consideration liabilities.

CAPITALIZED CLOUD COMPUTING ARRANGEMENT IMPLEMENTATION COSTS.


	As of
	March 31, 2026		December 31, 2025
Capitalized implementation costs	$	288	$	249
Accumulated amortization	(57)		(49)
Total Capitalized cloud computing arrangement implementation costs, net	$	231	$	200

Amortization expense related to capitalized cloud computing arrangement implementation costs was $8 million and $4 million for the three months ended March 31, 2026 and 2025, respectively.

T able of Contents

SUPPLY CHAIN FINANCE PROGRAMS.

The Company participates in voluntary supply chain finance programs which provide participating suppliers the opportunity to sell their GE HealthCare receivables to third parties at the sole discretion of both the suppliers and the third parties. We evaluate supply chain finance programs to ensure the use of a third-party intermediary to settle our trade payables does not change the nature, existence, amount, or timing of our trade payables and does not provide the Company with any direct economic benefit. If any characteristics of the trade payables change or we receive a direct economic benefit, we reclassify the trade payables to borrowings. In connection with the supply chain finance programs, payment terms normally range from 30 to 180 days, depending on the underlying supplier agreements.

Included within Accounts payable in the Condensed Consolidated Statements of Financial Position as of March 31, 2026 and December 31, 2025 were $341 million and $360 million, respectively, of confirmed supplier invoices that are outstanding and subject to third-party programs.

REDEEMABLE NONCONTROLLING INTERESTS**.**

The Company has noncontrolling interests with redemption features. These redemption features, such as put options, could require the Company to purchase the noncontrolling interests upon the occurrence of certain events. All noncontrolling interests with redemption features that are not solely within our control are recognized within the Condensed Consolidated Statements of Financial Position between liabilities and equity. Redeemable noncontrolling interests are initially recorded at the issuance date fair value. Those that are currently redeemable, or probable of becoming redeemable, are subsequently adjusted to the greater of current redemption value or initial carrying value.

Activity attributable to redeemable noncontrolling interests is presented below.


	For the three months ended March 31
	2026		2025
Balance at beginning of period	$	209	$	188
Net income attributable to redeemable noncontrolling interests	21		24

Distributions to redeemable noncontrolling interests and other	(12)		—
Balance at end of period	$	218	$	211

OTHER INCOME (EXPENSE) – NET.


	For the three months ended March 31
		2026		2025
Net financing income and investment income (loss)		$	(1)	$	(1)
Equity method income (loss)		(3)		3
Change in fair value of assumed obligations		(6)		(8)
Gain on remeasurement of NMP equity method investment(1)		—		97
Other items, net(2)		45		8
Total other income (expense) – net		$	36	$	99

(1) During the three months ended March 31, 2025, the Company acquired its remaining interest in NMP. Refer to Note 7, “Acquisitions, Goodwill, and Other Intangible Assets” for additional information on the NMP acquisition.

(2) Other items, net primarily consists of a mix of licensing and royalty income, lease income, gains and losses related to derivatives, and change in tax indemnities. Additionally, for the three months ended March 31, 2026, it includes income from contract settlements, and for the three months ended March 31, 2025, it includes a realization of a gain contingency.

NOTE 17. SUBSEQUENT EVENTS

On April 29, 2026, we announced a strategic change to our executive leadership and to our segments, combining our Imaging and AVS businesses into a new operating and reportable segment, Advanced Imaging Solutions (“AIS”). Following this organizational change, the Company will have three reportable segments: AIS, PCS, and PDx, which is aligned with how the CODM will review the business for the purpose of assessing performance and allocating resources going forward. This change will position the Company to enhance execution, accelerate innovation, and create efficiencies. Beginning with the Form 10-Q filing for the period ending June 30, 2026, any historical segment financial information presented will be recast to conform to the new reportable segment structure.

T able of Contents

Previous: Cover and table of contents · Next: Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS