GEHC·Diagnostic imaging OEM (CT, MR, molecular imaging, ultrasound, interventional) with attached enterprise-imaging software, radiopharmaceuticals and patient-monitoring hardware

GE HealthCare

ConvictionStrong

Capital equipment plus an annuity: a scanner is sold or leased, then the installed base yields multi-year service, consumables, upgrades and increasingly subscription AI. Three reportable segments as of Q2 2026 — Advanced Imaging Solutions (AIS, the Imaging and Advanced Visualization Solutions businesses combined), Pharmaceutical Diagnostics (PDx, sold per dose) and Patient Care Solutions (PCS, monitoring and life support). AI reaches the customer as a feature of a machine or a paid upgrade to one, never as a separately reimbursed product with its own payment code — the structural fact governing every conclusion below.

Revenue

$21.27B TTM to 30 Jun 2026CF-GEHC-03); FY2025 $20.6B. Q2 2026 revenue $5.3B, with segment revenue of AIS $3,771M (71%), PDx $843M (16%) and PCS $675M (13%) against a $5,295M total segment base (the small residual is other and eliminations).

Rev growth

+6.5% TTMflattered by Intelerad (closed 18 Mar 2026); organic is +3.5% in Q2, inside FY2026 guidance of 3.0–4.0%. Three businesses pull differently: AIS +7.9% reported / +5.0% organic, PDx +15.6% / +14.6%, PCS −13.3% / −13.5% on component shortages management called operational, not demand. Orders +11.1% organic at 1.15x book-to-bill on a record $23.9B backlog — post-spin highs.

Gross margin

39.54% TTMaggregator roll-up of the filings, checked 4 Aug 2026; FY2025 39.99%). A hardware gross margin, and the ceiling on any reading of the 130 authorisations as a software business — a pure-play imaging-AI vendor carries 70–90%, and the board's long, Doximity, carries 89.1%.

Op margin

12.86% TTM GAAP. The ladder matters more than any rung and each has a different scope: AIS segment EBIT 13.9%Q2 2026, +90bp YoY — the board's canonical GE margin) · total segment EBIT 14.2% ($750M on $5,295M, the figure GE labels adjusted EBIT) · company adjusted EBIT margin 15.3% FY2025, guided 15.4–15.7% FY2026 · 12.86% GAAP TTM. Substituting any other rung for 13.9% beside the authorisation count is the scope error the board has already corrected once.

Capex intensity

~2.5% of revenue$522M TTM; FY2025 $482M) — asset-light, since the hospital funds the $1–3M scanner and GE funds the factory. The meaningful capital is not capex: $2,293M of cash went to Intelerad in 2026, over four times a full year of capex.

Market cap

$30.72B at the 31 Jul 2026 closeCF-GEHC-02); 52-week $58.75–$89.77, ~24% below the high. 15.67x trailing, 13.15x forward on an unnamed third-party consensus estimate implying ~$5.17 of EPS — above the company's own reaffirmed FY2026 guidance of $4.80–5.00. On the guided year the same price is 13.6–14.2x, so the 'cheap on forward' framing reaches into FY2027.

Across the boards

The thesis on this name

opportunityStrong

State of AI for Healthcare

Full context

position · avoidStrong

State of AI for Healthcare

Full context

The read

Where our coverage leans

Coverage leans bearish

Members only

Full financial intelligence for GE HealthCare

Earnings, margins & COGS, the income-statement breakdown, SWOT, moats & dependencies, the supplier–customer ecosystem graph, top signals & trends, and the valuation range.

Income statement & margin structure
SWOT, moats & dependency map
Supplier–customer ecosystem graph
Signals, trends & valuation range

See plans

Not financial advice — analyst work product for a qualified professional.

GEHC·Diagnostic imaging OEM (CT, MR, molecular imaging, ultrasound, interventional) with attached enterprise-imaging software, radiopharmaceuticals and patient-monitoring hardware

GE HealthCare

ConvictionStrong

Revenue

Rev growth

Gross margin

Op margin

Capex intensity

Market cap

Across the boards

The thesis on this name

opportunityStrong

State of AI for Healthcare

Full context

position · avoidStrong

State of AI for Healthcare

Full context

The read

Where our coverage leans

Coverage leans bearish

Members only

Full financial intelligence for GE HealthCare

Earnings, margins & COGS, the income-statement breakdown, SWOT, moats & dependencies, the supplier–customer ecosystem graph, top signals & trends, and the valuation range.

Income statement & margin structure
SWOT, moats & dependency map
Supplier–customer ecosystem graph
Signals, trends & valuation range

See plans

Not financial advice — analyst work product for a qualified professional.