What's driving the strong mid-teens growth in PDX, and are you still on track for the $0.5 billion Plakador target by 2028, including timelines?

PDX's strong quarter was broad-based across contrast and radiopharma, driven by trends like amyloid beta therapy adoption (Visimel up significantly) and growth in other products like Adscan and Seriana. The Plakador ramp is progressing well, with 545 doses delivered in a week (40% increase over April) and new customers onboarded. The $0.5 billion annual revenue target by 2028 for Plakador remains fully intact. “But at this point, the 535 doses, which, again, is about 40% increase, the other aspect I mentioned on the prepared remarks was the fact that we brought on quite a few new customers as well, pretty much about that same ratio.”

The CFO transition seems abrupt; can you explain why now and where the search process stands?

Jay Saccaro stated his departure was due to a unique opportunity at another company to expand his role beyond finance, emphasizing his confidence in GE HealthCare's strong foundation and leadership team. Peter Arduini added that the CFO search has just begun but will move quickly due to the company's market recognition and mission, with George Nukem serving as interim CFO. “For me, what this came down to is a very unique opportunity at a great company to expand my role beyond finance, so that's what really this came down to.”

Is the new wave of innovation broadly driving orders, and should we expect accelerated order growth? Specifically, what is the impact of PhotoNova Spectra?

The new products are contributing, but still represent under 20% of the orders value. The growth is primarily driven by strong execution, commercial alignment, and enterprise deals leveraging the core product line. PhotoNova Spectra is on track for CE marking in H2 2026 and has strong pre-order funnel, but was a minimal contributor to Q2 orders; it is expected to be a significant growth driver later this year and into next year. “PhonoNova was a minimal contributor to the orders book. That's all still in front of us. What really drove CT was our breadth of our core product line.”

GEHC

GE HealthCare (GEHC) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Health Care· Jul 29, 2026

Source: earnings call transcript

Executive summary

GE HealthCare Q2 FY26 — Record Orders and Strong Innovation Pipeline Drive Performance

GE HealthCare delivered strong Q2 FY26 results, marked by record orders and backlog, reflecting robust end-market demand and successful commercial execution. While the Patient Care Solutions segment faced operational challenges, the company's D3 strategy and new AI-enabled innovations are driving growth and margin expansion in other segments. Management reaffirmed full-year guidance, confident in its ability to leverage its product pipeline and operational improvements for continued performance.

Highlights

Organic orders grew 11.1% year-over-year, reaching record levels.
Backlog increased by $2.6 billion year-over-year to a record $23.9 billion.
Book-to-bill ratio was 1.15x, the highest since the spin.
Pharmaceutical Diagnostics organic revenue grew 14.6%, driven by contrast media and radiopharmaceuticals.
Advanced Imaging Solutions organic revenue grew 5%, with EBIT margin up 90 bps.

Concerns

Patient Care Solutions (PCS) organic revenue declined 13.5% and segment EBIT was negative due to operational fulfillment challenges.
Adjusted EBIT margin declined 40 basis points year-over-year to 14.2%, impacted by PCS performance and inflationary costs.
Inflationary costs (memory chips, oil, freight) were a 120 basis point headwind in the quarter.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year organic sales growth	3% to 4% high materiality	FY26	High
Full-year adjusted EBIT margin expansion	10 to 40 basis points high materiality	FY26	High
Full-year adjusted EPS	$4.80 to $5.00 high materiality	FY26	High
Full-year free cash flow	approximately $1.6 billion high materiality	FY26	High
Q3 organic revenue growth	3% to 4% medium materiality	Q3 · FY26	High
Q3 adjusted EPS growth	low double-digit medium materiality	Q3 · FY26	High
Plakador annual revenues	$500 million or more high materiality	FY28	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Advanced Imaging Solutions Organic revenue growth driven by strength in Cardiovascular and Interventional Solutions CT and molecular imaging. EBIT margin increase driven by volume and price, partially offset by inflation. Expect continued growth from higher-margin AI-enabled new product introductions (NPIs) and elevated clinical/commercial expertise.	—	5%	—	increased 90 bps
Pharmaceutical Diagnostics Strong organic revenue growth with strong volume and pricing in contrast media and robust growth in U.S. radiopharmaceutical business. EBIT margin grew 30 bps year-over-year, benefiting from volume and price, partially offset by planned investments in new products and innovation pipeline. Progress made in Phase II and III clinical trial for a non-gadolinium-based contrast agent.	—	14.6%	—	29.6%
Patient Care Solutions Organic revenue declined and segment EBIT was negative due to operational fulfillment challenges (supply and manufacturing capabilities). Strong first half orders growth, particularly in monitoring and premium anesthesia internationally. Expect sequential improvement in sales and margin in the second half due to daily focus and weekly execution plans.	—	-13.5%	—	negative

GEHC operating KPIs by quarter

GEHC operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2024 Q4 FY24	Mar 2025 Q1 FY25	Jun 2025 Q2 FY25	Sep 2025 Q3 FY25	Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	This call Jun 2026 Q2 FY26	Change vs prior quarter
Book-to-bill	1.09 ratio Order dollars continued to outpace sales, helping us deliver strong total company book-to-bill of 1.09x, our highest since the spin. Source: earnings call transcript	1.09 ratio Book-to-bill in the quarter was strong at 1.09x. Source: earnings call transcript	1.07 ratio Book-to-bill for the quarter was strong at 1.07x, and we exited the quarter with a record backlog of $21.3 billion. Source: earnings call transcript	1.06 ratio We delivered strong book-to-bill at 1.06x, and we exited the quarter with a solid backlog at $21.2 billion. Source: earnings call transcript	1.06 ratio We exited the quarter with a record backlog of $21.8 billion, which grew $2 billion year-over-year and $600 million sequentially, and we delivered a book-to-bill ratio of 1.06x. Source: earnings call transcript	1.07 ratio We delivered a solid book-to-bill at 1.07x, and we exited the quarter with a record backlog of $21.8 billion, up $1.2 billion year-over-year. Source: earnings call transcript	1.15 ratio Orders increased 11% and with strong backlog, which grew $2.6 billion year-over-year and book-to-bill of 1.15x, all of which were at record levels. Source: earnings call transcript	+7.5%
Backlog	$19.8B We exited the fourth quarter with a record backlog of $19.8 billion, up $700 million year-over-year and up $200 million sequentially. Source: earnings call transcript	$20.6B We also exited the quarter with a record backlog of $20.6 billion, up $1.9 billion year-over-year and also up $800 million sequentially. Source: earnings call transcript	$21.3B Book-to-bill for the quarter was strong at 1.07x, and we exited the quarter with a record backlog of $21.3 billion. Source: earnings call transcript	$21.2B We delivered strong book-to-bill at 1.06x, and we exited the quarter with a solid backlog at $21.2 billion. Source: earnings call transcript	$21.8B We exited the quarter with a record backlog of $21.8 billion, which grew $2 billion year-over-year and $600 million sequentially, and we delivered a book-to-bill ratio of 1.06x. Source: earnings call transcript	$21.8B We delivered a solid book-to-bill at 1.07x, and we exited the quarter with a record backlog of $21.8 billion, up $1.2 billion year-over-year. Source: earnings call transcript	$23.9B Book-to-bill was 1.15x, also our highest since the spend, and we exited the quarter with a record backlog of $23.9 billion, up $2.6 billion year-over-year and $2.1 billion sequentially. Source: earnings call transcript	+9.6%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

Product	Type	Timeline
Photonova Spectra	milestone	H2 2026
True Definition DL	update	—
Vivid Pioneer Ultrasound	launch	—
Bolt 3T	update	—
New products in anesthesia and monitoring	roadmap	2026 and 2027

Deals & partnerships

Catholic Health (New York) Agreement for technology modernization and services support. $500M

Jointly built a roadmap for technology modernization and services support to expand structural heart and electrophysiology programs and improve productivity. Includes Vivid Pioneer Ultrasound, Alia interventional platform, and comprehensive digital tools.

University Hospital, Essen (Germany) Integrated nuclear medicine solution.

Focused on oncology and theranostics. Provided a fully integrated nuclear medicine solution including cyclotrons for tracer production, new total body PET and SPECT systems, and MIM software for AI-enabled imaging analysis and therapy planning.

Intelerad Acquisition contributing to service growth.

Recent acquisition that benefited service growth.

Risks & headwinds

Patient Care Solutions (PCS) operational fulfillment challenges Q2 FY26

Organic revenue declined 13.5%, segment EBIT negative.

Mitigation:Implemented several changes to strengthen supply and manufacturing capabilities; daily focus and weekly execution plans to drive volume and margin recovery in H2.

Inflationary costs Q2 FY26 and ongoing

120 basis point headwind on EBIT margin in Q2 FY26. Full-year assumption of $250 million.

Mitigation:Implementing incremental price and cost actions to offset impacts in 2026 and 2027; new products have higher margins and better cost positions.

China market dynamics (VBP, pricing, anti-corruption) FY26

Expected year-over-year decline in 2026 for the region.

Mitigation:Strengthened portfolio, focused on clinical value propositions, stood up a provincial government affairs group for strategic alignment on VBP.

Generic competition for contrast media (Omnipaque) Ongoing

No impact seen to date.

Mitigation:Focus on being a trusted and consistent supplier, offering a full portfolio of products, and leveraging a tight market where demand is close to outpacing supply.

What to watch in Q3 FY26

PCS organic revenue and margin recovery

H2 FY26

Current Organic revenue declined 13.5%, EBIT negative in Q2 FY26.

Target Sequential improvement in sales and margin.

Why it matters

Recovery of the PCS segment is crucial for overall company performance and margin expansion, as it was a significant drag in Q2.

We expect to see supply improvement, which will benefit both sales and margin in the second half of the year. July has started well in this regard.

Find out whether GEHC delivers this. Inve re-checks your case every morning.

Q&A highlights

What drove the 11% orders growth in Q2, is it sustainable, and what are you seeing regarding capital equipment demand in the U.S. given ACA subsidy cuts?

The 11% orders growth was broad-based and consistent across segments (molecular imaging, ultrasound, MR, CT, vascular labs), with no significant one-time items. It was driven by strong execution, new products, and enterprise accounts. End-market demand for procedures (PDX, vascular/ortho/cardiac) remains healthy, and the company's technologies improve hospital productivity, which is valued during challenges.

“There really weren't any particular one-timers or any type of business coming in from Q3. It was just really good execution at a street level with our teams with the vast majority of it being our legacy portfolio that complemented with some of the new products helping to deliver.”

asked by Larry Biegelsen · answered by Peter Arduini

3 min read 6 chapters

Detailed narrative

Strategic Execution and D3 Strategy

GE HealthCare is executing its D3 strategy, which integrates smart devices, drugs, and digital capabilities, particularly AI, to enable precision care. The Heartbeat business system aligns customer needs, product development, sales, and service, aiming to bring innovative products to market faster, strengthen customer relationships, and improve portfolio margin.

This strategy is resonating with customers, reflected in strong, broad-based orders growth across various segments like Ultrasound, MR, CT, patient monitoring, radiopharmaceuticals, and interventional labs.

Innovation and AI-Enabled Products

The company is in the early stages of a new wave of innovation, with several new products launched from its pipeline. Key innovations include Photonova Spectra, a Photon Counting CT platform, and True Definition DL, a deep learning CT software upgrade that doubles image resolution and is offered as a subscription.

The Vivid Pioneer Ultrasound leverages a platform approach for lower manufacturing cost and higher-margin AI capabilities. The Bolt 3T MR system features a new fully integrated user experience, widely considered best-in-market. These products are designed to enhance clinical value and productivity for customers, contributing to higher gross margins.

Patient Care Solutions (PCS) Review

The Patient Care Solutions segment experienced a challenging quarter with a 13.5% organic revenue decline and negative EBIT due to operational fulfillment issues, primarily supply and manufacturing constraints. However, PCS saw strong orders growth in the first half, particularly in monitoring, driven by new platforms and sales force realignment.

Management has implemented improvement initiatives focused on increasing shipment velocity and backlog conversion. A comprehensive review of strategic options for PCS is underway to maximize long-term growth and value, including continued ownership, sale, or other value-enhancing transactions.

Pharmaceutical Diagnostics (PDX) Performance

The Pharmaceutical Diagnostics segment delivered strong organic revenue growth of 14.6%, driven by robust volume and pricing in contrast media and significant growth in the U.S. radiopharmaceutical business. This performance reflects increasing demand for advanced imaging and disease-specific tracers. Visimel, an amyloid PET imaging agent, showed strong double-digit revenue growth tied to increased therapy adoption for Alzheimer's.

The Plakador ramp is on track, with 545 doses delivered in a week, a 40% increase over April levels, and new customer onboarding expected to drive increased utilization in the second half.

Commercial Alignment and Customer Engagement

GE HealthCare has significantly increased its customer focus through commercial organizational changes, including the creation of Advanced Imaging Solutions (AIS) and Global Markets. The company emphasizes deeper clinical expertise, expanded service capabilities (including SaaS and AI-enabled offerings), and enterprise problem-solving for integrated delivery networks.

This approach has led to significant agreements, such as a $500 million deal with Catholic Health for technology modernization and services, and an integrated nuclear medicine solution for University Hospital Essen, demonstrating the value of disease-state focused solutions.

CFO Transition

Jay Saccaro, Vice President and CFO, announced his departure, expressing pride in the company's progress and the strong foundation built. Peter Arduini, President and CEO, acknowledged Jay's contributions and announced George Nukem, Controller and Chief Accounting Officer, as the interim CFO.

The company has initiated a search for a permanent CFO, expecting to move quickly given market recognition and interest in GE HealthCare's mission to transform healthcare.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.