AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Evidence
We recognize revenue from the sale of certain service contracts, including preventative maintenance, corrective services, and extended warranties over time on a ratable basis consistent with the nature, timing, and extent of our services, which primarily relate to routine maintenance and as-needed product repairs.
Revenue recognition / maintenance, repairs and extended-warranty service contracts · Filed 04/02/2026
These software solutions and applications are upgradable through the lifecycle of the equipment and are especially beneficial for multi-site, multi-disciplinary networks that have complex operations.
Business / Imaging lifecycle software upgrades · Filed 04/02/2026
In addition to our core products, digital solutions, and service offerings, we provide complementary enterprise solutions, such as education and training and data integration services.
Business / education, training and data integration · Filed 04/02/2026
Our Patient Monitoring business includes proprietary parameters and complementary consumables as well as original equipment manufacturers’ parameters that are integrated into our monitoring fleet, of which a significant portion represents recurring revenue streams.
Business / Patient Monitoring proprietary parameters and recurring consumables · Filed 04/02/2026
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.
Note 2 / RPO exclusion of contracts cancellable without substantive penalty · Filed 29/07/2026
Products
5,180
5,001
Services
10,939
10,728
Total RPO
16,118
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 2 / product and service RPO and recognition horizons · Filed 29/07/2026
FINANCIAL STATEMENTS Condensed Consolidated Statements of Income (Unaudited) For the three months ended June 30 For the six months ended June 30 (In millions, except per share amounts) 2026 2025 2026 2025 Sales of products $ 3,416 $ 3,263 $ 6,762 $ 6,380 Sales of services 1,878 1,743 3,664 3,404 Total revenues 5,295 5,007 10,425 9,784 Cost of products 2,217 2,160 4,500 4,122 Cost of services 898 863 1,769 1,665 Gross profit 2,180 1,985 4,157 3,997 Selling, general, and administrative 1,118 1,029 2,235 2,069 Research and development 323 302 668 646 Total operating expenses 1,441 1,331 2,903 2,714 Operating income 739 654 1,254 1,283 Interest and other financial charges – net 114 113 210 224 Non-operating benefit (income) costs (45) (73) (96) (148) Other (income) expense – net (22) 1 (58) (98) Income before income taxes 693 613 1,198 1,304 Benefit (provision) for income taxes (119) (113) (213) (216) Net income 573 500 985 1,088 Net (income) loss attributable to noncontrolling interests (13) (14) (35) (39) Net income attributable to GE HealthCare $ 561 $ 486 $ 950 $ 1,049 Earnings per share attributable to GE HealthCare: Basic $ 1.24 $ 1.06 $ 2.09 $ 2.30 Diluted 1.24 1.06 2.08 2.29 Weighted-average number of shares outstanding: Basic 453 457 454 457 Diluted 454 458 456 459 The accompanying notes are an integral part of these condensed consolidated financial statements.
Condensed consolidated statements of income / service revenue and operating results · Filed 29/07/2026
Many of our products have lengthy sales and purchase order cycles or are subject to competitive bidding or public tender processes.
Risk factors / competitive bidding and public tenders · Filed 04/02/2026
However, we continue to monitor developments in the China market, including increased competition from local companies and the prevalence of volume based procurement policies, both of which have impacted our orders and revenues and may continue to do so.
MD&A / realized China competition and procurement impacts · Filed 29/07/2026
•the introduction of new or more affordable products or product enhancements by competitors, including products that could substitute for our products or reprocessed products or generic versions when our proprietary products lose their patent protection;
Risk factors / competing substitutes, reprocessed products and generics · Filed 04/02/2026
For the three months ended June 30 For the six months ended June 30 2026 % of Total revenues 2025 % of Total revenues % change 2026 % of Total revenues 2025 % of Total revenues % change Operating income $ 739 14.0% $ 654 13.1% 13.1% $ 1,254 12.0% $ 1,283 13.1% (2.3)% Net income attributable to GE HealthCare 561 10.6% 486 9.7% 15.5% 950 9.1% 1,049 10.7% (9.5)% Adjusted EBIT* 750 14.2% 729 14.6% 2.9% 1,440 13.8% 1,443 14.8% (0.2)% Adjusted net income* 515 9.7% 487 9.7% 5.6% 967 9.3% 951 9.7% 1.7% For the three months ended June 30, 2026 Operating income was $739 million, an increase of $86 million and 90 basis points as a percent of Total revenues.
MD&A / quarterly and first-half operating and adjusted EBIT margins · Filed 29/07/2026
The decrease as a percent of sales was largely driven by an increase in pricing of our service offerings, partially offset by cost inflation, with tariff refunds offsetting the incremental year-over-year tariff expense.
MD&A / first-half service pricing, inflation and tariff effects · Filed 29/07/2026
The increase as a percent of sales was largely driven by unfavorable mix within our service offerings and cost inflation, including the impact of incremental tariffs, partially offset by an increase in pricing of our service offerings.
MD&A / first-quarter service mix, inflation and realized pricing · Filed 29/04/2026
The increase was due to the following factors: •Gross profit increased $195 million or 150 basis points as a percent of Total revenues primarily due to tariff refunds, a growth in sales volume, and an increase in price, partially offset by cost inflation.
MD&A / second-quarter gross-profit drivers including pricing and tariff refunds · Filed 29/07/2026
federal government, can terminate contracts for their convenience or for our default.
Risk factors / government termination rights · Filed 04/02/2026
GE HealthCare Bonus Plan Financial Performance Metrics(1) Weight Threshold (50% Payout) Target (100% Payout) Max (200% Payout) Actual Bonus Performance Metric Payout NPI Vitality % Modifier (+/- 5%) Serious I & I Modifier (+/- 5%) Bonus Payout Organic revenue ($M) 50 % $ 18,560 $ 19,957 $ 21,354 $ 20,173 115 % +5% (5 %) 101 % Adjusted EBIT ($M) 30 % $ 2,750 $ 3,235 $ 3,720 $ 3,150 (2) 91 % Free cash flow ($M) 20 % $ 1,245 $ 1,660 $ 1,992 $ 1,505 81 % (1)All metrics are non-GAAP financial measures.
Compensation / 2025 actual financial performance against bonus targets · Filed 19/03/2026
Investing Activities Cash used for investing activities in the six months ended June 30, 2026 was $2,615 million and primarily included purchases of businesses, net of cash acquired, of $2,293 million related to the acquisition of Intelerad and Additions to PP&E and internal-use software of $278 million related mostly to investments in facilities, including manufacturing capacity expansion, and new product introductions.
Liquidity and capital resources / acquisition spending and capital investment · Filed 29/07/2026
Financing Activities Cash used for financing activities in the six months ended June 30, 2026 was $215 million and primarily included $300 million for repurchases of common stock, partially offset by a net increase in borrowings of $150 million.
Liquidity and capital resources / repurchases and net borrowing · Filed 29/07/2026
5 Table of Contents Condensed Consolidated Statements of Financial Position (Unaudited) As of (In millions, except share and per share amounts) June 30, 2026 December 31, 2025 Cash, cash equivalents, and restricted cash $ 2,105 $ 4,512 Receivables – net of allowances of $102 and $103 3,881 3,955 Inventories 2,483 2,234 Contract and other deferred assets 1,235 1,073 All other current assets 793 726 Current assets 10,497 12,501 Property, plant, and equipment – net 3,146 3,092 Goodwill 15,095 13,489 Other intangible assets – net 1,894 1,130 Deferred income taxes 4,359 4,491 All other non-current assets 2,254 2,205 Total assets $ 37,246 $ 36,906 Short-term borrowings $ 2 $ 508 Accounts payable 3,231 3,250 Contract liabilities 2,200 2,095 Current compensation and benefits 1,439 1,666 All other current liabilities 1,429 1,587 Current liabilities 8,302 9,105 Long-term borrowings 10,091 9,495 Non-current compensation and benefits 5,186 5,453 Deferred income taxes 315 193 All other non-current liabilities 2,133 2,061 Total liabilities 26,027 26,307 Commitments and contingencies Redeemable noncontrolling interests 229 209 Common stock, par value $0.01 per share, 1,000,000,000 shares authorized, 459,470,464 shares issued as of June 30, 2026; 458,844,209 shares issued as of December 31, 2025 5 5 Treasury stock, at cost, 7,785,199 shares as of June 30, 2026 and 3,107,626 shares as of December 31, 2025 (525) (225) Additional paid-in capital 6,776 6,707 Retained earnings 6,199 5,281 Accumulated other comprehensive income (loss) – net (1,480) (1,388) Total equity attributable to GE HealthCare 10,975 10,379 Noncontrolling interests 14 11 Total equity 10,989 10,390 Total liabilities, redeemable noncontrolling interests, and equity $ 37,246 $ 36,906 The accompanying notes are an integral part of these condensed consolidated financial statements.
Condensed consolidated financial position / cash, borrowing and equity balances · Filed 29/07/2026
What We Do What We Don’t Do Pay-for-performance through emphasis on at-risk, performance-based compensation programs Set rigorous annual bonus and long-term PSU goals tied to Board-approved budget and strategic objectives Align executive and stockholder interests by providing a majority of total target compensation in long-term incentives for our NEOs Maintain robust stock ownership and retention requirements for our directors and executive officers, including a 6x base salary requirement for our CEO Conduct proactive and ongoing stockholder outreach Mitigate undue risk-taking by conducting annual risk assessments and capping potential incentive plan payouts Maintain a robust clawback policy that authorizes recoupment of both time- and performance-based awards in the event of misconduct, including outside the context of a financial restatement Retain a fully independent executive compensation consultant whose independence is reviewed annually by the Compensation Committee Maintain equity grant practices designed to avoid grants right before or at the time of release of material non-public information, including through the use of pre-established grant dates Hold annual stockholder say-on-pay advisory vote Conduct an annual review of the compensation and practices of a compensation peer group No hedging of Company securities by employees or directors No pledging of Company securities by employees or directors No re-pricing of Options without stockholder approval No “single trigger” cash severance or equity acceleration based solely upon a change in control No excise tax gross-ups for change in control and severance payments No payouts of dividend equivalents on equity awards during vesting or performance periods No excessive perquisites GE HEALTHCARE 2026 PROXY STATEMENT 33 Compensation Summary of 2025 Compensation Program Elements The table below sets forth the primary elements of the 2025 GE HealthCare executive compensation program framework.
Compensation / adopted ownership, clawback and compensation policies · Filed 19/03/2026
As illustrated below, in 2025, once the total annual LTI award amount for each NEO was determined by the Compensation Committee, 50% was granted in PSUs, 25% in Options, and 25% in RSUs.
Compensation / actual 2025 long-term award mix · Filed 19/03/2026
All of our NEOs are in compliance with our stock ownership requirements.
Compensation / named executive compliance with ownership requirements · Filed 19/03/2026
•2023 PSU Payout. Mr. Saccaro’s 2023 PSUs paid out at 95% of the target number of shares, as described under “2023 Annual PSUs” beginning on page 41.
Compensation / actual 2023 PSU payout to CFO · Filed 19/03/2026
Key Corporate Governance Practices •Majority of independent directors, with a goal of at least two-thirds independent; 7 out of 8 director nominees are independent •Annual election of all directors by majority vote •No supermajority provisions in governing documents •Strong lead director with clearly delineated duties •Lead director oversees the Board’s periodic review of its leadership structure •Annual Board and committee self-evaluations •Board-level oversight of AI strategy and sustainability matters •Board refreshment mechanism (term limit of 15 years) •Regular executive sessions of independent directors •Board and committees may hire outside advisors independent of management •Clawback policy that applies to all cash and equity incentive awards •Prohibitions against hedging and pledging •Robust stock ownership and retention requirements •Limits on director outside board commitments (“overboarding”) •No poison pill or dual-class shares •Stockholder right to call special meetings at 25% •Proxy access provisions 6 GE HEALTHCARE 2026 PROXY STATEMENT Corporate Governance Management Proposal No.
Corporate governance / board practices and shareholder rights · Filed 19/03/2026
The Board has determined that all members of the Audit Committee, the Compensation Committee, and the Governance Committee are independent and also satisfy applicable committee-specific independence requirements.
Corporate governance / actual committee independence determinations · Filed 19/03/2026
However, the Board recognizes that certain external stakeholders may consider a longer look-back period more appropriate under these circumstances and may continue to appreciate the value of an independent lead director.
Board leadership / qualification concerning chairman independence look-back · Filed 19/03/2026
Segment EBIT For the three months ended June 30 For the six months ended June 30 2026 % of segment revenues 2025 % of segment revenues % change 2026 % of segment revenues 2025 % of segment revenues % change AIS $ 525 13.9 % $ 455 13.0 % 15.4 % $ 1,004 13.5 % $ 914 13.3 % 9.8 % PDx 250 29.6 % 213 29.3 % 16.9 % 446 27.7 % 418 30.7 % 6.7 % PCS (26) (3.8) % 60 7.7 % (143.0) % (16) (1.2) % 108 7.0 % (114.8) % ____________________ *Non-GAAP Financial Measure 37 Table of Contents For the three months ended June 30, 2026 •AIS Segment EBIT was $525 million, an increase of $70 million due to a growth in sales volume and an increase in price, partially offset by cost inflation.
Segment results / AIS, PDx and PCS first-half performance · Filed 29/07/2026
Bankes, as shown below. PCS Segment Bonus Plan Financial Performance Metrics Weight Threshold (50% Payout) Target (100% Payout) Max (200% Payout) Actual Bonus Performance Metric Payout PCS Payout (60%) Corporate Level Bonus Payout (40%) NPI Vitality % Modifier (+/- 5%) Serious I & I Modifier (+/- 5%) Bonus Payout PCS Organic revenue(1) ($M) 50 % $ 3,003 $ 3,229 $ 3,455 $ 3,062 63 % 48 % 101 % +5% (5 %) 69 % PCS Adjusted EBIT(1) ($M) 30 % $ 339 $ 399 $ 459 $ 221 — % PCS Inventory Turns 20 % 3.2 4.3 5.1 3.9 82 % (1)Non-GAAP financial measures.
Compensation / PCS actual 2025 results and certified bonus outcome · Filed 19/03/2026
Diagnostic agents require a sophisticated supply chain for manufacturing, supported by a global infrastructure of commercial, marketing, medical affairs, market access, application, regulatory, and pharmacovigilance teams that help monitor products.
Business / diagnostic-agent supply-chain requirements · Filed 04/02/2026
The increase as a percent of sales was largely driven by cost inflation, investment in design follow-through, and a now resolved PDx supplier issue, partially offset by tariff refunds.
MD&A / product cost inflation, engineering investment and resolved PDx supplier issue · Filed 29/07/2026
A summary of our 2025 financial performance is set forth below: •Revenues were $20.6 billion and Organic revenue* was $20.4 billion; Revenues increased 4.8% year-over-year and 3.5% on an Organic* basis.
Compensation discussion / 2025 reported and organic revenue growth · Filed 19/03/2026
