GE HealthCare

Hospitals are not going to stop scanning patients anytime soon. GE HealthCare just reported revenue of 5.1 billion dollars in the first quarter of 2026, up 7.4 percent from a year ago, with a huge 21.8 billion dollar backlog of orders already on the books. New orders are still coming in faster than the company can ship them, a healthy sign that demand remains strong.

Their pharmaceutical diagnostics business, the imaging dyes injected into patients before scans, just grew almost 22 percent year over year to 770 million dollars and runs at a rich 25.6 percent operating margin. That includes newer products like Flyrcado for heart imaging and a fast-tracked manganese MRI dye now in a late-stage trial. This is the highest-margin part of the company and it is growing fastest.

Management just lowered its full-year 2026 profit outlook because prices for memory chips, oil, and freight jumped more than expected, on top of a one-off supplier problem in the dye business. Adjusted earnings are now expected at 4.80 to 5.00 dollars per share, down from 4.95 to 5.15 before. Adjusted operating margin shrank 150 basis points in the quarter, so the bottom line is under real pressure even as sales grow.

GE HealthCare closed its 2.3 billion dollar Intelerad acquisition in March, and total debt now sits at 10.1 billion dollars. Profit took a hit this quarter too, with net income margin dropping 420 basis points to just 7.6 percent as tariffs, a weaker patient care unit, and the supplier issue all bit at once. That leaves less cushion to absorb the next surprise.