GE HealthCare Technologies Inc. Common Stock earnings calls

capex outlook and order backlog

Q (Travis Steed · BofA): Asked how the capital spending environment looks for imaging and related technologies, and a follow-up on why backlog and book-to-bill softened this quarter.

A: Management said imaging remains a top priority for customers and their survey data show steady energy and focus. They see no clear procedure pullback yet, a long sales/install lead time, a very strong funnel today, and called the backlog dip lumpiness from timing of large deals.

"I would say our, you know, funnel is as strong as it is ever been at this point in time." — Peter J. Arduini (CEO)

Vercado ramp and China recovery

Q (Vijay Kumar · Evercore): Asked about Vercado reaching a $500 million run rate exiting 2028 and whether Sofie helps visibility, and asked whether China has returned to growth and the effect of VBP there.

A: Management said they feel very good about reaching the $500 million exiting 2028 and that momentum and broad-based interest are progressing as expected. On China, they reported quarterly improvement with 7% growth in the quarter (mostly FX-driven), said the market is recovering, tenders are more consistent, they are seeing more VBP, and the local team has evolved its go-to-market tactics but more work remains.

"Yeah, Vijay. Look. I think with Vercado, short answer is we feel very good about the $500 million exiting 2028." — Peter J. Arduini (CEO)

memory chip supply and costs

Q (Matthew Taylor · Jefferies): Asked how multiyear agreements with technology partners help secure memory chip supply and manage costs going forward.

A: Management said they took an ecosystem approach and contacted suppliers with adequate lead time to secure supply and to manage pricing. They do not expect locked-in pricing across the board but achieved a favored-nation status meaning they are first in line for supply and price, which makes them feel good for the rest of this year and into 2027.

"But being in a favored nation status that we are first in line to be able to take advantage of both supply and price is what we have been able to do." — Peter J. Arduini (CEO)

Q4 guide and PCS performance

Q (Robert Marcus · JPMorgan): Asked why guidance implies a softer fourth quarter versus Street expectations and for early thoughts on 2027; follow-up on whether PCS’s strong quarter was underlying or driven by one-offs.

A: Management said they will give 2027 guidance in February but believe current momentum in orders and backlog sets a good setup for 2027 and that new products should lift gross margins. The CFO said backlog is up 12% year-over-year and AIS and PDX will drive Q4 growth while PCS growth is muted by last year's product hold catch-up; on PCS they said some installations shifted into the second half and supplier issues were addressed by daily management (Heartbeat) so they expect continued improvement into 2027.

"On the top line, AIS and PDX will drive growth for us in Q4." — William K. Grogan (CFO)

new CFO first impressions

Q (Joanne Wuensch · Citi): Asked the new CFO what his first impressions are and whether he will change guidance or implement new actions.

A: He said he was attracted by the company's purpose and culture and sees a strong link between innovation and patient impact. He highlighted a large growth opportunity from new products and AI/digital, and wants to drive operating performance and consistency using the Heartbeat system and partnering with the leadership team.

"The purpose of creating a world where health care has no limits is deeply embedded in how people make decisions here." — William K. Grogan (CFO)

generic Omnipaque and midterm targets

Q (Larry Biegelsen · Wells Fargo): Asked how a new generic Omnipaque entrant might affect GE’s share and whether generic competition could prevent PDX from meeting its midterm high single digit growth goal; also asked to confirm midterm targets.

A: Management declined to forecast the new entrant’s exact share, saying Omnipaque is already a long-standing generic market with multiple players and that current capacity is near max, so a new supplier would be absorbed by overall market demand. They said PDX is growing double digits, radiopharma is growing fast, and they continue to feel good about the medium-term targets (the 2028 goals).

"We continue to feel good about the medium term targets, full stop." — Peter J. Arduini (CEO)

ultrasound opportunity and tariffs

Q (Ryan Zimmerman · US Bancorp BTIG): Asked whether disruptions at competitors create near-term ultrasound opportunities for GE, and asked how to think about tariffs and margin expansion for next year.

A: Management said general ultrasound is a very important, growing global market for them, they remain committed and continue to invest and expect opportunities from market disruptions. On tariffs, they said the biggest uncertainty is section 32, they are planning for possible increased rates, and are taking actions on price, cost productivity, and moving components to offset impact.

"General ultrasound, you know, imaging ultrasound is a super important market for us." — Peter J. Arduini (CEO)

tariff refunds and next-year outlook

Q (George Andrew Newcomb): Follow-up on tariffs: how did tariffs and tariff refunds affect the quarter, and how to think about tariffs next year?

A: Management said tariffs were down year-over-year in Q3 due to mitigation actions and lower overall rates, and they recognized about $4 million of AIPA tariff refunds related to 2026 while adjusting out about $9 million of refunds related to 2025. They added that tariffs and inflation will likely remain persistent next year but they are confident they can mitigate through pricing, supply-chain actions, and supplier partnerships.

capturing price and install visibility

Q (Baird): Asked how far they have come in capturing price and whether there is more headroom, and asked how much of upcoming installs and revenue are already secured for Q4 and into 2027.

A: Management said pricing is selective and tied to differentiated products that deliver productivity and outcomes; typical pricing benefits are in a 1% to 2% range and they are aligning incentives to get volume with the right margins. On installs, they said they have a record backlog, year-to-date backlog is up materially, delivery dates extend into 2027 and 2028, and Q4 secured rates are in the normal high range with the vast majority of installs already on validated orders.

"If I were to say Q4 versus Q3, we are right in the same normal range that we would be, which is a high secured rate." — Peter J. Arduini (CEO)

PCS leadership and Sofie impact

Q (Vikramjeet Chopra · BMO): Asked whether the PCS leadership change delays the strategic review timeline, and whether owning Sofie speeds Vercado’s ramp and what percent Sofie currently supplies.

A: Management said the leadership change will not delay the strategic review because the new PCS leader has been deeply involved in the strategic assessment. On Sofie, they declined to disclose the percent supplied for competitive reasons, said owning manufacturing can help across the broader radiopharma opportunity, gives more control of the supply chain for short-half-life tracers, and they must still close the deal.

"Yeah, I will not disclose for competitive reasons the percentage, but I think you can appreciate we are pretty well distributed and spread out across multiple players based on how this works." — Peter J. Arduini (CEO)