Executives from GE HealthCare Technologies (NASDAQ:GEHC) said the company is focused on execution and a multi-year innovation cycle as it navigates a dynamic operating environment, highlighting order momentum from 2025, a product pipeline that is expected to contribute more meaningfully to revenue starting in 2027, and ongoing work to mitigate tariff impacts.
Strategy: commercial execution, margins, and innovation
Management framed the current environment as uncertain, but said GE HealthCare is prioritizing actions that “will serve us no matter what the environment looks like.” Those priorities include driving commercial excellence to generate orders and revenue growth, focusing on margin enhancement and productivity initiatives, and continuing to invest in innovation.
Imaging pipeline: photon counting and total-body PET seen as multi-year drivers
On photon-counting CT, management discussed the timeline for its Photonova Spectra offering. GE HealthCare said it expects approval “at some point this year,” anticipates some orders in 2026, and expects the “real revenue impact” to start in 2027. Executives described a typical imaging sales cycle as requiring time for customer education and planning, with additional lead time for capital equipment that may require room design and installation.
On competitive dynamics and cannibalization, management said cannibalization risk from photon counting is “not high,” describing it as a new segment for the company. Executives also said GE HealthCare has significantly increased innovation investment over the last five years, across both R&D and cost of goods, with an aim of reaching “parity or better” with peers.
The company also discussed Omni Total Body PET/CT and StarGuide SPECT/CT, noting these are launching outside the U.S. with a plan to bring them into the U.S. Executives said GE HealthCare is a leader in imaging but does not currently have a total-body PET offering, describing the addressable opportunity as “meaningful” and characterizing it as “blue ocean” participation rather than a cannibalization concern.
AVS: shorter sales cycles and recent launches
In the company’s AVS business, executives described a shorter sales cycle and more immediate revenue contribution from product introductions. AVS leader Phil Rackliffe said recent launches were driven by “intentional innovation” tied to customer needs and workflows, with three products introduced in roughly the last three months:
- Vivid Pioneer, described as a premium and ultra-premium cardiovascular ultrasound system that is “beating” internal models, with “greater price at a lower cost of goods.”
- Allia Moveo, an interventional platform Rackliffe said is designed around the patient and room workflow; he referenced a first installation at Baylor St. Luke’s.
- LOGIQ R5, a software suite that can be added to new and existing ultrasound products; he said it can enable an ultrasound procedure in “60% less time” with “80% less” keystrokes.
Rackliffe contrasted AVS “flow business,” where orders can be fulfilled in the next quarter, with capital-intensive imaging systems that may require six to 18 months for facility buildout and certifications.
Partnerships, AI, and digital: UCSF deal and SaaS targets
Executives emphasized that investors may focus on individual products, but said the company’s approach is increasingly about combining innovations with partnerships, commercial execution, and service. Management highlighted a newly announced 10-year collaboration with UCSF, describing it as focused on improving care efficiency and referencing areas such as remote imaging opportunities, workforce education, and MR enhancements.
On AI, GE HealthCare said it has been selling AI-related products for years, originally centered on image identification and enhancement. Management cited AIR Recon DL for MR imaging, describing it as improving image speed and quality and being sold on new MR systems and as an add-on for existing installations. The company said it has more than 100 AI-enabled, FDA-approved devices on the market and noted that AI capabilities may be priced separately or embedded in product pricing.
On software, management reiterated prior Investor Day commentary that software as a service, inclusive of digital, was $1.2 billion and is expected to grow to $1.8 billion in coming years.
Guidance, tariffs, China, and capital allocation
GE HealthCare reiterated its 2026 organic revenue growth guidance of 3% to 4%. Management said the range reflects commercial performance and orders secured in 2025, while also noting that most benefits from the new product cycle are expected in 2027. The company said it expects 2% to 3% growth in Q1, with faster growth implied for the rest of the year to reach the full-year range.
Executives also referenced a prior expectation that new product introductions could drive 1% to 2% of growth through 2028, but said that impact is not expected to reach the higher end of that range until 2027.
On profitability, management said it still supports midterm targets, citing a 17% to 20%+ margin range over the medium term and noting that achieving “20%+ by 2028” would be challenging given changes in dynamics. Executives also discussed how some innovation-related costs shift from the R&D line into cost of goods as products near launch, encouraging investors to consider broader “innovation investment” rather than R&D expense alone.
Tariffs were described as a fast-moving issue. Management said the rollback of IEEPA tariffs created an upside that was generally offset by new tariffs, and that existing 301 and 232 tariffs remained. If tariffs remain for a full year, executives said GE HealthCare may end up in a similar position to where it currently sits, while pointing to mitigation work that allowed the company to say “tariffs down this year” despite expectations they could have doubled on an apples-to-apples basis. If there is tariff relief, the company said it remains focused on funding R&D and SG&A to win long term, with any windfall expected to flow through rather than fill unfunded needs.
In China, management said there is “cause for optimism,” referencing a revamped commercial organization, some tenders won last year that should carry into 2026, and “encouraging signs” related to VBP. However, the company reiterated it expects “China down” and said it is not counting on a near-term recovery, while noting the long-term unmet need and the presence of formidable local competitors including United Imaging and Mindray.
On M&A, management said past deals have been tightly aligned with strategy and financial guidelines, generally revenue accretive in the near term with robust returns. Executives cited Intelerad as addressing an imaging archiving gap and providing a platform for additional AI offerings, and also referenced Caption Health, Intelligent Ultrasound, and MIM as examples of strategically related acquisitions. The company said it does not rule out larger deals but expects to continue with acquisitions similar to those it has executed to date.
About GE HealthCare Technologies (NASDAQ:GEHC)
GE HealthCare Technologies (NASDAQ: GEHC) is a global medical technology and diagnostics company that develops, manufactures and markets a broad range of products and services for healthcare providers. Its portfolio centers on diagnostic imaging systems, including MRI, CT, PET and X-ray modalities, as well as ultrasound equipment. The company also supplies patient monitoring and anesthesia delivery systems, interventional and surgical imaging solutions, and molecular imaging technologies used in both clinical care and research settings.
In addition to hardware, GE HealthCare offers software, analytics and lifecycle services aimed at improving clinical workflows and equipment uptime.
