Inflation to hit 2026 profit by 15 cents EPS despite offsets
GE HealthCare delivered Q1 revenue at the high end of expectations but disappointed on profit due to a discrete PDX supplier issue and rising raw material costs (memory, oil/freight). Management lowered full-year 2026 profit and FCF guidance due to material inflation, expecting to offset slightly more than half the impact with pricing and cost actions. Despite near-term margin pressure, they updated on progress with Flurpiridaz (Forcado) ramp and new product launches. Q1 2026 revenue grew 2.9% to $5.1 billion, at the high end of expectations, with double-digit growth in EMEA and rest of world and mid-single-digit growth in the US.
Buzzberg 분석Inflation to hit 2026 profit by 15 cents EPS despite offsetsGE HealthCare delivered Q1 revenue at the high end of expectations but disappointed on profit due to a discrete PDX supplier issue and rising raw material costs (memory, oil/freight). Management lowered full-year 2026 profit and FCF guidance due to material inflation, expecting to offset slightly more than half the impact with pricing and cost actions. Despite near-term margin pressure, they updated on progress with Flurpiridaz (Forcado) ramp and new product launches. Q1 2026 revenue grew 2.9% to $5.1 billion, at the high end of expectations, with double-digit growth in EMEA and rest of world and mid-single-digit growth in the US.전체 분석 보기분석 접기
GE HealthCare delivered Q1 revenue at the high end of expectations but disappointed on profit due to a discrete PDX supplier issue and rising raw material costs (memory, oil/freight). Management lowered full-year 2026 profit and FCF guidance due to material inflation, expecting to offset slightly more than half the impact with pricing and cost actions. Despite near-term margin pressure, they updated on progress with Flurpiridaz (Forcado) ramp and new product launches. Q1 2026 revenue grew 2.9% to $5.1 billion, at the high end of expectations, with double-digit growth in EMEA and rest of world and mid-single-digit growth in the US.
Adjusted EPS came in at $0.99, a 15% decline, impacted by tariffs and a higher-margin mix.
Full-year 2026 adjusted EPS guidance was lowered to $4.80-$5.00 and FCF to around $1.6 billion, due to an approximate $250 million gross inflation impact from memory chips, oil/freight, and commodity metals.
Radiopharmaceutical Flurpiridaz (Forcado) is ramping, delivering nearly 80% growth in doses since late January, hitting 390 doses weekly as of April 17th; on track for $500M+ by 2028.
Revenue$5.131B
+10% QoQ
EPS$0.99
-31% QoQ
Gross margin38.53%
reported
Op margin10.04%
reported
이번 분기에 달라진 점
01
Guidance
Inflation to hit 2026 profit by 15 cents EPS despite offsets
Guidance · revenue to 3.5%
02
Product Adoption
Flurcado doses surge 80% since late January
Q1 2026 revenue grew 2.9% to $5.1 billion, at the high end of expectations, with double-digit growth in EMEA and rest of world and mid-single-digit growth in the US.
03
Innovation
Photon counting CT and new MRI agents on track for 2027 revenue
Adjusted EPS came in at $0.99, a 15% decline, impacted by tariffs and a higher-margin mix.
04
Strategy
New AIS segment to accelerate growth and streamline costs
Full-year 2026 adjusted EPS guidance was lowered to $4.80-$5.00 and FCF to around $1.6 billion, due to an approximate $250 million gross inflation impact from memory chips, oil/freight, and commodity metals.
AI, 자본지출 및 수요 분석
AI
플랫폼 및 수익화
Management highlighted AI-powered workflow solutions and AI-embedded products as differentiators, with AI enabling higher pricing and margins. They also discussed expanding SaaS-based AI capabilities and leveraging the IntelliRad platform for AI deployment.
수요
수주 및 전환
Guidance was lowered due to significant raw material cost inflation (memory, oil, freight), which will pressure profit through the year, partly offset by price actions.
자본지출
투자 및 생산능력
Management did not discuss capital expenditure or infrastructure investment in detail; they noted ongoing investment in R&D and commercial areas, but did not provide specific capex figures or plans.
톤 · Cautiously Confident
Management acknowledged operational disappointments and inflationary headwinds, yet emphasized strong demand, innovation momentum, and mitigation actions, balancing prudence with optimism.
공급망 알파
A1
GEHC expects ~$100 million more in memory chip costs and ~$100 million in oil/freight costs for FY2026, signalling sharp input cost inflation for the supply chain.
“An approximate $100 million increase in the price of memory chips, which are critical components utilized in many of our products, as well as an increase in oil and freight costs of approximately $100 million.”
GEHC sees accelerating demand for amyloid beta imaging (Visumel) due to expanding use of disease-modifying Alzheimer's therapies, a leading indicator for the Alzheimer's diagnostics market.
“Visumel growth is also accelerating, supported by the expanding use of disease-modifying Alzheimer's therapies that are driving increased demand for amyloid beta imaging.”
GEHC expects ~$100 million more in memory chip costs and ~$100 million in oil/freight costs for FY2026, signalling sharp input cost inflation for the supply chain. — The significant cost increase in memory chips used across GEHC's products indicates potential pricing power for memory suppliers like Micron (NASDAQ: MU).
… demand, but given the inflationary environment, we're taking a prudent view and reducing our profit and free cash flow guidance for 2026. Slide four shows the inflation impacts to our profit guidance and the offsetting measures we've identified to mitigate. For background, the magnitude of specific input costs changed significantly as we moved through the first quarter, primarily related to two dynamics. An approximate $100 million increase in the price of memory chips, which are critical components utilized in many of our products, as well as an increase in oil and freight costs of approximately $100 million. Other inflation impacts are expected to total approximately $50 million with metals, such as tungsten, as an example. Prior to any mitigation, the gross impact of these costs is approximately $250 million, or 43 cents per share. We expect to offset more than half of the inflation impact in 2026 with price and cost actions. Taking a prudent view for the year, we are reducing our full-year adjusted EPS guidance by 15 cents associated with the remaining inflation impact. Including this impact, we will still deliver mid- to high-single-digit adjusted EPS growth. Now, I'd …
GEHC sees accelerating demand for amyloid beta imaging (Visumel) due to expanding use of disease-modifying Alzheimer's therapies, a leading indicator for the Alzheimer's diagnostics market. — Increased utilization of Alzheimer's drugs like Leqembi (Eisai/Biogen) and Kisunla (Eli Lilly) is directly driving demand for GEHC's amyloid imaging agents.
… onboarding new customers, including high-volume sites, and we've seen an acceleration in the average number of doses that customers are ordering each week. We remain focused on delivering high-quality customer experience. While there will always be some week-to-week variability, we're encouraged by our trajectory, and this reinforces our confidence in our medium-term target of $500 million or more in annual revenue by 2028. Visumel growth is also accelerating, supported by the expanding use of disease-modifying Alzheimer's therapies that are driving increased demand for amyloid beta imaging. Looking to the future, one of the most significant research areas we've been focused on is developing our novel gadolinium-free MRI contrast agent. If successful, this manganese-based agent would provide a differentiated alternative to gadolinium by addressing retention concerns and reducing reliance on rare earth elements. We see this as a significant opportunity to expand our role in the current $1.2 billion contrast MRI market by overcoming key challenges for both patients and clinicians. We recently reached a meaningful clinical milestone with the first patient dosed in our Phase II …
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