10/28/2026

speaker
Conference Operator
Operator

Good day, and thank you for standing by. Welcome to the GE HealthCare third quarter's 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Carolynne Borders, Head of Investor Relations. Please go ahead.

speaker
Carolynne Borders
Head of Investor Relations

Thanks, Operator. Good morning and welcome to GE Healthcare's third quarter 2026 earnings call. I'm joined by our President and CEO, Peter Arduini, CFO, Bill Grogan, and Controller and Chief Accounting Officer, George Newcomb. Our conference call remarks will include both GAAP and non-GAAP financial results. Reconciliations between GAAP and non-GAAP measures can be found in today's press release and in the presentation slides available on our website. During this call, we'll make forward-looking statements about our performance. These statements are based on how we see things today. As described in our SEC filings, actual results may differ materially due to risks and uncertainties. With that, I'll hand the call over to Peter.

speaker
Peter Arduini
President and Chief Executive Officer

Thanks, Carolyn. Good morning, and thank you for joining us today. Before I review highlights from the quarter, I want to take a moment to welcome Bill. He brings tremendous experience and a strong track record, and I'm looking forward to partnering with him as we execute against our strategy and deliver on our priorities. Looking at our third quarter results on slide three, we delivered strong top-line growth and margin expansion across all segments, broad-based demand and advanced imaging solutions, and Pharmaceutical Diagnostics supported healthy orders, book-to-bill and backlog. Heartbeat is strengthening how we run the company and helping our teams deliver on commercial and operational simplification. A great example of performance driven by Heartbeat this quarter is patient care solutions. The team identified root causes of prior supply challenges and implemented standard work and daily management to drive ongoing improvements. This drove backlog conversion and stronger operational performance. Taken together, momentum in our business has enabled us to raise our full year 2026 guidance, which Bill will cover later in the call. Turning to slide four, let's look at how we're advancing our growth strategy. We reached key regulatory milestones in the quarter on two imaging platforms with market differentiating features. We received CE marking for Photonova Spectra are photon counting CT system, and Star Guide GX, our spec CT system, is pending FDA clearance. This broadens our ability to commercialize in more markets. We also expanded our ultrasound platforms in cardiovascular, women's health, and general imaging, with the launch of several new products to meet the growing demand for non-invasive imaging. We continue to see general imaging ultrasound as an attractive market where we're investing for the long term. With growing demand, staffing constraints, and more distributed care, ultrasound's versatility across a broad range of exams is increasingly valuable. PDX delivered another excellent quarter with growth in contrast media and radiopharmaceuticals, including proprietary tracers aligned to disease states. This was supported by momentum in precision medicine and growing demand for targeted diagnostics in oncology, cardiology, and neuro. Earlier this month, we announced our plans to acquire Sophie Biosciences. Upon close, this will establish a final mile footprint of U.S. pet radiopharmaceutical supply. It will also strengthen our pipeline through FAPI 74, a Phase III pet tracer with the potential to help diagnose and treat a range of cancers and other diseases. Part B is driving improvements in execution across the company, keeping our teams focused on SQDCI, safety, quality, delivery, cost, and innovation, in that order. In services, standardized digital support is helping our field engineers resolve more issues on the first visit. We expect this to save approximately 10,000 hours of field time across CT, MR, and X-ray in the U.S. and get customers back up faster. and AIS, Stronger Standard Work and Operating Rigor around Variable Cost Productivity delivered incremental cost reductions, helping partially offset inflation. We recently entered multi-year strategic agreements with several leading technology partners to secure memory chips to strengthen the resiliency and predictability of our supply chain amid growing cross-industry demand for advanced computing components. We continue to pursue agreements Lastly, before I hand the call over to Bill, today we announced that Jeannette Bankes, who leads our PCS business, will be leaving for a CEO role at a non-competitive publicly traded company. We thank her for her contributions and wish her the best. Leveraging our strong succession pipeline, I'm excited to announce that Neil Sandy, currently head of product strategy and management for PCS, will become the CEO of the business. I have tremendous confidence in Neal's capabilities given his current role and more than 30 years of experience in the industry. We remain focused on building on the progress the team achieved in the quarter, and we also are evaluating strategic options for this business. With that, Bill will walk through the financials and guide.

Disclaimer

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