GE HealthCare Says AI-Enabled Innovation Helped Drive Record Orders in Q2

GE HealthCare reported record organic orders growth of 11.1% in the second quarter of 2026, helping lift its backlog to a record $23.9 billion as the company said AI-enabled products, enterprise healthcare partnerships, and operational changes are strengthening demand across its imaging portfolio. 

The company reported the results alongside second-quarter earnings on July 29. Revenue rose 3.5% organically to $5.3 billion, while adjusted earnings per share increased 6.6% year over year to $1.13. Investors responded positively, sending the company's shares sharply higher after the results.

Chief Executive Officer Peter Arduini said the company's commercial execution and AI-enabled innovation pipeline contributed to the strongest quarterly orders growth since GE HealthCare became an independent company.

"We were pleased with our strong performance in the second quarter. Orders increased 11%, with strong backlog, which grew $2.6 billion year-over-year, and booked a bill of 1.15 times, all of which were at record levels," Arduini said during the earnings call. 

The company also maintained its full-year guidance, forecasting organic sales growth of 3% to 4%, adjusted EPS of $4.80 to $5.00, and approximately $1.6 billion in free cash flow.

AI Products Become Part of Enterprise Sales Strategy

Executives repeatedly linked the company's AI investments to commercial wins rather than treating artificial intelligence as a standalone product category. GE HealthCare said many of its latest imaging products incorporate AI capabilities designed to improve clinical workflows, image quality, and hospital productivity.

Among the products highlighted were Photonov Spectra, its photon-counting CT platform expected to receive CE marking during the second half of 2026, and TrueFidelity DL, a deep learning CT software upgrade that nearly doubles image resolution across existing systems. 

The company said it also continues to expand AI-enabled software offerings that generate recurring subscription revenue. Similar investments in AI-powered imaging were reflected earlier this year with its expanded SIGNA MR platform at ISMRM 2026.

Arduini said GE HealthCare is also using AI internally to improve productivity, simplify operations, and strengthen its supply chain while helping customers address capacity constraints and workflow challenges.

The company cited enterprise agreements with Catholic Health in New York and University Hospital Essen in Germany as examples of customers purchasing integrated technology, software, services, and AI-enabled workflows instead of individual imaging systems. 

During the call, executives also described Heartbeat, the company's operating system for commercial and operational execution, as helping improve visibility into sales opportunities and increase customer win rates.

Strong Demand Offsets Challenges in Patient Care Solutions

While Advanced Imaging Solutions and Pharmaceutical Diagnostics delivered strong growth, Patient Care Solutions remained the company's weakest business. Organic revenue for the segment declined 13.5%, and the business reported negative segment EBIT after operational fulfillment issues and supply shortages affected shipments.

Management said improvement initiatives are underway and confirmed that a strategic review is evaluating multiple options for the business, including continued ownership, a sale, or other value-enhancing alternatives.

Chief Financial Officer Jay Saccaro said the surge in orders was broad-based across imaging modalities and supported confidence in the second half of the year. The company finished the quarter with a book-to-bill ratio of 1.15 and equipment orders secured at more than 80% entering the third quarter. 

Executives also expect more than 300 basis points of margin improvement between the first and second halves of 2026 as pricing actions, cost controls, and higher-margin AI-enabled products contribute more meaningfully. 

The company's broader transition toward AI software, enterprise imaging, and recurring healthcare revenue has also been evident in initiatives such as its mammography AI software strategy.