Financial Analysis

ACQUISITIONS, GOODWILL, AND OTHER INTANGIBLE ASSETS ACQUISITIONS. Intelerad On March 18, 2026, the Company acquired 100% of the stock of Intelerad for approximately $2,293 million in cash, net of cash acquired. The purchase was funded by the proceeds of senior unsecured notes issued in the fourth quarter of 2025, together with new borrowings under a delayed draw term loan facility and cash on hand. See Note 8, Borrowings for additional information on the borrowings. Intelerad is included in the Companys AIS segment. Intelerad is a leading medical imaging software and digital enterprise workflow solutions company with a significant presence in outpatient ambulatory care settings, which the Company believes complements our strength in hospital-based imaging. The preliminary fair values of the assets and liabilities assumed in connection with the acquisition of Intelerad are as follows. Preliminary allocation Receivables $ 39 Contract assets 27 Property, plant, and equipment 9 Goodwill 1,629 Other intangible assets 845 All other current and non-current assets 28 Accounts payable (16) Contract liabilities (34) Other current liabilities (23) Deferred income taxes (123) All other non-current liabilities (1) (88) Total net assets post acquisition $ 2,293 (1) All other non-current liabilities primarily includes tax reserves. The purchase price allocation required estimates and assumptions, including, but not limited to, estimates of future cash flows, direct costs, and appropriate di …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

BORROWINGS The Companys borrowings include the senior unsecured notes and credit agreements detailed below. Senior Unsecured Notes As of June 30, 2026, the Companys borrowings include $9,500 million aggregate principal amount of senior unsecured notes in nine series with maturity dates ranging from 2027 through 2052. Credit Facilities In the first quarter of 2026, the Company terminated its existing $500 million 364-day senior unsecured revolving credit facility and replaced it with a new $500 million 364-day senior unsecured revolving credit facility with terms that are substantially similar to those of the terminated facility. The Company has credit agreements providing for: a five-year senior unsecured revolving credit facility in an aggregate committed amount of $3,000 million, maturing on March 27, 2030; a 364-day senior unsecured revolving credit facility in an aggregate committed amount of $500 million, maturing on February 25, 2027; and a three-year senior unsecured delayed draw term loan credit facility in an aggregate principal amount of $650 million, maturing on March 16, 2029 (the Delayed Draw Term Loan Facility and, together with the five-year senior unsecured revolving credit facility and the 364-day senior unsecured revolving credit facility, the Credit Facilities). In the first quarter of 2026, in connection with the acquisition of Intelerad, the Company borrowed $500 million under the 364-day senior unsecured revolving credit facility and subsequently complet …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

ACQUISITIONS, GOODWILL, AND OTHER INTANGIBLE ASSETS ACQUISITIONS. Intelerad On March 18, 2026, the Company acquired 100% of the stock of Intelerad for approximately $2,293 million in cash, net of cash acquired. The purchase was funded by the proceeds of senior unsecured notes issued in the fourth quarter of 2025, together with new borrowings under a delayed draw term loan facility and cash on hand. See Note 8, Borrowings for additional information on the borrowings. Intelerad is included in the Companys AIS segment. Intelerad is a leading medical imaging software and digital enterprise workflow solutions company with a significant presence in outpatient ambulatory care settings, which the Company believes complements our strength in hospital-based imaging. The preliminary fair values of the assets and liabilities assumed in connection with the acquisition of Intelerad are as follows. Preliminary allocation Receivables $ 39 Contract assets 27 Property, plant, and equipment 9 Goodwill 1,629 Other intangible assets 845 All other current and non-current assets 28 Accounts payable (16) Contract liabilities (34) Other current liabilities (23) Deferred income taxes (123) All other non-current liabilities (1) (88) Total net assets post acquisition $ 2,293 (1) All other non-current liabilities primarily includes tax reserves. The purchase price allocation required estimates and assumptions, including, but not limited to, estimates of future cash flows, direct costs, and appropriate di …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

INCOME TAXES Our effective income tax rate was 17.2% and 18.4% for the three months ended June 30, 2026 and 2025, respectively, and 17.8% and 16.6% for the six months ended June 30, 2026 and 2025, respectively. The tax rate for the three and six months ended June 30, 2026 is lower than the U.S. statutory rate primarily due to the use of tax attributes and foreign-derived deduction eligible income benefits, reconciling adjustments to recorded tax account balances, and research and development (R&D) benefits, partially offset by withholding taxes, geographic earnings mix, and state taxes. The tax rate for the three months ended June 30, 2025 is lower than the U.S. statutory rate primarily due to the use of tax attributes and R&D benefits, partially offset by withholding taxes, geographic earnings mix, and state taxes. The tax rate for the six months ended June 30, 2025 is lower than the U.S. statutory rate primarily due to foreign income tax reserve releases, the use of tax attributes, the nontaxable remeasurement gain that was recorded in connection with the NMP acquisition, and R&D benefits, partially offset by withholding taxes, geographic earnings mix, and state taxes. The Company is currently being audited, or remains subject to audit, in a number of jurisdictions for the tax years 2004-2024, including China, France, Germany, India, Japan, Norway, the United Kingdom, and the United States. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

OPERATING LEASES As a lessee, the Company leases certain logistics, office, and manufacturing facilities, as well as vehicles and other equipment. Certain of the Companys leases may include options to extend. Our operating lease right-of-use (ROU) assets are recognized within Property, plant, and equipment net and our operating lease liabilities are recognized within All other current liabilities and All other non-current liabilities in the Condensed Consolidated Statements of Financial Position, as detailed below. Operating Lease Assets and Liabilities As of June 30, 2026 December 31, 2025 Operating lease ROU assets, net of amortization $ 391 $ 410 Current operating lease liabilities 131 134 Non-current operating lease liabilities 263 284 Total operating lease liabilities $ 394 $ 419 The total lease expense related to our operating lease portfolio was $60 million for both the three months ended June 30, 2026 and 2025, and $123 million and $122 million for the six months ended June 30, 2026 and 2025, respectively. …

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RECENT ACCOUNTING PRONOUNCEMENTS. We evaluate Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board (FASB). ASUs not included in our disclosures were assessed and determined to either be not applicable or are not expected to have a significant impact on our financial statements or disclosures. In November 2024, the FASB issued ASU No. 2024-03 (ASU 2024-03), Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses . ASU 2024-03 addresses investor requests for more transparency about expense information through the disaggregation of relevant expense captions in the notes to the financial statements. The provisions of ASU 2024-03 are effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. We expect the adoption to increase disclosures in our notes to the financial statements. In September 2025, the FASB issued ASU No. 2025-06 (ASU 2025-06), Intangibles - Goodwill and Other - Internal-Use Software (subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software . ASU 2025-06 updates the accounting for internal-use software by eliminating the concept of development stages. Under the updated guidance, software costs are capitalized once management has authorized and committed to funding the project, and it is probable the project will be completed and the soft …

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POSTRETIREMENT BENEFIT PLANS We sponsor a number of pension and retiree health and life insurance benefit plans that we present in three categories: U.S. Plans, International Plans, and Other Postretirement Plans (OPEB Plans). Refer to Note 10, Postretirement Benefit Plans in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 for further information. Pension plans with pension assets or obligations less than $50 million are not included in the results below. Components of Expense (Income) U.S. Plans International Plans OPEB Plans For the three months ended June 30, 2026 2025 2026 2025 2026 2025 Service cost Operating $ 1 $ 1 $ 5 $ 5 $ 1 $ 1 Interest cost 241 249 39 38 11 13 Expected return on plan assets (275) (287) (40) (38) Amortization of net loss (gain) (20) 6 5 (14) (15) Amortization of prior service cost (credit) (3) (3) (1) (1) (18) (20) Special termination cost 1 Non-operating $ (37) $ (59) $ 5 $ 4 $ (21) $ (21) Net periodic expense (income) $ (36) $ (58) $ 9 $ 10 $ (20) $ (20) U.S. Plans International Plans OPEB Plans For the six months ended June 30, 2026 2025 2026 2025 2026 2025 Service cost Operating $ 2 $ 2 $ 9 $ 10 $ 3 $ 3 Interest cost 481 497 79 74 22 26 Expected return on plan assets (550) (573) (81) (74) Amortization of net loss (gain) (40) 12 10 (29) (30) Amortization of prior service cost (credit) (5) (5) (1) (1) (35) (40) Special termination cost 2 1 Non-operating $ (74) $ (119) $ 9 $ 9 $ (42) $ (43) Net periodic expense (income) $ …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

RESTRUCTURING ACTIVITIES Restructuring activities are essential to optimize the business operating model for GE HealthCare and mostly involve workforce reductions, organizational realignments, and revisions to our real estate footprint. Specifically, restructuring charges (gains) primarily include employee-related termination benefits associated with workforce reductions, facility exit costs, asset write-downs, and cease-use costs. Net expenses for restructuring are excluded from Segment EBIT. Net expenses for restructuring initiatives committed to by management through June 30, 2026 are included in the table below. For the three months ended June 30 For the six months ended June 30 2026 2025 2026 2025 Employee termination costs $ 25 $ 12 $ 68 $ 32 Facility and other exit costs 2 1 5 2 Asset write-downs 5 3 6 Total restructuring activities net $ 27 $ 18 $ 76 $ 40 These restructuring initiatives are expected to result in additional expenses of approximately $38 million, to be incurred primarily over the next 12 months, substantially related to employee-related termination benefits and asset write-downs. Restructuring expenses (gains) are recognized within Cost of products, Cost of services, or SG&A , as appropriate, in the Condensed Consolidated Statements of Income. Liabilities related to restructuring are recognized within Current compensation and benefits, All other current liabilities, Non-current compensation and benefits, and All other non-current liabilities in the …

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REVENUE RECOGNITION Our revenues primarily consist of sales of products and services to customers. Products include equipment, imaging agents, software-related offerings, and upgrades. Services include contractual and stand-by preventative maintenance and corrective services, as well as related parts and labor, extended warranties, training, and other service-type offerings. The Company recognizes revenue from contracts with customers when the customer obtains control of the underlying products or services. CONTRACT AND OTHER DEFERRED ASSETS. Contract assets reflect revenue recognized on contracts with customers in excess of billings based on contractual terms. Contract assets are classified as current or non-current based on the amount of time expected to lapse until the Companys right to consideration becomes unconditional. Other deferred assets consist of costs to obtain contracts, primarily commissions, other cost deferrals for shipped products, and deferred service, labor, and direct overhead costs. As of June 30, 2026 December 31, 2025 Contract assets $ 776 $ 645 Other deferred assets 459 428 Contract and other deferred assets 1,235 1,073 Non-current contract assets (1) 91 91 Non-current other deferred assets (1) 125 120 Total contract and other deferred assets $ 1,452 $ 1,285 (1) Non-current contract and other deferred assets are recognized within All other non-current assets in the Condensed Consolidated Statements of Financial Position. CONTRACT LIABILITIES. Contract …

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SEGMENT INFORMATION In the second quarter of 2026, we made a strategic change to our executive leadership and to our segments, combining our Imaging and AVS businesses into a new operating and reportable segment, Advanced Imaging Solutions. The AIS segment has a product portfolio that serves customers across three core areas: Radiology, Specialized Ultrasound, and Procedural Guidance. Radiology was formerly reported as our Imaging business, while Specialized Ultrasound and Procedural Guidance were previously reported in our AVS business. Historical segment financial information presented within this report has been recast to conform to the new reportable segment structure. Following this organizational change, the Company has three reportable segments: AIS, PDx, and PCS. These segments have been identified based on the nature of the products sold and how the Company manages its operations. We have not aggregated any of our operating segments to form reportable segments. The Companys organizational structure is based upon the availability of separate financial information that is evaluated regularly by the Companys CODM for the purpose of assessing performance and allocating resources. The Companys CODM is our Chief Executive Officer. The CODM assesses segment performance using Total revenues and an earnings metric defined as Segment EBIT. Segment EBIT is calculated as Income before income taxes in our Condensed Consolidated Statements of Income excluding the impact of the fol …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing