GE Healthcare Technologies GEHC · USD

SEGMENT AND GEOGRAPHICAL INFORMATIONGE HealthCare’s operations are organized and managed through four reportable segments: Imaging, Advanced Visualization Solutions (“AVS”), Patient Care Solutions (“PCS”), and Pharmaceutical Diagnostics (“PDx”). 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. A description of our reportable segments has been provided in Item 1, “Business” of this Annual Report on Form 10-K.The Company’s organizational structure is based upon the availability of separate financial information that is evaluated regularly by the Company’s Chief Operating Decision Maker (“CODM”) for the purpose of assessing performance and allocating resources. The Company’s 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 Consolidated Statements of Income excluding the impact of the following: Interest and other financial charges – net, Non-operating benefit (income) costs, restructuring costs, acquisition and disposition-related benefits (charges), gain (loss) on business and asset dispositions, Spin-Off and separation costs, amortization of acquisition-related intangible assets, and investment revaluation gain (loss). Segment EBIT is also used in the annual budget and periodic forecasting processes and informs the CODM in decision making regarding the allocation of resources to the segments.Total Revenues by SegmentFor the years ended December 31202520242023Total Imaging$9,245 $8,855 $8,944 AVS:Procedural Guidance2,752 2,711 2,666 Specialized Ultrasound2,601 2,420 2,428 Total AVS5,354 5,131 5,094 PCS:Monitoring Solutions2,256 2,194 2,283 Life Support Solutions831 931 859 Total PCS3,086 3,125 3,142 Total PDx2,900 2,508 2,306 Other(1)40 52 66 Total revenues$20,625 $19,672 $19,552 (1) Financial information not presented within the reportable segments, shown within the Other category, represents HealthCare Financial Services (“HFS”) which does not meet the definition of an operating segment.No single customer accounted for more than 10% of the Company’s revenues for the years ended December 31, 2025, 2024, or 2023. Additionally, no single customer accounted for more than 10% of accounts receivable as of December 31, 2025 or 2024.

REVENUE RECOGNITIONCONTRACT 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 Company’s 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 ofDecember 31, 2025December 31, 2024Contract assets$645 $589 Other deferred assets428 385 Contract and other deferred assets1,073 974 Non-current contract assets(1)91 103 Non-current other deferred assets(1)120 105 Total contract and other deferred assets$1,285 $1,183 (1)Non-current contract and other deferred assets are recognized within All other non-current assets in the Consolidated Statements of Financial Position.Capitalized costs to obtain a contract were $253 million and $217 million as of December 31, 2025 and 2024, respectively. Generally, these costs are recognized within two years of being capitalized. When recognized, the costs to obtain a contract are recorded within SG&A in the Consolidated Statements of Income.CONTRACT LIABILITIES.Contract liabilities include customer advances and deposits received when orders are placed and billed in advance of completion of performance obligations. Contract liabilities are classified as current or non-current based on the periods over which these remaining performance obligations are expected to be satisfied with our customers.As ofDecember 31, 2025December 31, 2024Contract liabilities $2,095$1,943Non-current contract liabilities(1)803686Total contract liabilities $2,899$2,629(1)Non-current contract liabilities are recognized within All other non-current liabilities in the Consolidated Statements of Financial Position.Revenue recognized related to the contract liabilities balance at the beginning of the year was approximately $1,588 million and $1,585 million for the years ended December 31, 2025 and 2024, respectively.REMAINING PERFORMANCE OBLIGATIONS.

COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES, AND OTHER LOSS CONTINGENCIES GUARANTEES.The Company has off-balance sheet credit exposure through standby letters of credit, bank guarantees, bid bonds, and surety bonds. See Note 9, “Borrowings” for further information.PRODUCT WARRANTIES.We provide warranty coverage to our customers as part of customary practices in the market to provide assurance that the products we sell comply with agreed-upon specifications. We provide estimated product warranty expenses when we sell the related products. Warranty accruals are estimates that are based on the best available information, mostly historical claims experience, therefore claims costs may differ from amounts provided. An analysis of changes in the liability for product warranties follows.For the years ended December 31202520242023Balance at beginning of period$168 $192 $193 Current-year provisions208 202 216 Expenditures(214)(220)(218)Foreign currency exchange and other6 (6)1 Balance at end of period$169 $168 $192 Product warranties are recognized within All other current liabilities in the Consolidated Statements of Financial Position. LEGAL MATTERS. In the normal course of our business, we are involved from time to time in various arbitrations; class actions; commercial, intellectual property, and product liability litigation; government investigations; investigations by competition/antitrust authorities; and other legal, regulatory, or governmental actions, including the significant matter described below that could have a material impact on our results of operations and cash flows. In many proceedings, including the specific matter described below, it is inherently difficult to determine whether any loss is probable or even reasonably possible or to estimate the size or range of the possible loss, and accruals for legal matters are not recorded until a loss for a particular matter is considered probable and reasonably estimable. Given the nature of legal matters and the complexities involved, it is often difficult to predict and determine a meaningful estimate of loss or range of loss until we know, among other factors, the particular claims involved, the likelihood of success of our defenses to those claims, the damages or other relief sought, how discovery or other procedural considerations will affect the outcome, the settlement posture of other parties, and other factors that may have a material effect on the outcome.

INCOME TAXESThe Company is subject to income taxes in the U.S. (both federal and state) and in numerous foreign jurisdictions. Changes in the tax laws or regulations in these jurisdictions, or in positions by the relevant authorities regarding their application, administration, or interpretation, may affect our tax liability, return on investments, and business operations.The Tax Cuts and Jobs Act imposes tax on the Company for net controlled foreign corporation (“CFC”) tested income earned by certain non-U.S. subsidiaries (previously referred to as global intangible low-taxed income or “GILTI”). We have elected to account for net CFC tested income as a period cost. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into U.S. law, which includes significant changes to the federal income tax system. The Company has recorded the OBBBA tax impacts in its provision for income taxes for the year ended December 31, 2025, none of which are material to our financial statements. Income From Continuing Operations Before Income TaxesFor the years ended December 31202520242023U.S. income$1,028 $593 $816 Non-U.S. income1,740 1,988 1,545 Total$2,768 $2,581 $2,361 Provision for Income TaxesFor the years ended December 31202520242023CurrentU.S. Federal$4 $62 $171 Non-U.S.317 412 345 U.S. State8 8 42 DeferredU.S. Federal110 3 — Non-U.S.131 (12)103 U.S. State44 58 82 Total$614 $531 $743 The effective income tax rate for the year ended December 31, 2025 differs from the statutory federal income tax rate as follows.Reconciliation of U.S. Federal Statutory Income Tax Rate to Actual Income Tax RateFor the year ended December 31, 2025AmountPercentIncome from continuing operations before income taxes$2,768 Tax expected at 21%581 21.0 %State and local income taxes, net of federal income tax effect(1)41 1.5 %Foreign tax effects China30 1.1 % Other foreign jurisdictions54 2.0 %Effect of cross-border tax laws Foreign-derived deduction eligible income(49)(1.8)% Net CFC tested income45 1.6 % Other5 0.2 %Tax credits R&D tax credits(28)(1.0)% Foreign tax credits(81)(2.9)%Changes in valuation allowances9 0.3 %Nontaxable or nondeductible items(2)22 0.8 %Changes in unrecognized tax benefits(24)(0.9)%Other adjustments8 0.3 %Effective tax rate$614 22.2 %(1) In 2025, state and local income taxes in California, Illinois, New York, Florida, New Jersey, New York City, and Pennsylvania comprise more than 50% of state and local income taxes, net of federal income tax effect.

SHARE-BASED COMPENSATIONWe grant stock options, restricted stock units (“RSUs”), and performance stock units (“PSUs”) to employees under the 2023 Long-Term Incentive Plan (“LTIP”). The Talent, Culture, and Compensation Committee of the Board of Directors approves grants under the LTIP. Under the LTIP, we are authorized to issue up to approximately 41 million shares. We record compensation expense for awards expected to vest over the vesting period. We estimate forfeitures based on experience and adjust expense to reflect actual forfeitures. When options are exercised, RSUs vest, and PSUs are earned, we issue shares from authorized unissued common stock. Stock options provide employees the opportunity to purchase GE HealthCare shares in the future at the market price of our stock on the date the award is granted. The options become exercisable over the vesting period, typically becoming fully vested in three to three and a half years, and expire ten years from the grant date if not exercised. We value stock options using a Black-Scholes option pricing model.RSUs provide an employee the right to shares of GE HealthCare stock when the restrictions lapse over the vesting period of three to three and a half years. Upon vesting, each RSU is converted into one share of GE HealthCare common stock. We value RSUs using the market price on the grant date.PSUs provide an employee with the right to receive shares of GE HealthCare stock based upon achievement of certain performance metrics. PSUs are subject to an employee service period of three years. PSUs may include a relative total shareholder return (“TSR”) modifier to determine the number of shares earned at the end of the performance period. We engage third-party valuation specialists to assist with the fair value estimate of the PSUs that include the TSR modifier using a Monte Carlo simulation to model the probability of possible outcomes.The following tables provide the weighted average fair value of options, RSUs, and PSUs granted to employees during the years ended December 31, 2025, 2024, and 2023, and the related weighted average stock option valuation assumptions used in the Black-Scholes model.Weighted Average Grant Date Fair ValueFor the years ended December 31(In dollars)202520242023Stock options$30 $32 $25 RSUs83 89 73 PSUs85 96 85 Key Assumptions in the Black-Scholes Valuation for Stock OptionsFor the years ended December 31202520242023Risk-free rate4.0 %4.1 %3.6 %Dividend yield0.16 %0.13 %0.

LEASESOPERATING LEASES. As a lessee, the Company leases certain logistics, office, and manufacturing facilities, as well as vehicles and other equipment. Certain of the Company’s leases may include options to extend. Our ROU operating lease assets are recognized within Property, plant, and equipment – net in the Consolidated Statements of Financial Position. Our operating lease liabilities are recognized within All other current liabilities and All other non-current liabilities in the Consolidated Statements of Financial Position, as detailed below.Operating Lease Assets and LiabilitiesAs ofDecember 31, 2025December 31, 2024Operating lease ROU assets$410 $364 Current operating lease liabilities134 115 Non-current operating lease liabilities284 270 Total operating lease liabilities$419 $385 Operating Lease ExpenseFor the years ended December 31202520242023Long-term (fixed)$136 $134 $121 Long-term (variable)101 120 106 Short-term12 4 2 Total operating lease expense$249 $258 $229 Maturity of Lease Liabilities20262027202820292030ThereafterTotalUndiscounted lease payments$153 $116 $73 $42 $20 $56 $460 Less: imputed interest41 Total lease liability as of December 31, 2025$419 Supplemental Information Related to Operating LeasesFor the years ended December 31202520242023Cash paid for amounts included in the measurement of operating lease liabilities$151$138$130Right-of-use assets obtained in exchange for new lease liabilities162147154Weighted-average remaining lease term (in years)4.64.44.7Weighted-average discount rate4.4 %4.5 %4.4 %FINANCE LEASES. The Company leases equipment manufactured or sold by the Company to customers through sales-type leases. Sales-type leases are included in financing receivables and are recognized within All other current assets and All other non-current assets in the Consolidated Statements of Financial Position.Finance lease income was $14 million, $14 million, and $13 million for the years ended December 31, 2025, 2024, and 2023, respectively, and is recognized within Other (income) expense – net in the Consolidated Statements of Income.

ACQUISITIONS, GOODWILL, AND OTHER INTANGIBLE ASSETSPROPOSED ACQUISITION.On November 20, 2025, we announced an agreement to acquire Intelerad for a purchase price of $2,300 million to be paid in cash. The proceeds of senior unsecured notes issued in the fourth quarter of 2025, together with borrowings under a new delayed draw term loan facility and cash on hand, are expected to be used to fund the purchase price of the acquisition. See Note 9, “Borrowings” for additional information on the borrowings. Intelerad is a leading medical imaging software and digital enterprise workflow solutions company with a significant presence in outpatient ambulatory care settings. Its cloud-first products are designed for radiology and cardiology and extend across both inpatient and outpatient care settings. Intelerad’s outpatient footprint complements GE HealthCare’s footprint in hospital-based imaging. Together, these combined capabilities are expected to create a more comprehensive, cloud-first and AI-enabled imaging offering spanning diverse care settings—from large academic medical centers to rapidly expanding ambulatory networks. The transaction is expected to close in the first half of 2026, subject to customary closing conditions, including regulatory approvals.ACQUISITIONS.icometrixOn November 7, 2025, the Company acquired 100% of the stock of icometrix NV (“icometrix”) for approximately $98 million of upfront payment, net of cash acquired and potential earn-out payments up to $35 million based on sales targets over two years. icometrix is focused on providing AI-powered brain imaging analysis for neurological disorders such as Alzheimer’s disease. Through this acquisition, we expect to integrate the icometrix platform with our MRI systems. icometrix is included in the Company’s Imaging segment.This transaction was accounted for as a business combination. The preliminary purchase price allocation resulted in goodwill of $74 million, intangible assets of $34 million, and deferred tax liabilities of $9 million. Purchase price allocations are based on preliminary valuations. Our estimates and assumptions are subject to change within the measurement period. The goodwill associated with the acquired business is non-deductible for tax purposes. Nihon Medi-PhysicsOn March 31, 2025, the Company acquired the remaining 50% interest in Nihon Medi-Physics Co., Ltd. (“NMP”) from joint venture partner Sumitomo Chemical for net cash consideration of $271 million.

CYBERSECURITY RISK MANAGEMENT.GE HealthCare employs practices, processes, and procedures to proactively and comprehensively manage risks, including risks related to cybersecurity, through its enterprise risk management (“ERM”) program. We aim to identify material cybersecurity risks via multiple strategies, including user and external reporting, audit and assessment activities, and technology programs. We utilize risk identification and risk mitigation strategies.•Risk identification begins with understanding the devices and equipment in use across the company, including laptops, servers, and other data devices, industrial equipment and machinery, and associated risks related to the use of those devices and equipment.•Risk mitigation entails protecting our data and operational systems via a system of controls. We monitor and collect data about the devices and users that touch our network resources, reviewing this data for anomalies. When we identify anomalies, we investigate to determine if the anomaly represents a threat. We have a process to contain and remediate identified threats. As discussed further below, we have incident response processes in place to utilize in case of threats or incidents. We conduct regular crisis simulations.Our processes also address cybersecurity threat risks associated with our use of third-party service providers, including those in our supply chain or who have access to our customer and employee data or our systems. Third-party risks are included within our ERM assessment program as well as our cybersecurity-specific risk identification program, as discussed above. In addition, cybersecurity considerations affect the selection and oversight of our third-party service providers. We perform diligence on third parties that have access to our systems, data, or facilities that house such systems or data, and monitor cybersecurity threat risks identified through such diligence. We have a dedicated team of cyber professionals who report to our Chief Information Security Officer (“CISO”). This team publishes information technology and security policies, measures compliance, trains the workforce on cyber risks and protections, and operates a program to identify and mitigate risks and threats. Our risk mitigation activities include workforce awareness, vulnerability management, network segmentation, cyber protection and containment, detection, response and recovery.