AddedRisk Factors
This summary of risks is intended to provide an overview of the principal risks we face and should not be considered a substitute for a review of the more detailed risk factors discussed immediately following this summary.
GEHCGE HealthCare
- Employees
- 54,000
- Headquarters
- Chicago, IL
- CEO
- Peter J. Arduini
- Next results
- around Feb 3, 2027
10-K 0001932393-26-000007 (2026-02-04) vs 10-K 0001932393-25-000005 (2025-02-13)
| Section | Compared text | Words now | Changed |
|---|---|---|---|
| Risk Factors | Item 1A | 19,090 | 13.5% |
| MD&A | Item 7 | 7,460 | 31.8% |
| Legal Proceedings | Item 3, via Note 14 – COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES, AND OTHER LOSS CONTINGENCIES | 807 | 32.3% |
| Accounting Policies | Item 8, Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6,871 | 11.9% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
Risk Factors 240 words changed in this paragraph; it is 57% similar to last year's version.
The imposition of tariffs, non-tariff barriers, and other import and export restrictions have contributed to increased global economic uncertainty. The rise of economic nationalism could make it more difficult for us to attract new customers, retain existing customers, continue to produce and source in an optimal manner, or maintain sales at existing levels, both in the United States U.S. and in other countries. Geopolitical and economic risks have increased over the past few years in many regions of the world, including in the United States. U.S. Our operations expose us to the risk that increased trade protectionism may adversely affect our business. For example, in late 2024 and early during 2025, the United States, China, and the European Union each announced either U.S. imposed a variety of new tariffs, non-tariff barriers (principally related to participation in public procurement of healthcare equipment), or export controls. Any of these risks, ensuing retaliation, or the further deterioration of trade relations between tariffs on most imports from all countries could make our offerings more expensive or non-competitive in the affected countries. world. This in turn prompted several countries to announce tariffs on U.S. imports. While the situation continues to be fluid, tariffs materially impacted our profitability and cash flows in 2025, primarily the bilateral U.S. and Chinese tariffs and U.S. tariffs on all other global import suppliers. Should the tariffs continue at formally communicated levels, we expect to continue to see a material impact to our financial results through the incurrence of additional costs. Additional tariffs or other trade restrictions by the U.S. or other countries where we do significant business, or other restrictions on specific industries, such as pharmaceuticals, could further materially impact our results in the future. We do not expect that our mitigation actions will fully offset the additional costs or other negative impacts resulting from the tariffs. In addition, current changes and uncertainties in global tariffs are causing volatility in our cost positioning in some international markets. Growing tensions, protectionist trade policies, and tariffs may also lead to a fragmentation of the global economy, operational and logistical shifts in supply chains that may lead to higher costs and longer lead times, a general reduction of international trade in goods and services, and a reduction in the integration of financial markets, any of which could materially and adversely affect our business results, cash flows, financial condition, or prospects.
Source: Item 1A, 10-K 0001932393-26-000007 vs Item 1A, 10-K 0001932393-25-000005
Accounting Policies 161 words changed in this paragraph; it is 31% similar to last year's version.
In November 2023, September 2025, the Financial Accounting Standards Board (“FASB”) FASB issued Accounting Standards Update (“ASU”) ASU No. 2023-07 2025-06 (“ASU 2023-07”), Segment Reporting (Topic 280): 2025-06”), Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to Reportable Segment Disclosures. the Accounting for Internal-Use Software. ASU 2023-07 requires annual 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 interim disclosures that are expected committed to improve reportable segment disclosures, primarily through enhanced disclosures about significant segment expenses. funding the project, and it is probable the project will be completed and the software will be used to perform the function intended. The provisions of ASU 2023-07 2025-06 are effective for fiscal years annual reporting periods beginning after December 15, 2023, 2027, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted those annual periods. We are currently evaluating the effect that ASU 2023-07 for the year ended December 31, 2024, retrospectively applied to all prior periods presented in the 2025-06 will have on our financial statements. See Note 4, “Segment and Geographical Information” for further information.
Source: Item 8, Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0001932393-26-000007 vs Item 8, Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0001932393-25-000005
Legal Proceedings 121 words changed in this paragraph; it is 37% similar to last year's version.
Source: Item 3, via Note 14 – COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES, AND OTHER LOSS CONTINGENCIES, 10-K 0001932393-26-000007 vs Item 3, via Note 14 – COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES, AND OTHER LOSS CONTINGENCIES, 10-K 0001932393-25-000005
MD&A 121 words changed in this paragraph; it is 59% similar to last year's version.
Source: Item 7, 10-K 0001932393-26-000007 vs Item 7, 10-K 0001932393-25-000005
Every change, by type
Sentences and paragraphs of GEHC's Risk Factors and MD&A, 10-K 2026-02-04 against 10-K 2025-02-13. Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
•Our business is subject to the effects of global geopolitical and economic instability and public health crises.
AddedRisk Factors
•Our business strategy could be adversely affected if we are unable to successfully complete strategic transactions or manage our collaboration, joint venture, or similar arrangements.
AddedRisk Factors
•Our business strategy includes substantial investment in R&D, with a focus on AI, cloud, edge computing, and software offerings. We cannot guarantee that these investments will generate new offerings, attract customers, or generate sufficient revenue.
AddedRisk Factors
•We manufacture and sell products that rely upon software and computer systems to operate properly and process and store confidential information. Our business could be adversely affected by increased cybersecurity requirements, vulnerabilities, threats, and more sophisticated and targeted cybercrimes, and our inability to obtain, maintain, protect, or effectively enforce our IP rights.
AddedRisk Factors
•Our existing indebtedness, and any additional indebtedness that we may incur, could have important consequences for our business.
AddedRisk Factors
•the performance, capability, and integrity of third parties, including due to their financial instability or their compliance or regulatory failures;
AddedRisk Factors
•a failure to successfully enter new or emerging geographic or adjacent product markets, including as a result of pricing pressures from local and international competitors in those markets;
AddedRisk Factors
•inquiries and rulings by antitrust, foreign direct investment, or other regulatory bodies;
RemovedRisk Factors
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RewordedRisk Factors
The implementation of localization requirements and the other government policies in certain geographies, driven by support of local industry, security of supply, geographies such as China and incentives for technological breakthroughs, Russia creates a risk that, if we do not localize our products or operations to meet such requirements, we could negatively affect lose market share and experience adverse effects on our market share, business results, cash flows, and financial condition.
RewordedRisk Factors
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Further risks stem from ongoing and future geopolitical tensions and volatility (such as in Cuba, Iran, Syria, Russia, North Korea, and Israel and surrounding areas), other future conflicts that may arise, and economic sanctions imposed relating to regions and persons included on sanctioned party lists.
RewordedRisk Factors
Prior to the completion of the Spin-Off, GE received (1) a private letter ruling from the Internal Revenue Service (the “IRS”) to the effect that, among other things, our the Spin-Off from GE will qualify as a transaction that is tax-free for U.S. federal income tax purposes under Sections 355 and 368(a)(1)(D) of the Internal Revenue Code of 1986, as amended (the “Code”) and (2) a written opinion from each of Paul, Weiss, Rifkind, Wharton & Garrison LLP and Ernst & Young, LLP (“EY”) opinions to the effect that the Spin-Off will qualify for non-recognition of gain and loss under Section 355 and related provisions of the Code.
RewordedRisk Factors
Unless we consent in writing to the selection of an alternative forum, the federal district courts of the United States of America shall be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act.
RewordedRisk Factors
In particular, the conflict between Ukraine and Russia and resulting sanctions and other restrictions imposed by the U.S., the EU, and Russia may negatively impact our revenue business and financial results to the extent the conflict and the sanctions significantly impact our ability to sell products or services to customers in the affected regions, countries, collect receivables from such customers, or repatriate cash we do collect.
RewordedRisk Factors
We are subject to periodic tax audits by tax authorities. authorities and we may have liability in connection with tax audits of GE for periods prior to the Spin-Off.
RewordedRisk Factors
We design, manufacture, sell, install, and service a wide range of products, including products and related services that are at the cutting edge of existing technologies and medical advances. technologically-advanced products.
RewordedRisk Factors
Public health crises, epidemics, crises and pandemics, such as the COVID-19 pandemic, epidemics and pandemics have had and and, in the future future, may have a material adverse impact on our business, as well as on the operations and financial performance of some of the customers and suppliers in industries that we serve.
RewordedRisk Factors
Growing tensions, protectionist trade policies, and tariffs may also lead to a fragmentation of the global economy, operational and logistical shifts in supply chains that may lead to higher costs and longer lead times, a general reduction of international trade in goods and services, and a reduction in the integration of financial markets, any of which could materially and adversely affect our business results, cash flows, financial condition, or prospects.
RewordedRisk Factors
Any of these risks could have a material adverse effect on our business results, business, results of operations, cash flows, financial condition, prospects, and the market price of our securities. or prospects.
RewordedRisk Factors
This also may require us to redesign or modify our products to incorporate new components and obtain regulatory authorization, qualification, or certification of these redesigned or modified products. products, which could increase our costs, cause material delays, or otherwise adversely affect our business.
Quiet changesRisk Factors
In recent years, U.S. and some international healthcare industry participants, including distributors, manufacturers, suppliers, healthcare providers, insurers, and pharmacy chains, have consolidated or formed strategic alliances.
Quiet changesRisk Factors
The use of AI in healthcare offerings also poses certain clinical risks resulting from potential misdiagnosis or misinformation provided from AI applications, diminishing critical judgment, or loss of interpersonal care from clinicians.
Quiet changesRisk Factors
Additionally, our obligations to comply with the evolving legal and regulatory landscape could entail significant costs or limit our ability to incorporate certain some AI capabilities into our offerings.
Quiet changesRisk Factors
The requirements we are subject to impose certain responsibilities on our business, including the obligation to install pollution control technologies and to obtain and maintain various environmental permits, the cost of which may be substantial.
Quiet changesRisk Factors
In some jurisdictions we are, and are likely to may increasingly be, subject to climate change mitigation and adaptation regulation, tax, disclosure, and reporting requirements.
Quiet changesRisk Factors
Given all of the foregoing, future costs and liabilities relating to compliance with applicable laws and regulations could have a material adverse effect on our business results, cash flows, financial condition, or prospects.
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Impasses in national, regional, or local government budgeting decisions, including as a result of a possible U.S. federal government shutdown, shutdowns, could lead to substantial delays or reductions in governmental spending.
AddedMD&A
GE HealthCare’s operations are organized and managed through four reportable segments: Imaging, Advanced Visualization Solutions (“AVS”), Patient Care Solutions (“PCS”), and Pharmaceutical Diagnostics (“PDx”), and we assessed their performance using Segment revenues and Segment EBIT. For additional information on the nature of our business and our segments, refer to Item 1, “Business” and Note 4, “Segment and Geographical Information.”
AddedMD&A
Throughout 2025, the U.S. imposed a variety of new tariffs on most imports from all countries in the world. This in turn prompted several countries to announce tariffs on U.S. imports. While the situation continues to be fluid, tariffs materially impacted our Operating income by approximately $245 million and cash flows by approximately $285 million for the year ended December 31, 2025, primarily the bilateral U.S. and Chinese tariffs and U.S. tariffs on all other global import suppliers. Should the tariffs continue at formally communicated levels, we expect to continue to see a material impact to our financial results. Additional tariffs or other trade restrictions by the U.S. or other countries where we do significant business, or other restrictions on specific industries, such as pharmaceuticals, could further materially impact our results in the future. While we are taking actions to mitigate the impact of tariffs, we do not expect that our mitigation actions will fully offset the additional costs or other negative impacts resulting from the tariffs.
AddedMD&A
We continue to monitor the global markets in which we operate for changes in customer behavior, changes in government spending and reimbursement, and indirect impacts from the tariffs. Should these factors dampen economic growth, slow global trade, or impact inflation, we could see adverse impacts to our business as our customers adapt to the change in economic environment. We also continue to monitor potential impacts on purchasing decisions by both public and private customers in China and other markets as a result of the current trade environment, as well as other actions related to tariffs and trade frictions, investigations, or activities that could similarly increase our costs or otherwise impact our business. In addition, if negative sentiment towards U.S. companies influences the purchasing decisions of global customers, our business could be impacted materially.
AddedMD&A
We believe the focus of government policy in China is on expanding access to healthcare. In addition, our investments to address clinical needs, localization, and commercial infrastructure should benefit our business in China in the long term. However, we continue to monitor developments in the China market, including increased competition from local companies and the prevalence of Volume Based Procurement policies, both of which have impacted our orders and revenues and may continue to do so.
AddedMD&A
Geopolitical instability, across multiple regions, could adversely impact our operations, supply chains, and logistics. These events may result in increased costs, delays in product deliveries, and challenges in maintaining service levels in affected areas. While these events have not materially impacted our operations, we continue to monitor these developments closely.
AddedMD&A
On July 4, 2025, the One Big Beautiful Bill Act was signed into U.S. law, which includes significant changes to the federal income tax system. The changes did not have a material impact to the Company’s tax provision for the year ended December 31, 2025.
AddedMD&A
•Other income – net increased $103 million primarily driven by the remeasurement of the Company’s 50% interest in NMP based on the cash consideration exchanged for acquiring the remaining 50% equity interest. For additional detail on the NMP acquisition, refer to Note 8, “Acquisitions, Goodwill, and Other Intangible Assets”; and
AddedMD&A
(5) Primarily relates to valuation adjustments for equity investments and for the year ended December 31, 2025, includes the impact from the revaluation of our existing 50% interest in NMP as part of the acquisition transaction.
AddedMD&A
(5) Primarily relates to valuation adjustments for equity investments and for the year ended December 31, 2025, includes the impact from the revaluation of our existing 50% interest in NMP as part of the acquisition transaction.
AddedMD&A
(7) Consists of certain income tax adjustments, including one-time adjustments to deferred tax balances, impacts from tax law changes, the release of income tax reserves in a foreign jurisdiction for tax years which are no longer subject to an assessment from the local taxing authorities, and discrete tax impacts resulting from the Spin-Off and separation from GE.
AddedMD&A
(5) Primarily relates to valuation adjustments for equity investments and for the year ended December 31, 2025, includes the impact from the revaluation of our existing 50% interest in NMP as part of the acquisition transaction.
AddedMD&A
(7) Consists of certain income tax adjustments, including one-time adjustments to deferred tax balances, impacts from tax law changes, the release of income tax reserves in a foreign jurisdiction for tax years which are no longer subject to an assessment from the local taxing authorities, and discrete tax impacts resulting from the Spin-Off and separation from GE.
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RewordedMD&A
Consolidated and Combined Statements of Income For the years ended December 31 2025 2024 2023 2022 Sales of products $ 13,661 $ 13,075 $ 13,127 $ 12,044 Sales of services 6,964 6,597 6,425 6,297 Total revenues 20,625 19,672 19,552 18,341 Cost of products 8,942 8,271 8,465 7,975 Cost of services 3,436 3,196 3,165 3,187 Gross profit 8,248 8,205 7,922 7,179 Selling, general, and administrative 4,225 4,269 4,282 3,631 Research and development 1,260 1,311 1,205 1,026 Total operating expenses 5,485 5,580 5,487 4,657 Operating income 2,763 2,625 2,435 2,522 Interest and other financial charges – net 440 504 542 77 Non-operating benefit (income) costs (288) (406) (382) (5) Other (income) expense – net (157) (55) (86) (62) Income from continuing operations before income taxes 2,768 2,581 2,361 2,512 Benefit (provision) for income taxes (614) (531) (743) (563) Net income from continuing operations 2,154 2,050 1,618 1,949 Income (loss) from discontinued operations, net of taxes — (4) 18 Net income 2,050 1,614 1,967 Net (income) loss attributable to noncontrolling interests (70) (57) (46) (51) Net income attributable to GE HealthCare $ 2,084 $ 1,993 $ 1,568 $ 1,916
RewordedMD&A
Cash generated from operating activities in the year ended December 31, 2024 2025 was $1,955 $1,987 million and included Net income from continuing operations of $2,050 $2,154 million, adjusted for non-cash charges primarily for items including depreciation and amortization expense of $580 $578 million, the gain on remeasurement of the NMP equity method investment of $97 million, and $675 $647 million in net outflows from incremental changes in assets and liabilities, primarily driven by company-funded benefit payments for postretirement benefit plans, an increase in receivables due to higher volume, and a build in inventories. liabilities.
RewordedMD&A
Cash used for investing activities in the year ended December 31, 2024 2025 was $914 $1,047 million and primarily included additions Additions to PP&E and internal-use software of $401 $482 million related mostly to investments in facilities, including manufacturing capacity expansion expansion, and new product introductions, purchases of businesses, net of cash acquired, of $313 $378 million largely related to the MIM Software Inc. acquisitions of the remaining 50% interest in NMP and 100% of the stock of icometrix NV (“icometrix”), and a payment of $178 million for settlement of cross-currency swaps that were designated as net investment hedges.
RewordedMD&A
Adjusted net income* was $1,797 $2,100 million, a decrease an increase of $306 $40 million primarily due to higher lower Interest and other financial charges – net, net and lower Adjusted tax expense*, partially offset by an increase a decrease in Operating Income, operating income when excluding the impact of one-time lower Spin-Off and separation costs, as discussed above. costs.
RewordedMD&A
Adjusted EBIT* and Adjusted EBIT margin* were $2,956 $3,155 million and 15.1%, an increase of $95 million but 15.3%, a decrease of 50 $56 million and 100 basis points, respectively, primarily due to an increase in Total revenues, offset by an increase in Total operating expenses, excluding the impact of one-time Spin-Off and separation costs, partially offset by an increase in Gross profit, as discussed above.
RewordedMD&A
The decrease increase as a percent of sales was driven by cost productivity, favorable unfavorable mix within our product service offerings, and cost inflation, including the impact of incremental tariffs, partially offset by an increase in pricing of our products, partially offset by cost inflation. service offerings.
RewordedMD&A
Investment revaluation (gain) loss(5) (112) 22 (1) 31 Adjusted EBIT* $ 3,155 $ 3,211 $ 2,956 $ 2,861 9% 3% (1.8)% Net income margin 10.1% 8.0% 10.4% 210 bps (240) 10.1% — bps Adjusted EBIT margin* 15.3% 16.3% 15.1% 15.6% 120 (100) bps (50) bps
RewordedMD&A
Adjusted Earnings Per Share* For the years ended December 31 (In dollars, except shares outstanding presented in millions) 2025 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 $ change $ change Diluted earnings per share – continuing operations $ 4.55 $ 4.34 $ 3.04 $ 4.18 $1.31 $ (1.14) $0.21 Add:
RewordedMD&A
The decrease increase as a percent of sales was driven by cost productivity inflation, including the impact of incremental tariffs, and an increase investment in pricing of our service offerings, design follow-through, partially offset by cost inflation. productivity.
RewordedMD&A
Adjusted EBIT* For the years ended December 31 2025 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 % change % change Net income attributable to GE HealthCare $ 2,084 $ 1,993 $ 1,568 $ 1,916 27% (18)% 4.6% Add:
RewordedMD&A
Adjusted Net Income* For the years ended December 31 2025 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 % change % change Net income attributable to GE HealthCare $ 2,084 $ 1,993 $ 1,568 $ 1,916 27% (18)% 4.6% Add:
RewordedMD&A
Foreign currency exchange (6) 21 — PCS PDx Organic revenue* $ 3,131 2,724 $ 3,142 —% PDx 2,504 8.8% Other revenues $ 2,508 40 $ 2,306 9% 52 (23.0)% Less:
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