GE HealthCare Technologies Inc

RESULTS OF OPERATIONS

The following tables set forth our results of operations for each of the periods presented.

TOTAL REVENUES AND RPO.

(1) Financial information not presented within the reportable segments, shown within the Other category, represents the HealthCare Financial Services business which does not meet the definition of an operating segment.

Total revenues were $4,650 million, decreasing 1% or $57 million as reported and approximately flat organically*. The reported decline was primarily due to Sales of products decreasing 3% or $86 million, primarily due to decreased volume following double digit reported product revenue growth in the prior year, which benefited from improved supply chain fulfillment and COVID-related demand.

The segment revenues were as follows:

•Imaging segment revenues were $2,466 million, decreasing 1% or $30 million following double digit Organic revenue growth* in the prior year, which benefited from improved supply chain fulfillment, and unfavorable foreign currency impacts;

•Ultrasound segment revenues were $824 million, decreasing 4% or $35 million primarily due to decreased volume following double digit Organic revenue growth* in the prior year, which benefited from improved supply chain fulfillment and COVID-related stimulus programs;

•PCS segment revenues were $747 million, decreasing 4% or $34 million primarily due to decreased volume driven by in-quarter fulfillment delays and following double digit Organic revenue growth* in the prior year, which benefited from COVID-related demand in China; and

•PDx segment revenues were $599 million, growing 7% or $41 million with growth in the USCAN and EMEA regions driven by increased price, growth in volume, and new product introductions.

The regional revenues were as follows:

•USCAN revenues were $2,093 million, flat to the prior year with growth in PDx revenues largely offset by declines in other segment revenues, following high single digit growth in the prior year, which benefited from improved supply chain fulfillment;

•EMEA revenues were $1,174 million, growing 1% or $6 million with growth in PDx and Imaging revenues largely offset by decreases in PCS and Ultrasound revenues.

•China region revenues were $597 million, decreasing 11% or $75 million with declines in all segment revenues following double digit growth in the prior year due to the regional stimulus program; and

•Rest of World revenues were $785 million, flat to the prior year due to unfavorable foreign currency impacts offset by growth in Imaging revenues.

RPO represents the estimated revenue expected from customer contracts that are partially or fully unperformed inclusive of amounts deferred in contract liabilities, excluding contracts, or portions thereof, that provide the customer with the ability to cancel or terminate without incurring a substantive penalty. RPO as of March 31, 2024 decreased 2% from December 31, 2023, primarily due to fulfillment and cancellations outpacing new contracts and renewals.

OPERATING INCOME, NET INCOME ATTRIBUTABLE TO GE HEALTHCARE, ADJUSTED EBIT*, AND ADJUSTED NET INCOME*.

Operating income was $540 million, a decrease of $19 million and 30 basis points as a percent of Total revenues. The decrease as a percent of Total revenues was due to the following factors:

•Gross profit increased $11 million or 70 basis points as a percent of Total revenues primarily due to a reduction in Cost of products sold. Cost of products sold decreased $70 million or 50 basis points as a percent of Sales of products. The decrease as a percent of sales was driven by cost productivity and an increase in pricing of our products, partially offset by cost inflation. Cost of services sold increased $3 million but decreased 70 basis points as a percent of Sales of services. The decrease as a percent of sales was driven by cost productivity and an increase in pricing of our service offerings, partially offset by cost inflation. Included in our total cost of revenue as part of our product investment was $101 million in engineering costs for design follow-through on new product introductions and product lifecycle maintenance subsequent to the initial product launch, compared to $110 million for theprior year comparable period; and

•Total operating expenses increased $30 million due to an increase in Research and Development (“R&D”) investments of $54 million, partially offset by a decrease in Selling, general, and administrative (“SG&A”) expense of $24 million primarily driven by corporate cost productivity, including Information Technology savings. As a result, R&D as a percentage of Total revenues increased by 120 basis points while SG&A as a percentage of Total revenues decreased by 20 basis points.

Net income attributable to GE HealthCare and Net income margin were $374 million and 8.0%, an increase of $2 million and 10 basis points, respectively, primarily due to the following factors:

•Operating income decreased $19 million, as discussed above;

•Interest and other financial charges – net decreased $14 million primarily driven by lower overall borrowings due to the repayments made on the Term Loan Facility;

•Non-operating benefit income decreased $13 million primarily related to lower amortization of net gains on our Pension Plans;

•Other income (expense) – net decreased $16 million primarily related to lower net financing and investment income; and

•Provision for income taxes decreased $39 million primarily due to prior year results impacted by an incremental charge for the accrual of withholding and other foreign taxes due upon future distribution of earnings. For additional detail regarding our income taxes, see Note 10, “Income Taxes” to the condensed consolidated financial statements.

Adjusted EBIT* and Adjusted EBIT margin* were $681 million and 14.7%, an increase of $17 million and 50 basis points, respectively, primarily due to a decrease in Total operating expenses, when excluding the impact of Restructuring and Spin-Off and separation costs.

Adjusted net income* was $413 million, an increase of $25 million primarily due to the decrease in Total operating expenses, when excluding the impact of Restructuring and Spin-Off and separation costs, and the decrease of Interest and other financial charges – net.