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 HealthCare Financial Services which does not meet the definition of an operating segment.

Total revenues were $4,863 million, growing 1% as reported and organically*. Sales of services increased 2% or $26 million primarily due to increased pricing, and Sales of products increased$15 million with strong growth in USCAN and PDx segment revenues largely offset by lower sales volume in China.

The segment revenues were as follows:

•Imaging segment revenues were $2,229 million, flat to the prior year and decreasing 1% organically* with lower sales volume in China, partially offset by an increase in USCAN sales volume;

•AVS segment revenues were $1,216 million, flat to the prior year, with an increase in sales volume in USCAN offset by lower sales volume in China;

•PCS segment revenues were $779 million, growing 2% or $15 million driven by backlog execution; and

•PDx segment revenues were $625 million, growing 6% or $36 million with growth in the USCAN and EMEA regions driven by growth in volume, an increase in price, and new product introductions.

The regional revenues were as follows:

•USCAN revenues were $2,246 million, growing 8% or $171 million with growth across all segment revenues, led by strong growth in PDx and Imaging revenues;

•EMEA revenues were $1,237 million, decreasing 1% or $12 million, following high single digit growth in the prior year, with declines in PCS and AVS revenues largely offset by increases in PDx revenues;

•China region revenues were $564 million, decreasing 22% or $155 million with current year sales impacted by the delayed 2024 stimulus and the ongoing anti-corruption campaign; and

•Rest of World revenues were $816 million, growing 5% or $37 million with growth in all segment revenues, partially offset by unfavorable foreign currency impacts.

Total revenues were $14,353 million, flat to the prior year as reported andgrowing 1%organically*. The flat result was due to Sales of products decreasing 1% or $76 million, primarily due to decreased volume following double digit reported product revenue growth in the prior year, offset by Sales of services increasing 2% or $83 million driven by increased pricing.

The segment revenues were as follows:

•Imaging segment revenues were $6,462 million, decreasing 1% or $90 million, following high single digit revenue growth in the prior year, with current year impacts from lower sales volume in China and unfavorable foreign currency headwinds;

•AVS segment revenues were $3,692 million, decreasing 1% or $20 million with lower sales volume in China and unfavorable foreign currency impacts, partially offset by an increase in sales volume in USCAN;

•PCS segment revenues were $2,298 million, decreasing 1% or $17 million primarily due to decreased volume following high single digit revenue growth in the prior year; and

•PDx segment revenues were $1,862 million, growing 9% or $147 million with growth in the USCAN and EMEA regions driven by growth in volume, an increase in price, and new product introductions.

The regional revenues were as follows:

•USCAN revenues were $6,582 million, growing 5% or $285 million with growth across all segment revenues;

•EMEA revenues were $3,617 million, flat to the prior year, following high single digit growth in the prior year, with growth in PDx revenues largely offset by decreases in Imaging and PCS revenues;

•China region revenues were $1,745 million, decreasing 17% or $360 million with declines in all segment revenues following double digit growth in the prior year due to the impact from the 2022 COVID stimulus programs, and current year sales impacted by the delayed 2024 stimulus and the ongoing anti-corruption campaign; and

•Rest of World revenues were $2,408 million, growing 4% or $97 million with growth in all segment revenues, partially offset by unfavorable foreign currency impacts.

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 right to cancel or terminate without incurring a substantive penalty. RPO as of September 30, 2024 decreased 1% from December 31, 2023, primarily due to product fulfillment and cancellations outpacing new contracts, partially offset by the timing of multi-year service contract renewals.

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

Operating income was $676 million, an increase of $59 million and 110 basis points as a percent of Total revenues. The increase was due to the following factors:

•Gross profit increased $91 million or 150 basis points as a percent of Total revenues primarily due to a reduction in Cost of products sold. Cost of products sold decreased $43 million or 170 basis points as a percent of Sales of products. The decrease as a percent of sales was driven primarily by cost productivity, partially offset by cost inflation. Cost of services sold decreased $6 million or 120 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 $102 million in engineering costs for design follow-through on new product introductions and product lifecycle maintenance subsequent to the initial product launch, compared to $101 million for theprior year comparable period; and

•Total operating expenses increased $32 million primarily due to an increase in Selling, general, and administrative (“SG&A”) expense of $38 million primarily driven by timing of certain costs and the favorable impact of a change in fair value of contingent consideration in the prior year, partially offset by a decrease in Research and Development (“R&D”) investments of $6 million. As a result, SG&A as a percentage of Total revenues increased by 60 basis points and R&D as a percentage of Total revenues decreased by 20 basis points.

Net income attributable to GE HealthCare and Net income margin were $470 million and 9.7%, an increase of $95 million and 190 basis points, respectively, primarily due to the following factors:

•Operating income increased $59 million, as discussed above;

•Interest and other financial charges – net decreased $8 million primarily driven by repayments made on the Term Loan Facility;

•Non-operating benefit income increased $8 million primarily due to the impact of the prior year curtailment loss for the GE HealthCare Pension Plan;

•Other income – net decreased $54 million primarily driven by favorable impacts in the prior year from both derivatives gains and the tax indemnification benefit received from GE; and

•Provision for income taxes decreased $82 million primarily due to incremental R&D benefits in the current year as well as non-recurring impacts of the Tax Matters Agreement (“TMA”) with GE in the prior year. For additional detail regarding our income taxes, see Note 10, “Income Taxes.”

Adjusted EBIT* and Adjusted EBIT margin* were $795 million and 16.3%, an increase of $51 million and 90 basis points, respectively, primarily due to an increase in Gross profit, partially offset by an increase in operating expenses.

Adjusted net income* was $521 million, an increase of $70 million primarily due to the increase in Gross profit and lower provision for income taxes, partially offset by an increase in operating expenses.

Operating income was $1,824 million, an increase of $78 million and 50 basis points as a percent of Total revenues. The increase was due to the following factors:

•Gross profit increased $164 million or 110 basis points as a percent of Total revenues primarily due to a reduction in Cost of products sold. Cost of products sold decreased $152 million or 110 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 decreased $5 million or 90 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 $305 million in engineering costs for design follow-through on new product introductions and product lifecycle maintenance subsequent to the initial product launch, compared to $321 million for theprior year comparable period; and

•Total operating expenses increased $86 million due to an increase in R&D investments of $77 million and an increase in SG&A expense of $9 million primarily driven by timing of certain costs and increased restructuring spend, partially offset by lower Spin-Off and separation costs. As a result, R&D as a percentage of Total revenues increased by 50 basis points and SG&A as a percentage of Total revenues increased by 10 basis points.

Net income attributable to GE HealthCare and Net income margin were $1,272 million and 8.9%, an increase of $107 million and 70 basis points, respectively, primarily due to the following factors:

•Operating income increased $78 million, as discussed above;

•Interest and other financial charges – net decreased $28 million primarily driven by repayments made on the Term Loan Facility;

•Non-operating benefit income decreased $26 million primarily related to lower amortization of net gains on our pension plans;

•Other income – net decreased $84 million primarily driven by favorable impacts in the prior year from both derivatives gains and the tax indemnification benefit received from GE; and

•Provision for income taxes decreased $115 million primarily due to non-recurring impacts of the TMA with GE in the prior year and 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.”

Adjusted EBIT* and Adjusted EBIT margin* were $2,217 million and 15.4%, an increase of $98 million and 70 basis points, respectively, primarily due to an increase in Gross profit, partially offset by investment in R&D.

Adjusted net income* was $1,393 million, an increase of $135 million primarily due to an increase in Gross profit and lower provision for income taxes, partially offset by investment in R&D.