GE HealthCare Technologies Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.88%.
Did GEHC Beat Earnings? Q1 2025 Results
GE HealthCare delivered a strong first quarter to open 2025, beating Wall Street expectations on both the top and bottom lines even as tariff pressures cast a shadow over the full year. Adjusted EPS came in at $1.01, clearing the $0.91 consensus estimate by 10.61%, while revenue of $4.78 billion grew 2.7% year over year and topped forecasts by 2.61%, driven by broad-based momentum across all four segments and particular strength in the U.S. market. A standout highlight was record organic orders growth of 10% year over year, with a book-to-bill ratio of 1.09x signaling durable demand. The company also completed its acquisition of Nihon Medi-Physics, expanding its radiopharmaceutical footprint in Japan. However, the quarter's optimism was tempered by a sharp guidance cut, with the company estimating roughly $500 million in tariff costs for 2025, predominantly tied to bilateral U.S.-China trade policy, reducing full-year adjusted EPS guidance to $3.90-$4.10 from a prior $4.61-$4.75, while organic revenue growth guidance remained unchanged at 2%-3%.
- Strength in the U.S. market drove overall revenue and orders growth
- Record 10% organic orders growth year-over-year with 1.09x book-to-bill ratio
- Volume and productivity improvements benefited both net income margin and Adjusted EBIT margin
- Lower interest expense and tax expense contributed to EPS improvement
- Gain on remeasurement of Nihon Medi-Physics equity method investment boosted GAAP earnings
“First quarter results reflect strong execution as we start the year with robust revenue, orders and profit growth, which were driven by strength in the U.S. We remain focused on delivering on our precision care and growth acceleration strategies, underscored by the closing of our acquisition of Nihon Medi-Physics, which we expect will increase global access to our next-generation radiopharmaceuticals. Regarding the current global trade environment, we are actively driving mitigation actions. We continue to see strong customer demand in many of the markets we serve and are well-positioned to drive long-term value as we invest in future innovation.”
GE HealthCare CEO, on the earnings call
Forward Guidance & Outlook
GE HealthCare updated its full-year 2025 guidance to reflect estimated tariff impacts: Organic revenue growth of 2%-3% (unchanged); Adjusted EBIT margin of 14.2%-14.4% (down from prior 16.7%-16.8%); Adjusted EPS of $3.90-$4.10 (down from $4.61-$4.75), including approximately $0.85 of tariff impact; Adjusted ETR of 21%-22% (down from 22%-23%); Free cash flow of at least $1.2 billion (down from at least $1.75 billion). Tariff assumptions include current bilateral U.S./China tariffs in place, USMCA exemptions continuing for Mexico and Canada, and U.S. reciprocal tariffs on rest of world returning to pre-pause levels on July 9, 2025, excluding potential Section 232 tariff impact.
GEHC YoY Financials
GEHC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.