GE HealthCare Technologies Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.04%.
Did GEHC Beat Earnings? Q3 2025 Results
GE HealthCare navigated a tariff-pressured quarter with enough underlying momentum to edge past Wall Street expectations, posting Q3 2025 adjusted EPS of $1.07 against a consensus of $1.05, a beat of 2.21%, while revenue of $5.14 billion climbed 5.8% year over year and cleared estimates by 1.28%. The headline story, however, was the toll of trade costs: net income slipped to $446 million, or $0.98 per share, down from $470 million, or $1.02 per share, a year earlier, as tariffs carved out roughly $0.45 per share in adjusted EPS impact for the full year. Management was explicit that absent those headwinds, both margins and earnings would have grown. Bright spots included a 20% revenue surge in Pharmaceutical Diagnostics to $749 million and organic orders growth of 6% across all segments, with a book-to-bill ratio of 1.06x signaling durable demand. Looking ahead, GE HealthCare lifted the lower bound of its full-year adjusted EPS guidance to $4.51 from $4.43, narrowing the range to $4.51 to $4.63, while reaffirming organic revenue growth of approximately 3% and free cash flow of at least $1.4 billion.
- Revenue growth driven by strength in EMEA and the U.S.
- Imaging, Advanced Visualization Solutions, and Pharmaceutical Diagnostics drove revenue performance
- Organic orders growth of 6% across all segments
- Book-to-bill ratio of 1.06x indicating healthy demand
- Volume and price benefits partially offset tariff impacts
- Commercial execution leveraging broad portfolio and services
“We delivered robust orders with growth across all segments in the third quarter. This was led by customer demand for our differentiated solutions and a healthy capital equipment environment. Revenue performance was driven by Imaging, Advanced Visualization Solutions, and Pharmaceutical Diagnostics, and was ahead of our expectations. We continue to see momentum with commercial execution, where our teams leverage our broad portfolio and services, creating sustainable revenue and strengthening customer relationships. As a result of our increased R&D investments, we are entering a new wave of innovation and, coupled with our focus on lean, we expect to accelerate top and bottom line growth.”
GE HealthCare CEO, on the earnings call
Forward Guidance & Outlook
GE HealthCare raised the lower end of its full-year 2025 Adjusted EPS guidance range to $4.51–$4.63 (from $4.43–$4.63 previously), while reaffirming all other metrics: organic revenue growth of approximately 3% YoY, Adjusted EBIT margin of 15.2%–15.4%, Adjusted ETR of 20%–21%, and free cash flow of at least $1.4 billion. Guidance includes approximately $265 million in tariff impacts to Adjusted EBIT and $0.45 to Adjusted EPS. Tariff assumptions incorporate bilateral U.S.-China tariffs rising to 54%/34%, U.S. reciprocal rates on EU and Japan at 15%, Mexico at 30%, Canada at 35%, India at 50%, and Section 232 tariffs on copper, steel, and aluminum derivatives at 50%.
GEHC YoY Financials
GEHC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.