GE Healthcare Reports Second Quarter Earnings

On Wednesday, GE Healthcare announced that its adjusted earnings for the second quarter of 2025 reached $1.06 per share, which surpasses the consensus estimate of 92 cents. This marks an increase from $1.00 during the same period last year.

The company reported sales of $5.01 billion, slightly above the expected consensus of $4.96 billion.

Year-over-year, revenues increased by 3%, with a 2% rise on an organic basis. This growth was mainly driven by strong performance in the U.S., as well as in regions including Europe, the Middle East, and Africa.

The total sales representative stood at 1.07 times, while corporate orders rose by 3% compared to last year.

GE Healthcare’s net profit margin improved to 9.7%, up from 8.9% in the previous year, reflecting an increase of 80 basis points due to taxes and interest.

The adjusted EBIT margin was reported at 14.6%, down from 15.3%, with the decline attributed to tariffs but somewhat balanced by productivity and volume gains.

Peter Arduini, the president and CEO, expressed satisfaction with the steady orders and revenue growth across segments, indicating strong customer investment in capital equipment.

Looking ahead, GE Healthcare is raising its adjusted earnings forecast for fiscal year 2025 from a previous range of $3.90-$4.10 per share to a new range of $4.43-$4.63 per share. This outlook factors in the impact of tariffs, estimated at about 45 cents.

The updated guidance reflects optimistic trends in capital investment and operational improvements, alongside changes in tariff rates. The adjusted EBIT margin is projected to be between 15.2% and 15.4%, which is a decrease of 90 to 110 basis points compared to the adjusted margin of 16.3% from 2024.

Additionally, the company anticipates free cash flow of at least $1.4 billion, an increase from the previous guidance of $1.2 billion.

Price Action: GEHC’s shares fell by 7.53% to $71.87 in the last check on Wednesday.