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Mar 31

GE HealthCare Q1 2025 Earnings Report

GE HealthCare delivered solid revenue and profit growth in Q1 2025, supported by U.S. strength and increased orders.

Key Takeaways

GE HealthCare reported a strong start to 2025 with 4% organic revenue growth and notable profit expansion, supported by robust U.S. demand and operational execution.

Revenue reached $4.777 billion, growing 3% year-over-year (4% organic).

Net income rose to $564 million, a significant increase from $374 million last year.

Adjusted EPS improved to $1.01, supported by higher EBIT and lower taxes.

Board authorized a $1 billion share repurchase program.

Total Revenue
$4.78B
Previous year: $4.65B
+2.7%
EPS
$1.01
Previous year: $0.9
+12.2%
Book-to-Bill Ratio
1.09
Net Income Margin
11.8%
Previous year: 8%
+47.5%
Adjusted EBIT Margin
15%
Previous year: 14.7%
+2.0%
Gross Profit
$2.01B
Previous year: $1.9B
+5.8%
Cash and Equivalents
$2.47B
Previous year: $2.56B
-3.5%
Free Cash Flow
$98M
Previous year: $274M
-64.2%
Total Assets
$33.6B
Previous year: $32.2B
+4.3%

GE HealthCare

GE HealthCare

GE HealthCare Revenue by Segment

GE HealthCare Revenue by Geographic Location

Forward Guidance

GE HealthCare reaffirmed 2%-3% organic revenue growth but lowered EBIT and EPS guidance due to tariffs.

Positive Outlook

  • Organic revenue growth guidance held steady at 2%–3%
  • Adjusted EPS outlook of $3.90 to $4.10
  • Adjusted ETR expected to improve to 21%-22%
  • Free cash flow expected to be at least $1.2 billion
  • Continued demand for imaging and diagnostics solutions

Challenges Ahead

  • Adjusted EBIT margin guidance lowered to 14.2%-14.4%
  • Full-year EPS forecast revised downward due to tariffs
  • Tariff impact estimated at ~$0.85 in EPS
  • Free cash flow guidance reduced from $1.75B to $1.2B
  • Global trade environment remains a risk factor

Revenue & Expenses

Visualization of income flow from segment revenue to net income