GE HealthCare Q1 2025 Earnings Summary

GE HealthCare delivered a solid first quarter in 2025 with both revenue and profit growth, despite tariff-related headwinds and lower free cash flow. Key results include:

- Revenue: $4.8 billion, up 3% year-over-year (4% organic growth)
- Adjusted EBIT: $715 million, up 5%; margin of 15.0% (up 30 basis points)
- Net income: $564 million, up from $374 million
- Diluted EPS: $1.23 (GAAP), up from $0.81; Adjusted EPS: $1.01, up 12%
- Free cash flow: $98 million, down from $274 million
- Book-to-bill ratio: 1.09, with record 10% organic order growth

Segment highlights:

- Imaging revenue rose 4% (5% organic), with EBIT margin improving to 9.3%
- Pharmaceutical Diagnostics revenue increased 6% (8% organic), with EBIT margin of 32.4%
- Advanced Visualization Solutions and Patient Care Solutions saw modest growth, with margin pressure in Patient Care

Strategic updates:

- GE HealthCare launched the new PET radiotracer Flyrcado and introduced new AI-enabled imaging systems
- Completed acquisition of Nihon Medi-Physics to expand radiopharmaceutical capabilities
- Board approved a $1 billion share repurchase program

Updated 2025 guidance (reflecting tariff impacts):

- Organic revenue growth: 2% to 3% (unchanged)
- Adjusted EPS: $3.90 to $4.10 (lowered from $4.61 to $4.75)
- Adjusted EBIT margin: 14.2% to 14.4% (down from prior guidance of 16.7% to 16.8%)
- Free cash flow: at least $1.2 billion (previously at least $1.75 billion)

GE HealthCare continues to focus on precision care, innovation, and global expansion, with particular strength in the U.S. market and growing demand for its advanced diagnostics and therapy solutions.